Weekly Radio Addresses

Chrysler’s Fall May Help Administration Reshape G.M.

New York Times

BY DAVID E. SANGER and BILL VLASIC
Published: May 2, 2009

WASHINGTON — Fresh from pushing Chrysler into bankruptcy, President Obama and his economic team are hoping that the hard line they took last week gives them leverage to force huge changes in General Motors, a far larger and more complex company.

Officials say that, difficult as Mr. Obama’s decision was on Wednesday night to take all the risks of a Chrysler bankruptcy, the politics of reshaping G.M. will be far harder. Already a shadow of the company that once dominated the American landscape, G.M. will be forced to eliminate tens of thousands of additional jobs and close factories and dealerships nationwide.

In Chrysler’s case, the tough job-cutting decisions had already been made and the government is taking only a small stake. An alliance with Fiat envisions selling the company’s cars in new markets around the world and ultimately adding cars that use Fiat’s fuel-efficient technology.

But in G.M.’s case, Mr. Obama will be forcing deeper cuts and becoming the controlling shareholder. He will also be overseeing the radical downsizing of G.M.’s work force as he is trying to reverse rising unemployment.

“G.M. is very different than Chrysler,” Rahm Emanuel, Mr. Obama’s chief of staff, said Friday. “But I suppose the one lesson for G.M., and all the other players, is that this is a moment when a Democratic president said, ‘I am really willing to let a company dissolve, and there’s not going to be an open checkbook.’ There’s got to be real viability.”

No one thinks that Mr. Obama is going to allow G.M. to be broken up, its assets sold or abandoned.

But if the Chrysler legal process unfolds as the White House hopes it will in coming weeks, the bankruptcy option may look increasingly attractive for G.M. as well, according to officials on Mr. Obama’s automotive task force. Bankruptcy may also be the only way to force the kind of paring down that Chrysler, with a third of G.M.’s workers and half the number of plants, did not have to endure.

“The threat of bankruptcy is very important in the negotiations with the bondholders and the dealers and others,” said David E. Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich. “Without a clear and present danger to them, they won’t make a reasonable deal.”

G.M.’s latest restructuring plan — which the White House has yet to approve — calls for trimming 47,000 jobs worldwide, closing more than a dozen plants in the United States, eliminating four brands and shuttering 2,600 dealerships.

Even that may not be enough. As the leaders of Mr. Obama’s task force faced down a group of recalcitrant Chrysler creditors on Wednesday, a team of more junior officials was in Detroit assessing whether G.M. was cutting deeply enough to turn a profit.

“Our marching orders were to do both Chrysler and G.M. the way we would do a strictly commercial deal,” said a senior official on the task force, who would not speak on the record because the negotiations with G.M. were still in progress. “We’re not going to sit there and tell G.M. how many jobs to cut, or what models to eliminate. But we are going to look at the financials, the balance sheet, and see if the plan they come up with passes that test.”

Because Chrysler was already the most marginal of what were once called the Big Three — this will be its third corporate reincarnation in a decade — Mr. Obama could afford to take a hard line. But when dealing with a company as storied, as politically sensitive and as large as G.M., the administration will have a far harder time separating the economic decisions from the political challenges.

In Chrysler’s case, it was a handful of the company’s 46 lenders that presented the biggest roadblock. Mr. Obama could portray them as obstructionists who put their demands for repayment ahead of preserving the company and the jobs of its workers.

But General Motors’ creditors number in the tens of thousands and include pension funds that bought the company’s unsecured bonds. G.M. bondholders have no claim on the company’s plants or inventory, but they will probably attract more sympathy than Chrysler’s Wall Street lenders did.

The Treasury Department will pay $2 billion to Chrysler’s bondholders, but it is offering only stock in a new G.M. to its creditors — 225 shares for each $1,000 in debt held, making them minority owners who are invested in the company’s success. “That’s the bargaining chip,” said Mr. Cole of the Center for Automotive Research.

Ahead of the June 1 deadline, Mr. Obama holds all the leverage: The bondholders’ only alternative would be to get in a long line of creditors who will be paid relatively little, because G.M. bonds are trading at about 10 cents on the dollar. It “may not be such a bad deal in the end,” Mr. Cole said.

G.M.’s case also differs from Chrysler’s in another crucial sense: there is no Fiat in the wings, no big private investor ready to bring new money and new technology. Instead, Mr. Obama will effectively use taxpayers as that investor, with the federal government getting slightly more than a 55 percent stake in the company in exchange for forgiving $10 billion in the automaker’s outstanding federal loans. The United Automobile Workers’ retiree trust would have just under 40 percent of the stock, according to the G.M. plan.

The huge federal stake in G.M. — even if temporary — means that for all of Mr. Obama’s protests that he is a reluctant investor, eager to fix the company and sell the controlling interest ( hoping for a hefty profit), he will be judged by whether his plan actually works.

Mr. Obama has said repeatedly that he is not an automotive engineer and has no desire to pick models, engines, factories or corporate governance structures. But while he may not be choosing automotive designs, he has already started dictating the company’s direction.

The president has made it clear that G.M. must produce small, fuel-efficient, low-carbon-emitting cars — steps G.M. has taken only haltingly. Its vehicles range from the Cadillac Escalade, which gets 12 miles to the gallon in the city, to the experimental Chevy Volt, an electric car that the company says will go 40 miles gas-free.

Members of Mr. Obama’s auto task force say that even after the government owns a majority of the company, it will have no role in management. That, they say, will be farmed out to professionals, the work supervised by government-appointed members of a new G.M. board.

But at some point, some task force members acknowledge, the drive for profitability is likely to collide with Mr. Obama’s fuel-efficiency and low-emission goals. G.M. produced heavy gas-guzzlers because they were among the most profitable in its line and, for a long time, the most popular. It is unclear whether smaller cars can be as profitable — or, for a few years, competitive with offerings from Toyota and Honda and soon a new raft of inexpensive cars under development in China.

A version of this article appeared in print on May 3, 2009, on page A1 of the New York edition.

WEEKLY ADDRESS: President Obama Outlines Government Actions to Address the 2009 H1N1 Flu

THE WHITE HOUSE

Office of the Press Secretary
__________________________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET,                                    SATURDAY, May 2, 2009

WASHINGTON – In this week’s address, President Barack Obama outlined the quick and aggressive steps the federal government is taking to confront the challenge of the H1N1 flu virus.  While the strain in the United States has not been as potent as the one in Mexico, it is impossible to say that this virus will not mutate into something more deadly.  The steps include urging people with symptoms to stay home from work or school, distributing antiviral treatments from the Strategic National Stockpile, requesting $1.5 billion from Congress to invest in additional antivirals, emergency equipment and the development of a vaccine, and launching MySpace, Facebook and Twitter pages to update the public as quickly and effectively as possible.

The audio and video will be available at 6:00am Saturday, May 2, 2009 at www.whitehouse.gov.
 

Watch the address.

Prepared Remarks of President Barack Obama
Weekly Address
May 2, 2009

Over the last week, my administration has taken several precautions to address the challenge posed by the 2009 H1N1 flu virus.  Today, I’d like to take a few minutes to explain why.  

This is a new strain of the flu virus, and because we haven’t developed an immunity to it, it has more potential to cause us harm.  Unlike the various strains of animal flu that have emerged in the past, it’s a flu that is spreading from human to human.  This creates the potential for a pandemic, which is why we are acting quickly and aggressively.  

This H1N1 flu has had its biggest impact in Mexico, where it has claimed a number of lives and infected hundreds more.  Thus far, the strain in this country that has infected people in at least nineteen states has not been as potent or as deadly.  We cannot know for certain why that is, which is why we are taking all necessary precautions in the event that the virus does turn into something worse.  

This is also why the Centers for Disease Control has recommended that schools and child care facilities with confirmed cases of the virus close for up to fourteen days.  It is why we urge employers to allow infected employees to take as many sick days as necessary.  If more schools are forced to close, we’ve also recommended that both parents and businesses think about contingency plans if children do have to stay home.  We have asked every American to take the same steps you would take to prevent any other flu:  keep your hands washed; cover your mouth when you cough; stay home from work if you’re sick; and keep your children home from school if they’re sick.  And the White House has launched pages in Facebook, MySpace and Twitter to support the ongoing efforts by the CDC to update the public as quickly and effectively as possible.

As our scientists and researchers learn more information about this virus every day, the guidance we offer will likely change.  What will not change is the fact that we’ll be making every recommendation based on the best science possible.   

We will also continue investing in every resource necessary to treat this virus and prevent a wider outbreak.  The good news is that the current strain of H1N1 can be defeated by a course of antiviral treatment that we already have on hand.  We began this week with 50 million courses of this treatment in the Strategic National Stockpile.  Over the course of the last few days, we have delivered one-quarter of that stockpile to states so that they are prepared to treat anyone who is infected with this virus.  We then purchased an additional thirteen million treatments to refill our strategic stockpile.  

Out of an abundance of caution, I have also asked Congress for $1.5 billion if it is needed to purchase additional antivirals, emergency equipment, and the development of a vaccine that can prevent this virus as we prepare for the next flu season in the fall.  

The Recovery Act that Congress enacted in February also included expansions of community health centers, a dramatic increase in the training of health care workers and nurses, and $300 million for the development and deployment of vaccines – all of which will help us meet this threat.  

Finally, thanks to the work that the last administration and Congress did to prepare for a possible avian flu pandemic in 2005, states and the federal government have fully operable influenza readiness plans and are better prepared to deal with such a challenge than ever before.

It is my greatest hope and prayer that all of these precautions and preparations prove unnecessary.  But because we have it within our power to limit the potential damage of this virus, we have a solemn and urgent responsibility to take the necessary steps.  I would sooner take action now than hesitate and face graver consequences later.  I have no higher priority as President of the United States than the safety and security of the American people, and I will do whatever is necessary to protect this country. So I want to thank every American for their patience and understanding during this developing challenge, and I promise that this government will continue speaking clearly and honestly about the steps we’re taking to meet it.  

Thank you. 

WEEKLY ADDRESS: President Obama Announces Steps to Reform Government and Promote Fiscal Discipline, 4/25/09

Watch the address.

THE WHITE HOUSE

Office of the Press Secretary
__________________________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET,                                    SATURDAY, April 25, 2009

Good morning. Over the last three months, my Administration has taken aggressive action to confront an historic economic crisis. As we do everything that we can to create jobs and get our economy moving, we’re also building a new foundation for lasting prosperity – a foundation that invests in quality education, lowers health care costs, and develops new sources of energy powered by new jobs and industries.

One of the pillars of that foundation must be fiscal discipline. We came into office facing a budget deficit of $1.3 trillion for this year alone, and the cost of confronting our economic crisis is high. But we cannot settle for a future of rising deficits and debts that our children cannot pay.

All across America, families are tightening their belts and making hard choices. Now, Washington must show that same sense of responsibility. That is why we have identified two trillion dollars in deficit-reductions over the next decade, while taking on the special interest spending that doesn’t advance the peoples’ interests.

But we must also recognize that we cannot meet the challenges of today with old habits and stale thinking. So much of our government was built to deal with different challenges from a different era. Too often, the result is wasteful spending, bloated programs, and inefficient results.

It’s time to fundamentally change the way that we do business in Washington. To help build a new foundation for the 21st century, we need to reform our government so that it is more efficient, more transparent, and more creative. That will demand new thinking and a new sense of responsibility for every dollar that is spent.

Earlier this week, I held my first Cabinet meeting and sent a clear message: cut what doesn’t work. Already, we’ve identified substantial savings. And in the days and weeks ahead, we will continue going through the budget line by line, and we’ll identify more than 100 programs that will be cut or eliminated.

But we can’t stop there. We need to go further, and we need an all-hands-on-deck approach to reforming government. That’s why I’m announcing several steps that my Administration will take in the weeks ahead to restore fiscal discipline while making our government work better.

First, we need to adhere to the basic principle that new tax or entitlement policies should be paid for. This principle – known as PAYGO – helped transform large deficits into surpluses in the 1990s. Now, we must restore that sense of fiscal discipline. That’s why I’m calling on Congress to pass PAYGO legislation like a bill that will be introduced by Congressman Baron Hill, so that government acts the same way any responsible family does in setting its budget.

Second, we’ll create new incentives to reduce wasteful spending and to invest in what works. We don’t want agencies to protect bloated budgets – we want them to promote effective programs. So the idea is simple: agencies that identify savings will get to keep a portion of those savings to invest in programs that work. The result will be a smaller budget, and a more effective government.

Third, we’ll look for ideas from the bottom up. After all, Americans across the country know that the best ideas often come from workers – not just management. That’s why we’ll establish a process through which every government worker can submit their ideas for how their agency can save money and perform better. We’ll put the suggestions that work into practice. And later this year, I will meet with those who come up with the best ideas to hear firsthand about how they would make your government more efficient and effective.

And finally, we will reach beyond the halls of government. Many businesses have innovative ways of using technology to save money, and many experts have new ideas to make government work more efficiently. Government can – and must – learn from them. So later this year, we will host a forum on reforming government for the 21st century, so that we’re also guided by voices that come from outside of Washington.

We cannot sustain deficits that mortgage our children’s future, nor tolerate wasteful inefficiency. Government has a responsibility to spend the peoples’ money wisely, and to serve the people effectively. I will work every single day that I am President to live up to that responsibility, and to transform our government so that is held to a higher standard of performance on behalf of the American people.

Thank you.

WEEKLY ADDRESS: President Obama Discusses Efforts to Reform Spending, Government Waste; Names Chief Performance Officer and Chief Technology Officer, Saturday, April 18, 2009

Watch the video.

THE WHITE HOUSE

Office of the Press Secretary
__________________________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET,                                    SATURDAY, April 18, 2009

WASHINGTON – In his weekly address, President Barack Obama announced that Jeffrey Zients, a CEO, management consultant and entrepreneur, will join the administration as the Chief Performance Officer, and that Aneesh Chopra, Virginia’s Secretary of Technology, will serve as the Chief Technology Officer.  Zients will also serve as Deputy Director for Management of the Office of Management and Budget.  He will work to streamline processes, cut costs, and find the best practices throughout the government.  As Chief Technology Officer, Chopra will promote technological innovation to help the country meet its goals from job creation, to reducing health care costs, to protecting the homeland.  Together with Chief Information Officer Vivek Kundra, they will help give all Americans a government that is effective, efficient, and transparent.

President Obama announced his appointments of the following individuals today:

Jeffrey D. Zients
Zients has twenty years of business experience as a CEO, management consultant and entrepreneur with a deep understanding of business strategy, process reengineering and financial management. He served as CEO and Chairman of the Advisory Board Company and Chairman of the Corporate Executive Board. These firms are leading providers of performance benchmarks and best practices across a wide range of industries.  Currently, he is the Founder and Managing Partner of Portfolio Logic, an investment firm focused primarily on business and healthcare service companies.

Aneesh Paul Chopra
Chopra serves as Virginia’s Secretary of Technology. He leads the Commonwealth’s strategy to effectively leverage technology in government reform, to promote Virginia’s innovation agenda, and to foster technology-related economic development. Previously, he worked as Managing Director with the Advisory Board Company, leading the firm’s Financial Leadership Council and the Working Council for Health Plan Executives.

 

Remarks of President Barack Obama
Weekly Address
Saturday, April 18, 2009
 

It’s not news to say that we are living through challenging times: The worst economic downturn since the Great Depression.  A credit crisis that has made that downturn worse.  And a fiscal disaster that has accumulated over a period of years.

In the year 2000, we had projected budget surpluses in the trillions, and Washington appeared to be on the road to fiscal stability.  Eight years later, when I walked in the door, the projected budget deficit for this year alone was $1.3 trillion.  And in order to jumpstart our struggling economy, we were forced to make investments that added to that deficit through the American Recovery and Reinvestment Act.

But as surely as our future depends on building a new energy economy, controlling health care costs and ensuring that our kids are once again the best educated in the world, it also depends on restoring a sense of responsibility and accountability to our federal budget.  Without significant change to steer away from ever-expanding deficits and debt, we are on an unsustainable course.

So today, we simply cannot afford to perpetuate a system in Washington where politicians and bureaucrats make decisions behind closed doors, with little accountability for the consequences; where billions are squandered on programs that have outlived their usefulness, or exist solely because of the power of a lobbyist or interest group; and where outdated technology and information systems undermine efficiency, threaten our security, and fail to serve an engaged citizenry. 

If we’re to going to rebuild our economy on a solid foundation, we need to change the way we do business in Washington.  We need to restore the American people’s confidence in their government – that it is on their side, spending their money wisely, to meet their families’ needs.

That starts with the painstaking work of examining every program, every entitlement, every dollar of government spending and asking ourselves: Is this program really essential?  Are taxpayers getting their money’s worth?  Can we accomplish our goals more efficiently or effectively some other way? 

It’s a process we have already begun, scouring our budget line by line for programs that don’t work so we can cut them to make room for ones that do.  That means ending tax breaks for companies shipping jobs overseas; stopping the fraud and abuse in our Medicare program; and reforming our health care system to cut costs for families and businesses.  It means strengthening whisteblower protections for government employees who step forward to report wasteful spending.  And it means reinstating the pay-as-you-go rule that we followed during the 1990s – so if we want to spend, we’ll need to find somewhere else to cut. 

And this Monday, at my first, full Cabinet meeting, I will ask all of my department and agency heads for specific proposals for cutting their budgets.  Already, members of my Cabinet have begun to trim back unnecessary expenditures.  Secretary Napolitano, for example, is ending consulting contracts to create new seals and logos that have cost the Department of Homeland Security $3 million since 2003.  In the largest Department, Secretary Gates has launched an historic project to reform defense contracting procedures and eliminate hundreds of billions of dollars in wasteful spending and cost overruns.  And I commend Senators McCain and Levin – a Republican and a Democrat – who have teamed up to lead this effort in Congress. 

Finally, in the coming weeks, I will be announcing the elimination of dozens of government programs shown to be wasteful or ineffective.  In this effort, there will be no sacred cows, and no pet projects.  All across America, families are making hard choices, and it’s time their government did the same. 

That is why I have assembled a team of management, technology, and budget experts to guide us in this work – leaders who will help us revamp government operations from top to bottom and ensure that the federal government is truly working for the American people. 

I have named Jeffrey Zients, a leading CEO, management consultant and entrepreneur, to serve as Deputy Director for Management of the Office of Management and Budget and as the first ever Chief Performance Officer.  Jeffrey will work to streamline processes, cut costs, and find best practices throughout our government. 

Aneesh Chopra, who is currently the Secretary of Technology for Governor Kaine of Virginia, has agreed to serve as America’s Chief Technology Officer.  In this role, Aneesh will promote technological innovation to help achieve our most urgent priorities – from creating jobs and reducing health care costs to keeping our nation secure.  

Aneesh and Jeffrey will work closely with our Chief Information Officer, Vivek Kundra, who is responsible for setting technology policy across the government, and using technology to improve security, ensure transparency, and lower costs.  The goal is to give all Americans a voice in their government and ensure that they know exactly how we’re spending their money – and can hold us accountable for the results.

None of this will be easy.  Big change never is.  But with the leadership of these individuals, I am confident that we can break our bad habits, put an end to the mismanagement that has plagued our government, and start living within our means again.   That is how we will get our deficits under control and move from recovery to prosperity.  And that is how we will give the American people the kind of government they expect and deserve – one that is efficient, accountable and fully worthy of their trust. 

Thank you.

Easter Weekend, 4/11/09

Remarks of President Barack Obama
Weekly Address
Saturday, April 11, 2009

I speak to you today during a time that is holy and filled with meaning for believers around the world. Earlier this week, Jewish people gathered with family and friends to recite the stories of their ancestors’ struggle and ultimate liberation. Tomorrow, Christians of all denominations will come together to rejoice and remember the resurrection of Jesus Christ.

These are two very different holidays with their own very different traditions. But it seems fitting that we mark them both during the same week. For in a larger sense, they are both moments of reflection and renewal. They are both occasions to think more deeply about the obligations we have to ourselves and the obligations we have to one another, no matter who we are, where we come from, or what faith we practice.

This idea – that we are all bound up, as Martin Luther King once said, in "a single garment of destiny"– is a lesson of all the world’s great religions. And never has it been more important for us to reaffirm that lesson than it is today – at a time when we face tests and trials unlike any we have seen in our time. An economic crisis that recognizes no borders. Violent extremism that’s claimed the lives of innocent men, women, and children from Manhattan to Mumbai. An unsustainable dependence on foreign oil and other sources of energy that pollute our air and water and threaten our planet. The proliferation of the world’s most dangerous weapons, the persistence of deadly disease, and the recurrence of age-old conflicts.

These are challenges that no single nation, no matter how powerful, can confront alone. The United States must lead the way. But our best chance to solve these unprecedented problems comes from acting in concert with other nations. That is why I met with leaders of the G-20 nations to ensure that the world’s largest economies take strong and unified action in the face of the global economic crisis. Together, we’ve taken steps to stimulate growth, restore the flow of credit, open markets, and dramatically reform our financial regulatory system to prevent such crises from occurring again – steps that will lead to job creation at home.

It is only by working together that we will finally defeat 21st century security threats like al Qaeda. So it was heartening that our NATO allies united in Strasbourg behind our strategy in Afghanistan and Pakistan, and contributed important resources to support our effort there. 

It is only by coordinating with countries around the world that we will stop the spread of the world’s most dangerous weapons. That is why I laid out a strategy in Prague for us to work with Russia and other nations to stop the proliferation of nuclear weapons; to secure nuclear materials from terrorists; and, ultimately, to free the world from the menace of a nuclear nightmare.

And it is only by building a new foundation of mutual trust that we will tackle some of our most entrenched problems. That is why, in Turkey, I spoke to members of Parliament and university students about rising above the barriers of race, region, and religion that too often divide us.

With all that is at stake today, we cannot afford to talk past one another. We can’t afford to allow old differences to prevent us from making progress in areas of common concern. We can’t afford to let walls of mistrust stand. Instead, we have to find – and build on – our mutual interests. For it is only when people come together, and seek common ground, that some of that mistrust can begin to fade. And that is where progress begins.

Make no mistake: we live in a dangerous world, and we must be strong and vigilant in the face of these threats. But let us not allow whatever differences we have with other nations to stop us from coming together around those solutions that are essential to our survival and success.

As we celebrate Passover, Easter, and this time of renewal, let’s find strength in our shared resolve and purpose in our common aspirations. And if we can do that, then not only will we fulfill the sacred meaning of these holy days, but we will fulfill the promise of our country as a leader around the world.

Watch the video.

President Obama Hails Unprecedented G-20 Action to Address Global Economic Downturn, 4/4/09

Watch the address.

THE WHITE HOUSE

Office of the Press Secretary
_________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET                                               Saturday, April 4, 2009
Weekly Address
Saturday, April 4, 2009

In this new century, we live in a world that has grown smaller and more interconnected than at any time in history. Threats to our nation’s security and economy can no longer be kept at bay by oceans or by borders drawn on maps. The terrorists who struck our country on 9/11 plotted in Hamburg, trained in Kandahar and Karachi, and threaten countries across the globe. Cars in Boston and Beijing are melting ice caps in the Arctic that disrupt weather patterns everywhere. The theft of nuclear material from the former Soviet Union could lead to the extermination of any city on earth. And reckless speculation by bankers in New York and London has fueled a global recession that is inflicting pain on workers and families around the world and across America.

The challenges of our time threaten the peace and prosperity of every single nation, and no one nation can meet them alone. That is why it is sometimes necessary for a President to travel abroad in order to protect and strengthen our nation here at home. That is what I have done this week.

I began my trip by attending a summit of the G20 – the countries that represent the world’s largest economies – because we know that the success of America’s economy is inextricably linked to that of the global economy. If people in other countries cannot spend, that means they cannot buy the goods we produce here in America, which means more lost jobs and more families hurting. Just yesterday, we learned that we lost hundreds of thousands more jobs last month, adding to the millions we’ve lost since this recession began. And if we continue to let banks and other financial institutions around the world act recklessly and irresponsibly, that affects institutions here at home as credit dries up, and people can’t get loans to buy a home or car, to run a small business or pay for college.

Ultimately, the only way out of a recession that is global in scope is with a response that is global in coordination. That is why I’m pleased that after two days of careful negotiation, the G20 nations have agreed on a series of unprecedented steps that I believe will be a turning point in our pursuit of a global economic recovery. All of us are now moving aggressively to get our banks lending again. All of us are working to spur growth and create jobs. And all of us have agreed on the most sweeping reform of our financial regulatory framework in a generation – reform that will help end the risky speculation and market abuses that have cost so many people so much.

I also met this past week with the leaders of China and Russia, working to forge constructive relationships to address issues of common concern, while being frank with each other about where we disagree. President Hu and I agreed that the link between China’s economy and ours is of great mutual benefit, and we established a new Strategic and Economic Dialogue between the U.S. and China. President Medvedev and I discussed our shared commitment to a world without nuclear weapons, and we signed a declaration putting America and Russia on the path to a new treaty to further reduce our nuclear arsenals. Tomorrow, I will lay out additional steps we must take to secure the world’s loose nuclear materials and stop the spread of these deadly weapons.

Finally, I met yesterday with our NATO allies and asked them for additional civilian support and assistance for our efforts in Afghanistan. That is where al Qaeda trains, plots, and threatens to launch their next attack. And that attack could occur in any nation, which means that every nation has a stake in ensuring that our mission in Afghanistan succeeds.

As we have worked this week to find common ground and strengthen our alliances, we have not solved all of our problems. And we have not agreed on every point or every issue in every meeting. But we have made real and unprecedented progress – and will continue to do so in the weeks and months ahead.

Because in the end, we recognize that no corner of the globe can wall itself off from the threats of the twenty-first century, or from the needs and concerns of fellow nations. The only way forward is through shared and persistent efforts to combat fear and want wherever they exist. That is the challenge of our time. And if we move forward with courage and resolve, I am confident that we will meet this challenge.

Thank you.

WEEKLY ADDRESS: President Obama Expresses Support for People Affected by Flooding in Upper Midwest, 3/28/09

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Remarks of President Barack Obama
Weekly Address
Saturday, March 28, 2009
Washington, DC

Even as we face an economic crisis which demands our constant focus, forces of nature can also intervene in ways that create other crises to which we must respond – and respond urgently. For the people of North and South Dakota and Minnesota who live along rivers spilling over their banks, this is one such moment.

Rivers and streams throughout the region have flooded or are at risk of flooding. The cities of Fargo and neighboring Moorhead are vulnerable as the waters of the Red River have risen. Thousands of homes and businesses are threatened.

That is why, on Tuesday, I granted a major disaster declaration request for the State of North Dakota and ordered federal support into the region to help state and local officials respond to the flooding. This was followed by an emergency declaration for the State of Minnesota.  And we are also keeping close watch on the situation in South Dakota as it develops.

The Department of Homeland Security and the Federal Emergency Management Agency continue to coordinate the federal response.  Homeland Security Secretary Janet Napolitano is helping to oversee federal efforts and she remains in close contact with state officials. Acting FEMA administrator Nancy Ward has been in the region since yesterday to meet with folks on the ground and survey the area herself.

In addition, The U.S. Army Corps of Engineers is assisting in the emergency construction of levees. The Coast Guard is aiding in search and rescue efforts while the Department of Defense is helping to move people and supplies. Members of the National Guard have been activated and are on the scene as well.

Hospitals and nursing homes in the area are being evacuated and residents in poor health or with special needs are being transported to higher ground. Teams from the Department of Health and Human Services are aiding in this work. And the Red Cross is in place to provide shelter and supplies for folks in need.

It is also important for residents in these states to remain vigilant in monitoring reports on flood crests and to follow instructions from their state and local leaders in the event that evacuations become necessary.

My administration is working closely with Governors John Hoeven, Mike Rounds and Tim Pawlenty. And I’ve been meeting with Senators Byron Dorgan, Kent Conrad, and Amy Klobuchar, as well as Congressmen Earl Pomeroy and Collin Peterson, to pledge my support. I will continue to monitor the situation carefully. We will do what must be done to help in concert with state and local agencies and non-profit organizations – and volunteers who are doing so much to aid the response effort. 

For at moments like these, we are reminded of the power of nature to disrupt lives and endanger communities. But we are also reminded of the power of individuals to make a difference.

In the Fargodome, thousands of people gathered not to watch a football game or a rodeo, but to fill sandbags. Volunteers filled 2.5 million of them in just five days, working against the clock, day and night, with tired arms and aching backs. Others braved freezing temperatures, gusting winds, and falling snow to build levees along the river’s banks to help protect against waters that have exceeded record levels.

College students have traveled by the busload from nearby campuses to lend a hand during their spring breaks. Students from local high schools asked if they could take time to participate. Young people have turned social networks into community networks, coordinating with one another online to figure out how best to help.

In the face of an incredible challenge, the people of these communities have rallied in support of one another. And their service isn’t just inspirational – it’s integral to our response.

It’s also a reminder of what we can achieve when Americans come together to serve their communities.  All across the nation, there are men, women and young people who have answered that call, and millions of other who would like to. Whether it’s helping to reduce the energy we use, cleaning up a neighborhood park, tutoring in a local school, or volunteering in countless other ways, individual citizens can make a big difference.

That is why I’m so happy that legislation passed the Senate this week and the House last week to provide more opportunities for Americans to serve their communities and the country.

The bipartisan Senate bill was sponsored by Senator Orrin Hatch and Senator Ted Kennedy, a leader who embodies the spirit of public service, and I am looking forward to signing this important measure into law.

In facing sudden crises or more stubborn challenges, the truth is we are all in this together – as neighbors and fellow citizens.  That is what brought so many to help in North Dakota and Minnesota and other areas affected by this flooding.  That is what draws people to volunteer in so many ways, serving our country here and on distant shores.

Our thanks go to them today, and to all who are working day and night to deal with the disaster.  We send them our thoughts, our prayers, and our continued assistance in this difficult time.

Thank you.

Remarks of President Barack Obama, Weekly Video Address, March 21, 2009

Saturday, March 21, 2009
Washington, DC

Last week, I spent a few days in California, talking with ordinary Americans in town halls and in the places where they work.  We talked about their struggles, and we talked about their hopes.  At the end of the day, these men and women weren’t as concerned with the news of the day in Washington as they were about the very real and very serious challenges their families face every day:  whether they’ll have a job and a paycheck to count on; whether they’ll be able to pay their medical bills or afford college tuition; whether they’ll be able to leave their children a world that’s safer and more prosperous than the one we have now. 

Those are the concerns I heard about in California.  They are the concerns I’ve heard about in letters from people throughout this country for the last two years.  And they are the concerns addressed in the budget I sent to Congress last month. 

With the magnitude of the challenges we face, I don’t just view this budget as numbers on a page or a laundry list of programs.  It’s an economic blueprint for our future – a vision of America where growth is not based on real estate bubbles or overleveraged banks, but on a firm foundation of investments in energy, education, and health care that will lead to a real and lasting prosperity. 

These investments are not a wish list of priorities that I picked out of thin air – they are a central part of a comprehensive strategy to grow this economy by attacking the very problems that have dragged it down for too long:  the high cost of health care and our dependence on foreign oil; our education deficit and our fiscal deficit.  

Now, as the House and the Senate take up this budget next week, the specific details and dollar amounts in this budget will undoubtedly change.  That’s a normal and healthy part of the process. 

But when all is said and done, I expect a budget that meets four basic principles: 

First, it must reduce our dependence on dangerous foreign oil and finally put this nation on a path to a clean, renewable energy future.  There is no longer a doubt that the jobs and industries of tomorrow will involve harnessing renewable sources of energy.  The only question is whether America will lead that future.  I believe we can and we will, and that’s why we’ve proposed a budget that makes clean energy the profitable kind of energy, while investing in technologies like wind power and solar power; advanced biofuels, clean coal, and fuel-efficient cars and trucks that can be built right here in America. 

Second, this budget must renew our nation’s commitment to a complete and competitive education for every American child.  In this global economy, we know the countries that out-educate us today will out-compete us tomorrow, and we know that our students are already falling behind their counterparts in places like China.  That is why we have proposed investments in childhood education programs that work; in high standards and accountability for our schools; in rewards for teachers who succeed; and in affordable college education for anyone who wants to go.  It is time to demand excellence from our schools so that we can finally prepare our workforce for a 21st century economy. 

Third, we need a budget that makes a serious investment in health care reform – reform that will bring down costs, ensure quality, and guarantee people their choice of doctors and hospitals.  Right now, there are millions of Americans who are just one illness or medical emergency away from bankruptcy.  There are businesses that have been forced to close their doors or ship jobs overseas because they can’t afford insurance.   Medicare costs are consuming our federal budget.  Medicaid is overwhelming our state budgets.  So to those who say we have to choose between health care reform and fiscal discipline, I say that making investments now that will dramatically lower health care costs for everyone won’t add to our budget deficit in the long-term – it is one of the best ways to reduce it. 

Finally, this budget must reduce that deficit even further.  With the fiscal mess we’ve inherited and the cost of this financial crisis, I’ve proposed a budget that cuts our deficit in half by the end of my first term.  That’s why we are scouring every corner of the budget and have proposed $2 trillion in deficit reductions over the next decade.  In total, our budget would bring discretionary spending for domestic programs as a share of the economy to its lowest level in nearly half a century.  And we will continue making these tough choices in the months and years ahead so that as our economy recovers, we do what we must to bring this deficit down. 

I will be discussing each of these principles next week, as Congress takes up the important work of debating this budget.  I realize there are those who say these plans are too ambitious to enact.  To that I say that the challenges we face are too large to ignore.  I didn’t come here to pass on our problems to the next President or the next generation – I came here to solve them. 

The American people sent us here to get things done, and at this moment of great challenge, they are watching and waiting for us to lead.  Let’s show them that we are equal to the task before us, and let’s pass a budget that puts this nation on the road to lasting prosperity. 

Watch the address.

President Barack Obama Announces Key FDA Appointments and Tougher Food Safety Measures

THE WHITE HOUSE

Office of the Press Secretary
_______________________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET                              SATURDAY, March 14, 2009

WEEKLY ADDRESS: President Barack Obama Announces Key FDA Appointments and Tougher Food Safety Measures
 

WASHINGTON – In his weekly address, President Barack Obama announced the appointments of Dr. Margaret Hamburg as Commissioner of the Food and Drug Administration, and Dr. Joshua Sharfstein as the Principal Deputy Commissioner, as well as the creation of a new Food Safety Working Group.  This Food Safety Working Group will be chaired by the Secretaries of Health and Human Services and the Department of Agriculture and it will coordinate with other agencies and senior officials to advise the President on improving coordination throughout the government, examining and upgrading food safety laws, and enforcing laws that will keep the American people safe.

In addition, the President also announced two other measures to protect the American people.  The Department of Agriculture will close a loophole to prevent diseased cows from entering the food supply.  And, the government will invest in the FDA to substantially increase the number of food inspectors and modernize food safety labs.
 

President Obama announced his appointments of the following individuals today:

Margaret "Peggy" Hamburg
Dr. Hamburg is a nationally and internationally recognized leader in public health and medicine, and an authority on global health, public health systems, infectious disease, bioterrorism and emergency preparedness. She served as the Nuclear Threat Initiative's founding Vice President for the Biological Program. Before joining NTI, she was the Assistant Secretary for Planning and Evaluation, U.S. Department of Health and Human Services. Prior to this, she served for six years as the Commissioner of Health for the City of New York and as the Assistant Director of the National Institute of Allergy and Infectious Diseases of the National Institutes of Health.

Joshua "Josh" Sharfstein
Dr. Joshua M. Sharfstein is Commissioner of Health for the City of Baltimore.  He also serves as chair of the board of four affiliated nonprofit agencies.  He has been recognized as a national leader for his efforts to protect children from unsafe jewelry and over-the-counter medication, and ensuring Americans with disabilities have access to prescription drugs. He is a member of the Board on Population Health and Public Health Practice of the Institute of Medicine.

View the full address.

 

Remarks of President Barack Obama
Weekly Address
Saturday, March 14, 2009
Washington, DC

I’ve often said that I don’t believe government has the answer to every problem or that it can do all things for all people. We are a nation built on the strength of individual initiative. But there are certain things that we can’t do on our own. There are certain things only a government can do. And one of those things is ensuring that the foods we eat, and the medicines we take, are safe and don’t cause us harm. That is the mission of our Food and Drug Administration and it is a mission shared by our Department of Agriculture, and a variety of other agencies and offices at just about every level of government.

The men and women who inspect our foods and test the safety of our medicines are chemists and physicians, veterinarians and pharmacists. It is because of the work they do each and every day that the United States is one of the safest places in the world to buy groceries at a supermarket or pills at a drugstore. Unlike citizens of so many other countries, Americans can trust that there is a strong system in place to ensure that the medications we give our children will help them get better, not make them sick; and that a family dinner won’t end in a trip to the doctor’s office.

But in recent years, we’ve seen a number of problems with the food making its way to our kitchen tables. In 2006, it was contaminated spinach. In 2008, it was salmonella in peppers and possibly tomatoes. And just this year, bad peanut products led to hundreds of illnesses and cost nine people their lives – a painful reminder of how tragic the consequences can be when food producers act irresponsibly and government is unable to do its job. Worse, these incidents reflect a troubling trend that’s seen the average number of outbreaks from contaminated produce and other foods grow to nearly 350 a year – up from 100 a year in the early 1990s.

Part of the reason is that many of the laws and regulations governing food safety in America have not been updated since they were written in the time of Teddy Roosevelt. It’s also because our system of inspection and enforcement is spread out so widely among so many people that it’s difficult for different parts of our government to share information, work together, and solve problems. And it’s also because the FDA has been underfunded and understaffed in recent years, leaving the agency with the resources to inspect just 7,000 of our 150,000 food processing plants and warehouses each year. That means roughly 95% of them go uninspected.

That is a hazard to public health. It is unacceptable. And it will change under the leadership of Dr. Margaret Hamburg, whom I am appointing today as Commissioner of the Food and Drug Administration. From her research on infectious disease at the National Institutes of Health to her work on public health at the Department of Health and Human Services to her leadership on biodefense at the Nuclear Threat Initiative, Dr. Hamburg brings to this vital position not only a reputation of integrity but a record of achievement in making Americans safer and more secure. Dr. Hamburg was one of the youngest people ever elected to the National Academy of Sciences’ Institute of Medicine. And her two children have a unique distinction of their own. Their birth certificates feature her name twice – once as their mother, and once as New York City Health Commissioner. In that role, Dr. Hamburg brought a new life to a demoralized agency, leading an internationally-recognized initiative that cut the tuberculosis rate by nearly half, and overseeing food safety in our nation’s largest city. 

Joining her as Principal Deputy Commissioner will be Dr. Joshua Sharfstein. As Baltimore’s Health Commissioner, Dr. Sharfstein has been recognized as a national leader for his efforts to protect children from unsafe over-the-counter cough and cold medications. And he’s designed an award-winning program to ensure that Americans with disabilities had access to prescription drugs.

Their critical work – and the critical work of the FDA they lead – will be part of a larger effort taken up by a new Food Safety Working Group I am creating. This Working Group will bring together cabinet secretaries and senior officials to advise me on how we can upgrade our food safety laws for the 21st century; foster coordination throughout government; and ensure that we are not just designing laws that will keep the American people safe, but enforcing them. And I expect this group to report back to me with recommendations as soon as possible.

As part of our commitment to public health, our Agriculture Department is closing a loophole in the system to ensure that diseased cows don’t find their way into the food supply. And we are also strengthening our food safety system and modernizing our labs with a billion dollar investment, a portion of which will go toward significantly increasing the number of food inspectors, helping ensure that the FDA has the staff and support they need to protect the food we eat.

In the end, food safety is something I take seriously, not just as your President, but as a parent. When I heard peanut products were being contaminated earlier this year, I immediately thought of my 7-year old daughter, Sasha, who has peanut butter sandwiches for lunch probably three times a week. No parent should have to worry that their child is going to get sick from their lunch. Just as no family should have to worry that the medicines they buy will cause them harm. Protecting the safety of our food and drugs is one of the most fundamental responsibilities government has, and, with the outstanding team I am announcing today, it is a responsibility that I intend to uphold in the months and years to come.

Thank you.

Weekly Video Address, Saturday, March 7, 2009

Watch the address.

Remarks of President Barack Obama
Weekly Address
Saturday, March 7, 2009
Washington, DC

Yesterday, we learned that the economy lost another 651,000 jobs in the month of February, which brings the total number of jobs lost in this recession to 4.4 million.  The unemployment rate has now surpassed 8 percent, the highest rate in a quarter century.

     These aren't just statistics, but hardships experienced personally by millions of Americans who no longer know how they'll pay their bills, or make their mortgage, or raise their families.

     From the day I took office, I knew that solving this crisis would not be easy, nor would it happen overnight.  And we will continue to face difficult days in the months ahead.  But I also believe that we will get through this -- that if we act swiftly and boldly and responsibly, the United States of America will emerge stronger and more prosperous than it was before.

     That's why my administration is committed to doing all that's necessary to address this crisis and lead us to a better day.  That's why we're moving forward with an economic agenda that will jumpstart job creation, restart lending, relieve responsible homeowners, and address the long-term economic challenges of our time:  the cost of health care, our dependence on oil, and the state of our schools.

     To prevent foreclosures for as many as 4 million homeowners -- and lower interest rates and lift home values for millions more -- we are implementing a plan to allow lenders to work with borrowers to refinance or restructure their mortgages.  On Wednesday, the Department of Treasury and Housing and Urban Development released the guidelines that lenders will use for lowering mortgage payments.  This plan is now at work.

     To restore the availability of affordable loans for families and businesses -- not just banks -- we are taking steps to restart the flow of credit and stabilize the financial markets.   On Thursday, the Treasury Department and the Federal Reserve launched the Consumer and Business Lending Initiative -- a plan that will generate up to a trillion dollars of new lending so that families can finance a car or college education -- and small businesses can raise the capital that will create jobs.

     And we've already begun to implement the American Recovery and Reinvestment Act -- a plan that will save and create over 3.5 million jobs over the next two years -- jobs rebuilding our roads and bridges, constructing wind turbines and solar panels, expanding broadband and mass transit.  And because of this plan, those who have lost their job in this recession will be able to receive extended unemployment benefits and continued health care coverage, while 95 percent of working Americans will receive a tax break beginning April 1st.

     Of course, like every family going through hard times, our country must make tough choices.  In order to pay for the things we need -- we cannot waste money on the things we don't.

     My administration inherited a $1.3 trillion budget deficit, the largest in history.  And we've inherited a budgeting process as irresponsible as it is unsustainable.  For years, as Wall Street used accounting tricks to conceal costs and avoid responsibility, Washington did, too.

     These kinds of irresponsible budgets -- and inexcusable practices -- are now in the past.  For the first time in many years, my administration has produced a budget that represents an honest reckoning of where we are and where we need to go.

     It's also a budget that begins to make the hard choices that we've avoided for far too long -- a strategy that cuts where we must and invests where we need.  That's why it includes $2 trillion in deficit reduction, while making historic investments in America's future.  That's why it reduces discretionary spending for non-defense programs as a share of the economy by more than 10 percent over the next decade -- to the lowest level since they began keeping these records nearly half a century ago.  And that's why on Wednesday, I signed a presidential memorandum to end unnecessary no-bid contracts and dramatically reform the way contracts are awarded -- reforms that will save the American people up to $40 billion each year.

     Finally, because we cannot bring our deficit down or grow our economy without tackling the skyrocketing cost of health care, I held a health care summit on Thursday to begin the long-overdue process of reform.  Our ideas and opinions about how to achieve this reform will vary, but our goal must be the same:  quality, affordable health care for every American that no longer overwhelms the budgets of families, businesses, and our government.

     Yes, this is a moment of challenge for our country.  But we've experienced great trials before.  And with every test, each generation has found the capacity to not only endure, but to prosper -- to discover great opportunity in the midst of great crisis.  That is what we can and must do today.  And I am absolutely confident that is what we will do.  I'm confident that at this defining moment, we will prove ourselves worthy of the sacrifice of those who came before us, and the promise of those who will come after.

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