Sen. John McCain, appearing on ABC's This Week yesterday, took what the Washington Post is characterizing as his "most direct challenge yet" to Sen. Barack Obama's Iraq policy, charging that his decision-making on Iraq and the surge have been driven by personal political calculations. McCain said, "'m not questioning his patriotism. I'm questioning his actions. I'm questioning his total lack of understanding. ... I am saying that he made the decision, which was political, in order to help him get the nomination of his party. ... I say that it was very clear that a decision had to made, and I made it when it wasn't popular. He made a decision which was popular with his base." ABC World News reported that McCain also continued to condemn Obama's opposition to the surge, saying, "If we had done what Senator Obama wanted done, it would have been chaos, genocide, increased Iranian influence, perhaps al Qaeda establishing bases again."
McCain's continued assault on Obama generated some nightly news coverage for him last night. The CBS Evening News showed McCain saying, "He chose to take a political path that would have helped him get the nomination of his party." NBC Nightly News reported McCain "accused him of calling for a withdrawal of US troops from Iraq so he can win the Democratic nomination, even if it meant losing the war."
The New York Times says that McCain "seemed intent on limiting whatever benefit Mr. Obama might have gained from his [overseas] trip, which the Democratic candidate hoped would strengthen his claim to the foreign policy and security expertise demanded of a president."
On NBC's Meet the Press yesterday, Obama defended his stand on the surge, downplaying its impact and saying, "There's no doubt, and I've said this repeatedly, that our troops make a difference. ... But, for example, in Anbar Province, where we went to visit, the Sunni awakening took place before the surge started, and tribal leaders made a decision that, instead of fighting the Americans, we're going to work with the Americans against al Qaeda."
Hagel: McCain Is "Treading On Some Very Thin Ground" On CBS' Face the Nation, Nebraska Sen. Chuck Hagel (R), an opponent of the Iraq war, had some cautionary words for McCain, saying, "I think John is treading on some very thin ground here when he impugns motives, and when we start to get into 'you're less patriotic than me, I'm more patriotic.' I admire and respect John McCain very much. John's better than that. ... It's just not responsible to be saying things like that -- again, if for no other reason than for the good of this country and the world."
The AP reports John McCain's campaign on Saturday criticized Barack Obama for "canceling a visit to wounded troops in Germany, contending Sen. Obama chose foreign leaders and cheering Europeans over 'injured American heroes.'" A new McCain ad "that began airing Saturday in selected markets also chides Sen. Obama as disrespectful for making 'time to go to the gym' during his European visit while at the same time canceling the visit with wounded troops." The Politico reported over the weekend that in the 30-second ad, the narrator says, "Barack Obama never held a single Senate hearing on Afghanistan. He hadn't been to Iraq in years. He voted against funding our troops. And now, he made time to go to the gym, but cancelled a visit with wounded troops. Seems the Pentagon wouldn't allow him to bring cameras. John McCain is always there for our troops. McCain. Country first."
McCain looked to build on that theme yesterday on ABC's This Week, saying, "I know this, that those troops would have loved to have seen him. And I know of no Pentagon regulation that would have prevented him from going there -- without the media, and the press, and all of the associated people -- nothing that I know of would have kept him from visiting those wounded troops. And they are gravely wounded, many of them. ... I visited the hospital."
Sen. Claire McCaskill, on Fox News Sunday defended Obama, saying, "The most disappointing thing about this ad is that it's beneath John McCain, because he's playing political football with wounded soldiers. ... This is not fair to those wounded soldiers. Barack was told that because he was no longer on the congressional delegation part of his trip, it would be considered political, and there's a very bright line."
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USA Today reports John McCain on ABC's This Week, McCain said "he favors a proposed referendum in Arizona that would ban affirmative action, reversing a position he took a decade ago." It is the "latest example of McCain changing positions that had once put him at odds with conservative Republicans, including his new proposals to extend President Bush's tax cuts and expand offshore oil drilling." The AP reports the move drew criticism from Obama, who said, "I think in the past he had been opposed to these kinds of Ward Connerly referenda or initiatives as divisive. And I think he's right." The Chicago Tribune reports that Obama "told the UNITY '08 Convention for Journalists of Color that affirmative action will still be needed, even if the nation elects its first black president." Obama said that "ballot initiatives like the one being considered in McCain's home state are 'all too often designed to drive a wedge between people.'"
Black Vote Could Mean Big Boost For Obama Meanwhile, in a front-page story, the Washington Post reports that a central part of Obama's campaign strategy is a "national effort" in increase electoral participation "among the millions of Democratic-inclined Americans who have not been voting, particularly younger people and African Americans. The push began during the primaries but expanded this month to a nationwide registration drive led by 3,000 volunteers dispatched around the country." A big bump in African-American turnout "could well put Obama over the top in states where Democrats have come close in the past two elections, and could also help him retain the big swing states of Pennsylvania and Michigan."
Back in the US after his heavily-covered foreign swing, Sen. Barack Obama is set to "shift gears," as the Financial Times says, and turn his attention to economic issues, starting with a meeting with his economic team today. ABC World News said last night, "For all the attention lavished on his overseas trip, Senator Obama acknowledged that, for many Americans, bread and butter issues like the price of gas trump foreign affairs." The Christian Science Monitor says Obama's agenda "includes a second economic stimulus package and the high cost of energy." The AP adds that among those with whom he'll consult are "investor Warren Buffett, Eric Schmidt, chairman and CEO of Google, as well as former Federal Reserve chairman Paul Volcker."
The Washington Post reports that Obama started to work the transition from foreign policy to the economy last night, arguing during a speech to minority journalists that his foreign policy prescriptions had an economic upside. Obama said, "We can't keep spending $10 billion a month in Iraq, at a time when we have pressing needs here in the United States of America."
During his interview with NBC's Meet the Press yesterday, Barack Obama wouldn't give any hints about whom he was leaning towards as a running mate, but he did say, "I'm going to want somebody with independence, who's willing to tell me where he thinks or she thinks I'm wrong." The AP quips, "Funeral duty is not something that Barack Obama's vice president need worry much about, the presumptive Democratic nominee says."
Meanwhile, the New York Sun says Obama "is offering more clues" that he's not going to tap Sen. Hillary Clinton. Asked about what he was looking for in a running mate, Obama said he wants someone "who shares a vision of the country, where we need to go, that we've got to fundamentally change not only our policies, but how our politics works, how business is done in Washington." The Sun says that "description is significant because it matches the core argument" Obama "offered against Mrs. Clinton's candidacy to defeat her in the Democratic primary."
The two national tracking polls show that Barack Obama appears to be getting a bounce out of his foreign trip. The Gallup daily presidential tracking poll of 2,692 registered voters taken July 24-26 shows Obama leading John McCain 49%-40%. Obama's lead has widened for three consecutive days. The Rasmussen Report automated daily presidential tracking poll for July 27 shows Obama leading McCain 46%-41%. Including leaners, Obama leads McCain 49%-44%.
USA Today reports the "longest presidential election season in American history is about to enter its final stretch" with 100 days to go. USA adds some of the "customary rhythms of a presidential campaign were disrupted this year after the Summer Olympics were pushed back two weeks. That squeezed the end-of-summer interval for the political conventions and prompted the GOP to schedule the first major-party convention to take place after Labor Day." On ABC World News, Mark Halperin of Time magazine said, "This last hundred days, I think, is going to go very fast, for the country and for the candidates. Presidential elections are about big moments" and both have them coming up, such as VP announcements and convention speeches.
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The Wall Street Journal reports Republicans are "upping the ante on their bet that energy issues -- especially increased domestic oil production -- will be key to closing Democrats' imposing advantage with voters on the economy." President Bush this week will visit "Ohio and West Virginia...to draw attention to congressional inaction. Senate Republicans are planning a floor fight before August recess to try to win authorization for more production." The issue "could create an opening for Sen. John McCain in his battle with Sen. Barack Obama for the presidency." The Christian Science Monitor also says the offshore drilling ban is "one of only a few GOP issues that appears to be gaining widespread support among voters in an otherwise bleak campaign season." Roll Call says, "High gas prices might be decimating the economy, but they are proving to be just the tonic for House Republicans."
In addition, Roll Call reports Senate Majority Leader Harry Reid's "top two lieutenants have found themselves caught in an uncomfortable position during the chamber's debate on an oil market speculation bill as they sought to walk a line between following the will of the Democratic Conference and bowing to the wishes of powerful home-state constituencies." Majority Whip Dick Durbin (D-Ill.) and Democratic Conference Vice Chairman Charles Schumer (N.Y.) "represent Chicago's commodities dealers and Wall Street traders in New York, respectively." But in "crafting a leadership-driven bill to tamp down speculation in oil markets, the No. 2 and No. 3 Senate Democrats ended up on what some financial services industry lobbyists said was the wrong side of the issue."
Gasoline Prices Fall Below $4 The AP reports, "A national survey shows gas prices have dropped a fraction below the $4-dollar mark. The average price of regular gasoline at self-serve stations was $3.996 a gallon Friday." The Christian Science Monitor reports, "As of Sunday, the average price of gasoline was $3.94 a gallon, according to GasPriceWatch.com."
In a related item, the Wall Street Journal reports an "unprecedented cutback in driving is slashing the funds available to rebuild the nation's aging highway system and expand mass-transit options, underscoring the economic impact of high gasoline prices." Americans' cutback in gasoline use "means consumers are paying less in federal fuel taxes, which go largely to help finance highway and mass-transit systems. As a result, many such projects may have to be pared down or eliminated."
World Subsidies Helped Boost Oil Prices On its front page, the New York Times reports, "From Mexico to India to China, governments fearful of inflation and street protests are heavily subsidizing energy prices, particularly for diesel fuel. But the subsidies -- estimated at $40 billion this year in China alone -- are also removing much of the incentive to conserve fuel." In countries "with subsidies, demand is still rising steeply, threatening to outstrip the growth in global supplies."
In a front page story, the Washington Post reports, "Car ownership in China is exploding, and it's not only cars but also sport-utility vehicles, pickup trucks and other gas-guzzling rides." In "many developing countries," oil demand "is accelerating because of the spread of middle-class lifestyles and populist policies that subsidize fuel to keep it cheap. ... All this growth is more than offsetting the conservation measures taken in the United States, Europe and other industrialized nations."
Chipmakers Rush To Invest In Solar Power. USA Today reports, "Semiconductor companies are rushing into the solar power business faster than a Pentium-driven computer, promising to turn a niche form of renewable energy into a mass-market product." By "replicating the chip industry's high-volume automated manufacturing, tech companies can deliver solar at prices competitive with grid power faster than the industry's current 2010-15 target, he says."
The Financial Times reports Democrats have "called on the White House to quickly enact the housing legislation passed by the US Senate over the weekend. The call came after an administration official signalled that it could take as long as a year to implement regulations meant to help some 400,000 homeowners facing possible foreclosures." President Bush "is expected to sign the housing legislation into law early this week after it passed the Senate by a 72-13 majority in a rare Saturday vote."
The Wall Street Journal says "top Democrats already are putting pressure on regulators and bankers to make sure a major program to prevent foreclosures doesn't fall flat." If "successful, the program could put a dent in the rising foreclosure figures as interest rates on adjustable-rate loans continue to increase while house prices in many areas slip." The provision in question "would let roughly 400,000 owners refinance into affordable, government-backed loans." In its analysis of the bill, USA Today reports, "Not since the National Housing Act of 1934 has legislation addressed a class as large as homeowners, without restricting the benefits to veterans, urban dwellers or low-income people."
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The Wall Street Journal reports the US economy may appear to be in a recession because "house prices are tumbling," the "the job market is faltering, gasoline is about $4 a gallon and financial markets are struggling through their worst shock in decades." But the "US economy is expanding. It is likely to show a growth rate of more than 2% at an annual rate when the government gives its first estimate of the second-quarter performance Thursday." The Journal adds, "The continued growth raises a key question: Could this be the first...recession without a decline in economic output?"
Tax Rebates Seen As Having Little Effect Under the headline "Tax Rebate Checks Are Swallowed By Economic Malaise," the Los Angeles Times reports on its front page, "It is better than nothing. That has been the subdued mantra repeated by working Americans in recent weeks as they spend the Bush administration's final tax rebate in an economy racked by soaring gasoline costs, housing foreclosures, toppling banks and Wall Street jitters." The rebates "are the centerpiece of a $168-billion economic stimulus package that President Bush signed in February."
Some Manufacturing Returns To US The Washington Times reports that the "gap between the cost to produce goods in the United States or to produce them abroad has narrowed, thanks to a decrease in China's competitive advantage." The "Chinese yuan has appreciated 18 percent against the dollar in the past three years," and "Chinese wages have more than doubled over the past five years." Additionally, "the Chinese government has lowered or eliminated tax breaks on exports." Along with the "rise in oil prices, these factors have caused many manufacturers to consider or begin bringing production back to the U.S."
Budget Deficit Could Be Record USA Today reports the White House has "increased its estimate for next year's deficit to nearly $490 billion, a record figure that will saddle the next president with deepening budget problems in his first year in office, a report due out Monday shows." The projected deficit "is being driven higher by the continuing economic slowdown and larger-than-anticipated costs of the two-year, $168 billion fiscal stimulus package passed by Congress, said two senior administration officials with direct knowledge of the report."
The Financial Times reports that when Pakistani Prime Minister Yusuf Raza Gilani "meets George W. Bush in the Oval Office on Monday, he hopes to receive support for his fragile government. But the new Pakistani prime minister will also face demands from the US president on counter-terrorism." The US "believes Islamabad should focus on the increased ability of al-Qaeda and Taliban extremists to operate freely in the lawless tribal areas along the border with Afghanistan."
The Wall Street Journal reports the two leaders today "will discuss a Pakistani counterterrorism strategy that might be dubbed 'War and Peace.'" Pakistani leaders "appear determined to squash an Islamist militancy that has deepened political and economic instability," but "local officials allied with the new government in Islamabad have struck a patchwork of peace deals with pro-Taliban warlords. Those deals, critics say, have emboldened the militants and provided a haven from which to launch attacks" on coalition forces in Afghanistan. Bloomberg News notes the US "blames" the Pakistani "coalition government's less aggressive approach for increased Taliban and al-Qaeda attacks on American forces in neighboring Afghanistan."
Pakistani Terror Training Camp Described. The Pakistani armed forces may not be able to find and destroy the militant camps in their territory, but the Wall Street Journal has. The Journal reports from Pakistan, "Here in the remote mountains of Pakistan, a deep, mostly dry riverbed has been turned into a training camp where about two dozen young men, most in their teens, receive rigorous training for the war against NATO troops in neighboring Afghanistan. ... The camp is just a few miles from Peshawar, the regional capital of Pakistan's conservative tribal belt. The existence of the camp and dozens like it is a major reason why the US-led war in Afghanistan, just across the border, is foundering."
Militants Slain Near Afghan Border The AP reports, "About 100 insurgents raided a government center Sunday near the border with Pakistan, and more than two dozen of the attackers were killed in the battle, authorities said." Two Afghani policemen were also killed, the AP reports. US "troops and aircraft assisted Afghan forces during the battle in Spera district of eastern Khost province." AFP also reports on the incident.
Meanwhile, the AP reports, "Suspected tribal insurgents ambushed a security forces patrol in southwest Pakistan, and three troops and 15 militants were killed in the fighting," an official said Sunday.
Taliban Succeeds In Terrorizing Kabul Newsweek reports that the Taliban is "closing in on Kabul, not in order to overrun the capital but to terrorize its residents and drive away investors. It's working." A "series of spectacular recent terrorist incidents have shaken Kabul, a city that is all too familiar with violence."
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Jay Leno: "I guess you've heard" that Barack Obama was "elected chancellor of Germany."
Jay Leno: "The Coast Guard closed over 100 miles of the Mississippi River after an oil spill of over 400,000 gallons of oil. The Federal government leaped into action...within 30 minutes of the spill. ... How does this make the people of New Orleans feel, huh? They get wiped out by Hurricane Katrina, it takes FEMA, what, six days to show up? A barrel of oil spills, the White House goes, 'No!' And they're down there."
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