The Ed Schultz Show - News

Obama says trillion-dollar deficits may last years

Tue, 06 Jan 2009 00:00:00 GMT

President-elect Barack Obama says the nation probably faces huge deficits for years to come, but heavy spending is needed now to spur the economy.

Obama Comments
Obama said the deficit appears on track to hit $1 trillion soon.

Obama said, "Potentially we've got trillion-dollar deficits for years to come, even with the economic recovery that we are working on."

$775 Billion Stimulus Plan
He wants Congress to approve a stimulus plan of about $775 billion.

The federal deficit was about $455 billion when the last fiscal year ended on Sept. 30, 2008.

Obama on Earmarks
Members of Congress won't be allowed to slip earmarks into the economic recovery package.

Obama said, "We are going to ban all earmarks, the process by which individual members insert pet projects without review."

Obama said that getting a handle on the country's skyrocketing budget deficit must begin with the economic stimulus plan.

He said that the plan must include changes in the way Congress does business.

Obama said, "We're going to be investing an extraordinary amount of money to jump-start our economy, save or create 3 million new jobs, mostly in the private sector, and lay a solid foundation for future growth."

He said, "But we're not going to be able to expect the American people to support this critical effort unless we take extraordinary steps to ensure that the investments are made wisely and managed well."

Read the AP story

Read: No earmarks from stimulus bill

Read - Obama: Trillion-Dollar Deficits 'for Years to Come'

Read: Obama Warns About Years of Trillion-Dollar Deficits

Read: Obama warns of trillion-dollar deficits

Read: Obama's OMB director predicts $1 trillion deficit

Watch the Politico video

Obama's CIA pick unlikely to face Senate challenge

Tue, 06 Jan 2009 00:00:00 GMT

President-elect Barack Obama had to do a little fence-mending Tuesday with the new Congress controlled by his own party.

Obama apologized to the incoming Senate Intelligence Committee chair, Sen. Dianne Feinstein for failing to consult on his decision to name veteran Washington hand Leon Panetta CIA director.

Obama Comments
Obama said, "I have the utmost respect for Leon Panetta."

Obama said, "He has an impeccable record of integrity as chief of staff [under Bill Clinton."

Vice President-elect Joe Biden also branded it a mistake for Obama not to discuss the decision in advance with Feinstein.

But despite rumblings of criticism about Panetta's lack of intelligence experience, his confirmation is not expected to draw strong opposition.

Sen. Feinstein Responds
After complaining about the president-elect's lapse, Feinstein, who will oversee Panetta's confirmation hearing, said that both Obama and Biden had called to reassure her.

Sen. Feinstein said, "I have been contacted by both President-elect Obama and Vice President-elect Biden, and they have explained to me the reasons why they believe Leon Panetta is the best candidate for CIA Director."

She said that she looked forward to "speaking with Mr. Panetta about the critical issues facing the intelligence community and his plans to address them."

Biden Calls it a Mistake
Biden said that the transition team's failure to consult with Feinstein about the decision to tap Leon Panetta as head of the CIA had been a "mistake."

Biden Responds to Criticism
Biden also responded to criticism Panetta lacked the necessary intelligence experience to serve as CIA director.

Bidne said the former Clinton administration official is "totally qualified for this job."

Biden said, "He's been a consumer of intelligence for a long time. He was chief of staff. He understands the agency well."

He said, "What the agency needs now is a strong figure who understands how it functions and is going to take it up on a new path re-establishing its�. It's an incredibly important agency. It has suffered some, much of it not its own fault, a loss of credibility in a lot of corners."

Read the AP story

Read the Biden calls failure to consult with Feinstein on Panetta a 'mistake'

Read - Biden: Not Notifying Top Sens. on Panetta Choice a 'Mistake'

Read - Biden: Not consulting Senate on Panetta "a mistake"

CNN's Gupta approached for surgeon general

Tue, 06 Jan 2009 00:00:00 GMT

The Obama transition team approached Dr. Sanjay Gupta, CNN's chief medical correspondent, about becoming U.S. surgeon general.

Meeting in November
Gupta was in Chicago, Illinois, in November to meet with President-elect Barack Obama on the matter.

Gupta has declined comment.

Combination of Skills
The transition team is impressed with the combination of Gupta's past government experience and his medical career as a neurosurgeon along with his communication skills.

Gupta was a White House fellow in 1997 and a special adviser to then-first lady Hillary Clinton.

Host of House Call
Gupta hosts "House Call" on CNN, contributes reports to CBS News, and writes a column for Time magazine.

Read the CNN story

Read - CNN: Gupta approached about surgeon general post

Read: Obama Wants Journalist Gupta for Surgeon General

Read: CNN Medical Correspondent as Surgeon General?

Coleman sues over Minnesota Senate recount result

Tue, 06 Jan 2009 00:00:00 GMT

Republican Norm Coleman said he is suing to challenge Democrat Al Franken's apparent recount victory in Minnesota's U.S. Senate race.

The decision will delay a resolution of the contest for weeks or months.

Norm Coleman Comments
Coleman said he won't accept a board's determination from Monday that Franken won 225 more votes in the November election.

He had a seven-day window to file the lawsuit.

Coleman said, "We are filing this contest to make absolutely sure every valid vote was counted and no one's was counted more than anyone else's."

Shruggs off Idea of 1 Senator
Coleman shrugged off the idea that he might concede the election to avoid a protracted fight that could leave Minnesota with only a single senator in Washington for months.

He said, "Democracy is not a machine. Sometimes it's messy and inconvenient, and reaching the best conclusion is never quick because speed is not the first objective, fairness is."

State law prevents officials from issuing an election certificate until legal matters are resolved.

Read the AP story

Read: Coleman Vows to Fight On

Read: Coleman contesting recount

Read: Coleman contests Franken's win

Feinstein bucks Dems on Burris

Tue, 06 Jan 2009 00:00:00 GMT

Sen. Dianne Feinstein, D-CA, broke with her party's leadership in calling for Roland Burris to be seated in the Senate once his paperwork is signed by the Illinois secretary of state.

Feinstein, a senior member of the Judiciary Committee, said that not allowing Burris to be seated could broadly undermine future gubernatorial appointments.

Sen. Feinstein Comments
Sen. Feinstein said, "I can't imagine the secretary of state countermanding a gubernatorial appointment."

She said, "The question, really, is one in my view of law. And that is, does the governor have the power to make the appointment? And the answer is yes. Is the governor discredited? And the answer is yes."

Feinstein said, "Does that affect his appointment power? And the answer is no until certain things happen."

She said if Burris isn't seated "it affects gubernatorial appointments all over the country."

Read the Politico story

Read: Burris brings high drama to the Senate

Read: Democrats' opposition to Burris begins to crack

Read: Burris, Blocked From Taking Seat, Gains New Support

Burris turned away as he tries to claim Obama seat

Tue, 06 Jan 2009 00:00:00 GMT

Roland Burris tried to take President-elect Barack Obama's Illinois Senate seat Tuesday but failed in a scripted piece of political theater staged just before the opening of the 111th Congress.

Senate Majority Leader Harry Reid, D-NV, "Mr. Burris is not in possession of the necessary credentials from the state of Illinois."

Burris Lacks Credentials
Burris confirmed that Secretary of the Senate Nancy Erickson had informed him in a private meeting that his credentials lacked a required signature and his state's seal.

He said he had been advised that "I would not be accepted, and I will not be seated, and I will not be permitted on the floor."

The former Illinois attorney general said he was "not seeking to have any type of confrontation" over taking the seat that he was appointed to by embattled Gov. Rod Blagojevich.

But Burris also said he was considering a federal lawsuit to force Senate Democrats to seat him.

Read the AP story

Read: After being turned away at Senate door, Burris considers next steps

Read: Burris Backs Reid Into a Corner

Read: Burris is turned away from chamber

Gaza truce proposed after Israeli shell kills 30

Tue, 06 Jan 2009 00:00:00 GMT

France and Egypt announced an initiative to stop the fighting in Gaza late Tuesday.

The proposal came hours after Israeli mortar shells exploded near a U.N. school sheltering hundreds of people displaced by the onslaught on Hamas militants.

At least 30 Palestinians died, staining streets with blood.

Israel Responds
Israel's military said its shelling at the school was a response to mortar fire from within the school and said Hamas militants were using civilians as cover.

Israel has agreed to establish a "humanitarian corridor" to supply residents of Gaza with aid as international concerns about conditions among civilians mount.

Nearly 600 Palestinians have been killed and another 2,750 wounded since fighting began.

Obama Comments
President-elect Barack Obama broke his silence on the crisis, saying that "the loss of civilian life in Gaza and in Israel is a source of deep concern for me."

He declined to go further, reiterating his stance that the U.S. has only one president at a time.

Read the AP story

Read: Israel to open 'humanitarian corridor' for Gaza aid

Read: Israeli Shelling Kills at Least 30 at U.N. School

Read: Israeli Strike Kills 30 Near a School in Gaza

Read: Obama deplores civilian deaths in Gaza, Israel

Burris determined to take his Senate seat Tuesday

Tue, 06 Jan 2009 00:00:00 GMT

Barack Obama's appointed successor declared Tuesday he's qualified to take a seat in the Senate and said he'll go to Capitol Hill to do just that.

Roland Burris Comments
Roland Burris said on CBS's The Early Show, "I'm presenting myself as the legally appointed senator from the state of Illinois. It is my hope and prayer that they recognize that the appointment is legal."

The Senate convenes with the start of the 111th Congress today.

Burris dismissed the Senate Democratic leadership's position that he cannot be seated because he was appointed by a governor accused in a criminal complaint of trying to benefit financially from his authority to fill the seat that Obama vacated after winning the presidential election.

Burris said, "As I read the U.S. Constitution, it says the governor shall fill a vacancy, and as a former attorney general of my state, I have no knowledge of where a secretary of state has veto power over a governor carrying out his constitutional duties."

Governor Still Has Authority
Burris also maintained that the announcement by Gov. Rod Blagojevich of a date for an election for a successor to Rep. Rahm Emanuel, D-IL, proves the governor still has legal authority to carry out his duties.

Emanuel will be Obama's White House chief of staff.

Burris said, "There's nothing wrong with Roland Burris and there's nothing wrong with the appointment."

Little Support for Burris
Burris has found little support among fellow Democrats.

The Senate was scheduled to convene at noon Tuesday with its newest members.

Disputes in Illinois and Minnesota
Yet the controversy over the appointment and the ongoing dispute over election results in Minnesota practically guaranteed that both seats would remain empty by day's end.

Read the AP story

Franken on top in Minn. recount; Coleman to sue

Tue, 06 Jan 2009 00:00:00 GMT

The Minnesota State Canvessing Board certified results showing Democrat Al Franken winning the state's U.S. Senate recount over Republican Norm Coleman.

Al Franken Comments
Franken said, "After 62 days of careful and painstaking hand-inspection of nearly 3 million ballots, after hours and hours of hard work by election officials and volunteers around the state, I am proud to stand before you as the next senator from Minnesota."

Coleman to Challenge Results
Coleman's lawyer promised a legal challenge that probably will keep the race in limbo for months.

The Canvassing Board's declaration started a 7-day clock for Coleman, the incumbent, to file a lawsuit protesting the result.

Coleman Attorney Comments
His attorney Tony Trimble said the challenge will be filed within 24 hours.

The challenge will keep Franken from getting the election certificate he needs to take the seat in Washington.

Trimble said, "This process isn't at an end."

Trimble said, "It is now just at the beginning."

Franken wins by 225
Franken ended the recount up by 225 votes, in a race where more than 2.9 million votes were cast.

The recount reversed the unofficial Election Day results, which showed Coleman with a 215-vote lead.

Coleman to Appear Tuesday
Coleman's campaign said he would make an appearance Tuesday in Minnesota.

He was in Washington on Monday.

Secretary of State Ritchie Comments
Secretary of State Mark Ritchie was careful to note Monday that the board was simply signing off on the numbers found by the recount: Franken, with 1,212,431 votes, and Coleman, with 1,212,206 votes.

Ritchie said, "We're not doing anything today that declares winners or losers or anything to that effect."

Franken Attorney Comments
Marc Elias, Franken's lead recount attorney, referred to his client as "Senator-elect Franken."

Elias said, "Former Senator Coleman has to make a decision."

Elias said, "And it is a profound decision, one that he has to look into his heart to make: Whether or not he wants to be the roadblock to the state moving forward and play the role of a spoiler or sore loser or whether he wants to accept what was a very close election."

Sen. Reid Comments
Senate Majority Leader Harry Reid, D-NV, said, "The race in Minnesota is over."

Reid called the Republican efforts to continue challenging Franken's election "only a little finger pointing."

Minnesota Law
Minnesota law doesn't allow the issuance of a final election certificate until legal challenges are settled, meaning the state will be represented only by Sen. Amy Klobuchar, a Democrat, when Congress convenes on Tuesday.

Coleman's term expired Saturday.

Read the AP story

Read: Franken declares Senate race win after state ruling

Read: MN-Senate: Franken Claims Victory

Read: Minnesota Board Certifies Franken Win

Read: Franken declared winner over Coleman

Read: Coleman will challenge Franken's victory

Obama Talks Economy with Congressional Leaders

Tue, 06 Jan 2009 00:00:00 GMT

President-elect Barack Obama plunged into rare pre-inaugural crisis talks with congressional leaders Monday.

Obama Comments
Obama said, "The economy is very sick."

He said, "The situation is getting worse. ... We have to act and act now to break the momentum of this recession."

Obama said, "The reason we are here today is because the people's business cannot wait."

Obama predicted lawmakers would approve a huge revitalization package within two weeks of his taking office.

He said, "I expect to be able to sign a bill shortly after taking office."

Obama said, "By the end of January or the first of February."

He said, "We've got an extraordinary economic challenge ahead of us."

Obama predicted a jobs report at the end of the week would show new declines.

Obama Supports Tax Cuts
Obama embraced tax cuts that expect to reach $300 billion.

His proposal includes $500 for most individuals and $1,000 for couples if one spouse is employed.

If the two-year plan is enacted, workers would see larger paychecks almost immediately because taxes withheld by the government would drop.

Retroactive to Jan. 1
The break would be retroactive to Jan. 1

$100 Billion for Businesses
Obama's plan also has more than $100 billion for businesses.

Obama's plan would award a one-year tax credit costing $40-50 billion to companies that hire new workers, and would provide other incentives for business investment in new equipment.

$800 Billion Price Tag
New federal spending, also aimed at boosting the economy, could push the overall package to the range of $800 billion or so.

$77 Billion for Unemployment and Health Care
Some $77 billion would be used to extend unemployment benefits and to subsidize health care for people who have lost their jobs.

Job Creation
The rest would go toward job-creation projects such as roads and bridges and toward long-term goals such as alternative energy programs.

Obama Meets with Republicans
Obama also met with Republicans in an effort to build broad support for quick action.

He said, "This is not a Republican problem or a Democratic problem at this stage."

Obama said, "It is an American problem and we're going to all have to chip in and do what the American people expect."

Proposal on Internet
At his meeting with bipartisan leaders of Congress, Obama said he would make his stimulus proposal available on the Internet, with a Google-like search function to show each proposed project or program, by congressional district.

Rep. Boehner Comments
After meeting with Obama, House Minority Leader John Boehner, R-OH, said he was concerned about the plan's cost.

Boehner said, "This is not a package that's ever going to be paid for by the current generation."

He said, "It's being paid for by our kids and grandkids."

Boehner said Republican lawmakers want more details.

But he replied "yes" when asked if he expected a stimulus plan to be enacted within six weeks.

Republicans praised Obama's willingness to hear their ideas, which is something they have often felt did not take place under President Bush.

Sen. McConnell Comments
Senate Republican leader, Mitch McConnell said he encouraged Obama to consider providing aid to states in the form of loans that would have to be repaid, as a means of preventing wasteful spending.

McConnell said, "I thought the atmosphere for bipartisan cooperation was sincere on all sides."

He said, "The best way to stimulate the economy obviously is to put money directly in the pockets of taxpayers."

Speaker Pelosi Comments
Speaker Nancy Pelosi said, "It is a great honor and personal privilege to welcome you to this office. Tomorrow we will swear in a new Congress and we will hit the ground running on the initiatives ... to ease the pain being felt by the American people."

Visit msnbc.com for Breaking News, World News, and News about the Economy

Read the AP story

Read - Obama: $300 billion in tax cuts

Read: Obama Launches Stimulus Campaign on Hill

Read: Obama Pushes for Stimulus on Capitol Hill

Read: Obama courts GOP on stimulus

Read - Obama to Pelosi: Stimulus 'can't wait'

Obama's Intel Picks Short on Direct Experience

Tue, 06 Jan 2009 00:00:00 GMT

President-elect Barack Obama has decided to fill the nation's top intelligence jobs with 2 men short on direct experience in intelligence gathering.

Clean Break from Bush Policies
It surprised the spy community and signaled the Obama's intention for a clean break from Bush administration policies.

Leon Panetta to Head CIA
Former Clinton White House Chief of Staff Leon Panetta, an 8-term congressional veteran and administrative expert, is being tapped to head the CIA.

Adm. Dennis Blair Choice for National Intelligence
Retired Adm. Dennis Blair is Obama's choice to be director of national intelligence.

CIA Policies to Change
Obama is sending an unequivocal message that controversial administration policies approving harsh interrogations, waterboarding and extraordinary renditions - the secret transfer of prisoners to other governments with a history of torture - and warrantless wiretapping are over.

Both Appointments Outside of Intelligence Community
Neither Panetta nor Blair are tainted by associations with Bush administration policies because they both come from outside the intelligence world.

Blair was posted at the CIA for about a year.

Sen. Feinstein Comments
Sen. Dianne Feinstein, D-CA, who will chair the Senate Intelligence Committee, said she was surprised by the pick, and neither was informed nor consulted.

Feinstein said, "I know nothing about this, other than what I've read."

She said, "My position has consistently been that I believe the agency is best served by having an intelligence professional in charge at this time."

Veterans of the CIA were caught off guard by the selection.

Sen. Bond Comments
Sen. Kit Bond, R-MO, raised the issue of the terrorist attacks of Sept. 11, 2001 in questioning Panetta's experience.

Bond said, "Job number one at the CIA is to track down and stop terrorists."

He said, "In a post-9-11 world, intelligence experience would seem to be a prerequisite for the job of CIA Director."

Panetta Past Role
Panetta was director of the Office of Management and Budget and a longtime congressman from California.

As White House Chief of Staff during the Clinton administration, he spearheaded the internal effort to find a new CIA chief that led to the selection of John Deutsch in 1995.

Iraq Study Group
Panetta also served on the Iraq Study Group, a bipartisan panel that released a report at the end of 2006 with dozens of recommendations for reversing course in the war.

Blair Appointment Expected
Obama's selection of Blair, a former U.S. Pacific Command chief, had been expected.

Blair served in the Navy for 34 years and was chief of the U.S. Pacific Command during the Sept. 11 attacks.

Blair also is a China expert, and he was an associate director for military support at the CIA.

Blair and Panetta would replace retired Adm. Mike McConnell and former Air Force Gen. Michael Hayden, respectively.

Both men had said they would stay in their positions if asked.

Read the AP story

Read: Obama to name Panetta to lead CIA, Blair as intelligence chief

Read: Panetta Picked to Head CIA

Read: Panetta to Be Named C.I.A. Director

Read: Panetta, Blair land top intel posts

Read: Panetta's experience questioned

Obama Eyes $310 Billion Tax Cut

Mon, 05 Jan 2009 00:00:00 GMT

President-elect Barack Obama and congressional Democrats are crafting a plan to offer as much as $310 billion of tax cuts to individuals and businesses.

The move is aimed at attracting Republican support for an economic-stimulus package and prodding companies to create jobs.

Obama Comments
Obama said, "The reason we are here today is because the people can't wait. We have an extraordinary economic challenge ahead of us. We are expecting a sobering job report at the end of the week."

He said, "The speaker and her staff have been extraordinarily helpful in working with our team so we can shape an economic recovery plan and start putting people back to work."

40% or Stimulus Package
The size of the proposed tax cuts would account for about 40% of a stimulus package that could reach $775 billion over two years.

The size of the stimulus is greater than many on both sides of the aisle in Congress had anticipated.

The tax cuts may make it easier to win over Republicans.

During the campaign Obama outlined a plan to provide a credit to offset Social Security and Medicare payroll taxes of $500 per individual or $1,000 per family.

Read - Dem aide: Obama supports $300B tax cut plan

Read the Wall Street Journal story

Read: Obama weighs major tax move

Read - Obama: $300 billion in tax cuts

Read: Obama Launches Stimulus Campaign on Hill

Read: Congress Is Ready to Push Ahead on Economic Plan

Panel to declare Franken winner of Senate race

Mon, 05 Jan 2009 00:00:00 GMT

A state election board on Monday will announce Democrat Al Franken has defeated Republican incumbent Norm Coleman in Minnesota's U.S. Senate race

Franken Leads by 225 Votes
Franken's lead now stands at 225 votes after gaining 176 votes more than Coleman in Saturday's review of the formerly sealed absentee ballots. Franken started the day with a 49-vote advantage.

933 Absentee Ballots Counted
The 933 absentee ballots were among those rejected by poll workers but later found to be excluded in error.

The campaigns eventually agreed they should be added to the recount.

Board to Sign off Winner This Week
Unless Coleman wins a pending court petition that seeks to add hundreds more ballots to the recount, the counting is done and the Canvassing Board can sign off on the result on Monday or Tuesday.

The result cannot be certified for at least one more week under state law.

Read the CNN story

Read the AP story

Read: Franken's Lead Widens in Senate Recount

Read: Franken lead over Coleman grows

Read: Franken pads lead over Coleman

Richardson withdraws bid to be commerce secretary

Mon, 05 Jan 2009 00:00:00 GMT

New Mexico Gov. Bill Richardson announced that he was withdrawing his nomination to be President-elect Barack Obama's Commerce Secretary amid a grand jury investigation into how some of his political donors won a lucrative state contract.

2nd Pay to Play Investigation
Richardson's withdrawal was the first disruption of Obama's Cabinet process.

It is the second "pay-to-play" investigation that has touched Obama's transition to the presidency.

Obama has remained above the fray in both the case of arrested Illinois Gov. Rod Blagojevich and with the New Mexico case.

Grand Jury Investigation
A federal grand jury is investigating how a California company that contributed to Richardson's political activities won a New Mexico state contract worth more than $1 billion.

CDR Financial Products
The grand jury is looking into possible "pay-to-play" dealings between CDR Financial Products and someone in a position to push the contract through with the state of New Mexico.

State documents show CDR was paid a total of $1.48 million in 2004 and 2005 for its work on a transportation program.

Richardson Comments
Richardson said in a statement issued by the Obama transition office that the investigation could take weeks or months but expressed confidence it will show he and his administration acted properly.

Richardson said, "But I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process."

Richardson said, "Given the gravity of the economic situation the nation is facing, I could not in good conscience ask the president-elect and his administration to delay for one day the important work that needs to be done."

Richardson said he will remain as governor and told Obama, "I am eager to serve in the future in any way he deems useful."

Obama Meeting on Economy
The announcement came ahead of Obama's Monday meetings with congressional leaders on a massive economic recovery bill he wants lawmakers to pass quickly.

Obama Comments
Obama said he has accepted Richardson's withdrawal "with deep regret."

Obama said, "Governor Richardson is an outstanding public servant and would have brought to the job of Commerce Secretary and our economic team great insights accumulated through an extraordinary career in federal and state office."

Obama said, "It is a measure of his willingness to put the nation first that he has removed himself as a candidate for the Cabinet to avoid any delay in filling this important economic post at this critical time. Although we must move quickly to fill the void left by Governor Richardson's decision, I look forward to his future service to our country and in my administration."

Prominent Hispanic
Richardson is one of the most prominent Hispanics in the Democratic Party.

Richardson has served in Congress and as President Clinton's ambassador to the United Nations and energy secretary.

As governor, he has kept up an international profile with a specialty in dealing with rouge nations.

Obama also considered him to be secretary of state.

Company Contributed to Richardson Political Committees
CDR and its CEO, David Rubin, have contributed at least $110,000 to three political committees formed by Richardson, according to an AP review of campaign finance records.

The largest donation, $75,000, was made by CDR in June 2004 - a couple of months after the transportation financing arrangement won state approval - to a political committee that Richardson established before the Democratic National Convention that year.

Read the AP story

Read: Bill Richardson bows out of commerce secretary job

Read: Richardson Withdraws Name as Commerce Secretary-Designee

Read: Richardson Withdraws From Cabinet Appointment

Read: Richardson exits Cabinet due to probe

Read: Richardson withdraws from Commerce consideration

Israeli forces bisect Gaza, surround biggest city

Sun, 04 Jan 2009 00:00:00 GMT

Israeli ground troops and tanks cut swaths through the Gaza Strip early Sunday.

The Israeli troops cut the coastal territory into 2 and surrounded its biggest city as the new phase of the offensive against Hamas militants gained momentum.

The military used overwhelming firepower from tanks, artillery and aircraft to protect the advancing soldiers.

2nd Phase of Offensive
The ground operation is the second phase in an offensive that began as a weeklong aerial onslaught aimed at halting Hamas rocket fire that has reached deeper and deeper into Israel, threatening major cities and one-eighth of Israel's population.

31 Civilians Killed
Gaza officials said at least 31 civilians were killed in the onslaught.

The new deaths brought the death toll in the Gaza Strip to more than 500 since Dec. 27.

Palestinian and U.N. officials say at least 100 civilians are among the dead.

Dozens of Militants Killed
The Israeli military said troops killed several dozen militants, but Gaza officials could confirm only 4 dead - in part because rescue teams could not reach the battle zones.

International Condemnation
The ground invasion and live images of the fighting in Gaza drew international condemnations and dominated news coverage on Arab satellite TV stations.

Many TV stations aired footage of wounded Palestinians at hospitals.

Hamas Threatens Israeli Graveyard
Hamas threatened to turn Gaza into an Israeli "graveyard."

1 Israeli Soldier Killed
Israel reported one soldier was killed by mortar fire on Sunday.

It is the first Israeli death in a ground offensive that so far has been widely popular with the Israeli public.

Read the AP story

Read: Civilians on both sides caught in crossfire

Read: Israeli Troops Advance, Bisecting Gaza

Read: Israeli Forces Enter Gaza Strip

Reid refuses to set deadline for new stimulus plan

Sun, 04 Jan 2009 00:00:00 GMT

Senate Majority Leader Harry Reid, D-NV is refusing to say when a new congressional stimulus plan will be ready for Barack Obama to sign.

Sen. Reid Comments
Sen. Reid said lawmakers will get it done as quickly as they can.

The Majority Leader said he won't set an artificial deadline for getting something to Obama to sign.

Instead, Reid said Congress wants to do the stimulus plan right "the first time."

Reid said lawmakers will try their best to pass it before February.

Meeting with Obama Monday
Reid and House Speaker Nancy Pelosi plan to meet with Obama on Monday to talk about the stimulus plan.

Majority Leader Hoyer Comments
Majority Leader Steny Hoyer, D-MD, said not to expect Congress to have an economic recovery plan ready for Barack Obama when he takes office on Jan. 20.

Hoyer said it would be tough to get a massive spending plan together that early.

Hoyer said it is more likely that the House will finish its part by the end of January.

He hopes that something will be available for Obama to sign by mid-February.

Sen. McConnell Comments
Republicans are proposing alternatives to Obama's broad framework for creating or saving 3 million jobs over two years.

Senate Minority Leader Mitch McConnell, R-KY, said that perhaps the money for states should be a loan rather than a grant because it would "make them spend it more wisely."

McConnell said he will push for hearing rather than swift passage of an economic stimulus plan.

Sen. Durbin Comments
Senate Majority Whip Dick Durbin, D-IL, said that an aggressive stimulus is still essential.

Durbin said, "To do nothing and to hold back and to be meek in our approach may have the opposite effect. We may spend a little money and not really turn this economy around. And that would be a disaster."

Read the AP story

Read: Hill leaders say no stimulus by Jan. 20

Top senators plan Monday meeting on Burris

Sun, 04 Jan 2009 00:00:00 GMT

Senate Majority Leader Harry Reid, D-NV, plans to meet with the chamber's top Republican to see if they can come to a bipartisan solution on what to do about Senate appointee Roland Burris.

Burris is the Democrat picked by Illinois Gov. Rod Blagojevich to take Barack Obama's seat.

The governor has been accused by federal authorities of offering to sell the appointment to the highest bidder.

Sen. Reid Comments
Reid said he will talk to Senate Republican leader Mitch McConnell on Monday in hopes of coming to a bipartisan position on Burris.

The chamber swears in new senators on Tuesday.

Reid said that the Senate has the "legal authority" under the Constitution to refuse to seat Burris as the senator from Illinois.

Reid said, "We determine who sits in the Senate."

He said, "And the House determines who sits in the House. So there's clearly legal authority for us to do whatever we want to do. This goes back for generations."

Reid Denies Blagojevich Version
Reid also denied telling Blagojevich that appointing three African-American lawmakers - Reps. Jesse Jackson Jr. and Danny Davis or state lawmaker Emil Jones - would be unacceptable.

Reid said "He's [Blagojevich] making this up to divert attention."

He said, Jesse Jackson Jr. is someone I think would be a good senator. � Anyone to suggest anything racial is part of the Blagojevich spin."

Reid said, "Gov. Blagojevich appears to be trying to distract attention from his daunting legal problems and damaged credibility by distorting information about private phone calls between himself and other public officials. It is regrettable and reprehensible."

He said, "Gov. Blagojevich's efforts to try to tarnish others while the cloud of suspicion continues to grow over him are shameful."

Room for Negotiation
Reid also hinted there may be some room for negotiation over the Burris situation.

Reid said, "I'm an old trial lawyer. There's always room to negotiate."

Sen. Durbin Comments
Sen. Dick Durbin, D-IL, also defended Reid against allegations that Reid tried to block black Illinois Democrats like Rep. Jesse Jackson Jr. or state Sen. Emil Jones.

Durbin said, "It is an outrage that the Blagojevich people in the last days of their administration, facing impeachment in Springfield, are now flailing in every direction ... attacking everyone in sight."

Durbin said, "Harry Reid did what any would have done as majority leader in the Senate. He called the governor to discuss filling the vacancy."

Sen. McConnell Comments
Senate Minority Leader Mitch McConnell said, "I think there ought to be a special election."

McConnell said, "The process is so tainted, it's such a mess that the only way to clear the air � would be to have a special election."

Read the AP story

Read: Sen. Reid pushes back on Blago call

Virginia Gov. Kaine to take over as Democratic chairman

Sun, 04 Jan 2009 00:00:00 GMT

Virginia Gov. Tim Kaine is set to become the next chairman of the Democratic Party. Two Democratic officials said Sunday that President-elect Barack Obama has chosen the governor to take over the Democratic National Committee.

Part-Time until 2010
Kaine plans to work at the party part-time until 2010, when his term as governor is up and he can take over the DNC full-time.

Howard Dean to Step Down
Current DNC chairman Howard Dean plans to step down Jan. 21, the day after Obama's inauguration.

Jennifer O'Malley Dillion as Executive Director
Obama has also chosen Jennifer O'Malley Dillon, who directed his successful campaign battleground state strategy, to run day-to-day operations at the party as executive director.

Read the AP story

Read: Virginia Gov. Tim Kaine to head DNC

As 111th Senate Is Set to Begin, Four Seats Still Up in Air

Sat, 03 Jan 2009 00:00:00 GMT

Officials in several states are seeking to cut through the confusion surrounding a 4 Senate seats whose future occupants remain undetermined amid succession fights and election recount disputes.

Colorado Replacement
In Colorado, Gov. Bill Ritter (D) is expected to announce today that Michael Bennet, the superintendent of Denver's public schools, will succeed Sen. Ken Salazar (D) once Salazar is confirmed as interior secretary this month.

New York Reports
In New York, Gov. David Paterson attempted to knock down reports that he has decided on Caroline Kennedy as his appointee to replace Sen. Hillary Clinton (D) after she is confirmed as Secretary of State, even as key state party officials continued to push for Kennedy's appointment.

Illinois Conflict
In Illinois, Roland Burris, the selection of embattled Gov. Rod Blagojevich (D) to succeed President-elect Barack Obama in the Senate, filed another legal motion to try to force state officials to recognize his appointment, which would allow him to take his fight to the Capitol in time for Tuesday's start of the 111th Congress.

Minnesota Recount
Senate Republicans, meanwhile, declared that under no circumstances would they agree to seat Democrat Al Franken of Minnesota, who is clinging to a 49-vote lead in the recount of his race against Sen. Norm Coleman, if Coleman files a legal challenge.

Read the Washington Post story

Read: Will the Real Senate Please Be Seated

Bush says he wants lasting Mideast cease-fire

Sat, 03 Jan 2009 00:00:00 GMT

President George W. Bush says any cease-fire in the Mideast must be fully respected.

Bush said Hamas rocket attacks on Israel must stop and the flow of smuggled weapons into Gaza cut off.

Hamas Attacks "Act of Terror"
Bush called the Hamas attacks an "act of terror."

Bush said no peace deal would be acceptable unless the flow of smuggled weapons to terrorist groups is monitored and stopped.

He made the comments in his weekly radio address.

First Public Comments by Bush
It was the first time Bush has spoken about one of the bloodiest Mideast clashes in decades.

Bush said, "The United States is leading diplomatic efforts to achieve a meaningful cease-fire that is fully respected."

He said, "Another one-way cease-fire that leads to rocket attacks on Israel is not acceptable. And promises from Hamas will not suffice - there must be monitoring mechanisms in place to help ensure that smuggling of weapons to terrorist groups in Gaza comes to an end."

Read the AP story

Read: Hamas Provoked Attacks, Bush Says

Read: Bush blasts Hamas, says U.S. working for peace

Denver schools chief named to fill Senate vacancy

Sat, 03 Jan 2009 00:00:00 GMT

Colorado Gov. Bill Ritter named Denver's public schools superintendent as his choice to fill a Senate vacancy that will be created by the promotion of Sen. Ken Salazar to interior secretary in the Obama administration.

Micheael Bennet was a Dark Horse
The move surprised many Republicans and Democrats, who considered schools superintendent Michael Bennet a dark horse candidate for the Senate spot because of his lack of legislative experience.

The 44-year-old Democrat has never campaigned for or held public office.

Bennet had been mentioned as a possible choice for President-elect Barack Obama's education secretary, but Obama chose 44-year-old Arne Duncan, chief executive officer of Chicago public schools for the Cabinet post.

Obama Comments
Obama praised Gov. Ritter's choice of Bennet as that state's next senator, saying Bennet reflects "the qualities of the ruggedly independent state."

Obama said, "Filling Ken Salazar's boots in the US Senate is a tall order. But in selecting Michael Bennet, Governor Ritter has made an excellent choice."

Obama said, "Michael Bennet perfectly reflects the qualities of the ruggedly independent state he has been chosen to serve. An innovator in the public and private sectors, he has shown himself willing to challenge old thinking and stale policies."

Read the AP story

Read: Obama praises new Colorado senator, Michael Bennet

Read: Bennet picked to replace Salazar

Israel bombs Hamas sites, split on ground invasion

Sat, 03 Jan 2009 00:00:00 GMT

Israeli warplanes and gunboats blasted more than 2 dozen Hamas targets Saturday.

The targets included weapons storage facilities, training centers and leaders' homes.

2nd Week of Offensive
Israel's offensive against Gaza's Islamic militant rulers entered a second week.

There were tentative signs that the current phase of fighting may be nearing an end.

Most of the airstrikes targeted empty buildings and abandoned sites, suggesting Israel may be running out of targets.

10,000 Troops at Border
Israeli defense officials said some 10,000 troops, including tank, artillery and special operations units, were massed on the Gaza border and prepared to invade.

Commanders Split over Ground Attack
They said top commanders are split over whether to send in ground forces.

Some believe such an operation could lead to heavy casualties.

Others believe Hamas already has been dealt a heavy blow.

Leaflets Dropped to Warn Gazans
Leaflets signed by the commander of the Israeli military were dropped over northern Gaza on Saturday morning.

The leaflests warned residents to "leave the area immediately" to ensure their safety.

The leaflets said, "Due to the terrorist actions undertaken by terrorist elements from the region of your residences against the state of Israel, the Israel Defense Forces are compelled to respond immediately in the region of your residences. For your safety, you are ordered to leave the area immediately."

Read the AP story

Read: Leaflets warn Gazans to get out of harm's way

Read: Israel Allows Foreigners to Leave Gaza

Israeli ground forces enter Gaza

Sat, 03 Jan 2009 00:00:00 GMT

Israeli tanks and troops launched a ground offensive in the Gaza Strip Saturday night.

Expect Lengthy Fight
Officials said they expect a lengthy fight with Hamas militants in the densely populated territory after 8 days of airstrikes failed to halt rocket attacks on Israel.

Israeli Defense Minister Ehud Barak said, "This will not be easy and it will not be short."

Israeli security officials said the objective is not to reoccupy Gaza.

Barak said, "I don't want to disillusion anybody and residents of the south will go through difficult days."

Barak said, "We do not seek war but we will not abandon our citizens to the ongoing Hamas attacks."

Hamas Responds
Hamas vowed that Gaza would be a "graveyard" for Israelis forces.

UN Security Council Holds Emergency Meeting
The U.N. Security Council scheduled emergency consultations Saturday night on the escalation of violence in Gaza.

460 Palestinians Dead
8 days of airstrikes have left more than 460 Palestinians dead and 2,750 wounded in Gaza.

4 Israelis were killed by rocket fire.

Read the AP story

Read the CNN story

Read: Israeli Troops Move Into Gaza

Read: Israeli Troops Launch Attack on Gaza

McAuliffe announces bid for VA governor

Sat, 03 Jan 2009 00:00:00 GMT

Terry McAuliffe on Saturday announced his candidacy for the Virginia governorship.

He is attempting to position himself as the natural successor to Democrats Mark Warner and Tim Kaine.

E-mailed Video
In an e-mail video distributed to supporters, the former Democratic National Committee chairman said he has lived in the commonwealth for almost 20 years and that his campaign would focus on the economy, energy and the records of Warner and Kaine.

Formal Announcement Wednesday
McAuliffe is a resident of McLean and said he would make a formal announcement on Wednesday.

McAuliffe Comments
McAuliffe said, "Over the coming months, we will travel to every corner of the commonwealth to ask all Virginians to join our campaign to get the economy moving again."

McAuliffe said, "As governor, I'll make it my job to protect your job, grow this economy, make Virginia a leader in renewable energy, focus on long-term transportation solutions and give our children the best education so they have a chance to pursue the American dream right here in Virginia."

Read The Hill story

Obama: Country needs economic stimulus plan

Sat, 03 Jan 2009 00:00:00 GMT

President-elect Barack Obama urged congressional leaders Saturday to move quickly on an economic recovery plan.

Some Republicans are saying they want more time to review the details.

American Recovery and Reinvestment Plan
Obama said Congress should pass an American Recovery and Reinvestment Plan designed to create 3 million jobs.

Obama spelled out 5 main goals.

He said his plan proposes to:
Double renewable energy production and make public buildings more energy efficient;
Rebuild crumbling roads, bridges and schools;
Computerize the health care system;
Modernize classrooms, labs and libraries;
and provide tax breaks to American workers.

Obama hasn't announced a final price tag on it, but aides said the cost could be as high as $775 billion.

Obama Comments
Obama said, "For too many families, this new year brings new unease and uncertainty as bills pile up, debts continue to mount and parents worry that their children won't have the same opportunities they had."

The nation's economy remains the top challenge facing Obama when he takes office on Jan. 20.

2.25 Million Foreclosures Expected
The Federal Reserve estimated that lenders were on track to initiate 2.25 million foreclosures this year.

That is more than double the annual pace before the crisis set in.

1 in 10 Homeowners Delinquent
One in 10 U.S. homeowners is delinquent on mortgage payments or in foreclosure.

Obama Meets with Democratic Leaders Monday
House Speaker Nancy Pelosi, D-CA, and Senate Majority Leader Harry Reid, D-NV, are to receive details on Monday.

Obama plans meetings next week with other congressional leaders - including Republican members whose support he will need.

Obama Doesn't Lay Blame
Obama made an effort not to blame his predecessor, the unpopular President George W. Bush.

Obama said, "However we got here, the problems we face today are not Democratic problems or Republican problems."

He said, "The dreams of putting a child through college, or staying in your home, or retiring with dignity and security know no boundaries of party or ideology."

Obama said, "I am optimistic that if we come together to seek solutions that advance not the interests of any party, or the agenda of any one group, but the aspirations of all Americans, then we will meet the challenges of our time just as previous generations have met the challenges of theirs."

Timeline Unsure
Obama aides had hoped to have an economic plan approved by the House and Senate before Obama takes office.

That timeline, though, appears unlikely as time is running out and Republicans have urged a delay to review the plans.

Sen. Mitch McConnell, the Republicans' top official, said the plan needs time so that "every dollar needs to be spent wisely and not wasted in the rush to get it spent."

Tax Cuts and Aid to States
Congressional aides briefed on the measure say it's likely to blend tax cuts of $500 to $1,000 for middle-class individuals and couples with about $200 billion to help revenue-starved states with their Medicaid programs and other operating costs.

Money for Infrastructure
A large portion of the measure will go toward infrastructure projects, blending old-fashioned brick and mortar programs such as road and bridge repairs and water projects with new programs such as research and development on energy efficiency and an expensive rebuilding of the information technology system for health care.

Obama said, "Economists from across the political spectrum agree that if we don't act swiftly and boldly, we could see a much deeper economic downturn that could lead to double-digit unemployment and the American dream slipping further and further out of reach."

Read the AP story

Read: Obama sketches out recovery plan

Read: Back at Work, Obama Pitches His Stimulus Plan

Read: Obama pushes passage of stimulus plan

Senate GOP prepared to fight if Dems try to seat Franken

Sat, 03 Jan 2009 00:00:00 GMT

Sen. John Cornyn, R-TX, weighed in on Minnesota's close and still unresolved U.S. Senate race.

Cornyn said that no one should be seated until a winner is made official by both Minnesota Secretary of State Mark Ritchie and Republican Gov. Tim Pawlenty.

Franken Leads by 49 Votes
Democratic challenger Al Franken holds a lead of 49 votes over Republican incumbent Sen. Norm Coleman.

Election officials around the state spent the week conferring with campaign representatives about 1,350 sealed ballots that didn't get counted Nov. 4 but which may have been excluded in error.

Under a Supreme Court order, all sides had to agree that an absentee ballot was incorrectly rejected before it could be forwarded to the state for counting.

Counting Votes Saturday
State officials were to count 953 disputed absentee ballots Saturday.

The 953 ballots are out of about 1,350 reviewed and forwarded to the state on Friday.

Those ballots could prove decisive in the races outcome.

Supreme Court Decision
The Minnesota Supreme Court is expected to decide soon whether to open the door to a new centralized review of about 2,000 such disputed ballots, as requested by Sen. Coleman.

If the court refuses the Coleman request, his attorney said he would likely lose the recount and immediately move to legally contest the state Canvassing Board's certification of final results.

Read the CNN story

Read: Senate GOP would block early try to seat Franken

Read: Tally of Pivotal Ballots Begin Saturday

Read: Coleman may lose office until election is decided

Read: Coleman team virtually guarantees lawsuit

State Dept: US working for Mideast cease-fire

Sat, 03 Jan 2009 00:00:00 GMT

The United States is working toward a cease-fire that will not allow Hamas to continue firing rockets into Israel.

The announcement comes after Israel launched a ground invasion of Gaza.

Cautious statements from the State Department and the White House voiced concern about the humanitarian situation in Gaza, but did not directly criticize Israel for moving ground forces into Gaza.

State Department Comments
State Department spokesman Sean McCormack said "It's obvious the cease-fire should take place as soon as possible."

McCormack said, "But it has to be sustainable and cannot allow Hamas to continue to launch rockets out of Gaza."

Read the AP story

Blocking Blago: Senate has Plan B for 90-day delay

Fri, 02 Jan 2009 00:00:00 GMT

Roland Burris went to the Illinois Supreme Court on New Year's Eve to try to get his Senate appointment certified.

But Senate leaders back in Washington have a Plan B to keep from swearing him, regardless of what the court decides.

Secretary of State Will Not Certify Burris
Illinois Secretary of State Jesse White has said he will not certify the controversial appointment by disgraced Illinois Gov. Rod Blagojevich.

But even if the Illinois justices force him to make the appointment official, Senate Democrats in Washington will still resist.

Rules Committee Could Investigate
Senate officials say that if presented with the appointment, they are likely to give the Rules Committee 90 days to determine the propriety of the appointment by looking into such issues as whether Blagojevich received anything in return for it.

Lt. Gov. Could Appoint Once Gov. Removed
Sources say Blagojevich's s successor if he's removed from office, Illinois Lt. Gov. Pat Quinn, is likely to point someone who is African- American, but likely not Burris because of the taint or Rep. Jesse Jackson Jr., D-IL, who is often mentioned as a possibility but would be too controversial.

Sources said the choice is likely to be someone young and dynamic, like Dan Seals, who ran in a northeast Illinois House district in 2006 and 2008.

It needs to be someone who would appeal to the white Republicans in downstate Illinois, to prevent the seat going to the GOP in a future election.

Read the Politico story

Obama to talk stimulus with Hill leaders

Fri, 02 Jan 2009 00:00:00 GMT

President-elect Barack Obama will meet with Congressional leaders on Monday in an attempt to ease concerns among Republicans and some Democrats that his economic stimulus plan is too costly and too rushed.

It will be his first full day back in Washington, D.C. after a 12-day vacation in Hawaii.

Meeting with Democrats
Obama will first sit down with House Speaker Nancy Pelosi, D-CA, and Senate Majority Leader Harry Reid, D-NV, to discuss the scope and timing of a plan that could cost up to $775 billion.

Group to Meet with Republican Leaders
Obama, Pelosi and Reid are then expected to meet with Senate Republican leader Mitch McConnell, R-KY, and House minority leader Republican John Boehner, R-OH.

Republicans Critical of Plan
McConnell has been an increasingly vocal critic of Obama's plans for an economic stimulus package.

He and Boehner called this week for giving lawmakers at least a week to review the legislation when it is completed and for holding committee hearings on the proposal before it goes to the floor for a vote.

Read the Politico story

Panel wants fuel taxes hiked to fund highways

Fri, 02 Jan 2009 00:00:00 GMT

A 50 percent increase in gasoline and diesel fuel taxes is being urged by a federal commission to finance highway construction and repair until the government devises another way for motorists to pay for using public roads.

15 Member Panel Created by Congress
The National Commission on Surface Transportation Infrastructure Financing, a 15-member panel created by Congress, is the second group in a year to call for higher fuel taxes.

Tax Fails to Keep Pace with Costs
Motorists are driving less and buying less fuel.

The current 18.4 cents a gallon gas tax and 24.4 cents a gallon diesel tax is failing to raise enough revenue to keep pace with the cost of road, bridge and transit programs.

Propose 10 to 15 Cent Increase
Members of the infrastructure financing commission say they will urge Congress to raise the gas tax by 10 cents a gallon and the diesel fuel tax by 12 to 15 cents a gallon.

At the same time, the commission will recommend tying the fuel tax rates to inflation.

Push for Toll Roads
The commission will also recommend that states raise their fuel taxes and make greater use of toll roads and fees for rush-hour driving.

Treacherous Proposal
A tax increase of this size would be politically treacherous for Democratic leaders in Congress.

A gas tax hike was one of the reasons they lost control of the House and Senate in the 1994 elections.

President-elect Barack Obama has expressed concern about raising gas taxes in the current economic climate.

But commission members said the government must find the money somewhere.

The dilemma for Congress is that highway and transit programs are dependent for revenue on fuel taxes that are not sustainable.

Changing Habits
Many Americans are driving less and switching to more fuel-efficient cars and trucks, and a shift to new fuels and technologies like plug-in hybrid electric cars will further erode gasoline sales.

$105 Billion Gap
A study by the Transportation Research Board of the National Academies estimated that the annual gap between revenues and the investment needed to improve highway and transit systems was about $105 billion in 2007.

The study said it will increase to $134 billion in 2017 under current trends.

Group Calls for 40 Cent Increase
Projected shortfalls in revenue led the National Surface Transportation Policy and Revenue Study Commission, in a report issued in January 2008, to call for an increase of as much as 40 cents a gallon in the gas tax, phased in over five years.

American Trucking Association Support Tax Increase
Charles Whittington, chairman of the American Trucking Associations, which supports a fuel tax increase as long as the money goes to highway projects, said Congress may decide to disguise a fuel tax hike as a surcharge to combat climate change.

Transportation is responsible for about a third of all U.S. carbon emissions created by burning fossil fuels.

Traffic Congestion
Traffic congestion wastes an estimated 2.9 billion gallons of fuel a year.

Less congestion would reduce greenhouse gases and dependence on foreign oil.

Whittington said, "Instead of calling it a gas tax, call it a carbon tax."

He said, "As long as we label it as something else we may have the momentum and acceptance to move forward."

Bottlenecks around the nation cost the trucking industry about 243 million lost truck hours and about $7.8 billion per year.

Read the AP story

Coleman camp sues to include more absentee ballots

Thu, 01 Jan 2009 00:00:00 GMT

Sen. Norm Coleman's, R-MN, campaign has filed a lawsuit with the state's Supreme Court asking that it order roughly 2,000 disqualified absentee ballots to be counted in the state's contested Senate race.

1,350 Ballots Identified
Roughly 1,350 ballots have been identified by the Minnesota Secretary of State as having been disqualified for no legal reason.

Additional Ballots
The Coleman campaign said its suit would seek to force Democrat Al Franken to negotiate a process to include hundreds of additional ballots that both campaigns allege were wrongly disqualified.

Franken Leads by 49
Franken leads Coleman by 49 votes after the hand recount of ballots and resolution of disputed ballots during the recount.

Read The Hill story

Read - Senate recount: Coleman appeals to state's top court

Iraq takes control of Green Zone from US

Thu, 01 Jan 2009 00:00:00 GMT

The United States handed over control of the Green Zone and Saddam Hussein's presidential palace to Iraqi authorities on Thursday.

It was a ceremonial move described by the country's prime minister as a restoration of Iraq's sovereignty.

Prime Minister al-Maliki Comments
Prime Minister Nouri al-Maliki said he will propose Jan. 1 be declared a national holiday to commemorate what he called "Sovereignty Day" - the day Iraq took the lead in security away from U.S. forces, regained control of its airspace and reclaimed a wide swath of Baghdad's heavily fortified Green Zone.

Al-Maliki said, "This palace is the symbol of Iraqi sovereignty and by restoring it, a real message is directed to all Iraqi people that Iraqi sovereignty has returned to its natural status."

Gen. Perkins Comments
Maj. Gen. David Perkins, a U.S. military spokesman, said American troops will continue to fight alongside Iraqis -- "but the Iraqis will be in the lead."

Perkins said, "When you come up to a checkpoint, the Iraqis will check your identification. They will make the decision if you come in or go out."

Read the AP story

Read: Iraqis take control of Baghdad's 'Green Zone'

Read: As Clock Strikes 12, U.S. Hands Iraq Control of Green Zone

Read: Heart of U.S. Occupation Reverts to Iraqi Control

Israeli aircraft kill senior Hamas figure

Thu, 01 Jan 2009 00:00:00 GMT

Hamas says one of its top figures has been killed in an Israeli airstrike.

6th Day of Airstrikes
Israel has been hammering targets in Gaza for 6 days.

An overnight attack on the Palestinian parliament building gutted the structure.

This is the first time aircraft have targeted a senior member of Gaza's Hamas rulers.

Hamas identified the dead man as Nizar Rayyan, who had close ties to the group's military wing.

400 Killed to Date
Palestinian medical sources said 400 people have been killed in Gaza since the Israeli raids began Saturday.

42 children, 13 women and 2 medical workers are among the dead.

2,000 Wounded
In addition, 2,000 have been wounded.

Israel's offensive is meant to halt militants' rocket fire on southern communities.

4 Israeli Killed
4 Israelis -- 3 of them civilians -- have been killed and 56 wounded by Palestinian rocket fire.

Isreal Rejects Truce
Israeli Prime Minister Ehud Olmert's government rejected a French proposal for a humanitarian truce Wednesday.

Israeli leaders rejected a proposal for a two-day cease-fire and vowed to continue attacks on Hamas targets in the Gaza Strip, including possibly sending in ground forces.

Israel decided that a "real and sustainable solution" to attacks by Palestinian militants was needed.

Diplomatic Activity
Israel stepped up its diplomatic activity on Thursday, trying to gain more time for its military offensive against Hamas in Gaza while keeping up airstrikes.

Bush Position
The Bush administration is sticking to its support for the Jewish state's right of self-defense.

Though the White House stopped short of encouraging an Israeli ground assault aimed at fully reoccupying the Hamas-controlled Gaza Strip.

The Bush administration has asserted its desire for a halt to the fighting but also made clear its view that the first step in any cease-fire will require Hamas to agree to stop firing rockets from Gaza into Israel now and in the future.

Read the AP story

Read: Airstrike on refugee camp kills Hamas commander

Read: Israel's Attacks On Gaza Deepen Palestinian Rift

Read: Israel Rejects Proposal for 48-Hour Truce

Read: Israel Pursues Diplomacy but Presses Attacks

Read: Bush stance on cease-fire shows support for Israel

Roland Burris brings Senate Seat Battle to Court

Thu, 01 Jan 2009 00:00:00 GMT

Would-be Sen. Roland Burris has asked the Illinois Supreme Court to force the state's secretary of state to certify his appointment.

It is an effort to prevent Senate Democrats from using the lack of certification as a way to block Burris from taking Barack Obama's vacant Senate seat.

Roland Burris Comments
Burris said he will show up in Washington next week when new senators are sworn in.

But he said he won't create a scene if Senate leaders turn him away.

Burris said, "That is not my style. I am not seeking to be confrontational."

Plan B for Senate Democrats
But Senate Democrats have a "Plan B" to keep Burris from being sworn in, regardless how the Illinois Supreme Court rules.

Senate officials say that if presented with Burris' appointment, they are likely to give the Rules Committee 90 days to determine the propriety of it by looking into such issues as whether Illinois Gov. Rod Blagojevich received anything in return for it.

A motion to refer credentials to the committee would have the effect of delaying seating.

Prsecutors Ask for More Time
Federal prosecutors, meanwhile, asked a judge for another 3 months to indict Blagojevich.

Prosecutors say they have "thousands" of intercepted phone calls and "multiple" people to assess.

A 90-day extension would give prosecutors until April 7.

Read the Politico story

Read: Senate fight deflects attention from Ill. governor

Toyota developing solar powered green car

Thu, 01 Jan 2009 00:00:00 GMT

Toyota Motor Corp. is secretly developing a vehicle that will be powered solely by solar energy in an effort to turn around its struggling business with a futuristic ecological car.

The Nikkei newspaper reports however, it will be years before the planned vehicle will be available on the market.

Toyota is working on an electric vehicle that will get some of its power from solar cells equipped on the vehicle.

They can be recharged with electricity generated from solar panels on the roofs of homes.

The automaker later hopes to develop a model totally powered by solar cells on the vehicle.

Read the AP story

Israel rejects truce call, attacks Gaza

Wed, 31 Dec 2008 00:00:00 GMT

Israel rejected international pressure to suspend its air offensive against Palestinian militants whose rocket barrages are striking close to the Israeli heartland.

Israeli Airstrike Continues
Israel sent warplanes Wednesday to demolish smuggling tunnels that are the lifeline of Gaza's Islamic Hamas rulers.

The diplomatic action was set in motion by the scale of destruction in Gaza since Israel unleashed its campaign Saturday.

390 Dead
Gaza officials say at least 390 are dead and some 1,600 wounded.

Hamas says some 200 uniformed members of Hamas security forces have been killed.

The U.N. says at least 60 Palestinian civilians have died.

4 Israelis Killed
Four Israelis have been killed by militant rocket fire, including three civilians.

Chief of Security Comments
The chief of Israel's internal security services, Yuval Diskin, told Cabinet ministers Wednesday that Hamas' ability to rule had been "badly impaired."

He said weapons development facilities have been "completely wiped out" and the network of smuggling tunnels has been badly damaged.

Israel Considered Truce
Overnight, Prime Minister Ehud Olmert discussed a 48-hour truce proposal floated by France with his foreign and defense ministers.

The meeting ended with a decision to continue the punishing aerial campaign.

Calls for Cease-Fire
Calls for an immediate cease-fire have also come from the United States, the European Union, the United Nations and Russia.

Bush Calls Middle East Leaders
President Bush and Secretary of State Condoleezza Rice personally called leaders in the Middle East on Tuesday to press for a durable solution.

Read the AP story

Read: Israel rejects call for truce; Gaza attacks to continue

Read: Israel Rejects Proposed Cease-Fire

Read: Israel Likely to Reject 48-Hour Cease-Fire Plan

Obama Says Blagojevich Appointee Shouldn't be Seated

Wed, 31 Dec 2008 00:00:00 GMT

President-elect Barack Obama says he supports the decision by Senate Democrats to deny his vacated Senate seat to an appointee of embattled Illinois Gov. Rod Blagojevich.

Obama Statement
Obama said, "Roland Burris is a good man and a fine public servant, but the Senate Democrats made it clear weeks ago that they cannot accept an appointment made by a governor who is accused of selling this very Senate seat."

Obama said, "I agree with their decision, and it is extremely disappointing that Gov. Blagojevich has chosen to ignore it."

Obama said that the best resolution would be for Blagojevich to resign office and "allow a lawful and appropriate process of succession to take place.

Roland Burris Appointed
Blagojevich appointed former Illinois Attorney General Roland Burris.

He would be the nation's only black senator.

Senate Democrats Reject Appointment
Democratic leaders in the Senate are rejecting the appointment, arguing that because of accusations that Blagojevich tried to sell the seat to the highest bidder, any appointment by him would be tainted.

Rep. Rush Comments
Rep. Bobby Rush, D-IL, who appeared at the afternoon news conference, warned senators about blocking Burris from being seated.

Rush said, "There are no African-Americans in the U.S. Senate. And I don't think any U.S. senator who's sitting in the Senate right now wants to go on record to deny one African-American from being seated in the U.S. Senate."

He said, "I would ask you to not hang or lynch the appointee as you try to castigate the appointer and separate the appointee from the appointer."

Rush said, "Roland Burris is worthy."

Read the AP story

Read: Obama chides Illinois governor's decision to fill Senate seat

Ex-Bush aides say he never recovered from Katrina

Tue, 30 Dec 2008 00:00:00 GMT

Hurricane Katrina not only pulverized the Gulf Coast in 2005, it knocked the bully pulpit out from under President George W. Bush.

2 former advisers spoke candidly about the political impact of the government's poor handling of the natural disaster.

Matthew Dowd Comments
Matthew Dowd, Bush's pollster and chief strategist for the 2004 presidential campaign, said, "Katrina to me was the tipping point."

Dowd said, "The president broke his bond with the public. Once that bond was broken, he no longer had the capacity to talk to the American public. State of the Union addresses? It didn't matter. Legislative initiatives? It didn't matter. P.R.? It didn't matter. Travel? It didn't matter."

Dan Bartlett Comments
Dan Bartlett, former White House communications director and later counselor to the president, said, "Politically, it was the final nail in the coffin."

Lawrence Wilkerson Comments
Lawrence Wilkerson, top aide and later chief of staff to former Secretary of State Colin Powell, said that as a new president, Bush was like Alaska Gov. Sarah Palin, the 2008 GOP vice presidential nominee whom critics said lacked knowledge about foreign affairs.

Vanity Fair Interview
Their comments are a part of an oral history of the Bush White House that Vanity Fair magazine compiled for its February issue.

The story hits newsstands in New York and Los Angeles on Wednesday, and nationally on Jan. 6.

Current and Former Officials Interviewed
Vanity Fair published comments by current and former government officials, foreign ministers, campaign strategists and numerous others on topics that included Iraq, the anthrax attacks, the economy and immigration.

Read the AP story

Franken lead at 50 with absentees left to count

Tue, 30 Dec 2008 00:00:00 GMT

Democratic candidate Al Franken now holds a 50 vote lead over Republican Sen. Norm Coleman with almost all of the counting in Minnesota's Senate race done.

Franken Lead Grows
Franken's lead grew by a few votes on Tuesday when the state Canvassing Board finished allocating thousands of ballots that had been held up due to candidate challenges.

Uncounted Absentee Ballots Left
Coleman's hopes now ride on a pool of uncounted absentee ballots that will be opened before next week.

The size of that pile is in dispute but it is thought to be around 1,350.

Coleman Wants 650 Added
Coleman's campaign wants to add 650 more to the stack.

Even if the board declares a winner next week, the race won't be over.

The losing party is expected to challenge the outcome in court.

Read the AP story

Ill. governor names Burris to replace Obama

Tue, 30 Dec 2008 00:00:00 GMT

Gov. Rod Blagojevich, D-IL, has defied U.S. Senate leaders and his own state's lawmakers by appointing former Illinois Attorney General Roland Burris to replace President-elect Barack Obama in the U.S. Senate.

Roland Burris Appointed
Blagojevich announced his decision in Chicago on Tuesday with the 71-year-old Burris at his side.

Gov. Blagojevich Comments
The governor praised Burris' integrity.

Blagojevich said, "Please don't let the allegations against me taint this good and honest man."

Roland Burris Comments
Burris says he's eager to get to work in Washington.

Burris says he's proud of his accomplishments and vowed to uphold the integrity of the office.

Burris says he has no connection to the charges against Blagojevich, who was arrested on Dec. 9 and accused of trying to profit from appointing Obama's replacement.

Senate Democrats Statement
Majority Leader Harry Reid, D-NV and Majority Whip Dick Durbin, D-IL, issued a joint statement blasting Blagojevich for naming Roland Burris to the seat and said they will block his appointment.

The statement said, "It is truly regrettable that despite requests from all 50 Democratic senators and public officials throughout Illinois, Gov. Blagojevich would take the imprudent step of appointing someone to the United States Senate who would serve under a shadow and be plagued by questions of impropriety."

The statement continued, "We again urge Gov. Blagojevich to not make this appointment. It is unfair to Mr. Burris, it is unfair to the people of Illinois and it will ultimately not stand."

They said, "The governor must put the interests of the people of Illinois and all Americans first by stepping aside now and letting his successor appoint someone who we will seat."

Secretary of State Refuses to Certify Burris
In addition, Jesse White, the Illinois secretary of state, said he will not certify Burris as the replacement for Obama's seat.

Burris was the first African-American elected to major statewide office.

He's served as Illinois' comptroller and ran for governor three times - the last time losing to Blagojevich.

Contributor to Blagojevich
Burris has been a consistent donor to Blagojevich, giving thousands of dollars to his campaign in recent years.

Burris donated $1,000 to the Friends of Blagojevich fund in 2005, $1,500 in 2007 and, $1,000 in June 2008, according to Illinois campaign finance data.

Read the AP story

Read: Blagojevich names Obama successor

Read: Blagojevich Appoints Burris to Replace Obama

Read: Blagojevich Names Obama Senate Replacement

Read - Blago: 'I am required to make this appointment'

Read: Senate Dems refuse to seat Blagojevich's pick

Israel rejects truce, presses on with Gaza strikes

Tue, 30 Dec 2008 00:00:00 GMT

Israel on Tuesday rejected any truce with Hamas Islamists in the Gaza Strip before cross-border rocket fire ceased.

Israel said its air strikes, the fiercest in decades, heralded "long weeks of military action."

Defense Minister Comments
Israeli Defense Minister Ehud Barak declared "an all-out war against Hamas."

Ground Forces at Border
Israeli ground forces gathered on the border for a possible invasion.

Israeli warplanes pressed on for the fourth day with attacks on Hamas targets, killing 12 Palestinians.

375 Dead
Medical officials put Palestinian casualties since Israel launched its attacks on Saturday at 375 dead with more than 800 wounded.

A United Nations agency said at least 62 of the dead were civilians.

4 Israelis Killed
Three Israeli civilians and a soldier have been killed by Palestinian rockets since the air strikes began.

Read the Reuters story

Read: Gaza death toll from Israeli offensive exceeds 375

Read: 'All-Out War' Declared on Hamas

Read: Death Toll Surpasses 350 in Fourth Day of Conflict

Palin's daughter gives birth to son named Tripp

Tue, 30 Dec 2008 00:00:00 GMT

The teenage daughter of Alaska Gov. Sarah Palin has given birth to a son.

The governor's office said it would not release information because it considers the baby's birth a private, family matter.

Gov. Palin's quest for the vice presidency began to go downhill after she announced the pregnancy.

Bristol Palin Delivers Baby
Bristol Palin, 18, gave birth to Tripp Easton Mitchell Johnston on Sunday.

He weighed 7 pounds, 4 ounces.

Father Levi Johnston
The father is Levi Johnston, a former hockey player at Alaska's Wasilla High School.

Levi's Mother Busted on Drug Charges
Sherry Johnston, Levi's mother, said in October that Bristol and her son were considering a summer wedding.

Johnston's mother was arrested on felony drug charges this month after state troopers served a search warrant at her Wasilla home.

According to authorities, she sent text messages to two police informants in which she discusses making drug transactions involving OxyContin, a strong prescription painkiller.

Read the AP story

Read: Bristol Palin's Baby Is Born

Read: Sarah Palin's daughter Bristol has a son, Tripp Easton Mitchell

Read: Bristol Palin Welcomes a Son