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All Speakers
00:00:104 sec.
Carney, James "Jay" - Press Secretary

Good afternoon. Thanks for being here at the White House. I have no announcements, so let’s go straight to questions. Jim.

00:00:1440 sec.
Q

Thank you, Jay. Fiscal cliff: At the start of the negotiations, the White House welcomed the Republican movement toward revenue. You guys said that...

00:00:543 min.
Carney, James "Jay" - Press Secretary

Well, it sounds like you’ve gotten some points for you. Let’s just be clear. There is one party to these negotiations who has put forward a specific...

00:04:433 sec.
Q

I guess the question was where has the President moved toward the Republicans --

00:04:4657 sec.
Carney, James "Jay" - Press Secretary

Well, I think, as it's been reported -- of course, not by us, but has been described by those who have received it -- the President has moved in his...

00:05:437 sec.
Q

The Speaker also said that the debt ceiling demands just would never pass Congress. Is that something that's negotiable to you?

00:05:501 min.
Carney, James "Jay" - Press Secretary

Well, here's what the President is proposing. He's proposing that the legislation authored by Senator McConnell -- not a noted Obama sympathizer --...

00:07:395 sec.
Q

But it sounds like this demand -- you would not let that demand hold up a deal if there’s --

00:07:4456 sec.
Carney, James "Jay" - Press Secretary

Here's what I'll say about that. The President believes Congress ought to do its job. Let's remember what a vote to raise the debt ceiling is. It...

00:08:405 sec.
Q

Has the administration given a written offer to the Speaker?

00:08:457 sec.
Carney, James "Jay" - Press Secretary

I’m not going to get into specifics. Although since so much of this seems to leak from elsewhere, I think it’s known that we have exchanged offers.

00:08:5212 sec.
Q

Yes, but you keep deriding their offer as nonspecific because it’s just a short letter. But it’s my understanding that the Geithner offer was verbal....

00:09:042 sec.
Carney, James "Jay" - Press Secretary

Well, I’m not going to get into specifics, but everything that's behind --

00:09:062 sec.
Q

-- the measure of seriousness, your offer wasn’t even written.

00:09:0825 sec.
Carney, James "Jay" - Press Secretary

Well, again, Jessica, everything that -- every conversation that we’ve had with Congress both at the level of Secretary Geithner and Rob Nabors and...

00:09:33
Q

So do you dispute that?

00:09:3318 sec.
Carney, James "Jay" - Press Secretary

Well, I don't understand what you're saying. So we have the documentation; they have the documentation. If you’re saying, verbally, if he repeats...

00:09:513 sec.
Q

It was in the original proposal, you’re saying, from this --

00:09:541 sec.
Carney, James "Jay" - Press Secretary

That's correct.

00:09:55
Q

-- but it wasn’t -- when Geithner went up to the Hill, he didn’t present it --

00:09:553 sec.
Carney, James "Jay" - Press Secretary

But that is our proposal. They know what our --

00:09:584 sec.
Q

So he was reiterating a past proposal?

00:10:0235 sec.
Carney, James "Jay" - Press Secretary

Right. We have put forward specific cuts. And let me remind you that even the House Republican budget, which is sometimes cited as the source for...

00:10:374 sec.
Q

Does the White House dispute the Speaker’s contention that negotiations are at the 11th hour now?

00:10:4111 sec.
Carney, James "Jay" - Press Secretary

Well, I’m not sure if we are 11/12’s of the way through the year -- we are, we’re even beyond that. So I think that’s a fair assessment that...

00:10:524 sec.
Q

So does the President feel it’s incumbent on him to make a new offer now?

00:10:5634 sec.
Carney, James "Jay" - Press Secretary

The President does not believe that he should negotiate with himself. He has made abundantly clear that Republicans need to accept the fact that rates...

00:11:3010 sec.
Q

Speaker Boehner has said he is leaving town tomorrow and he won’t be here this weekend. Does the President read this as a sign that negotiations...

00:11:409 sec.
Carney, James "Jay" - Press Secretary

Well, look, there’s no question that we haven’t reached an agreement. It’s also true that the parameters of an agreement are very clear, and...

00:11:491 sec.
Q

Is that worrisome? You guys need to be making --

00:11:501 min.
Carney, James "Jay" - Press Secretary

Well, look, I think it’s worrisome for the American people that thus far the House Republican leadership has refused to accept the fundamental principle...

00:12:5324 sec.
Q

Okay, on a different topic. As senator, President Obama repeatedly traveled to Iraq and Afghanistan with then-Senator Chuck Hagel. He has said flattering...

00:13:1713 sec.
Carney, James "Jay" - Press Secretary

You’re asking me, I can tell, to engage in conversation about potential personnel decisions the President is making and will make. And I have no...

00:13:302 sec.
Q

Well, we know Mr. Hagel has met with the President and Vice President.

00:13:3212 sec.
Carney, James "Jay" - Press Secretary

The President thinks very highly of Senator Hagel. I think a lot of people in Washington and around the country, and especially in Senator Hagel’s...

00:13:4412 sec.
Q

Was the offer that Speaker Boehner made on Tuesday different from the offer that he had made previously?

00:13:562 sec.
Carney, James "Jay" - Press Secretary

Again, I’m not going to get into specific --

00:13:581 sec.
Q

I’m not asking you for specifics.

00:13:594 sec.
Carney, James "Jay" - Press Secretary

Well, that is a specific difference. What I can say is that we have yet to see --

00:14:032 sec.
Q

You say that the President is not going to negotiate with himself --

00:14:052 sec.
Carney, James "Jay" - Press Secretary

Here’s what I will tell --

00:14:074 sec.
Q

-- which suggests that Speaker Boehner wasn’t offering something different.

00:14:1153 sec.
Carney, James "Jay" - Press Secretary

Fair enough. Here’s what I will say, is that on the fundamental obstacle, the answer is, no, we have not seen in any of our conversations or offers...

00:15:047 sec.
Q

Maybe the $800 billion is part of the $1.2 trillion that the President said would be in tax deductions and limited closing loopholes last year.

00:15:1138 sec.
Carney, James "Jay" - Press Secretary

Again, we see no specificity. And what Jason Furman got up here and described to you in great detail, using solid facts and analysis by independent...

00:15:492 sec.
Q

There are other contentious issues, including the --

00:15:511 sec.
Carney, James "Jay" - Press Secretary

Sure.

00:15:5215 sec.
Q

-- and House Republicans think that the degree to which spending will be reduced or cut is a big, contentious issue. Did the Speaker's second proposal...

00:16:071 min.
Carney, James "Jay" - Press Secretary

We have not seen any specificity when it comes to spending cuts. We know that Republicans want greater spending cuts, but we don't know how they would...

00:17:1731 sec.
Q

Is there any sort of plan B being discussed, whether with the Speaker or on some sort of separate track, so that if there isn't a deal cut, there is...

00:17:481 min.
Carney, James "Jay" - Press Secretary

It's a good question. We still believe that a big deal is possible. We believe the parameters are there and we remain confident that if Republicans...

00:18:581 sec.
Q

Got it. But just in case --

00:18:591 sec.
Carney, James "Jay" - Press Secretary

That's not saying that there --

00:19:003 sec.
Q

-- in case of emergency, break glass. Is there some sort of plan B?

00:19:0345 sec.
Carney, James "Jay" - Press Secretary

In case of emergency, the House should break the glass; the House Speaker ought to allow the Republicans to vote on extending tax cuts for 98 percent...

00:19:4817 sec.
Q

One last question. The President went to Michigan and he waded into the local controversy there involving right to work. There was violence at some...

00:20:0538 sec.
Carney, James "Jay" - Press Secretary

I haven't discussed reports like that with him, so I'm not sure he's aware of it. But we deplore violence in any case. And the President feels very...

00:20:433 sec.
Q

There's been no negotiation back and forth --

00:20:462 sec.
Carney, James "Jay" - Press Secretary

I'm sorry, Bill.

00:20:4821 sec.
Q

Thank you. (Laughter.) There's been no negotiations back and forth as far as anybody can tell, in the sense that terms have been discussed, debated,...

00:21:0921 sec.
Carney, James "Jay" - Press Secretary

Well, I guess it's a question of semantics in terms of what negotiations mean. But we have obviously had meetings and we've had discussions and we've...

00:21:302 sec.
Q

Right. So nothing happens until they agree -- is that what you're saying?

00:21:323 sec.
Carney, James "Jay" - Press Secretary

Well, no, because we've put forward spending cuts. And if --

00:21:353 sec.
Q

Yeah, but you put them forward a long time ago. They were written into a budget and --

00:21:384 sec.
Carney, James "Jay" - Press Secretary

Right, and they achieve a significant amount of savings. And if the --

00:21:422 sec.
Q

The other side says they don't, they’re never going to pass on that --

00:21:441 min.
Carney, James "Jay" - Press Secretary

Do they? Because the math doesn't back up their words, which is frequently the case. They do achieve significant savings. And what distinguishes...

00:23:115 sec.
Q

But if you're saying that no negotiation can really begin until they accept your first principle --

00:23:162 sec.
Carney, James "Jay" - Press Secretary

That's not what I'm saying, Bill. That's what you're saying.

00:23:181 sec.
Q

-- and if the Speaker is saying no negotiation really can begin --

00:23:197 sec.
Carney, James "Jay" - Press Secretary

Negotiation is taking place and we've put forward offers. And what we have not seen from the Republicans is any movement at all on the fundamental...

00:23:2624 sec.
Q

Jay, tax reform is a big piece of this. You were outspoken in the last campaign about saying Mitt Romney's use of offshore accounts while legal was...

00:23:501 sec.
Carney, James "Jay" - Press Secretary

I'm not even aware of that story, so I don't have an opinion.

00:23:512 sec.
Q

There were several reports in that last couple of days.

00:23:535 sec.
Carney, James "Jay" - Press Secretary

I've been focused on the fiscal cliff, on Syria, on North Korea -- so I'm not aware of those stories.

00:23:589 sec.
Q

Democrats have talked up the NBC News/Wall Street Journal poll, because it pretty much hit the election in the weeks and months leading up to it in...

00:24:072 sec.
Carney, James "Jay" - Press Secretary

And what's the Republican view?

00:24:0921 sec.
Q

They don't like that poll as much. They had a poll last night that said if we go off the fiscal cliff and we can't get a compromise, who's to blame?...

00:24:301 min.
Carney, James "Jay" - Press Secretary

Well, I haven't said that. I've said -- you've never heard me say if we go off the cliff, the American people will blame one side or the other. What...

00:26:0119 sec.
Q

As a last question, you're saying the President is committed to getting this done. To follow up on Bill, in terms of negotiations -- and the public...

00:26:201 sec.
Carney, James "Jay" - Press Secretary

Speaker Boehner was here --

00:26:211 sec.
Q

Earlier in this process you dismissed that idea, but now it's late --

00:26:221 sec.
Carney, James "Jay" - Press Secretary

Speaker Boehner was here a few days ago.

00:26:237 sec.
Q

-- and you just said the parameters of the debate are obvious -- okay, you said parameters are obvious here. So why doesn’t the President bring the...

00:26:3016 sec.
Carney, James "Jay" - Press Secretary

I’m sure that if -- first of all, the Speaker of the House was here. The President has spoken to the Speaker of the House recently. The Speaker...

00:26:461 sec.
Q

It's now Thursday and we're getting closer.

00:26:4750 sec.
Carney, James "Jay" - Press Secretary

Every time that you guys seem to think that a physical meeting is the elixir to all our ills, I think it would behoove you to ask the Speaker if he...

00:27:378 sec.
Q

If I could just interject -- the Speaker's office says there is cell phone coverage in Ohio, and if the President wants to talk they can.

00:27:453 sec.
Carney, James "Jay" - Press Secretary

And there's actually hard lines here, and I think the Speaker knows that.

00:27:485 sec.
Q

But will he be talking to him?

00:27:533 sec.
Carney, James "Jay" - Press Secretary

I don’t have any phone calls or conversations to preview for you.

Kristen.

00:27:569 sec.
Q

Jay, thanks. I want to go back to the issue of the debt ceiling. You compare it to the McConnell plan. Republicans push back against that. They...

00:28:056 sec.
Carney, James "Jay" - Press Secretary

No, the McConnell plan was separate from the spending cuts that were part of the Affordable Care Act.

00:28:1110 sec.
Q

Well, the concern is -- and House Speaker John Boehner said today that the debt ceiling brings fiscal sanity to Washington. Why is that not true? ...

00:28:211 min.
Carney, James "Jay" - Press Secretary

I think you ought to ask the Speaker if in the 1990s when Bill Clinton was President and Washington was able to erase deficits for the first time in...

00:29:521 sec.
Q

No, it gives them the power to borrow more.

00:29:532 sec.
Carney, James "Jay" - Press Secretary

To pay for the work that they’ve already done.

00:29:551 sec.
Q

But to borrow more money.

00:29:561 sec.
Carney, James "Jay" - Press Secretary

Correct.

00:29:571 sec.
Q

And raise the debt.

00:29:586 sec.
Carney, James "Jay" - Press Secretary

Okay, so the alternative, which is default, is to not pay for the bills that Congress has incurred.

00:30:046 sec.
Q

And, Jay, I’m not disputing that it’s a difficult process. But isn’t this the best way to keep deficits in check?

00:30:101 min.
Carney, James "Jay" - Press Secretary

Again, I could go over the history again. In our lifetimes, certainly yours, the last time and the only time that deficits have turned into surpluses...

00:31:1416 sec.
Q

I want to ask one on Syria. Jay, based on your comments yesterday, it appears as though there are no plans to interfere militarily in Syria. But does...

00:31:301 min.
Carney, James "Jay" - Press Secretary

Absolutely not. We have explicitly condemned the use of missiles. It is just another demonstration of the utter depravity of the Assad regime and...

00:32:354 sec.
Q

Given the escalation, is he in any way considering his red line in Syria?

00:32:3939 sec.
Carney, James "Jay" - Press Secretary

Our policy remains what it was, and we obviously consult with our allies and others and evaluate the situation regularly. But we believe that providing...

00:33:1816 sec.
Q

We are way beyond the early stage, and the international markets are very concerned. Instability is something that they deplore. Is there one more...

00:33:3437 sec.
Carney, James "Jay" - Press Secretary

Look, I think that the parameters of an agreement are clear. They’re not complicated. And we hope and look forward to the time when Republicans...

00:34:118 sec.
Q

Senator Durbin said that the President is no longer open to raising the Medicare eligibility age. Is that the case?

00:34:1912 sec.
Carney, James "Jay" - Press Secretary

I haven’t seen those remarks, but I can tell you that I’m not going to negotiate specifics of the -- I'm not doubting them, I’m just saying --...

00:34:312 sec.
Q

But he’s someone from your own party from the President’s home state.

00:34:3342 sec.
Carney, James "Jay" - Press Secretary

Let me take the answer for the President, which is that we’re not going to engage in hypotheticals about what a package would like on the spending...

00:35:152 sec.
Q

Why would Senator Durbin say that?

00:35:172 sec.
Carney, James "Jay" - Press Secretary

I don't speak for Senator Durbin.

Mara.

00:35:1915 sec.
Q

You said there are clear red lines on revenue, no tax cuts for the top 2 percent. Are there clear red lines on entitlements other than keeping Social...

00:35:3426 sec.
Carney, James "Jay" - Press Secretary

Well, I mean, that’s -- there’s a broad range of crazy ideas I’m sure that I could rule out. But the President is committed to making sensible...

00:36:001 sec.
Q

That's the only red line you draw --

00:36:0113 sec.
Carney, James "Jay" - Press Secretary

No, that's not what I said, Mara. Go back to the beginning of my answer. I’m sure there are all sorts of bad ideas that could be thrown out there...

00:36:148 sec.
Q

Yesterday, even though Senator Durbin said what he said, to Barbara Walters, the President did not rule out raising the Medicare retirement age.

00:36:2235 sec.
Carney, James "Jay" - Press Secretary

Well, again, the President is not going to rule in or rule out things in interviews. He has been trying to have these conversations and negotiations...

00:36:5718 sec.
Q

House Majority Leader Eric Cantor told his members today to be prepared to stay here through the weekend before Christmas, into the holidays if a deal...

00:37:1524 sec.
Carney, James "Jay" - Press Secretary

I don't have any updates on the President’s schedule. The President’s schedule is what it is. And when we have -- if we have adjustments to that...

00:37:393 sec.
Q

So are you prepared for this to go into the --

00:37:4241 sec.
Carney, James "Jay" - Press Secretary

I don't think that's required. But again, what we hope to see is some acknowledgement by Republican leaders that existing law when it comes to the...

00:38:2320 sec.
Q

Following up on that question, when does this get to the point where there’s not enough time to get legislation through Congress and to the President’s...

00:38:4312 sec.
Carney, James "Jay" - Press Secretary

I think that that's a question that you’d have to ask leaders in Congress because they decide the calendar. They have an even deeper understanding...

00:38:5519 sec.
Q

Back to Syria. Russia has said for the first time that it looks like the rebels might win. Does the White House see any sign in this that Russia is...

00:39:1460 sec.
Carney, James "Jay" - Press Secretary

Well, I saw those remarks. I would say that we certainly agree that Assad will not be a part of Syria’s future. We have noted as the media has the...

00:40:1421 sec.
Q

Jay, quick question. The President is going to be talking to media this afternoon, local media. He's been traveling, trying to apply pressure from...

00:40:3557 sec.
Carney, James "Jay" - Press Secretary

Well, I can certainly tell you that in the effort to extend the payroll tax cut last year and in the effort to ensure that rates on student loans didn’t...

00:41:325 sec.
Q

And is it showing -- are there examples of where you can see the ground shifting now?

00:41:371 min.
Carney, James "Jay" - Press Secretary

Well, I don’t have -- I cannot say that a Republican congressman who now believes we ought to extend tax cuts for the middle class and accepts that...

00:43:0010 sec.
Q

Jay, a follow-up to what you said to Kristen really. I, too, am old enough to remember the mid-'90s. And I'm old enough to remember --

00:43:1012 sec.
Carney, James "Jay" - Press Secretary

Kristen remembers that. I just mean that -- I just want to be clear that the only time in her lifetime there's been a surplus was under Bill Clinton.

00:43:2217 sec.
Q

But before, in '95 and '96, I remember, before the budgets were balanced, we had two major government shutdowns. And it became very personal, the negotiations...

00:43:391 min.
Carney, James "Jay" - Press Secretary

Well, I'm not sure about that assessment. I think that President Clinton and then-Speaker Gingrich continued to talk and negotiate, even though they...

00:44:583 sec.
Q

They're not slamming the phone down on each other or anything?

00:45:012 sec.
Carney, James "Jay" - Press Secretary

I have never seen that happen on this end.

00:45:0352 sec.
Q

Two questions on North Korea. A few years ago, Defense Secretary Gates said that North Korea's attempt to develop an ICBM program could in a number...

00:45:551 min.
Carney, James "Jay" - Press Secretary

On the second question, I think you've seen us be very explicit about our desire to have China exert the influence that it has on North Korea. I think...

00:47:192 sec.
Q

But, Jay, I guess what I'm asking is --

00:47:2116 sec.
Carney, James "Jay" - Press Secretary

But in terms of what Secretary Gates said, I don’t have a timeline for you, but we certainly believe, as demonstrated by what we've said in reaction...

00:47:3715 sec.
Q

I guess -- just one more shot at this. The issue up until now has been primarily regional; it's a threat to the South Koreans, it's a threat to the...

00:47:5236 sec.
Carney, James "Jay" - Press Secretary

Well, I think it's certainly still the view that is the case, but I don’t have a timeline for you and I would simply refer back to Secretary Gates's...

00:48:281 sec.
Q

Thanks, Jay.

00:48:291 sec.
Carney, James "Jay" - Press Secretary

Last one.

00:48:3014 sec.
Q

Thank you, Jay. How would you compare the situation with North Korea and with Iran? Are they on the same -- is it the same dynamics that you seek...

00:48:4453 sec.
Carney, James "Jay" - Press Secretary

Well, they are certainly at different stages in the developments of their prohibitive programs, and there are different countries -- there are in some...

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