Political Bulletin

WASHINGTON NEWS

Sparring Begins Over Petraeus Report

With a month still to go before its release, the battle over Gen. David Petraeus' report on the Iraq surge is already heating up. The Washington Post reports on its front page that senior congressional aides on Wednesday said "the White House has proposed limiting the much-anticipated appearance on Capitol Hill next month of Gen. David H. Petraeus and Ambassador Ryan C. Crocker to a private congressional briefing, suggesting instead that the Bush administration's progress report on the Iraq war should be delivered to Congress by the secretaries of state and defense." The perceived "skirmishing" is portrayed as "an indication of the rising anxiety on all sides" in the lead-up to the presentation. Senate Foreign Relations Committee Chairman Joseph Biden "told the White House" that the plan "was unacceptable," while an aide to Senate Armed Services Committee Chairman Carl Levin said Levin "wants an open hearing" with Petraeus.

Also on Wednesday, the AP reports Petraeus "said he was preparing recommendations on troop reductions before he returns to Washington next month" to brief Congress. He predicted the "US footprint in Iraq would have to be 'a good bit smaller' by next summer." The CBS Evening News reports one military source "says Petraeus wants to start pulling out troops in December, bringing home one combat brigade a month so that by next June American troop strength will be back to the pre surge level of 130,000."

Death Toll In Northern Iraq Bombings Up The death toll from a series of suicide bombings in northern Iraq on Tuesday continued to rise, leading media outlets to cast the attacks as the deadliest attack in the nation since the war began. The CBS Evening News reported, "As the search...keeps turning up more bodies, the death toll is adding up to the worst terrorist attack of the entire war." Under the headline "Iraq Toll At 250 In The Deadliest Attack Of The War," the New York Times reports the death toll has "reached at least 250 dead and 350 wounded."

ABC World News reported that while "no one has claimed responsibility for the attacks," the US military "claims their planning and precision points to al Qaeda." The CBS Evening News also noted that the attack "comes just as the American military is claiming the troop surge is making real progress, particularly against al Qaeda. But al Qaeda still has the capability to hit where there are no American troops."

Bleak Prospects For Sunni-Shiite Reconciliation McClatchy reports that despite "US claims that violence is down in the Iraqi capital, US military officers are offering a bleak picture of Iraq's future, saying they've yet to see any signs of reconciliation between Sunni and Shiite Muslims despite the drop in violence."

The Christian Science Monitor reports, "With a mid-September deadline looming for the Bush administration to deliver its Iraq progress report to Congress, American diplomats in Baghdad are working in overdrive to prevent Prime Minister Nouri al-Maliki's government from total collapse -- something that could shatter all efforts to forge a long-elusive national reconciliation."

US Ups Ante Against Iranian Revolutionary Guards

The New York Times says that in its move "toward designating Iran's Islamic Revolutionary Guard Corps as a foreign terrorist organization, the Bush administration is adopting a more confrontational approach with Tehran, reflecting frustration with a stalled sanctions package at the United Nations Security Council." US officials "are worried that America's allies in imposing the sanctions - particularly Russia and China - have been slow to agree to increase the pressure and have balked at imposing tougher measures."

The Wall Street Journal adds that there is "a growing sense within the Bush administration that the best way to boost pressure on the Iranian government now lies outside of the United Nations." However, senior administration officials acknowledged that designating the Revolutionary Guard a terrorist organization "would have little impact unless Iran's key trading partners -- above all, China, Japan, Germany, France and Italy -- agree to lend support by isolating the Revolutionary Guard and its many business units." The Financial Times reports that Cliff Kupchan, an Iran expert at Eurasia Group, said the administration had "been 'outflanked on the right' by Congressional proposals to tighten sanctions on Iran that would include designating the Revolutionary Guard as a terrorist group." In a front page story, the Washington Times reports Iran's Revolutionary Guard Corps "represents a tempting target given its multibillion-dollar commercial empire."

Fox News Special Report reports, "The idea has been circulating for weeks on Capitol Hill. The Iran Counter-Proliferation Act, introduced in the Senate by Oregon Republican Gordon Smith, and in the House by California Democratic Congressman Tom Lantos, calls for the terrorist designation and has wide support from both sides of the aisle."

Move On Iran Said To Worry US Allies The Washington Post says US allies are "increasingly concerned about the Bush administration's plans to unilaterally escalate pressure on Iran, fearing that an evolving strategy may also set in motion a process that could lead to military action if Iran does not back down." While European and Arab governments "share deep concern about Iran's alleged nuclear ambitions," they "are particularly alarmed about new US moves," including designating the IRGC a terrorist organization.

Iran Arrests Chinese Tourists For Spying The New York Times reports, "Iran has arrested two Chinese citizens on charges of spying for taking pictures of a military complex in the central city of Arak, where Iran is building a nuclear reactor."

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NYPD Warns Of Homegrown Terrorist Threat

The CBS Evening News reported on the release of a study from the New York Police Department "with new insights into how terrorist cells develop." Recalling the '04 train bombings in Madrid and the '05 bombings in London, CBS says the "same kind of home-grown threat is a growing danger here. Sources say US law enforcement is watching scores of people exhibiting suspicious behavior, looking for signs of emerging terrorist cells." NYPD Commissioner Ray Kelly was shown saying, "It is something that we as local law enforcement are particularly concerned about. We've devoted a significant amount of resources to preventing an event here."

The Washington Post notes the NYPD's 90-page study "argues that the danger posed by homegrown radical Islamists is growing, fueled by Internet communications and the growing global popularity of jihadist ideology. But the report also concedes that 'there is no useful profile...to predict who will follow this trajectory of radicalization' because those who end up being radicalized begin as 'unremarkable' individuals 'from various walks of life.'"

The Washington Times says the study "lists 'incubators' such as mosques that become meeting places for homegrown terrorists, but says more likely places include cafes, cabstands, flophouses, prisons, student associations, nongovernmental organizations, hookah (water pipe) bars, butcher shops and bookstores. 'The Internet, with its thousands of extremist websites and chat-rooms, is a virtual incubator of its own.'"

The Los Angeles Times reports as an example of the "small group threat," officials "cite the case of Derrick Shareef," who allegedly plotted "to use hand grenades to attack holiday shoppers. Originally, authorities thought Shareef was a loner. Now, they allege that he was plotting with another American Muslim convert who allegedly had ties to terrorists in the United Kingdom."

The New York Times notes the NYPD report was "harshly criticized by civil libertarians and advocates for Arab-Americans." The Council on American-Islamic Relations said yesterday that the report's "sweeping generalizations" had the potential "to cast a pall of suspicion over the entire American Muslim population."

USA Today /AP notes Kareem Shora, legal adviser for the American-Arab Anti-Discrimination Committee, called the findings faulty and potentially inflammatory. Police 'paint such a broad brush,' Shora said. 'It plays right into the extremists' plans because it's going to end up angering the community.'"

Rumsfeld Resigned Day Before Elections

The Washington Post reports former Defense Secretary Donald Rusmfeld resigned "one day before last fall's elections, although President Bush did not announce the move until the day after the elections." The White House "confirmed on Wednesday that Rumsfeld's letter of resignation was dated Nov. 6, 2006, the day before voters -- many of them furious about the war in Iraq -- evicted Republicans from the leadership of the House and Senate."

Meanwhile, the CBS Evening News said Rumsfeld's resignation letter is "notable for what it doesn't contain. Rumsfeld refers to a critical time in our history and a challenging time for our country, but the two words he doesn't use: war or Iraq." The AP also reports on Rumsfeld's omissions, noting that "in fact, the deadly and much-criticized conflict that eventually drummed him out of office, comes up only in vague references."

Gillespie Seen Filling Void Left By Rove

The Washington Post reports President Bush has called on senior adviser Ed Gillespie for the 2000 Florida recount, as a Supreme Court nominee adviser, and with the departure of Karl Rove, Gillespie "has once again been asked to help fill the void." Though White House Chief of Staff Josh Bolten has "yet to decide how to distribute Rove's responsibilities," it "appears that Gillespie will emerge as the first among equals." Gillespie is "likely to be called on to handle political strategy and message management for the president, becoming the dominant voice in determining where and how often Bush appears and what he says during the final 17 months of his tenure."

Podesta Urges Bush To Keep Robust Agenda Former Clinton White House chief of staff John Podesta writes in the Washington Post that the Bush administration needs to "keep [its] agenda positive and robust" in the wake of Rove's departure, noting that it "seems bereft following losses on its big initiatives to privatize Social Security and reform immigration, and it is animated only when issuing veto threats against popular Democratic ideas such as the expansion of children's health insurance. That needs to change."

Stock Markets Erase 2007 Gains On Housing Concerns.

Wall Street's losses Wednesday received widespread media attention today. ABC World News reported the stock market "has taken another precipitous drop. Just three weeks ago, we were reporting on the Dow Jones average going over 14,000. Today it closed under 13,000 off 167 points today closing it at 12,861." ABC said markets reacted Wednesday afternoon to reports "that Countrywide Financial, the largest mortgage lender, was having trouble raising money," which "fed fears that credit conditions are getting worse."

NBC Nightly News reported the Dow has "lost almost 6% in just the last five trading days, suffering the biggest point drop in five years. The broader S&P 500 has now erased all of its gains for this year."

The CBS Evening News reported, "It is the summer of Wall Street's discontent. Still worried about the crisis in the credit markets, the Fed pumped more money into the banking system today to make more loan money available. But that didn't ease the stock market worries one bit."

USA Today noted market "worries about a possible bankruptcy filing at the USA's No. 1 mortgage lender became the latest news fanning fears of an impending debt crisis."

The New York Times reports an "analyst at Merrill Lynch who just days ago wrote approvingly of Countrywide Financial, the nation's largest and one of its most respected mortgage lenders, put a sell rating on the stock, speculating that the company could be forced to seek bankruptcy protection if it could not raise money from banks and investors." The Los Angeles Times and Wall Street Journal also note investors' concerns about Countrywide and KKR Financial Holdings, which is looking at a nearly $300 million loss on mortgage-backed bonds it holds.

Fed Could Cut Rates If Markets Worsen The AP reports though the Fed "has not lowered rates in more than four years," many economists, "while watching another wild day on Wall Street, said they believe the central bank would do just that in the weeks ahead if the market turmoil becomes severe enough."

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CAMPAIGN NEWS

Edwards Giving Up On Nevada?

The AP reports that John Edwards "is moving staff out of Nevada to focus on other early voting states as he deals with limited resources and uncertainty about the Western state's prominence in deciding the Democratic nomination. The Edwards campaign said Wednesday that the Nevada staffers were being relocated to New Hampshire, South Carolina and in particular Iowa, where he is hoping a victory will propel him to the nomination." In an interview with the AP, Edwards said, "I'm sure we'll continue to make adjustments of how many people we have in particular places depending on what the needs are at the moment, and we're going to compete very hard in Nevada. ... I will continue going there and competing very hard." The Las Vegas Review-Journal reports that while his campaign pulled some staffers out of Nevada, "Edwards will still have a staff here and two functioning offices, the campaign said; it's just that a few people were reassigned out of strategic necessity. But Edwards is sticking to a 'four-state strategy' that includes Nevada, hoping that winning the earliest contests will give him momentum to help him win more delegate-rich states later."

The New York Times quotes Edwards campaign spokesman Mark Kornblau saying "We're running very strong in Nevada," adding, "We've spent more time there than any other candidate. And we will continue to fight for every vote in Nevada."

However, the Reno Gazette-Journal reports, "Political analysts said" Edwards' "move jeopardizes his chances of winning Nevada's Jan. 19 caucus but might make sense given national variables." University of Nevada-Reno political scientist Eric Herzik, a Republican, "said the move is not insignificant. 'Cut through the double talk, and they're saying that, barring some major turnaround, they are going to focus instead on Iowa,' he said." And state Democratic spokeswoman Kirsten Searer said, "Any candidate who is not in Nevada presumably will be spending the bulk of his or her time on the East Coast. We think that if you can't win in the West, you can't win the presidency."

Giuliani, Romney Battle Over Immigration

Immigration reform is emerging as a major fault line between Rudy Giuliani and Mitt Romney. After Giuliani released a plan to sharply limit illegal immigration on Tuesday, Romney responded yesterday by criticizing Giuliani's record as NYC mayor. The Spartanburg Herald Journal reports Romney and Giuliani "have been feuding in the media the last few days on immigration. Giuliani on Tuesday promised to 'end' illegal immigration during a campaign stop in Aiken. 'Mayor Giuliani hopefully will explain why there's such a dramatic departure from his position as mayor, where he said he welcomed illegal aliens to New York, and that they would be in a zone of protection in New York City,' Romney told the Herald-Journal on Wednesday. 'His sanctuary city policy is one of the very problems that's led to 12 million or more illegal aliens coming into this country.'"

The AP reports that during a campaign stop in Atlanta, Romney said, "I don't know why Mayor Giuliani just won't say he made a mistake and that he's changing his mind." The Giuliani camp has fired back that as governor of Massachusetts Romney didn't punish sanctuary cities in the state."

Buffett Headlines Obama Fundraiser

The AP reports billionaire investor Warren Buffett co-hosted a fundraiser for Sen. Barack Obama in Omaha, Nebraska on Wednesday night, "and organizers say Obama made a valuable investment. 'I think his stock in Nebraska goes up from here,' said Omaha businessman Harley Schrager, who co-hosted the event with Buffet and others. ... Buffett hasn't endorsed a presidential candidate yet, but he said Wednesday that Obama 'is going to bring outstanding ideas to a new administration.' He's said previously he'd be happy with either" Obama or Sen. Hillary Clinton "and has also spoken favorably about the presidential prospects of New York Mayor Michael Bloomberg." Buffett "helped Clinton raise at least $1 million for her campaign at a June event in New York." The Chicago Tribune reports that Buffett, "can move markets with a few syllables and is increasingly trying to do the same in politics. ... 'He's not only a leader, but he can lead us to the right place,'" Buffett said of Obama, adding, "Barack is here to increase the abundance, but to spread it around a little more so that it is inclusive prosperity."

Bloomberg notes that Buffett "will hold another event for the Illinois senator this fall, though the specifics are still being determined, said Robert Gibbs, an Obama spokesman."

Thompson, Clinton Hold Narrow Leads In South Carolina

Campaigns & Elections reported on its website that a Public Policy Polling survey of 749 South Carolina Republican voters shows Fred Thompson leading the Republican presidential race with 22%, followed by Rudy Giuliani with 18%, Mitt Romney with 17%, Sen. John McCain with 11% and Mike Huckabee with 7%. On the Democratic side, the survey of 436 South Carolina Democratic voters shows Sen. Hillary Clinton leading with 36%, followed by Sen. Barack Obama with 33% and John Edwards with 12%. According to the survey, "Obama grabbed almost 55 percent of the black voters in the state," while "Clinton grabbed 29 percent of the black vote." The Greenville (SC) News adds, "The poll reflected a turnaround on the Democratic side, an easing of support for Thompson as his announcement date remained unclear, a significant gain for Giuliani, and a further slide for former front-runner McCain, compared with PPP's June poll. In the earlier survey, Obama led Clinton, 34-31, and Thompson had a double-digit lead, 27-16, over Romney. McCain was at 15 percent and Giuliani at 14 percent."

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POLITICAL HUMOR

The Latest From Late Night Comedians

Craig Ferguson: "The animal rights people" are "angry at Karl Rove. He is spending Labor Day dove hunting. ... Maybe they would feel better if they knew he was going hunting with Dick Cheney."

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