English subtitles for clip: File:7-18-12- White House Press Briefing.webm

1
00:00:00,467 --> 00:00:03,900
Mr. Carney:
Welcome, everybody, to the White
House for your daily briefing.

2
00:00:03,900 --> 00:00:07,667
As I think you had
advanced warning of,

3
00:00:07,667 --> 00:00:11,700
I have with me today the
Secretary of Agriculture,

4
00:00:11,700 --> 00:00:13,533
Tom Vilsack.

5
00:00:13,533 --> 00:00:17,467
As you know, he briefed the
President today on the drought

6
00:00:17,467 --> 00:00:20,933
that is affecting a significant
portion of the country.

7
00:00:20,934 --> 00:00:22,867
The President asked
for this briefing.

8
00:00:22,867 --> 00:00:28,433
And I asked that Secretary
Vilsack join me here today

9
00:00:28,433 --> 00:00:33,834
to give you an update and to
take your questions on issues

10
00:00:33,834 --> 00:00:35,300
surrounding the drought.

11
00:00:35,300 --> 00:00:40,132
If you could, as
is past practice,

12
00:00:40,133 --> 00:00:41,900
hear Secretary
Vilsack's presentation,

13
00:00:41,900 --> 00:00:44,734
then ask questions
that you have for him.

14
00:00:44,734 --> 00:00:49,200
I will, of course, remain here
ready to take your questions on

15
00:00:49,200 --> 00:00:50,200
other subjects.

16
00:00:50,200 --> 00:00:52,667
And with that, I give
you Secretary Vilsack.

17
00:00:52,667 --> 00:00:53,700
Secretary Vilsack:
Jay, thanks very much.

18
00:00:53,700 --> 00:00:56,433
I did have an opportunity
to visit with the President.

19
00:00:56,433 --> 00:01:01,600
He is very well informed on the
circumstances surrounding a very

20
00:01:01,600 --> 00:01:04,400
serious drought -- the most
serious situation we've had

21
00:01:04,400 --> 00:01:07,567
probably in 25 years
-- across the country.

22
00:01:07,567 --> 00:01:09,866
Sixty-one percent of the land
mass of the United States is

23
00:01:09,867 --> 00:01:13,800
currently being characterized as
being impacted by this drought.

24
00:01:13,800 --> 00:01:15,834
And our hearts go
out to the producers,

25
00:01:15,834 --> 00:01:18,700
the farm families who are
struggling through something

26
00:01:18,700 --> 00:01:21,367
that they obviously have no
control over and trying to deal

27
00:01:21,367 --> 00:01:24,433
with a very difficult
circumstance.

28
00:01:24,433 --> 00:01:27,433
There's no question that this
drought is having an impact on

29
00:01:27,433 --> 00:01:31,500
our crops: 78 percent of the
corn crop is now in an area

30
00:01:31,500 --> 00:01:35,834
designated as drought impacted;
77 percent of the soybeans that

31
00:01:35,834 --> 00:01:38,367
are being grown in this
country also impacted.

32
00:01:38,367 --> 00:01:41,867
It also obviously involves
other commodities as well --

33
00:01:41,867 --> 00:01:45,300
38 percent of our corn crop as
of today is rated poor to very

34
00:01:45,300 --> 00:01:49,265
poor; 30 percent of our
soybeans poor to very poor.

35
00:01:49,266 --> 00:01:52,266
And this obviously will have
an impact on the yields.

36
00:01:52,266 --> 00:01:56,233
Right now we have indicated
yields will be down about 20

37
00:01:56,233 --> 00:01:59,834
bushels to the acre for
corn and about 3 bushels

38
00:01:59,834 --> 00:02:01,600
to the acre for beans.

39
00:02:01,600 --> 00:02:04,000
That may be adjusted
upward or downward as

40
00:02:04,000 --> 00:02:06,533
weather conditions dictate.

41
00:02:06,533 --> 00:02:11,533
This will result in significant
increases in prices.

42
00:02:11,533 --> 00:02:14,934
For corn, we've seen a 38
percent increase since June 1st,

43
00:02:14,934 --> 00:02:18,033
and the price of a bushel
of corn is now at $7.88.

44
00:02:18,033 --> 00:02:22,367
A bushel of beans
have risen 24 percent.

45
00:02:22,367 --> 00:02:24,700
This administration has taken
quick action to try to provide

46
00:02:24,700 --> 00:02:26,100
help and assistance.

47
00:02:26,100 --> 00:02:27,799
At the instructions
of the President,

48
00:02:27,800 --> 00:02:30,800
the first thing we did was
to streamline the disaster

49
00:02:30,800 --> 00:02:34,233
declaration system and process,
reducing the amount of time it

50
00:02:34,233 --> 00:02:36,834
takes to have a
county designated.

51
00:02:36,834 --> 00:02:38,900
That means that producers in
those counties and adjoining

52
00:02:38,900 --> 00:02:42,533
counties are able to
access low-interest loans.

53
00:02:42,533 --> 00:02:45,533
The President instructed us
to reduce the interest rate

54
00:02:45,533 --> 00:02:50,899
on those loans from 3.75
percent to 2.25 percent.

55
00:02:50,900 --> 00:02:54,300
He also instructed us to open up
new opportunities for haying and

56
00:02:54,300 --> 00:02:57,066
grazing -- our livestock
producers are in deep trouble

57
00:02:57,066 --> 00:02:59,233
because of the drought.

58
00:02:59,233 --> 00:03:02,233
They don't have anyplace
for their cattle.

59
00:03:02,233 --> 00:03:05,166
They are looking at
very high feed costs.

60
00:03:05,166 --> 00:03:08,500
So we are opening up areas under
the Conservation Reserve Program

61
00:03:08,500 --> 00:03:11,367
for emergency
haying and grazing.

62
00:03:11,367 --> 00:03:14,333
Normally when that happens,
producers have to return a

63
00:03:14,333 --> 00:03:18,466
portion of the CRP
payment that they receive.

64
00:03:18,467 --> 00:03:20,967
We've reduced the portion that
they have to return from 25

65
00:03:20,967 --> 00:03:24,567
percent to 10 percent.

66
00:03:24,567 --> 00:03:27,467
Our tools are somewhat limited
and so we're going to need to

67
00:03:27,467 --> 00:03:31,467
work with Congress to provide
opportunities either through the

68
00:03:31,467 --> 00:03:35,500
passage of the Food, Farm and
Jobs bill or through additional

69
00:03:35,500 --> 00:03:38,667
disaster programs, or perhaps
additional flexibility in the

70
00:03:38,667 --> 00:03:42,166
Commodity Credit Corporation to
provide help and assistance to

71
00:03:42,166 --> 00:03:44,066
our farmers.

72
00:03:44,066 --> 00:03:47,000
The question that a lot of folks
are asking is what will the

73
00:03:47,000 --> 00:03:48,900
impact be on food prices.

74
00:03:48,900 --> 00:03:52,300
Because livestock producers will
begin the process of potentially

75
00:03:52,300 --> 00:03:55,600
reducing their herds in
light of higher feed costs,

76
00:03:55,600 --> 00:04:00,466
we would anticipate in the short
term actually food prices for

77
00:04:00,467 --> 00:04:04,033
beef, poultry, pork
may go down a bit,

78
00:04:04,033 --> 00:04:05,533
but over time they will rise.

79
00:04:05,533 --> 00:04:10,600
We will probably see those
higher prices later this year,

80
00:04:10,600 --> 00:04:12,600
first part of next year.

81
00:04:12,600 --> 00:04:17,767
Processed foods obviously
impacted by crop yields,

82
00:04:17,767 --> 00:04:23,500
and we will likely see the
increase of that also in 2013.

83
00:04:23,500 --> 00:04:27,233
It's important to note that
farmers only receive 14 cents of

84
00:04:27,233 --> 00:04:29,767
every food dollar that goes
through the grocery store,

85
00:04:29,767 --> 00:04:32,166
so even though prices
on commodities increase

86
00:04:32,166 --> 00:04:34,800
significantly, it doesn't
necessarily translate into large

87
00:04:34,800 --> 00:04:36,600
increases for food prices.

88
00:04:36,600 --> 00:04:39,000
And if, in fact, people are
beginning to see food price

89
00:04:39,000 --> 00:04:41,900
increases now, it is not
in any way, shape, or form,

90
00:04:41,900 --> 00:04:43,066
related to the drought.

91
00:04:43,066 --> 00:04:46,633
And we should be very careful to
keep an eye on that to make sure

92
00:04:46,633 --> 00:04:49,366
that people do not take
advantage of a very difficult

93
00:04:49,367 --> 00:04:51,700
and painful situation.

94
00:04:51,700 --> 00:04:54,767
There is some degree of
uncertainty about all of this.

95
00:04:54,767 --> 00:04:56,933
Technology has allowed
us to have more

96
00:04:56,934 --> 00:04:58,800
drought-resistant crops.

97
00:04:58,800 --> 00:05:02,800
The spotty nature of drought,
the spotty nature of rains can

98
00:05:02,800 --> 00:05:06,233
sometimes result in better
yields than anticipated.

99
00:05:06,233 --> 00:05:08,200
We're just going to have to see.

100
00:05:08,200 --> 00:05:13,332
As of today, 1,297 counties have
been designated as Secretarial

101
00:05:13,333 --> 00:05:15,066
Disaster Areas.

102
00:05:15,066 --> 00:05:16,799
That's approximately a
third of the counties in

103
00:05:16,800 --> 00:05:18,166
the United States.

104
00:05:18,166 --> 00:05:21,633
We're adding 39 counties today
in eight states -- those states

105
00:05:21,633 --> 00:05:27,000
are New Mexico, Tennessee, Utah,
Wyoming, Arkansas, Indiana,

106
00:05:27,000 --> 00:05:28,967
Georgia, and Mississippi.

107
00:05:28,967 --> 00:05:32,567
We have staff that is now
traveling to 12 states

108
00:05:32,567 --> 00:05:35,633
significantly impacted by
the drought in order to get a

109
00:05:35,633 --> 00:05:39,532
firsthand look at conditions,
and we'll do everything we

110
00:05:39,533 --> 00:05:40,767
possibly can to help folks.

111
00:05:40,767 --> 00:05:43,233
But we're obviously
going to need some help,

112
00:05:43,233 --> 00:05:46,200
working with Congress, to create
greater flexibility in programs,

113
00:05:46,200 --> 00:05:49,300
to revive the disaster programs
that were allowed to expire last

114
00:05:49,300 --> 00:05:53,233
year, or to pass a Food,
Farm and Jobs bill.

115
00:05:53,233 --> 00:05:55,000
Jay, with that --

116
00:05:55,000 --> 00:05:56,300
Mr. Carney:
Yes. Ben.

117
00:05:56,300 --> 00:05:57,567
The Press:
Thank you. Thank
you, Mr. Secretary.

118
00:05:57,567 --> 00:05:58,233
Two questions.

119
00:05:58,233 --> 00:06:00,667
To follow up on the point you
just made about your tools are

120
00:06:00,667 --> 00:06:04,500
limited, is there a specific
amount of aid that you'll be

121
00:06:04,500 --> 00:06:05,667
seeking from Congress?

122
00:06:05,667 --> 00:06:09,866
Secretary Vilsack:
It's very difficult to pinpoint
that with specificity because we

123
00:06:09,867 --> 00:06:11,667
don't really know what
the impact could be.

124
00:06:11,667 --> 00:06:14,599
For example, based on our
current estimates today,

125
00:06:14,600 --> 00:06:17,333
the corn crop would still be the
third largest corn crop in the

126
00:06:17,333 --> 00:06:18,233
United States history.

127
00:06:18,233 --> 00:06:19,834
And the reason for that is
because there were more acres

128
00:06:19,834 --> 00:06:21,734
planted at the
beginning of the year.

129
00:06:21,734 --> 00:06:26,734
So we just have to wait to see
what our yields are going to be.

130
00:06:26,734 --> 00:06:29,633
In the meantime, though, we can
create a structure and system,

131
00:06:29,633 --> 00:06:32,500
either through a revival of
disaster programs or passage of

132
00:06:32,500 --> 00:06:35,934
the Food, Farm and Jobs bill
that contains some relief for

133
00:06:35,934 --> 00:06:38,500
livestock producers, or
some flexibility in CCC,

134
00:06:38,500 --> 00:06:42,000
so we're prepared to move as
soon as we know precisely what

135
00:06:42,000 --> 00:06:43,667
the impact is going to be.

136
00:06:43,667 --> 00:06:47,200
Crop producers have the ability
to utilize crop insurance,

137
00:06:47,200 --> 00:06:49,933
and for the most part,
crop insurance will provide

138
00:06:49,934 --> 00:06:55,233
historically about 72 percent
coverage of yields and revenue loss.

139
00:06:55,233 --> 00:06:58,300
But it's the livestock producers
that are in the biggest and most

140
00:06:58,300 --> 00:07:01,400
troubled situation because they
simply don't have any disaster

141
00:07:01,400 --> 00:07:03,133
program and there's no such
thing as a crop insurance

142
00:07:03,133 --> 00:07:06,500
program for livestock producers.

143
00:07:06,500 --> 00:07:07,367
The Press:
I just have one other question.

144
00:07:07,367 --> 00:07:11,767
You gave us some specific
numbers about crops and prices,

145
00:07:11,767 --> 00:07:14,834
but this drought is obviously
happening at a very difficult

146
00:07:14,834 --> 00:07:16,433
time for the whole
country and the economy.

147
00:07:16,433 --> 00:07:19,834
Can you give us a macro sense
of how this drought could affect

148
00:07:19,834 --> 00:07:20,867
the economy?

149
00:07:20,867 --> 00:07:23,734
Secretary Vilsack:
Well, right now, the rural
economy is one of the bright

150
00:07:23,734 --> 00:07:25,799
spots in the economy.

151
00:07:25,800 --> 00:07:27,400
We're seeing record
farm exports;

152
00:07:27,400 --> 00:07:29,500
we're seeing expansion
of new markets;

153
00:07:29,500 --> 00:07:32,333
we're seeing development of a
bio-based economy with record

154
00:07:32,333 --> 00:07:33,734
amounts of biofuel
being produced;

155
00:07:33,734 --> 00:07:36,433
and we're seeing outdoor
recreation opportunities take

156
00:07:36,433 --> 00:07:39,633
off because of more acres in
rural and conservation programs.

157
00:07:39,633 --> 00:07:43,000
So it's a little difficult to
say what the macro impact will be.

158
00:07:43,000 --> 00:07:45,433
One out of every 12 jobs in the
economy is connected in some

159
00:07:45,433 --> 00:07:48,066
way, shape, or form, to
what happens on the farm.

160
00:07:48,066 --> 00:07:50,799
We're actually seeing farm
implement -- up to this point,

161
00:07:50,800 --> 00:07:53,600
we saw an increase in farm
implement manufacturing and

162
00:07:53,600 --> 00:07:54,834
shipments at record levels.

163
00:07:54,834 --> 00:07:58,834
Obviously, this drought
will provide some degree of

164
00:07:58,834 --> 00:08:01,734
uncertainty, but the most
important thing is for Congress

165
00:08:01,734 --> 00:08:05,200
to take action to provide some
direction and assistance so that

166
00:08:05,200 --> 00:08:07,265
folks know what's
going to happen,

167
00:08:07,266 --> 00:08:09,100
what kind of protection
they're going to have.

168
00:08:09,100 --> 00:08:10,767
That certainty is
really important.

169
00:08:10,767 --> 00:08:13,834
And that's whether they want
to get to work on the Food,

170
00:08:13,834 --> 00:08:16,667
Farm and Jobs bill, they want
to develop a separate disaster

171
00:08:16,667 --> 00:08:18,933
program or an extension
of existing programs,

172
00:08:18,934 --> 00:08:22,567
whatever it might be -- having
that done as soon as possible

173
00:08:22,567 --> 00:08:26,300
will be quite helpful.

174
00:08:26,300 --> 00:08:28,233
The Press:
Mr. Secretary, two questions.

175
00:08:28,233 --> 00:08:32,834
Number one, you mentioned farm
exports as being a bright spot.

176
00:08:32,833 --> 00:08:35,433
Do you have any sort of
estimates on the amount of

177
00:08:35,433 --> 00:08:38,667
reduction on exports for
corn and soybeans now,

178
00:08:38,667 --> 00:08:41,934
given the drought
situation -- even a range?

179
00:08:41,933 --> 00:08:46,600
And second, will there be any
EPA assessment of the mandate

180
00:08:46,600 --> 00:08:49,700
using corn for ethanol?

181
00:08:49,700 --> 00:08:51,900
Secretary Vilsack:
There's no need to go to the
EPA at this point in time.

182
00:08:51,900 --> 00:08:56,199
Based on the quantity of ethanol
that's currently in storage,

183
00:08:56,200 --> 00:09:00,500
there's no problem in that
area at this point in time.

184
00:09:00,500 --> 00:09:04,467
On exports, we would anticipate
and expect they would be reduced.

185
00:09:04,467 --> 00:09:07,800
But again, the area and the
amount of reduction depends on

186
00:09:07,800 --> 00:09:10,132
what the yields are, and I won't
know what those are until we,

187
00:09:10,133 --> 00:09:12,266
in fact, harvest the crop.

188
00:09:12,266 --> 00:09:16,533
Based on what we have today, I
would anticipate and expect a

189
00:09:16,533 --> 00:09:23,133
small decline, but that could
be changed next week if the crop

190
00:09:23,133 --> 00:09:26,300
conditions continue to worsen,
or it could be improved if we

191
00:09:26,300 --> 00:09:28,766
get the right rain in the right
places at the right time and the

192
00:09:28,767 --> 00:09:30,667
right amount.

193
00:09:30,667 --> 00:09:34,667
The Press:
Secretary Vilsack, going back
to the issue of crop insurance,

194
00:09:34,667 --> 00:09:38,367
I was told that crop
insurance is very expensive,

195
00:09:38,367 --> 00:09:42,065
with the premium, maybe for
some farmers, $15,000 a year.

196
00:09:42,066 --> 00:09:45,800
What happens to those farmers
who cannot afford the crop insurance?

197
00:09:45,800 --> 00:09:50,032
Those small, minority, women
farmers who just can't afford it

198
00:09:50,033 --> 00:09:52,066
-- what is in place or what are
you talking about putting in

199
00:09:52,066 --> 00:09:55,734
place to help them in the midst
of this drought situation?

200
00:09:55,734 --> 00:09:57,533
Secretary Vilsack:
That's why the President was so
insistent on taking a look at

201
00:09:57,533 --> 00:09:59,333
the interest rate on the
emergency loan program

202
00:09:59,333 --> 00:10:00,900
that we have.

203
00:10:00,900 --> 00:10:04,367
And that basically reduces -- it
provides emergency loans to get

204
00:10:04,367 --> 00:10:06,666
people through a
tough period of time.

205
00:10:06,667 --> 00:10:09,233
And the interest rate was
reduced from 3.75 percent to

206
00:10:09,233 --> 00:10:13,000
2.25 percent for those producers
who are located in counties that

207
00:10:13,000 --> 00:10:15,400
have been designated
as a disaster area.

208
00:10:15,400 --> 00:10:18,367
So the emergency loan
is one opportunity.

209
00:10:18,367 --> 00:10:21,132
The second opportunity for those
producers would be a situation

210
00:10:21,133 --> 00:10:24,800
where Congress would provide
for a revival of the disaster

211
00:10:24,800 --> 00:10:26,367
programs that expired.

212
00:10:26,367 --> 00:10:29,233
We had a program last year
called SURE that provided

213
00:10:29,233 --> 00:10:32,132
supplemental protection;
livestock producers had a

214
00:10:32,133 --> 00:10:35,667
livestock indemnity program --
they could bring those back.

215
00:10:35,667 --> 00:10:37,600
So they could create
opportunities within the

216
00:10:37,600 --> 00:10:39,667
Commodity Credit Corporation
for us to provide financial

217
00:10:39,667 --> 00:10:41,066
assistance to those farmers.

218
00:10:41,066 --> 00:10:42,767
So there's a whole
series of options.

219
00:10:42,767 --> 00:10:46,266
But right now, the only option
we have is to reduce the

220
00:10:46,266 --> 00:10:49,800
interest rate on the emergency
loan and make sure that haying

221
00:10:49,800 --> 00:10:51,632
and grazing is available
to livestock producers.

222
00:10:51,633 --> 00:10:52,734
The Press:
So what are you
doing to make sure,

223
00:10:52,734 --> 00:10:55,367
to ensure -- because right now
you're still dealing with a lot

224
00:10:55,367 --> 00:10:59,500
of minority, Indian, and
women farmers who are having

225
00:10:59,500 --> 00:11:02,200
complaints about the subsidy
programs that you offer.

226
00:11:02,200 --> 00:11:05,467
What are you doing to ensure
that there's an equitable

227
00:11:05,467 --> 00:11:10,633
process that they are able
to obtain those loans now?

228
00:11:10,633 --> 00:11:14,000
Secretary Vilsack:
We have in place a process by
which we compare the amount of

229
00:11:14,000 --> 00:11:17,467
loan activity in counties
where there are significant

230
00:11:17,467 --> 00:11:20,233
percentages of socially
disadvantaged farmers or

231
00:11:20,233 --> 00:11:23,132
minority farmers to make sure
that the amount of loans that

232
00:11:23,133 --> 00:11:27,734
are being authorized and
approved are roughly equivalent

233
00:11:27,734 --> 00:11:30,266
to the percentage of the
population of the socially

234
00:11:30,266 --> 00:11:31,867
disadvantaged minority.

235
00:11:31,867 --> 00:11:34,233
So that we keep engaged and
if we see that there's a

236
00:11:34,233 --> 00:11:37,000
significant difference, we'll
obviously pay attention to that

237
00:11:37,000 --> 00:11:38,300
particular county.

238
00:11:38,300 --> 00:11:40,199
But I think everybody
understands that now

239
00:11:40,200 --> 00:11:41,233
it's all hands on deck.

240
00:11:41,233 --> 00:11:43,632
The President is very concerned
about making sure we do

241
00:11:43,633 --> 00:11:46,400
everything we possibly can
to help as many producers

242
00:11:46,400 --> 00:11:50,667
as we can through this
difficult circumstance.

243
00:11:50,667 --> 00:11:54,533
The Press:
Based on what you know today --
and understanding it's imperfect

244
00:11:54,533 --> 00:11:56,967
information -- how do you think
this drought is going to compare

245
00:11:56,967 --> 00:11:58,333
with the '88 drought?

246
00:11:58,333 --> 00:12:00,600
Do you think it could
be worse than that?

247
00:12:00,600 --> 00:12:05,500
Secretary Vilsack:
If we were comparing it
today to potential yields,

248
00:12:05,500 --> 00:12:09,734
the '88 yield would have the
corn crop being about 25 bushels

249
00:12:09,734 --> 00:12:11,767
less than what we have today.

250
00:12:11,767 --> 00:12:14,333
The beans would be
roughly five bushels less.

251
00:12:14,333 --> 00:12:16,699
So we're not at the '88 level.

252
00:12:16,700 --> 00:12:20,166
There's probably a larger area
of the country that's impacted,

253
00:12:20,166 --> 00:12:22,467
but the severity
is not as deep yet.

254
00:12:22,467 --> 00:12:24,934
But every day that
goes by without rain,

255
00:12:24,934 --> 00:12:27,733
depending upon the state and
the condition of the soil,

256
00:12:27,734 --> 00:12:29,967
and what was planted and when
it was planted -- part of the

257
00:12:29,967 --> 00:12:33,133
problem we're facing is that
weather conditions were so good

258
00:12:33,133 --> 00:12:36,000
at the beginning of the
season that farmers got

259
00:12:36,000 --> 00:12:37,533
in the field early.

260
00:12:37,533 --> 00:12:40,567
And as a result, this drought
comes at a very difficult and

261
00:12:40,567 --> 00:12:44,967
painful time in terms of their
ability to have their crops have

262
00:12:44,967 --> 00:12:46,066
good yields.

263
00:12:46,066 --> 00:12:51,567
The Press:
Sir, could you elaborate on
your concerns about short-term

264
00:12:51,567 --> 00:12:55,533
gouging or taking
advantage of the situation?

265
00:12:55,533 --> 00:12:59,834
And at what point in the
food chain does that occur?

266
00:12:59,834 --> 00:13:03,132
Secretary Vilsack:
Well, everybody knows there's a
drought and everybody knows it's

267
00:13:03,133 --> 00:13:06,667
severe, and everybody knows that
the corn prices and bean prices

268
00:13:06,667 --> 00:13:08,600
have gone up, and that
impacts livestock producers

269
00:13:08,600 --> 00:13:10,000
in the long term.

270
00:13:10,000 --> 00:13:14,300
What folks don't know is it does
take some time for those prices

271
00:13:14,300 --> 00:13:16,500
and that impact to be felt.

272
00:13:16,500 --> 00:13:20,166
Nor do most people realize how
little farmers get out of that

273
00:13:20,166 --> 00:13:21,433
food dollar.

274
00:13:21,433 --> 00:13:23,233
So even though prices
are increasing,

275
00:13:23,233 --> 00:13:27,300
it may not translate into
significantly higher food costs.

276
00:13:27,300 --> 00:13:29,766
Right now we estimate our food
inflation rate somewhere between

277
00:13:29,767 --> 00:13:32,600
2.5 and 3.5 percent.

278
00:13:32,600 --> 00:13:35,767
In fact, this last month
it was at 2.7 percent,

279
00:13:35,767 --> 00:13:38,967
which was one-tenth of a percent
less than the preceding month.

280
00:13:38,967 --> 00:13:40,633
So it's complicated.

281
00:13:40,633 --> 00:13:43,600
Because it's complicated,
some people could say, well,

282
00:13:43,600 --> 00:13:48,133
this is an opportunity to
potentially raise costs now.

283
00:13:48,133 --> 00:13:50,600
And we want to make sure people
understand that now is not the

284
00:13:50,600 --> 00:13:53,433
time that they should
see higher food costs.

285
00:13:53,433 --> 00:13:55,700
If there are going to
be higher food costs,

286
00:13:55,700 --> 00:13:58,967
you would likely see them later
in the year and in the first

287
00:13:58,967 --> 00:14:00,333
part of next year.

288
00:14:00,333 --> 00:14:02,400
The Press:
And what are you doing -- what's
the Agriculture Department

289
00:14:02,400 --> 00:14:06,834
doing, what can it do, to track
for this kind of activity?

290
00:14:06,834 --> 00:14:10,766
Secretary Vilsack:
Well, through a number of
nutrition assistance programs,

291
00:14:10,767 --> 00:14:13,834
we can kind of keep an eye on
what we're spending and where

292
00:14:13,834 --> 00:14:18,532
we're spending it and whether or
not it is historically in the norm.

293
00:14:18,533 --> 00:14:19,934
And if it's not, we
can take a look at it.

294
00:14:19,934 --> 00:14:22,367
But I think the most important
thing right now is for consumers

295
00:14:22,367 --> 00:14:24,500
to be aware and to
keep an eye on it,

296
00:14:24,500 --> 00:14:28,033
and begin asking questions -- if
they see a dramatic increase in

297
00:14:28,033 --> 00:14:30,700
hamburger costs or steak
costs -- they should ask,

298
00:14:30,700 --> 00:14:31,700
what's with this?

299
00:14:31,700 --> 00:14:32,700
And if someone says
it's the drought,

300
00:14:32,700 --> 00:14:34,133
they should push back and
say, now, wait a second,

301
00:14:34,133 --> 00:14:35,533
that's not the reason.

302
00:14:35,533 --> 00:14:38,166
We should actually -- given
that herds are being reduced and

303
00:14:38,166 --> 00:14:40,800
potentially liquidated, we
should actually be seeing a

304
00:14:40,800 --> 00:14:42,165
little lower cost right now.

305
00:14:42,166 --> 00:14:44,233
And that pushback may
make a difference.

306
00:14:44,233 --> 00:14:45,300
The Press:
Thank you.

307
00:14:45,300 --> 00:14:47,400
The Press:
Mr. Secretary, you've mentioned
corn and beans several times.

308
00:14:47,400 --> 00:14:50,233
I'm wondering why the focus
on that and not other crops.

309
00:14:50,233 --> 00:14:52,699
Is it because they have such a
multiplier effect throughout the

310
00:14:52,700 --> 00:14:54,667
economy, throughout
the food supply?

311
00:14:54,667 --> 00:14:55,300
Secretary Vilsack:
Not so much that.

312
00:14:55,300 --> 00:14:58,400
It's primarily the area of where
the drought is most severe is

313
00:14:58,400 --> 00:15:01,100
primarily where corn
and beans are raised.

314
00:15:01,100 --> 00:15:04,100
Wheat, somewhat impacted.

315
00:15:04,100 --> 00:15:07,734
The biggest other impact is for
livestock producers -- hay is

316
00:15:07,734 --> 00:15:09,934
obviously going to be much more
expensive because there's going

317
00:15:09,934 --> 00:15:11,567
to be a lot less of it.

318
00:15:11,567 --> 00:15:14,100
That's why we're deeply
concerned about the importance

319
00:15:14,100 --> 00:15:17,934
of getting action with our
friends in Congress to try to

320
00:15:17,934 --> 00:15:19,967
provide some degree of
assistance and help.

321
00:15:19,967 --> 00:15:22,066
And they have multiple
ways they can do that.

322
00:15:22,066 --> 00:15:29,934
We just want to encourage them
to do it as quickly as possible.

323
00:15:29,934 --> 00:15:33,165
The Press:
Mr. Secretary, thank you
for doing the briefing.

324
00:15:33,166 --> 00:15:38,633
I know that the U.S. sells some
of the livestock to Russia and

325
00:15:38,633 --> 00:15:40,166
probably to other countries.

326
00:15:40,166 --> 00:15:44,800
So do you expect an increase in
the export of livestock because

327
00:15:44,800 --> 00:15:46,900
of this situation?

328
00:15:46,900 --> 00:15:49,632
Secretary Vilsack:
Well, it's conceivable in the
short term -- as herds are

329
00:15:49,633 --> 00:15:52,300
liquidated, it could provide
opportunities with lower costs

330
00:15:52,300 --> 00:15:56,900
for us to be even more
competitive than we already are

331
00:15:56,900 --> 00:15:59,300
in that export market.

332
00:15:59,300 --> 00:16:02,065
Frankly, we are looking
at record exports,

333
00:16:02,066 --> 00:16:03,900
notwithstanding the
difficulties we're facing here.

334
00:16:03,900 --> 00:16:06,132
We had a record year last year;
we're looking at a strong year

335
00:16:06,133 --> 00:16:07,166
this year.

336
00:16:07,166 --> 00:16:10,233
As it relates to Russia,
hopefully Congress will act and

337
00:16:10,233 --> 00:16:13,333
make sure that Russia enters the
WTO in a way that allows us to

338
00:16:13,333 --> 00:16:16,367
put them in a process where
they're in a rules-based and

339
00:16:16,367 --> 00:16:17,500
science-based system.

340
00:16:17,500 --> 00:16:19,800
That should increase and should
help our export opportunities in

341
00:16:19,800 --> 00:16:23,467
Russia, more than just
the current situation.

342
00:16:23,467 --> 00:16:26,600
The Press:
Could you talk a little bit
about the drought itself?

343
00:16:26,600 --> 00:16:28,233
Is it very unusual?

344
00:16:28,233 --> 00:16:29,467
Did anyone see it coming?

345
00:16:29,467 --> 00:16:31,266
Is it from climate change?

346
00:16:31,266 --> 00:16:35,165
Is there anything you
can do to prepare?

347
00:16:35,166 --> 00:16:39,467
Secretary Vilsack:
I'm not a scientist so I'm not
going to opine as to the cause

348
00:16:39,467 --> 00:16:41,300
of this.

349
00:16:41,300 --> 00:16:46,000
All we know is that right now
there are a lot of farmers and

350
00:16:46,000 --> 00:16:47,967
ranchers who are struggling.

351
00:16:47,967 --> 00:16:50,766
And it's important and
necessary for them to know,

352
00:16:50,767 --> 00:16:54,166
rather than trying to focus
on what's causing this,

353
00:16:54,166 --> 00:16:56,033
what can we do to help them.

354
00:16:56,033 --> 00:16:58,266
And what we can do to help
them is lower interest rates,

355
00:16:58,266 --> 00:17:01,099
expand access to grazing
and haying opportunities,

356
00:17:01,100 --> 00:17:03,300
lower the penalties
associated with that,

357
00:17:03,300 --> 00:17:07,032
and encourage Congress to help
and work with us to provide

358
00:17:07,032 --> 00:17:08,032
additional assistance.

359
00:17:08,032 --> 00:17:10,733
And that's where our focus is.

360
00:17:10,733 --> 00:17:14,800
Long term, we will continue
to look at weather patterns,

361
00:17:14,800 --> 00:17:17,133
and we'll continue to do
research and to make sure that

362
00:17:17,133 --> 00:17:21,834
we work with our seed companies
to create the kinds of seeds

363
00:17:21,834 --> 00:17:24,433
that will be more effective
in dealing with adverse

364
00:17:24,433 --> 00:17:25,733
weather conditions.

365
00:17:25,733 --> 00:17:27,733
It's one of the reasons --
because they have done that,

366
00:17:27,733 --> 00:17:29,833
it's one of the reasons why
we're still uncertain as to the

367
00:17:29,834 --> 00:17:33,867
impact of this drought in terms
of its bottom line because some

368
00:17:33,867 --> 00:17:37,100
seeds are drought-resistant
and drought-tolerant,

369
00:17:37,100 --> 00:17:39,734
and it may be that the yields in
some cases are better than we'd

370
00:17:39,734 --> 00:17:43,632
expected because of
the seed technology.

371
00:17:43,633 --> 00:17:47,433
The Press:
I want to follow up on Andrei's
question -- just the other way.

372
00:17:47,433 --> 00:17:52,700
Wouldn't it first make sense
to increase imports of crops to

373
00:17:52,700 --> 00:17:54,900
feed the herds, instead
of slaughtering?

374
00:17:54,900 --> 00:17:57,600
I mean, it's unconventional
for this country to think about

375
00:17:57,600 --> 00:18:01,699
improving imports instead
of supporting more exports,

376
00:18:01,700 --> 00:18:03,033
but --

377
00:18:03,033 --> 00:18:05,899
Secretary Vilsack:
Well, I think that the margins,
particularly for livestock

378
00:18:05,900 --> 00:18:08,467
producers, are pretty tight.

379
00:18:08,467 --> 00:18:10,633
And those margins don't
necessarily -- aren't

380
00:18:10,633 --> 00:18:15,633
necessarily impacted or affected
by importing more costly feed.

381
00:18:15,633 --> 00:18:18,467
They have to make a tough
decision and a difficult

382
00:18:18,467 --> 00:18:22,100
decision, and it's particularly
difficult in light of the fact

383
00:18:22,100 --> 00:18:25,433
that the disaster programs that
we're there to protect them

384
00:18:25,433 --> 00:18:28,133
under these circumstances --
to give you a sense of this,

385
00:18:28,133 --> 00:18:31,533
the disaster programs that we
had under the 2008 Farm Bill,

386
00:18:31,533 --> 00:18:33,934
for all producers, including
livestock producers,

387
00:18:33,934 --> 00:18:36,700
provided nearly $4 billion
of assistance to 400,

388
00:18:36,700 --> 00:18:41,100
000 producers that suffered from
floods and droughts and storms

389
00:18:41,100 --> 00:18:42,567
and fires and so forth.

390
00:18:42,567 --> 00:18:46,033
So that was a significant help
to those livestock producers.

391
00:18:46,033 --> 00:18:48,265
We don't have that today.

392
00:18:48,266 --> 00:18:52,367
We need something like that,
and a lot of vehicles to get it.

393
00:18:52,367 --> 00:18:56,066
But in the meantime, I think the
producers will make the decision

394
00:18:56,066 --> 00:18:58,700
to reduce herds, which is
how they normally react to a

395
00:18:58,700 --> 00:19:02,767
circumstance like this, so they
can minimize what potential loss

396
00:19:02,767 --> 00:19:08,233
they may be facing.

397
00:19:08,233 --> 00:19:10,867
The Press:
Secretary, should we be
expecting that you and the

398
00:19:10,867 --> 00:19:13,934
President will be heading to
a drought-stricken area soon?

399
00:19:13,934 --> 00:19:17,100
That's normally a path that you
take when you're trying to show

400
00:19:17,100 --> 00:19:18,600
something is a priority.

401
00:19:18,600 --> 00:19:21,100
Secretary Vilsack:
Well, I can't speak obviously
for the President's schedule,

402
00:19:21,100 --> 00:19:25,867
but I can tell you that actually
I was in Pennsylvania yesterday.

403
00:19:25,867 --> 00:19:29,166
We do have the Deputy Secretary
going to Georgia tomorrow.

404
00:19:29,166 --> 00:19:32,133
We've got the Under Secretary
of the Farm Service Association

405
00:19:32,133 --> 00:19:35,533
traveling to several states that
are drought-impacted and affected.

406
00:19:35,533 --> 00:19:37,800
We have a Deputy Under
Secretary also traveling.

407
00:19:37,800 --> 00:19:41,734
So we actually are fanning out
across the country to get a

408
00:19:41,734 --> 00:19:44,899
sense of what the
conditions are.

409
00:19:44,900 --> 00:19:48,600
It really is also an opportunity
for us to underscore what we

410
00:19:48,600 --> 00:19:51,265
have done and what
needs to be done,

411
00:19:51,266 --> 00:19:52,700
and the help that we
need from Congress.

412
00:19:52,700 --> 00:19:54,734
So, yes, we're going to be
continuing to travel throughout

413
00:19:54,734 --> 00:19:55,966
the country.

414
00:19:55,967 --> 00:19:59,100
I'm scheduled to go to Iowa
next week to talk to Farm Bureau

415
00:19:59,100 --> 00:20:00,899
members and I'm sure that I'm
going to have an opportunity to

416
00:20:00,900 --> 00:20:05,033
visit with them about the
conditions of the crops in Iowa.

417
00:20:05,033 --> 00:20:06,300
The Press:
Mr. Secretary, I want
to follow through on the

418
00:20:06,300 --> 00:20:07,867
climate change question.

419
00:20:07,867 --> 00:20:11,500
Is there any long-range thinking
at the Department that -- you

420
00:20:11,500 --> 00:20:15,800
had the wildfires and the heat
wave and the rise in sea levels,

421
00:20:15,800 --> 00:20:17,934
and now this drought -- that
there's something more going on

422
00:20:17,934 --> 00:20:21,066
here than just one
year of a bad crop,

423
00:20:21,066 --> 00:20:23,834
and you need more
than better seeds,

424
00:20:23,834 --> 00:20:26,400
maybe do something
about climate change?

425
00:20:26,400 --> 00:20:28,600
Secretary Vilsack:
Our focus, to be
honest with you,

426
00:20:28,600 --> 00:20:31,899
in a situation like this is on
the near term and the immediate,

427
00:20:31,900 --> 00:20:34,567
because there's a lot of
pressure on these producers.

428
00:20:34,567 --> 00:20:37,333
You take the dairy
industry, for example.

429
00:20:37,333 --> 00:20:40,133
We've lost nearly half of
our dairy producers in the

430
00:20:40,133 --> 00:20:42,166
last 10 years.

431
00:20:42,166 --> 00:20:44,100
They were just getting back
to a place where there was

432
00:20:44,100 --> 00:20:47,166
profitability and now they're
faced with some serious issues

433
00:20:47,166 --> 00:20:52,367
and, again, no assistance in
terms of disaster assistance.

434
00:20:52,367 --> 00:20:56,265
So that's our near-term focus.

435
00:20:56,266 --> 00:20:58,934
Long term, we obviously are
engaged in research projects;

436
00:20:58,934 --> 00:21:01,966
we're obviously working
with seed companies.

437
00:21:01,967 --> 00:21:04,767
Don't discount the capacity
of the seed companies.

438
00:21:04,767 --> 00:21:06,633
These technologies
do make a difference.

439
00:21:06,633 --> 00:21:10,000
And it's one of the reasons why,
at least based on the yields

440
00:21:10,000 --> 00:21:12,100
today, we're looking at
potentially the third largest

441
00:21:12,100 --> 00:21:13,899
corn crop in our history.

442
00:21:13,900 --> 00:21:15,834
Now, that may be
adjusted downward,

443
00:21:15,834 --> 00:21:18,367
it may be adjusted upward
-- depends on the rain,

444
00:21:18,367 --> 00:21:19,633
depends on circumstances.

445
00:21:19,633 --> 00:21:22,400
But even with the difficulties
we're experiencing,

446
00:21:22,400 --> 00:21:27,266
we're still looking at a
pretty good crop as of today.

447
00:21:27,266 --> 00:21:29,367
Tomorrow it could
change, obviously.

448
00:21:29,367 --> 00:21:31,000
Mr. Carney:
We'll take one more
for the Secretary.

449
00:21:31,000 --> 00:21:33,200
Yes, sir, right here.

450
00:21:33,200 --> 00:21:35,734
The Press:
I'm Dr. Harper, the
Intermountain Christian News.

451
00:21:35,734 --> 00:21:38,766
And Governor Perry last year had
this national day of prayer and

452
00:21:38,767 --> 00:21:41,734
fasting, and he was encouraging
people to pray and fast in these

453
00:21:41,734 --> 00:21:43,033
national disasters.

454
00:21:43,033 --> 00:21:45,300
Do you have any figures on that?

455
00:21:45,300 --> 00:21:46,466
Secretary Vilsack:
Well, I can only
speak for myself.

456
00:21:46,467 --> 00:21:51,633
I get on my knees every day and
I'm saying an extra prayer now.

457
00:21:51,633 --> 00:21:56,166
If I had a rain prayer or rain
dance I could do, I would do it.

458
00:21:56,166 --> 00:22:00,233
But honestly, right now the
focus needs to be on working

459
00:22:00,233 --> 00:22:04,600
with Congress -- they have the
capacity to help these producers

460
00:22:04,600 --> 00:22:07,132
by creating greater
flexibility to programs,

461
00:22:07,133 --> 00:22:09,500
providing us some direction
in terms of whatever disaster

462
00:22:09,500 --> 00:22:11,033
assistance can be provided.

463
00:22:11,033 --> 00:22:12,800
Those are the kinds of
things we're focused on.

464
00:22:12,800 --> 00:22:14,300
Mr. Carney:
Thank you very
much, Mr. Secretary.

465
00:22:14,300 --> 00:22:15,500
We appreciate it.

466
00:22:15,500 --> 00:22:17,467
The Press:
Is the President going,
Jay, to go anywhere --

467
00:22:17,467 --> 00:22:21,700
Mr. Carney:
I don't have any scheduling
updates for the President to

468
00:22:21,700 --> 00:22:24,066
provide to you today.

469
00:22:24,066 --> 00:22:27,100
If and when I do,
I'll provide them.

470
00:22:27,100 --> 00:22:30,734
We can now return to
our regular programming.

471
00:22:30,734 --> 00:22:31,899
Mr. Feller.

472
00:22:31,900 --> 00:22:32,967
The Press:
Thanks, Jay.

473
00:22:32,967 --> 00:22:36,500
A lot to cover on Syria,
so a question on that,

474
00:22:36,500 --> 00:22:39,467
and then I wanted to squeeze
in one on domestic politics.

475
00:22:39,467 --> 00:22:43,200
First of all, on Syria, we've
heard some initial reaction,

476
00:22:43,200 --> 00:22:47,500
but one thing I haven't heard is
whether the White House condemns

477
00:22:47,500 --> 00:22:49,734
the killing, condemns the
bombing of the top officials

478
00:22:49,734 --> 00:22:52,466
of the Assad regime.

479
00:22:52,467 --> 00:22:57,734
Mr. Carney:
What I can say, Ben, is
what we've said all along,

480
00:22:57,734 --> 00:23:02,899
which is that we do not believe
that violence is the answer.

481
00:23:06,400 --> 00:23:13,367
And it is precisely because
of the ongoing campaign by

482
00:23:13,367 --> 00:23:17,066
President Assad against his
own people that we are seeing a

483
00:23:17,066 --> 00:23:19,934
situation that is
getting worse and worse.

484
00:23:19,934 --> 00:23:23,867
And that is why it is so
important for the international

485
00:23:23,867 --> 00:23:31,800
community to come together
around a plan that produces the

486
00:23:31,800 --> 00:23:37,066
transition -- the political
transition that is essential if

487
00:23:37,066 --> 00:23:39,133
Syria is to have
a brighter future.

488
00:23:39,133 --> 00:23:46,467
I think the incident today
makes clear that Assad is losing

489
00:23:46,467 --> 00:23:53,266
control, that violence
is increasing rather than

490
00:23:53,266 --> 00:23:59,066
decreasing, and that all of
our partners, internationally,

491
00:23:59,066 --> 00:24:03,166
need to come together
and support a transition.

492
00:24:03,166 --> 00:24:09,767
One concern expressed by those
who have resisted supporting a

493
00:24:09,767 --> 00:24:15,633
transition that would see Assad
remove himself from power is

494
00:24:15,633 --> 00:24:19,033
that it would -- that that
outcome would cause the

495
00:24:19,033 --> 00:24:22,734
situation to spiral out of
control or cause chaos or more

496
00:24:22,734 --> 00:24:23,734
violence.

497
00:24:23,734 --> 00:24:27,000
And our argument has always
been that the situation,

498
00:24:27,000 --> 00:24:29,400
as it exists with
Assad in power,

499
00:24:29,400 --> 00:24:32,200
is what will result in greater
violence and in greater chaos.

500
00:24:32,200 --> 00:24:35,533
And that is being borne
out, unfortunately.

501
00:24:35,533 --> 00:24:38,667
So as you know, we're working
with our partners at the United

502
00:24:38,667 --> 00:24:44,265
Nations in New York, trying to
bring about the consensus that

503
00:24:44,266 --> 00:24:47,133
we believe is
absolutely necessary.

504
00:24:47,133 --> 00:24:52,734
The Press:
Can you inform us whether Assad
was a target and whether the

505
00:24:52,734 --> 00:24:55,734
administration knows
where he is now?

506
00:24:55,734 --> 00:24:57,399
Mr. Carney:
I don't have any
information on that.

507
00:24:57,400 --> 00:24:59,400
We're still gathering
details about the incident.

508
00:25:02,000 --> 00:25:05,734
Again, all I can tell you is
it reflects the fact that the

509
00:25:05,734 --> 00:25:09,433
situation is getting more
violent every day in Syria.

510
00:25:09,433 --> 00:25:16,200
And it only proves a point
that we've been making that the

511
00:25:16,200 --> 00:25:21,066
window is closing; we need to
take action in a unified way to

512
00:25:21,066 --> 00:25:25,133
help bring about the transition
that the Syrian people so

513
00:25:25,133 --> 00:25:26,800
deserve.

514
00:25:26,800 --> 00:25:30,133
The Press:
I'll squeeze in my
political question here.

515
00:25:30,133 --> 00:25:34,834
Speaker Boehner today, in
talking about the President,

516
00:25:34,834 --> 00:25:40,133
said, "He doesn't give a damn
about middle-class Americans."

517
00:25:40,133 --> 00:25:41,900
And I wanted to get your
reaction to this in terms of

518
00:25:41,900 --> 00:25:44,967
whether you think that this
is another day in Washington

519
00:25:44,967 --> 00:25:48,867
politics, or whether that kind
of comment about the President's

520
00:25:48,867 --> 00:25:53,934
motivations in any
way crosses the line.

521
00:25:53,934 --> 00:25:56,332
Mr. Carney:
I had not heard that comment.

522
00:25:56,333 --> 00:26:03,033
I would simply say that the
President's focus from day one

523
00:26:03,033 --> 00:26:05,132
in office has been
on the middle class,

524
00:26:05,133 --> 00:26:09,333
has been on restoring the
security that had been eroding

525
00:26:09,333 --> 00:26:13,734
for the middle class for
a decade in this country.

526
00:26:13,734 --> 00:26:21,199
All of his domestic initiatives
are focused principally on the

527
00:26:21,200 --> 00:26:22,200
middle class.

528
00:26:22,200 --> 00:26:25,033
The proposal that he has been
asking Congress to act on

529
00:26:25,033 --> 00:26:29,667
immediately is a middle-class
tax cut -- a tax cut that would

530
00:26:29,667 --> 00:26:32,233
go to 98 percent of
American taxpayers.

531
00:26:32,233 --> 00:26:37,000
It is the principal
preoccupation of his presidency.

532
00:26:37,000 --> 00:26:38,967
It is the reason why
he ran for this office.

533
00:26:38,967 --> 00:26:45,066
It is the reason why he
is running for reelection.

534
00:26:45,066 --> 00:26:53,066
It is, I think, astounding to
hear a criticism like that when

535
00:26:53,066 --> 00:26:58,967
you simply bring it back
to the policy debate.

536
00:27:01,800 --> 00:27:05,233
In an effort to move the ball
down the field, if you will,

537
00:27:05,233 --> 00:27:08,166
in terms of our economic
challenges, the President,

538
00:27:08,166 --> 00:27:12,734
acknowledging that there are big
disagreements on some issues,

539
00:27:12,734 --> 00:27:14,600
did what you do when
you seek compromise,

540
00:27:14,600 --> 00:27:15,600
which is find common ground.

541
00:27:15,600 --> 00:27:17,433
And he said, look,
we all support,

542
00:27:17,433 --> 00:27:21,500
Republicans and Democrats
alike -- at least we all say we

543
00:27:21,500 --> 00:27:25,567
support -- extending tax
cuts for the middle class.

544
00:27:25,567 --> 00:27:26,567
Let's do it.

545
00:27:26,567 --> 00:27:27,567
Let's do it tomorrow.

546
00:27:27,567 --> 00:27:31,600
Pass those tax cuts now -- the
President will sign them into law.

547
00:27:31,600 --> 00:27:34,199
I believe Speaker
Boehner opposes that.

548
00:27:34,200 --> 00:27:37,300
I hope his opposition changes.

549
00:27:37,300 --> 00:27:41,133
It is a very difficult
argument to make, I think,

550
00:27:41,133 --> 00:27:45,133
to middle-class Americans that
you believe your taxes should go

551
00:27:45,133 --> 00:27:54,367
up unless millionaires and
billionaires get a tax cut.

552
00:27:54,367 --> 00:28:04,934
I'll happily talk at length
about the President's record

553
00:28:04,934 --> 00:28:10,233
supporting and helping to make
more secure the middle class.

554
00:28:11,700 --> 00:28:14,400
The Press:
I wanted to return to
Syria for a moment.

555
00:28:14,400 --> 00:28:17,533
Do you have any information
about who may have been behind

556
00:28:17,533 --> 00:28:20,399
the suicide bombing?

557
00:28:20,400 --> 00:28:26,767
Mr. Carney:
I've seen published reports of
a group taking responsibility,

558
00:28:26,767 --> 00:28:29,133
but I don't have any other
information besides that.

559
00:28:29,133 --> 00:28:32,934
The Press:
And in light of the
increasing violence in Syria,

560
00:28:32,934 --> 00:28:34,867
are you concerned -- how
concerned are you about the

561
00:28:34,867 --> 00:28:40,300
security the country's
chemical weapons stockpile?

562
00:28:40,300 --> 00:28:42,600
Mr. Carney:
Well, we have, as you know,
repeatedly made it clear that

563
00:28:42,600 --> 00:28:45,867
the Syrian government has a
responsibility to safeguard its

564
00:28:45,867 --> 00:28:49,800
stockpiles of chemical weapons
and that international community

565
00:28:49,800 --> 00:28:53,066
will hold accountable any
Syrian officials who fail

566
00:28:53,066 --> 00:28:55,400
to meet that obligation.

567
00:28:55,400 --> 00:28:59,133
We, the United States, are
closely monitoring Syria's

568
00:28:59,133 --> 00:29:02,567
proliferation-sensitive
materials and facilities.

569
00:29:02,567 --> 00:29:06,767
And we believe that Syria's
chemical weapons stockpile

570
00:29:06,767 --> 00:29:09,834
remains under Syrian
government control.

571
00:29:09,834 --> 00:29:14,700
But taking a step back, we have
long said that the presence of

572
00:29:14,700 --> 00:29:18,400
chemical weapons in Syria
undermines -- in Syria and the

573
00:29:18,400 --> 00:29:20,000
region -- undermines
peace and security,

574
00:29:20,000 --> 00:29:22,567
and we continue to call on the
Syrian government to give up its

575
00:29:22,567 --> 00:29:26,000
chemical weapons arsenal
and to join the chemical

576
00:29:26,000 --> 00:29:27,433
weapons convention.

577
00:29:30,000 --> 00:29:33,967
The Press:
What do you have on the Bulgaria
blast that targeted some Israelis?

578
00:29:33,967 --> 00:29:36,300
The Israelis are saying
apparently that it has all the

579
00:29:36,300 --> 00:29:41,233
earmarks of something by Iran.

580
00:29:41,233 --> 00:29:44,500
Mr. Carney:
This is obviously breaking news
and we are working to ascertain

581
00:29:44,500 --> 00:29:45,700
all the facts.

582
00:29:45,700 --> 00:29:48,767
But I want to be clear that
the United States condemns such

583
00:29:48,767 --> 00:29:52,300
attacks on innocent people,
especially children,

584
00:29:52,300 --> 00:29:54,332
in the strongest possible terms.

585
00:29:54,333 --> 00:29:56,800
The President's thoughts and
prayers are with the families of

586
00:29:56,800 --> 00:29:59,500
those killed and those injured.

587
00:29:59,500 --> 00:30:02,367
We also stand with the people
of Israel and the people of

588
00:30:02,367 --> 00:30:04,966
Bulgaria in this difficult time.

589
00:30:04,967 --> 00:30:07,433
Going forward, the United States
will support our friends and

590
00:30:07,433 --> 00:30:09,667
allies as they
confront terrorism.

591
00:30:09,667 --> 00:30:12,300
And of course, our
commitment to Israel's

592
00:30:12,300 --> 00:30:14,500
security remains unshakable.

593
00:30:14,500 --> 00:30:15,867
The Press:
I mean, does this look
like something that Iran

594
00:30:15,867 --> 00:30:17,066
would have done?

595
00:30:17,066 --> 00:30:23,767
Mr. Carney:
I don't have information yet
on anything specific to the

596
00:30:23,767 --> 00:30:28,100
incident itself and if, in fact,
it was terrorism and who was

597
00:30:28,100 --> 00:30:30,833
responsible for it.

598
00:30:30,834 --> 00:30:33,133
I can tell you that the
President has been briefed

599
00:30:33,133 --> 00:30:35,800
on it, but I don't have
any more details on it.

600
00:30:35,800 --> 00:30:38,834
The Press:
Thanks, Jay.

601
00:30:38,834 --> 00:30:40,033
I have two questions.

602
00:30:40,033 --> 00:30:46,367
First, on the GOP allegations
that the Obama administration

603
00:30:46,367 --> 00:30:50,867
has "gutted" Medicaid
--- I'm sorry,

604
00:30:50,867 --> 00:30:53,600
welfare -- "gutted
welfare reform."

605
00:30:53,600 --> 00:30:56,265
And I think Romney
has also weighed in,

606
00:30:56,266 --> 00:30:59,533
saying that President Obama
"wants to strip the established

607
00:30:59,533 --> 00:31:01,833
work requirements from welfare."

608
00:31:01,834 --> 00:31:04,700
And I was wondering what the
President or the White House

609
00:31:04,700 --> 00:31:07,934
response to those
allegations is.

610
00:31:07,934 --> 00:31:10,332
Mr. Carney:
Well, I find that interesting
because a cornerstone of the

611
00:31:10,333 --> 00:31:14,133
Welfare Reform Act of 1996 --
which I remember well because I

612
00:31:14,133 --> 00:31:16,066
covered it -- was the
establishment of work

613
00:31:16,066 --> 00:31:18,734
requirements for
welfare recipients.

614
00:31:18,734 --> 00:31:22,632
And those requirements are
fundamental to the gains made in

615
00:31:22,633 --> 00:31:26,567
the past 15 years in moving
people from welfare to work.

616
00:31:26,567 --> 00:31:29,033
And this administration
opposes any effort to

617
00:31:29,033 --> 00:31:31,800
undermine those requirements.

618
00:31:31,800 --> 00:31:35,066
The changes proposed by the
Department of Health and Human

619
00:31:35,066 --> 00:31:37,967
Services are designed to
accelerate job placement

620
00:31:37,967 --> 00:31:41,266
by moving more Americans
from welfare to work as

621
00:31:41,266 --> 00:31:42,734
quickly as possible.

622
00:31:42,734 --> 00:31:46,667
There will be no waivers of
the time limits in the law,

623
00:31:46,667 --> 00:31:50,433
and only waivers with compelling
plans to move more people off of

624
00:31:50,433 --> 00:31:53,066
welfare and into work
will be considered.

625
00:31:53,066 --> 00:31:55,834
This policy will allow
states to test new,

626
00:31:55,834 --> 00:31:59,734
more effective ways to help
people get and keep a job.

627
00:31:59,734 --> 00:32:05,332
And then if I could address some
of the hypocritical criticism --

628
00:32:05,333 --> 00:32:11,200
I have been surprised by it --
by the hypocrisy of our critics

629
00:32:11,200 --> 00:32:16,467
since many of them have in the
past supported and even proposed

630
00:32:16,467 --> 00:32:17,834
such waivers.

631
00:32:17,834 --> 00:32:21,800
Governor Romney, Governor
Barbour, Governor Huckabee,

632
00:32:21,800 --> 00:32:25,834
Secretary Tommy Thompson, and
Senator Grassley all supported

633
00:32:25,834 --> 00:32:28,166
these kinds of waivers
for states in the past.

634
00:32:28,166 --> 00:32:31,966
In a 2005 letter to the Senate,
Republican governors including

635
00:32:31,967 --> 00:32:35,567
then-Governor Romney,
requested such waivers.

636
00:32:35,567 --> 00:32:36,734
Under President George W.

637
00:32:36,734 --> 00:32:40,332
Bush, HHS Secretary Thompson put
forward a proposal that would

638
00:32:40,333 --> 00:32:43,700
allow "super waivers"
in the program.

639
00:32:43,700 --> 00:32:46,266
The Senate, under Republican
control at the time,

640
00:32:46,266 --> 00:32:49,100
passed a bill authored by
Senator Grassley with broad

641
00:32:49,100 --> 00:32:50,734
waiver authority.

642
00:32:50,734 --> 00:32:55,166
And just last year, states led
by Democrats and Republicans

643
00:32:55,166 --> 00:32:58,800
including Nevada and Utah,
called for these waivers --

644
00:32:58,800 --> 00:33:01,834
these very waivers so they could
have more flexibility to get

645
00:33:01,834 --> 00:33:04,600
more people back to work faster.

646
00:33:04,600 --> 00:33:08,533
So, given this long, documented
history of bipartisan support,

647
00:33:08,533 --> 00:33:10,433
it is surprising,
to say the least,

648
00:33:10,433 --> 00:33:12,567
to see this kind of
flip-flopping on the

649
00:33:12,567 --> 00:33:14,000
part of Republicans.

650
00:33:14,000 --> 00:33:16,867
The Press:
Are you suggesting that Mitt
Romney flip-flopped on this?

651
00:33:16,867 --> 00:33:22,066
Mr. Carney:
I'm suggesting that everyone
I named by name in the past

652
00:33:22,066 --> 00:33:24,567
supported these
kinds of waivers.

653
00:33:24,567 --> 00:33:29,433
And I am also making clear that
this administration in no way

654
00:33:29,433 --> 00:33:33,734
supports any effort to undermine
the work requirements that were

655
00:33:33,734 --> 00:33:36,867
fundamental to the Welfare
Reform Act signed into law by

656
00:33:36,867 --> 00:33:39,265
President Bill Clinton in 1996.

657
00:33:39,266 --> 00:33:40,166
Wendell.

658
00:33:40,166 --> 00:33:41,233
No, I'm sorry, do you
have a second question?

659
00:33:41,233 --> 00:33:41,966
The Press:
I just had one quick one.

660
00:33:41,967 --> 00:33:49,667
On the Jobs Council, obviously
who haven't met formally or

661
00:33:49,667 --> 00:33:54,300
publicly for six months
-- why exactly is that?

662
00:33:54,300 --> 00:34:01,100
Mr. Carney:
Look, the President solicits and
receives input and advice from

663
00:34:01,100 --> 00:34:04,766
members of his Jobs Council
and others about economic

664
00:34:04,767 --> 00:34:06,433
initiatives all the time.

665
00:34:06,433 --> 00:34:09,667
And I would point you to the
numerous initiatives put forward

666
00:34:09,667 --> 00:34:11,500
by the Jobs Council that
this administration,

667
00:34:11,500 --> 00:34:15,266
under the President's
direction, has taken action on,

668
00:34:15,266 --> 00:34:18,533
including a presidential
memorandum in August of last

669
00:34:18,533 --> 00:34:20,766
year that selected
14 job-creating,

670
00:34:20,766 --> 00:34:23,799
high-priority infrastructure
projects for expedited review --

671
00:34:23,800 --> 00:34:26,367
four of those are already
under construction;

672
00:34:26,367 --> 00:34:28,333
in March of this year,
just a few months ago,

673
00:34:28,333 --> 00:34:31,967
an executive order launched an
interagency effort to cut red

674
00:34:31,967 --> 00:34:34,834
tape and improve outcomes
for infrastructure projects;

675
00:34:34,833 --> 00:34:38,332
new federal plan that will
require timelines concurrent

676
00:34:38,333 --> 00:34:41,300
instead of sequential reviews;
early coordination among

677
00:34:41,300 --> 00:34:43,834
federal, state, and local
agencies to reduce duplication

678
00:34:43,833 --> 00:34:46,165
and adoption of
other best practices.

679
00:34:46,166 --> 00:34:50,100
There are numerous initiatives
that have been proposed by the

680
00:34:50,100 --> 00:34:54,766
Jobs Council that this
administration has acted on,

681
00:34:54,766 --> 00:34:56,966
and that will continue
to be the case.

682
00:34:56,967 --> 00:34:58,934
The Press:
So there's no reason they
haven't met publicly?

683
00:34:58,934 --> 00:35:02,033
Mr. Carney:
No, there's no specific reason
except the President has

684
00:35:02,033 --> 00:35:03,500
obviously got a
lot on his plate.

685
00:35:03,500 --> 00:35:09,734
But he continues to solicit and
receive advice from numerous

686
00:35:09,734 --> 00:35:15,200
folks outside the administration
about the economy,

687
00:35:15,200 --> 00:35:21,000
about the ideas that he
can act on with Congress

688
00:35:21,000 --> 00:35:23,233
or administratively to help
the economy grow and help it

689
00:35:23,233 --> 00:35:27,433
create jobs.

690
00:35:27,433 --> 00:35:29,533
The Press:
With the violence intensifying
in Syria, will the U.S. be

691
00:35:29,533 --> 00:35:32,200
prepared if the Assad regime
were to collapse in a matter

692
00:35:32,200 --> 00:35:34,767
of days?

693
00:35:34,767 --> 00:35:38,165
Mr. Carney:
Your question goes I think to
the point I was making earlier

694
00:35:38,166 --> 00:35:46,033
about the escalating violence,
about the fact that as Assad has

695
00:35:46,033 --> 00:35:49,400
stayed in power and continued to
perpetrate violence against his

696
00:35:49,400 --> 00:35:52,300
own people, that the situation
has become more, and not less,

697
00:35:52,300 --> 00:36:01,066
chaotic, that the opportunity
for a peaceful transition begins

698
00:36:01,066 --> 00:36:02,366
to diminish.

699
00:36:02,367 --> 00:36:05,700
Now, we believe that that
opportunity still exists.

700
00:36:05,700 --> 00:36:09,299
That's why we need to come
together with our partners

701
00:36:09,300 --> 00:36:16,600
internationally, form a
consensus that embraces the

702
00:36:16,600 --> 00:36:21,400
notion that a transition in
Syria is taking place and must

703
00:36:21,400 --> 00:36:27,266
take place, and that it cannot
include President Assad because

704
00:36:27,266 --> 00:36:30,934
he has forfeited long ago any
credibility he has with the

705
00:36:30,934 --> 00:36:31,934
Syrian people.

706
00:36:31,934 --> 00:36:37,100
And we call on our friends and
our partners internationally to

707
00:36:37,100 --> 00:36:43,734
recognize that Assad is a spent
force in terms of history.

708
00:36:43,734 --> 00:36:47,700
He will not be a part
of Syria's future.

709
00:36:47,700 --> 00:36:53,332
And the best possible course of
action for every country with an

710
00:36:53,333 --> 00:36:57,100
interest in the region and in
the future of the Syrian people

711
00:36:57,100 --> 00:37:03,834
is to ally with the Syrian
people and support a transition

712
00:37:03,834 --> 00:37:09,399
that is inclusive and allows for
the establishment of a process

713
00:37:09,400 --> 00:37:11,800
and a democratic
future for Syria.

714
00:37:11,800 --> 00:37:14,133
The Press:
On another subject, there's
been some Democratic pushback

715
00:37:14,133 --> 00:37:17,399
recently on what they see as
Republican attempts to basically

716
00:37:17,400 --> 00:37:20,800
hold the President hostage to
the threat of the sequester.

717
00:37:20,800 --> 00:37:25,066
Are you concerned that this
might have a chilling effect on

718
00:37:25,066 --> 00:37:30,133
hiring by defense contractors
and others who see us heading

719
00:37:30,133 --> 00:37:34,500
ever closer to
that fiscal cliff?

720
00:37:35,166 --> 00:37:42,266
Mr. Carney:
The President's position is and
has been that Congress needs to

721
00:37:42,266 --> 00:37:47,100
do what -- do the work that
Congress assigned itself back

722
00:37:47,100 --> 00:37:50,400
last summer when it passed, with
bipartisan majorities in both

723
00:37:50,400 --> 00:37:54,266
the House and the Senate,
the Budget Control Act.

724
00:37:54,266 --> 00:37:57,033
The sequester, which was
part of that legislation,

725
00:37:57,033 --> 00:38:05,066
was designed to be
unpalatable to everyone.

726
00:38:05,066 --> 00:38:09,299
It was designed to have cuts
that no one supported in both

727
00:38:09,300 --> 00:38:13,300
defense spending and in
non-defense spending.

728
00:38:13,300 --> 00:38:19,066
And it was designed that way
precisely because it required --

729
00:38:19,066 --> 00:38:27,133
what was required was the kind
of motivation to make some tough

730
00:38:27,133 --> 00:38:32,033
choices and tough votes that
Congress clearly needs in order

731
00:38:32,033 --> 00:38:35,533
to do the right thing, which is
embrace a balanced approach to

732
00:38:35,533 --> 00:38:38,033
long-term deficit
and debt reduction.

733
00:38:38,033 --> 00:38:40,467
That is an approach
the President supports.

734
00:38:40,467 --> 00:38:42,934
It is embodied in the proposals
he's put before Congress.

735
00:38:42,934 --> 00:38:46,033
It's a position that is broadly
supported by the American

736
00:38:46,033 --> 00:38:49,133
people, by bipartisan
commissions like the

737
00:38:49,133 --> 00:38:52,667
Bowles-Simpson Commission and
the Domenici-Rivlin Commission.

738
00:38:52,667 --> 00:38:55,165
It is supported by the
so-called Gang of Six.

739
00:38:55,166 --> 00:38:58,700
It is supported by all
right-thinking people everywhere

740
00:38:58,700 --> 00:39:02,866
except, perhaps, in one
portion of the Congress.

741
00:39:02,867 --> 00:39:09,734
And the President believes
that the simple adoption of the

742
00:39:09,734 --> 00:39:12,433
premise that we need to have
a balanced approach so that

743
00:39:12,433 --> 00:39:16,133
deficit reduction and debt
control is not -- the burden of

744
00:39:16,133 --> 00:39:17,966
that is not borne
solely by seniors,

745
00:39:17,967 --> 00:39:22,400
solely by the middle class, but
borne by everybody in a balanced

746
00:39:22,400 --> 00:39:26,433
way would move this
process forward.

747
00:39:26,433 --> 00:39:31,100
And we've seen some signs of
recognition that revenues need

748
00:39:31,100 --> 00:39:34,767
to be part of the approach
on behalf of some elected

749
00:39:34,767 --> 00:39:38,332
Republicans, and we hope that
we begin to see more of that,

750
00:39:38,333 --> 00:39:40,467
because that is clearly what
needs to be done and it's

751
00:39:40,467 --> 00:39:42,300
clearly what the
American people support.

752
00:39:42,300 --> 00:39:44,433
The Press:
I understand the reasoning
for the President's position.

753
00:39:44,433 --> 00:39:49,367
I'm asking about concerns about
the impact on job creators.

754
00:39:49,367 --> 00:39:55,000
Does it trouble you as we
move closer to this cliff that

755
00:39:55,000 --> 00:39:59,400
defense contractors see
huge cuts if Democrats and

756
00:39:59,400 --> 00:40:00,100
Republicans don't work it out.

757
00:40:00,100 --> 00:40:02,200
Mr. Carney:
And the President
opposes those cuts,

758
00:40:02,200 --> 00:40:05,299
does not believe those cuts
are wise, they're too deep.

759
00:40:05,300 --> 00:40:08,433
They are not -- they are much
deeper than the President has

760
00:40:08,433 --> 00:40:10,967
proposed in his
budget for a reason.

761
00:40:10,967 --> 00:40:15,834
And that is why Congress needs
to act to avert the enforcement

762
00:40:15,834 --> 00:40:18,834
of the sequester, and there is
time for Congress to do that.

763
00:40:21,567 --> 00:40:28,500
Again, we have been debating
these issues and engaging at a

764
00:40:28,500 --> 00:40:33,233
deep, substantive level on these
issues for quite some time now

765
00:40:33,233 --> 00:40:36,600
-- certainly for as long
as I've been in this job.

766
00:40:36,600 --> 00:40:40,433
And the result of that is
that the work has been done,

767
00:40:40,433 --> 00:40:44,433
we know what we need to do,
we know what the options are.

768
00:40:44,433 --> 00:40:47,200
We know what the
Republican proposal is,

769
00:40:47,200 --> 00:40:49,667
we know what the
President's proposal is.

770
00:40:49,667 --> 00:40:53,333
We know what is broadly
supported by interested

771
00:40:53,333 --> 00:40:56,934
communities around this issue.

772
00:40:56,934 --> 00:41:00,166
We know what would
help the economy,

773
00:41:00,166 --> 00:41:01,667
we know what would
harm the economy.

774
00:41:01,667 --> 00:41:12,533
And we need to simply accept
that compromise requires the

775
00:41:12,533 --> 00:41:17,165
kinds of steps the President
took to sign into law spending

776
00:41:17,166 --> 00:41:21,400
cuts of substantial
size -- $2 trillion.

777
00:41:21,400 --> 00:41:26,166
It requires embracing the kinds
of reforms in our health care

778
00:41:26,166 --> 00:41:29,166
entitlements that the President
has embraced and put forward.

779
00:41:29,166 --> 00:41:32,233
And it requires Republicans to
accept the simple proposition

780
00:41:32,233 --> 00:41:41,533
that seniors, folks
with disabled children,

781
00:41:41,533 --> 00:41:47,066
and the middle class should not
have to bear the cost of getting

782
00:41:47,066 --> 00:41:49,667
our fiscal house in
order by themselves;

783
00:41:49,667 --> 00:41:54,000
that the wealthiest
Americans who have,

784
00:41:54,000 --> 00:41:55,633
by comparison with
the middle class,

785
00:41:55,633 --> 00:41:59,667
done far better over
the past decade,

786
00:41:59,667 --> 00:42:02,567
ought to do their fair share.

787
00:42:02,567 --> 00:42:06,033
And on the general
principle of tax cuts,

788
00:42:06,033 --> 00:42:09,799
I think it's worth noting that
the President simply supports --

789
00:42:09,800 --> 00:42:13,367
as he long has -- the return
of the tax rates for the top 2

790
00:42:13,367 --> 00:42:19,467
percent of American earners to
the level that was in place in

791
00:42:19,467 --> 00:42:22,233
the 1990s under
President Clinton.

792
00:42:22,233 --> 00:42:28,900
And the beauty of this is now
we have an empirical example of

793
00:42:28,900 --> 00:42:33,367
what the impact of those tax
rates had on our economy,

794
00:42:33,367 --> 00:42:36,400
and would have if they were
implemented again in the future.

795
00:42:36,400 --> 00:42:40,433
And although some, including the
aforementioned current Speaker

796
00:42:40,433 --> 00:42:43,200
of the House, warned about doom
and gloom when those rates were

797
00:42:43,200 --> 00:42:47,100
put into place by President
Clinton in 1993 -- economic

798
00:42:47,100 --> 00:42:50,100
Armageddon I think was
predicted -- what we got

799
00:42:50,100 --> 00:42:52,633
instead was the opposite.

800
00:42:52,633 --> 00:42:54,834
We got the longest peacetime
expansion of our economy

801
00:42:54,834 --> 00:42:55,533
in history.

802
00:42:55,533 --> 00:42:59,266
We got 23 million jobs created.

803
00:42:59,266 --> 00:43:06,834
And the middle class saw its
positioning made more secure -

804
00:43:06,834 --> 00:43:09,033
middle-class incomes
actually went up.

805
00:43:09,033 --> 00:43:11,000
And millionaires and
billionaires did pretty

806
00:43:11,000 --> 00:43:12,667
darn well also.

807
00:43:12,667 --> 00:43:18,066
So I think that's a recent
example that should help guide

808
00:43:18,066 --> 00:43:19,366
us into the future.

809
00:43:19,367 --> 00:43:20,433
The Press:
Let me try one more if I can.

810
00:43:20,433 --> 00:43:21,000
Mr. Carney:
Sure.

811
00:43:21,000 --> 00:43:23,467
The Press:
Wheaton College, an
evangelical school in Illinois,

812
00:43:23,467 --> 00:43:26,400
is joining Catholic groups
in their lawsuit against the

813
00:43:26,400 --> 00:43:29,567
Affordable Care Act's
contraceptive requirement.

814
00:43:29,567 --> 00:43:30,800
Any reaction to that?

815
00:43:30,800 --> 00:43:31,667
Mr. Carney:
I'm not aware of that.

816
00:43:31,667 --> 00:43:33,734
I'll have to -- I mean,
our position is as it was,

817
00:43:33,734 --> 00:43:35,400
but I am not aware
of that report.

818
00:43:36,934 --> 00:43:37,867
Yes, sir.

819
00:43:37,867 --> 00:43:38,934
And then Norah.

820
00:43:38,934 --> 00:43:40,367
The Press:
Just to follow up on
Wendell's line of questioning

821
00:43:40,367 --> 00:43:42,333
on the sequester.

822
00:43:42,333 --> 00:43:44,500
Does the President or does the
administration think it would be

823
00:43:44,500 --> 00:43:48,433
appropriate to negotiate
legislation to avoid a sequester

824
00:43:48,433 --> 00:43:51,867
in a lame duck session?

825
00:43:51,867 --> 00:44:00,700
Mr. Carney:
The President believes that
Congress should act now to

826
00:44:00,700 --> 00:44:07,799
render moot the sequester by
passing balanced deficit and

827
00:44:07,800 --> 00:44:10,700
debt reduction.

828
00:44:10,700 --> 00:44:16,232
If Congress doesn't do that
now, it must do that after

829
00:44:16,233 --> 00:44:18,000
the election.

830
00:44:18,000 --> 00:44:20,467
But that is the course of
action that needs to be taken.

831
00:44:20,467 --> 00:44:21,100
The Press:
But there's an alternative --

832
00:44:21,100 --> 00:44:26,767
Mr. Carney:
They simply can't -- the
alternative is to ignore a

833
00:44:26,767 --> 00:44:27,966
problem that is easily fixable.

834
00:44:27,967 --> 00:44:33,767
And Congress promised
before the nation,

835
00:44:33,767 --> 00:44:38,533
when bipartisan majorities in
both Houses voted for the Budget

836
00:44:38,533 --> 00:44:40,933
Control Act, that they
were not going to do that;

837
00:44:40,934 --> 00:44:44,867
they were going to embrace the
challenge and come together and

838
00:44:44,867 --> 00:44:48,767
pass legislation that could
garner bipartisan support.

839
00:44:48,767 --> 00:44:52,232
And the only legislation that
can garner bipartisan support

840
00:44:52,233 --> 00:44:56,367
is legislation that addresses
our fiscal challenges in a

841
00:44:56,367 --> 00:44:57,467
balanced way.

842
00:44:57,467 --> 00:44:58,467
That's what they have to do.

843
00:44:58,467 --> 00:45:00,400
The Press:
So the President would oppose
a short-term extension?

844
00:45:00,400 --> 00:45:03,633
Mr. Carney:
I'm not going to negotiate
what may or may not happen

845
00:45:03,633 --> 00:45:04,533
in December.

846
00:45:04,533 --> 00:45:07,100
What I will tell you is the
President's position is clear

847
00:45:07,100 --> 00:45:09,066
about what Congress needs to do.

848
00:45:09,066 --> 00:45:10,700
The Press:
One quick follow -- and it just
came across the wires -- the

849
00:45:10,700 --> 00:45:12,799
President has apparently
spoken with Vladimir Putin.

850
00:45:12,800 --> 00:45:14,834
Can you give us any
sort of readout on that?

851
00:45:14,834 --> 00:45:17,834
The topic was Syria,
as we understand it.

852
00:45:17,834 --> 00:45:19,533
Mr. Carney:
Well, I don't have any
additional information for you,

853
00:45:19,533 --> 00:45:21,500
except I can confirm that
the President did speak with

854
00:45:21,500 --> 00:45:23,500
President Putin.

855
00:45:23,500 --> 00:45:25,900
But I'll have more
information for you.

856
00:45:25,900 --> 00:45:27,200
The Press:
About Syria?

857
00:45:27,200 --> 00:45:30,299
Mr. Carney:
I believe that was a
topic of discussion, yes.

858
00:45:30,300 --> 00:45:32,900
The Press:
(inaudible)

859
00:45:32,900 --> 00:45:33,734
Mr. Carney:
Not that I'm aware of.

860
00:45:33,734 --> 00:45:35,333
The Press:
Jay, he called him?

861
00:45:35,333 --> 00:45:36,767
Mr. Carney:
President Putin.

862
00:45:36,767 --> 00:45:39,165
The Press:
Who called who?

863
00:45:39,166 --> 00:45:42,600
Mr. Carney:
I believe we initiated the call,
but I will have to double-check.

864
00:45:42,600 --> 00:45:45,767
The Press:
Two questions.

865
00:45:45,767 --> 00:45:49,734
The first is Mitt Romney's
campaign and its allies have

866
00:45:49,734 --> 00:45:54,200
been trying to make hay out of
the fact that a lot of companies

867
00:45:54,200 --> 00:45:59,567
with connections to Obama donors
have received grants and loans,

868
00:45:59,567 --> 00:46:01,800
loan guarantees from
the Energy Department.

869
00:46:01,800 --> 00:46:04,333
The question is whether you
think it's -- is there anything

870
00:46:04,333 --> 00:46:08,133
wrong with a company or an
individual who has supported

871
00:46:08,133 --> 00:46:13,466
the President politically also
receiving government support

872
00:46:13,467 --> 00:46:15,500
for their endeavors?

873
00:46:15,500 --> 00:46:20,233
Mr. Carney:
Well, I think these charges have
been appropriately labeled by

874
00:46:20,233 --> 00:46:23,734
some of your
colleagues as ridiculous,

875
00:46:23,734 --> 00:46:27,165
totally false, unfounded.

876
00:46:27,166 --> 00:46:28,266
The Press:
Is that what you're
labeling them?

877
00:46:28,266 --> 00:46:31,567
Mr. Carney:
We certainly believe
that and know that.

878
00:46:31,567 --> 00:46:34,367
The fact of the matter
is these programs,

879
00:46:34,367 --> 00:46:37,033
a principal one of which
was started under the Bush

880
00:46:37,033 --> 00:46:43,100
administration, gave out
loans on a merit basis.

881
00:46:43,100 --> 00:46:46,165
And that's been
well established.

882
00:46:46,166 --> 00:46:49,667
Republicans in the House have
been investigating this stuff

883
00:46:49,667 --> 00:46:52,000
for more than a year.

884
00:46:52,000 --> 00:46:53,433
And you know what
they got so far?

885
00:46:53,433 --> 00:46:59,066
Nothing, because
the program, again,

886
00:46:59,066 --> 00:47:03,366
was -- the loans are assigned
on a merit-based basis.

887
00:47:03,367 --> 00:47:07,033
And we have long acknowledged
that one of the reasons why --

888
00:47:07,033 --> 00:47:09,299
and this was true under the Bush
administration when one of these

889
00:47:09,300 --> 00:47:13,100
programs was established --
that you create these investment

890
00:47:13,100 --> 00:47:19,033
programs to invest in industries
that might not otherwise get

891
00:47:19,033 --> 00:47:22,567
that seed money that they need
to grow and that, inherently,

892
00:47:22,567 --> 00:47:24,233
there is some risk
involved in that.

893
00:47:24,233 --> 00:47:27,734
But the broader principle here
is that we need to build those

894
00:47:27,734 --> 00:47:31,667
industries in the United States,
because they will be vital

895
00:47:31,667 --> 00:47:35,333
industries in the 21st century
and if we don't build them here,

896
00:47:35,333 --> 00:47:39,567
they will be built in China or
Europe or India or elsewhere,

897
00:47:39,567 --> 00:47:42,633
and jobs will be created in
China or India or Europe or

898
00:47:42,633 --> 00:47:43,633
elsewhere.

899
00:47:43,633 --> 00:47:46,899
And this President was not
willing to cede these key 21st

900
00:47:46,900 --> 00:47:49,700
century industries to the
Chinese or the Indians or the

901
00:47:49,700 --> 00:47:51,700
Europeans or others.

902
00:47:51,700 --> 00:47:57,066
So that was why he made the
investments through the Recovery

903
00:47:57,066 --> 00:47:57,966
Act that he did.

904
00:47:57,967 --> 00:48:02,367
Those investments have supported
hundreds of thousands of jobs.

905
00:48:02,367 --> 00:48:07,400
And, even more significantly,
they have helped clean energy

906
00:48:07,400 --> 00:48:16,266
industries here in the United
States expand and place roots

907
00:48:16,266 --> 00:48:19,400
into the American economy in a
way that will continue to pay

908
00:48:19,400 --> 00:48:23,200
dividends economically
for years to come.

909
00:48:23,200 --> 00:48:25,799
The Press:
My second question, following up
on Donovan's question about the

910
00:48:25,800 --> 00:48:28,734
Jobs Council -- I'm wondering
if it's at all awkward for the

911
00:48:28,734 --> 00:48:31,266
President to be campaigning
against recommendations that

912
00:48:31,266 --> 00:48:34,433
the Jobs Council made, such as
the territorial tax system.

913
00:48:34,433 --> 00:48:35,066
Mr. Carney:
Well, no.

914
00:48:35,066 --> 00:48:37,533
I think we made clear when
the Jobs Council was created,

915
00:48:37,533 --> 00:48:41,567
these are outside
advisors who, by design,

916
00:48:41,567 --> 00:48:43,934
come from different areas of the
economy and they bring different

917
00:48:43,934 --> 00:48:49,166
views, and they are not
members of the administration.

918
00:48:49,166 --> 00:48:50,767
And that's the
whole purpose of it.

919
00:48:50,767 --> 00:48:53,200
And the President wanted this
outside input and he wanted to

920
00:48:53,200 --> 00:48:54,433
evaluate ideas.

921
00:48:54,433 --> 00:48:57,066
And, obviously, he will embrace
and support some of them -- and

922
00:48:57,066 --> 00:49:02,667
he has, as I began to speak
about earlier -- and others,

923
00:49:02,667 --> 00:49:03,667
he won't support.

924
00:49:03,667 --> 00:49:11,767
So the territorial tax
system that you reference,

925
00:49:11,767 --> 00:49:14,200
the President doesn't
support that because,

926
00:49:14,200 --> 00:49:18,500
as was demonstrated in a report
published in Tax Notes earlier

927
00:49:18,500 --> 00:49:23,000
this week, it would create a
situation where jobs are created

928
00:49:23,000 --> 00:49:25,000
overseas rather than
in the United States.

929
00:49:25,000 --> 00:49:27,533
I mean, it stands to reason
if you give a tax incentive

930
00:49:27,533 --> 00:49:31,266
to companies to build
factories overseas,

931
00:49:31,266 --> 00:49:34,100
they're going to do that, and
the jobs that come along with

932
00:49:34,100 --> 00:49:35,500
that will be created overseas.

933
00:49:35,500 --> 00:49:36,800
The Press:
What does that say
about your Jobs Council,

934
00:49:36,800 --> 00:49:39,633
if they were promoting an
idea that would be so harmful?

935
00:49:39,633 --> 00:49:43,100
Mr. Carney:
It says that the President has
received many fine ideas from

936
00:49:43,100 --> 00:49:45,799
the Jobs Council that he
agrees with and he supports,

937
00:49:45,800 --> 00:49:50,367
and that he doesn't agree with
and support every idea that

938
00:49:50,367 --> 00:49:53,500
everybody has put on the table.

939
00:49:53,500 --> 00:49:58,900
Because he has to balance the
various interests that are at

940
00:49:58,900 --> 00:50:01,900
stake when he looks at what's
best for the American economy,

941
00:50:01,900 --> 00:50:03,133
what's best for
the middle class,

942
00:50:03,133 --> 00:50:06,399
what's best for manufacturing
here in the United States,

943
00:50:06,400 --> 00:50:12,000
and what approaches are best
to encourage companies to build

944
00:50:12,000 --> 00:50:14,967
factories in the United States,
open offices in the United

945
00:50:14,967 --> 00:50:17,767
States, and hire
American workers.

946
00:50:17,767 --> 00:50:23,866
That is his focus, and that has
driven his economic proposals

947
00:50:23,867 --> 00:50:28,734
and it is driving his economic
vision for the next four years.

948
00:50:28,734 --> 00:50:34,400
The Press:
Jay, so Speaker Boehner -- and
I know you said you hadn't heard

949
00:50:34,400 --> 00:50:38,700
his comments -- but he also
-- you said in response to his

950
00:50:38,700 --> 00:50:41,066
comment that Ben talked about
that it's important to look at

951
00:50:41,066 --> 00:50:42,299
the policy debate.

952
00:50:42,300 --> 00:50:44,266
That's also part of what
the Speaker was saying.

953
00:50:44,266 --> 00:50:46,633
He was saying that the
President's campaign is not

954
00:50:46,633 --> 00:50:49,633
focused on the policy debate
-- they're focused on Governor

955
00:50:49,633 --> 00:50:51,834
Romney's tax returns.

956
00:50:51,834 --> 00:50:54,165
And he called this
a distraction.

957
00:50:54,166 --> 00:50:56,600
He said the President is trying
to distract the American people.

958
00:50:56,600 --> 00:50:59,933
If you're looking at
priorities based on rhetoric,

959
00:50:59,934 --> 00:51:04,100
does he have a point that that's
an attempt at distraction?

960
00:51:04,100 --> 00:51:05,633
Mr. Carney:
No, he doesn't.

961
00:51:05,633 --> 00:51:07,232
And I would refer
campaign-specific

962
00:51:07,233 --> 00:51:08,467
questions to the campaign.

963
00:51:08,467 --> 00:51:10,533
But the President's priorities
-- and you hear him talk about

964
00:51:10,533 --> 00:51:17,000
it everywhere he goes, both when
he is having official events and

965
00:51:17,000 --> 00:51:19,300
when, as yesterday, he has
campaign events -- and he talks

966
00:51:19,300 --> 00:51:23,767
very specifically about concrete
economic proposals and his

967
00:51:23,767 --> 00:51:25,966
vision for helping the economy
grow and helping secure the

968
00:51:25,967 --> 00:51:27,233
middle class.

969
00:51:27,233 --> 00:51:31,500
And the debate about
encouraging insourcing,

970
00:51:31,500 --> 00:51:33,467
as opposed to
encouraging outsourcing,

971
00:51:33,467 --> 00:51:37,633
is fundamental to economic
policy and the kinds of choices

972
00:51:37,633 --> 00:51:39,200
we need to make going forward.

973
00:51:39,200 --> 00:51:43,299
And it's one that I think
illustrates a real difference

974
00:51:43,300 --> 00:51:46,734
between the President and,
unfortunately, the Republicans.

975
00:51:46,734 --> 00:51:50,433
I mean, here is a proposal that
is currently being discussed on

976
00:51:50,433 --> 00:51:53,767
Capitol Hill and the Senate
about eliminating loopholes that

977
00:51:53,767 --> 00:51:56,966
exist in our tax code that
encourage companies to take

978
00:51:56,967 --> 00:51:57,967
jobs overseas.

979
00:51:57,967 --> 00:51:58,967
Now, we shouldn't be doing that.

980
00:51:58,967 --> 00:52:02,600
Why would Congress want to
encourage companies to send

981
00:52:02,600 --> 00:52:04,033
jobs overseas?

982
00:52:04,033 --> 00:52:07,433
We should be taking action to
encourage companies to build and

983
00:52:07,433 --> 00:52:09,800
invest here in the United States
and create jobs here in the

984
00:52:09,800 --> 00:52:10,800
United States.

985
00:52:10,800 --> 00:52:11,867
That's the President's position.

986
00:52:11,867 --> 00:52:14,700
That's embodied in the proposal
that he has put forward that the

987
00:52:14,700 --> 00:52:15,834
Senate is considering.

988
00:52:15,834 --> 00:52:21,033
And it makes no sense
to him, or to me,

989
00:52:21,033 --> 00:52:23,266
that Republicans
wouldn't support that.

990
00:52:23,266 --> 00:52:25,767
Unfortunately, there has
been opposition to that.

991
00:52:25,767 --> 00:52:27,399
We hope it can be overcome.

992
00:52:27,400 --> 00:52:29,300
The Press:
But it just sounds like the
President -- you're saying the

993
00:52:29,300 --> 00:52:31,734
President isn't focused
on this line of attack,

994
00:52:31,734 --> 00:52:33,366
because it's his campaign.

995
00:52:33,367 --> 00:52:34,333
Mr. Carney:
No, I didn't say that at all.

996
00:52:34,333 --> 00:52:37,133
I said one of the issues that's
being debated in the campaign as

997
00:52:37,133 --> 00:52:40,799
it relates to the President's
opponent has to do with vision

998
00:52:40,800 --> 00:52:43,934
and what policies he is for
with regards to outsourcing

999
00:52:43,934 --> 00:52:44,900
versus insourcing.

1000
00:52:44,900 --> 00:52:46,667
The Press:
But also the tax returns is --

1001
00:52:46,667 --> 00:52:48,866
Mr. Carney:
Well, I mean, one of the
issues that I think -- again,

1002
00:52:48,867 --> 00:52:51,867
I think you ought to take
specific questions about

1003
00:52:51,867 --> 00:52:54,333
Governor Romney and the
campaign to the campaign.

1004
00:52:54,333 --> 00:52:56,767
But what the
President believes --

1005
00:52:56,767 --> 00:52:57,734
The Press:
So there's a firewall?

1006
00:52:57,734 --> 00:53:02,033
Mr. Carney:
Well, there are issues that
I think are best addressed

1007
00:53:02,033 --> 00:53:02,834
by the campaign.

1008
00:53:02,834 --> 00:53:04,533
But I can tell you what the
President believes and what his

1009
00:53:04,533 --> 00:53:05,266
positions are.

1010
00:53:05,266 --> 00:53:09,166
And I can tell you on the issue
of his policy positions on

1011
00:53:09,166 --> 00:53:12,467
outsourcing and insourcing,
and the distinctions that exist

1012
00:53:12,467 --> 00:53:14,900
between his position
and Governor Romney's.

1013
00:53:14,900 --> 00:53:16,300
He feels very
strongly about that.

1014
00:53:16,300 --> 00:53:17,900
That's why he is
pushing them so hard,

1015
00:53:17,900 --> 00:53:20,700
both on the campaign
trail and in Congress.

1016
00:53:20,700 --> 00:53:25,866
And when it comes to
transparency and accountability,

1017
00:53:25,867 --> 00:53:27,800
the President believes that
that comes with the office.

1018
00:53:27,800 --> 00:53:29,967
I mean, he has said -- and I
will quote him -- that when

1019
00:53:29,967 --> 00:53:33,133
you're President of
the United States,

1020
00:53:33,133 --> 00:53:40,933
you are responsible and you live
by the adage that Harry Truman

1021
00:53:40,934 --> 00:53:43,467
coined, that "the
buck stops here."

1022
00:53:43,467 --> 00:53:48,767
And the whole debate about
whether -- when you're President

1023
00:53:48,767 --> 00:53:50,100
of the United States,
you can't say, well,

1024
00:53:50,100 --> 00:53:52,933
I know I have the title but I'm
not really responsible for what

1025
00:53:52,934 --> 00:53:55,266
happens here in the White House
or in the federal government,

1026
00:53:55,266 --> 00:53:59,500
I was doing other things
-- you are responsible,

1027
00:53:59,500 --> 00:54:00,934
and the President believes
that very strongly.

1028
00:54:00,934 --> 00:54:03,033
And if you're going
to run for President,

1029
00:54:03,033 --> 00:54:04,266
it's not necessarily
comfortable,

1030
00:54:04,266 --> 00:54:07,066
but it's become a tradition
and it's an important one,

1031
00:54:07,066 --> 00:54:11,799
you make your tax returns
available because you think the

1032
00:54:11,800 --> 00:54:15,400
American people deserve
that kind of transparency.

1033
00:54:15,400 --> 00:54:18,734
So, again, I'm speaking
for the President.

1034
00:54:18,734 --> 00:54:23,767
If you have questions about how
the campaign specifically is

1035
00:54:23,767 --> 00:54:25,100
addressing these issues,
you should take them to

1036
00:54:25,100 --> 00:54:25,667
the campaign.

1037
00:54:25,667 --> 00:54:29,633
But the President -- his record
demonstrates that and he very

1038
00:54:29,633 --> 00:54:30,899
much supports it.

1039
00:54:30,900 --> 00:54:33,800
The Press:
And I want to follow up on a
question about Wheaton College.

1040
00:54:33,800 --> 00:54:37,033
We've actually -- we've
filed a story on this,

1041
00:54:37,033 --> 00:54:39,967
Wheaton College joining Catholic
University in a lawsuit --

1042
00:54:39,967 --> 00:54:42,433
Mr. Carney:
I just got this question and I
don't have -- I'm not even aware

1043
00:54:42,433 --> 00:54:43,967
of it, so I'll have
to take the question.

1044
00:54:43,967 --> 00:54:47,600
The Press:
I mean, it's pretty
simple -- they're joining

1045
00:54:47,600 --> 00:54:49,734
Catholic University.

1046
00:54:49,734 --> 00:54:55,400
There are many institutions
that are suing over this.

1047
00:54:55,400 --> 00:54:59,633
I'm just wondering if there's
a concern that this is sort of

1048
00:54:59,633 --> 00:55:02,133
just a sign of more to come.

1049
00:55:02,133 --> 00:55:04,633
The administration has already
lost the support of its key

1050
00:55:04,633 --> 00:55:07,399
ally, the Catholic
Health Association.

1051
00:55:07,400 --> 00:55:09,834
Is there a concern that
there is more to come?

1052
00:55:09,834 --> 00:55:15,399
Mr. Carney:
The President, as you know, when
this was a topic of discussion

1053
00:55:15,400 --> 00:55:20,867
earlier this year, was committed
to finding a balance between

1054
00:55:20,867 --> 00:55:24,667
religious liberty -- which he
has a strong attachment to and

1055
00:55:24,667 --> 00:55:32,567
belief in -- and the need to
ensure that women had access to

1056
00:55:32,567 --> 00:55:36,533
important preventive services,
including contraception.

1057
00:55:36,533 --> 00:55:41,734
And he made sure that that
balance was struck in the policy

1058
00:55:41,734 --> 00:55:42,734
that is moving forward.

1059
00:55:42,734 --> 00:55:45,567
And that's the
position he's taken.

1060
00:55:45,567 --> 00:55:49,533
I don't have -- in terms of the
iterations of developments in

1061
00:55:49,533 --> 00:55:52,799
court cases, again, I'm not
aware of the specific case

1062
00:55:52,800 --> 00:55:55,567
or the fact that this
college is involved in it.

1063
00:55:55,567 --> 00:55:56,433
The Press:
Well, but that's just it.

1064
00:55:56,433 --> 00:55:58,300
This is the premier
evangelical institution

1065
00:55:58,300 --> 00:56:01,467
in the U.S. joining a lawsuit.

1066
00:56:01,467 --> 00:56:02,533
Isn't that a development?

1067
00:56:02,533 --> 00:56:03,500
How does it register?

1068
00:56:03,500 --> 00:56:05,233
Mr. Carney:
Well, I'm not saying
that it's -- I mean,

1069
00:56:05,233 --> 00:56:07,867
it's clearly a development if
CNN has done a story on it.

1070
00:56:07,867 --> 00:56:09,166
(laughter)

1071
00:56:09,166 --> 00:56:09,667
But the --

1072
00:56:09,667 --> 00:56:11,165
The Press:
It broke an hour
before the briefing.

1073
00:56:11,166 --> 00:56:13,300
Mr. Carney:
A whole hour?

1074
00:56:13,300 --> 00:56:14,600
The Press:
Yep.

1075
00:56:14,600 --> 00:56:17,366
Mr. Carney:
What I'm saying is that
as a matter of principle,

1076
00:56:17,367 --> 00:56:19,967
I just don't have anything
specific on this event since I

1077
00:56:19,967 --> 00:56:22,834
was informed about it by one
of your colleagues earlier.

1078
00:56:22,834 --> 00:56:25,700
What I can tell you is that the
President believes very strongly

1079
00:56:25,700 --> 00:56:29,866
in finding the balance that
he believes he found and the

1080
00:56:29,867 --> 00:56:33,300
administration found in
putting forward the policy

1081
00:56:33,300 --> 00:56:34,300
that's put forward.

1082
00:56:34,300 --> 00:56:40,066
And on specific legal actions, I
would have to take the question

1083
00:56:40,066 --> 00:56:45,165
-- or probably refer you to
the Department of Justice.

1084
00:56:45,166 --> 00:56:47,700
The Press:
The Syrian opposition has been
vocal in their criticism of the

1085
00:56:47,700 --> 00:56:50,000
Obama administration, saying
that you haven't been doing

1086
00:56:50,000 --> 00:56:52,900
enough and basically, all that
they're receiving is rhetoric

1087
00:56:52,900 --> 00:56:54,767
that President Assad
has to step down.

1088
00:56:54,767 --> 00:56:57,933
How do you respond to that?

1089
00:56:57,934 --> 00:57:01,900
Mr. Carney:
Well, I would say that the
United States has led the effort

1090
00:57:01,900 --> 00:57:07,633
to organize the international
community to try to unify the

1091
00:57:07,633 --> 00:57:10,966
international community in
support of both the Syrian

1092
00:57:10,967 --> 00:57:13,533
opposition, but more broadly
the Syrian people and the whole

1093
00:57:13,533 --> 00:57:16,500
premise that there needs to be
a transition in Syria without

1094
00:57:16,500 --> 00:57:18,266
President Assad.

1095
00:57:18,266 --> 00:57:25,867
Our very clear position on
the brutality that Assad has

1096
00:57:25,867 --> 00:57:32,367
perpetrated, the fact that he
long ago gave up any opportunity

1097
00:57:32,367 --> 00:57:36,800
to participate in a transition
to democracy in Syria,

1098
00:57:36,800 --> 00:57:38,467
has been vocal and clear.

1099
00:57:38,467 --> 00:57:49,133
And it is not -- it is a simple
fact that at the United Nation,

1100
00:57:49,133 --> 00:57:56,265
efforts that we supported and
led to pass resolutions that

1101
00:57:56,266 --> 00:58:00,567
would have -- that we believe
were the correct ones against

1102
00:58:00,567 --> 00:58:03,533
Assad, were not supported
by Russia and China.

1103
00:58:03,533 --> 00:58:05,333
And we've been very clear about
our disappointment in that.

1104
00:58:05,333 --> 00:58:08,233
And that's why we've continued
to work with the Russians and

1105
00:58:08,233 --> 00:58:12,533
the Chinese to try to persuade
them that history is not on the

1106
00:58:12,533 --> 00:58:15,866
side of those who would ally
themselves with President Assad;

1107
00:58:15,867 --> 00:58:22,633
that it is in the
interest of peace,

1108
00:58:22,633 --> 00:58:25,332
it is in the interest
of the Syrian people,

1109
00:58:25,333 --> 00:58:28,633
and it is in the interest
of those nations that want

1110
00:58:28,633 --> 00:58:31,133
a continued relationship
with Syria and the Syrian

1111
00:58:31,133 --> 00:58:36,567
people to support a transition
in Syria that does not include

1112
00:58:36,567 --> 00:58:38,633
President Assad.

1113
00:58:38,633 --> 00:58:40,000
The Press:
What do you mean by when
you say "transition"?

1114
00:58:40,000 --> 00:58:42,367
You often said that
from this podium.

1115
00:58:42,367 --> 00:58:43,533
What do you mean
by "transition"?

1116
00:58:43,533 --> 00:58:45,066
Mr. Carney:
We mean, as we've
seen elsewhere,

1117
00:58:45,066 --> 00:58:50,200
there has to be a process that
-- a transition period that

1118
00:58:50,200 --> 00:58:53,066
allows for the interim
government, if you will,

1119
00:58:53,066 --> 00:58:56,066
that allows for the
establishment of a new

1120
00:58:56,066 --> 00:58:59,200
democratic process in that
country that would eventually --

1121
00:58:59,200 --> 00:59:01,033
The Press:
-- include this current regime?

1122
00:59:01,033 --> 00:59:03,767
Mr. Carney:
No. Our point is without
this regime -- I mean,

1123
00:59:03,767 --> 00:59:05,767
that's the point we've been
making -- that Assad cannot

1124
00:59:05,767 --> 00:59:08,066
participate in that process
because he has lost all

1125
00:59:08,066 --> 00:59:11,332
credibility with his people by
the simple fact that he has gone

1126
00:59:11,333 --> 00:59:15,033
around the country killing
innocent Syrian civilians.

1127
00:59:15,033 --> 00:59:19,133
The Press:
Jay, you just said
you are pursuing --

1128
00:59:19,133 --> 00:59:20,899
Mr. Carney:
I'm sorry?

1129
00:59:20,900 --> 00:59:23,000
The Press:
You are pursuing the
situation with the

1130
00:59:23,000 --> 00:59:24,767
United Nations right now.

1131
00:59:24,767 --> 00:59:34,799
What is your strong leverage to
use against Russian veto today?

1132
00:59:34,800 --> 00:59:37,800
Mr. Carney:
We are in regular conversation
with the Russians and we've made

1133
00:59:37,800 --> 00:59:38,934
our positions clear.

1134
00:59:38,934 --> 00:59:44,166
And our point to the
Russians and others is that,

1135
00:59:44,166 --> 00:59:50,400
as I just said, if
you ally with Assad,

1136
00:59:50,400 --> 00:59:54,367
you're going to end up on
the wrong side of history,

1137
00:59:54,367 --> 01:00:01,367
and that a continued
relationship with Syria and the

1138
01:00:01,367 --> 01:00:05,800
Syrian people I think depends
upon making the right decisions

1139
01:00:05,800 --> 01:00:10,133
now, because Syria's future
will not include Assad.

1140
01:00:10,133 --> 01:00:13,700
Syrians need to be able to
determine their own future

1141
01:00:13,700 --> 01:00:15,399
in a democratic way.

1142
01:00:15,400 --> 01:00:20,233
And it is in everyone's interest
in the region and beyond to

1143
01:00:20,233 --> 01:00:27,233
support a process that allows
for that process to take place,

1144
01:00:27,233 --> 01:00:30,967
that responds to the legitimate
democratic aspirations of the

1145
01:00:30,967 --> 01:00:32,467
Syrian people.

1146
01:00:32,467 --> 01:00:34,567
Thanks very much.