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Obama Holds Town Hall Meeting in South Dakota

Aired May 16, 2008 - 11:59   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

FREDRICKA WHITFIELD, CNN ANCHOR: Hello again, everyone. I'm Fredricka Whitfield.
T.J. HOLMES, CNN ANCHOR: And hello. I'm T.J. Holmes.

Live political coverage ahead in the CNN NEWSROOM this hour.

President Bush and the war on terror. He is suggesting Democrats will sit down with the enemy.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Some seem to believe that we should negotiate with the terrorists and the radicals. We have an obligation to call this what it is, the false comfort of appeasement which has been repeatedly discredited.

(END VIDEO CLIP)

WHITFIELD: And any minute now Barack Obama responds to President Bush's allegations of appeasement. You'll see it live today, Friday, May 16th, in the NEWSROOM.

HOLMES: Barack Obama fired up and firing back. Any time now we do expect the senator to respond to comments by President Bush about appeasing terrorists. A live look here at an event that's going to be happening in South Dakota. We'll carry those live for you.

First, the statement that started it all. Here is what President Bush said in Israel yesterday.

(BEGIN VIDEO CLIP)

BUSH: Some seem to believe that we should negotiate with the terrorists and radicals as if some ingenious argument will persuade them they had been wrong all along. We've heard this foolish delusion before.

As Nazi tanks crossed into Poland in 1939, an American senator declared, "Lord, if I could only have talked to Hitler, all this might have been avoided." We have an obligation to call this what it is, the fall comfort of appeasement which has been repeatedly discredited by history.

(END VIDEO CLIP)

HOLMES: And for more on what we expect to hear from Barack Obama, let's bring in Dan Lothian with the Election Express in Frankfort, Kentucky.

And I want to remind our viewers, Dan, while we've got you up here as well, we have a split screen watching in Watertown, South Dakota, where Obama is expected at a rally. You see everybody in there waiting on him. We are waiting for Obama to step to the podium. We're expecting him to directly respond to the president here, but they have already, the Barack Obama campaign, put out a statement at least with the suggestion, or at least giving us an idea, of what he will say from the podium.

DAN LOTHIAN, CNN CORRESPONDENT: And that's right. These will be, you know, strong words.

He talked about yesterday in a statement that he initially put out when this controversy first erupted that he did not, in any way, support any engagement with terrorists. He did not say anything in person because the campaign said that he did not have any public events, but they thought that it was important that he should come out and have some strong words today because he couldn't let any of these remarks stand, not only from the president, but also from Senator John McCain. Of course he was responding, as you mentioned, to the comments that President Bush made in Israel yesterday on the 60th anniversary of that country's independence.

Now, what is interesting about this whole debate is that Senator Obama has been criticized for quite some time now by his rival, Senator Clinton, for being willing to have some kind of discussions with what he calls rogue groups. Yesterday, though, she wasn't going after Senator Obama, but instead she went after President Bush for his remarks.

(BEGIN VIDEO CLIP)

SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: I think what President Bush did today was to make an outrageous and deeply offensive comparison. I just reject it out of hand. And I think any fair-minded American will reject it out of hand.

(END VIDEO CLIP)

LOTHIAN: And what this shows is that this is an issue that will be front and center as we move into the general election.

Now, you know, already, we have seen Senator John McCain bring up this issue. He was going after Obama yesterday, attacking him. And then more controversy today when an op-ed piece in "The Washington Post" by Jamie Rubin, who worked in former President Bill Clinton's administration, is a Clinton supporter, is a leading Democrat, as well. And he suggested that Senator McCain was flip-flopping because two years ago he talked about negotiating with Hamas. Of course, the McCain camp had to respond immediately saying that it wasn't true.

(BEGIN VIDEO CLIP)

NANCY PFOTENHAUER, MCCAIN SR. POLICY ADVISER: Whereas John McCain's record is completely clear on this. Whether you look at the press statements that were released literally the day after Hamas won that election, to interviews that were done on this network by people like Suzanne Malveaux, to the interviews he gave yesterday, he has been incredibly clear and he has gone on at extraordinary length on this topic.

And he has always said that there are three specific conditions. One, that they must renounce violence. Two, that they must abandon their goal of eradicating Israel. And three, that they must accept a two-state solution.

So we have been incredibly clear. And he has given -- almost unfettered access to the media. So this is ridiculous.

(END VIDEO CLIP)

LOTHIAN: So, T.J., again, we are waiting for Senator Barack Obama in South Dakota to come out and make what we are told will be some strong statements about remarks that President Bush made. He is running a bit late.

And I think, you know, when we look back how this all started, it was, at least according to our reporters at the White House, telling us that this is interesting events that have occurred, because President Bush really has stayed out of the fray. He's decided to stay out of the political fray that's been going on between the Democrats, not really saying anything at all. And then decided to inject this.

And there was some thought from Democrats at least that the way that this all went about, that it was not only done, the kind of language that the president used, but also done in Israel. So they really did not like how this all went down. And certainly this controversy which we thought perhaps would have died down a little bit today -- yesterday, rather -- picking up today with these remarks that we're waiting to hear from Senator Obama -- T.J.

HOLMES: And real quick, Dan, yes, there is in fact a primary in Kentucky next week. Is this issue gaining traction?

LOTHIAN: That's right.

HOLMES: Are the papers talking about it? People on the streets? Is this playing into it at all?

LOTHIAN: I've not really seen a whole lot of traction here in Kentucky. And we talked about this last hour.

Folks here, you know, when we talked to them about the infighting that might be going on between the Democrats, some of the negative campaigning that might take place out there on the campaign trail, what we hear from the voters, that they are really concerned about sort of those bread and butter issues, the things that directly impact them.

They are talking about the economy. They're talking about not being able to afford to put gas in their cars. You know, they're talking about not being able to afford things for their businesses like cooking oil, or supplies -- fish in one particular case. Those are the kinds of things that we're hearing them talking about.

We're hearing them talk about the loss of jobs. This is a state that's been hard hit in the past by the loss of textile jobs. The auto industry has come in and made up some of that ground. But still, they've lost a lot of jobs here.

Those are the kinds of things that we're hearing voters talk about. Those are the things that they say they are very concerned about.

HOLMES: All right.

Dan Lothian on the ground there for us in Kentucky.

Dan, we appreciate you -- Fredricka.

WHITFIELD: All right. Let's talk more on what this response just might mean.

Joining us from Washington, CNN Senior Political Analyst Gloria Borger.

Good to see you, Gloria.

All right. Well, doesn't this offer Obama a chance in which to clarify, or perhaps even help propose exactly what his positions are on foreign policy, as well as national security?

GLORIA BORGER, CNN SR. POLITICAL ANALYST: Sure it does. And in fact, in talking to Democrats in Washington, it's really an opportunity for them.

I mean, they kind of like the idea of Barack Obama responding to President Bush. I mean, this is a president with a 27 percent approval rating right now. So any time a Democrat can take on President Bush, they think that's a good thing. And while the Democratic Party, as we've been talking about for this last few months, has been completely split in so many ways, this is one issue that has actually united the Democrats.

Yesterday...

WHITFIELD: Right. We saw that with Senator Clinton, now almost defending Obama when she certainly hasn't wanted to take that kind of position as of recent months in terms of defending him on anything.

BORGER: Yes. And so there -- and so there -- you know, this is an opportunity for them to show, you know what? We are united on this.

She called these remarks outrageous. They didn't like the fact that they were made in Israel. And so, you know, it's an opportunity for them to say, OK, we are all behind Barack Obama. And by the way, none of us are appeasers either, and point out the differences between President Bush and the Democrats. They are really happy to do that -- Fred.

WHITFIELD: And perhaps this is not exactly what the Republicans had in mind if -- the White House, for that matter. That this actually ends up kind of legitimizing Senator Obama as the one to try to beat come November, does it not?

BORGER: Well, I think it does. And I think that, you know, as we were just talking about, Hillary Clinton's remarks. And I think that it also shows you that foreign policy is going to be a key issue in this fall campaign, that there will be a difference between John McCain and whomever the Democratic nominee is.

And, you know, this is a debate I think that both sides welcome. I mean, you know, the Republicans want to talk about national security because this is the one area where they still have an advantage over the Democrats.

And John McCain is going to want to talk about his experience in national security. And President Bush wants to help him out there. It also shows you, Fred, that the president, no matter what his approval rating is, can still really set the agenda in this kind of debate if he decides to lob some grenade into the debate.

WHITFIELD: Yes. And how do you see this? How do you read this, that the president got himself involved when he was quite reticent to get involved in this political race?

BORGER: Well, I think it's clear that he wants to help John McCain and that he thinks this can help him. What's interesting to me, Fred, is that John McCain gave his own big speech yesterday. And the president gave a speech. And I'm wondering whether there were competing agendas here, whether one checked it out with the other. Not sure about that.

WHITFIELD: Yes, it was kind of interesting to see on the same day that President Bush would make his comments about this appeasement in Israel, it was the same day McCain would say, well, let's look to the future and then kind of look back on what my four years will have looked like after my first term.

BORGER: Right. So I'm not sure how coordinated this effort was. But I'm sure in the future if the president thinks that he can help John McCain, he is going to do everything he can to help him. I'm not quite sure how much this helped McCain.

WHITFIELD: All right. And we're looking at Senator Daschle, who's entered the room. It had been said that he would be there, sort of alongside, or at least kind of co-hosting this event here in Watertown, South Dakota.

Gloria, let's talk about how important it is to see these heavy- hitting, you know, politicos on Capitol Hill to be backing Senator Obama at this stage in the game.

BORGER: It's very important. Of course, Senator Daschle has been an early backer of Obama, has been out there. And in fact, is his chief superdelegate counter and herder, if you will.

He's been out there very forcefully for him. And behind the scenes, he's been talking to a lot of those folks on Capitol Hill who still remain uncommitted to try and get them out for Barack Obama.

And what we've seen lately is kind of a steady stream of these superdelegates moving over to the Barack Obama column. And Tom Daschle is very important to him in South Dakota, as you can well imagine. He's been spending a lot of time out there lately.

WHITFIELD: All right. Gloria Borger, thanks so much. And we're going to hear from you again as we are poised awaiting the arrival of Senator Obama there in Watertown, South Dakota -- T.J.

HOLMES: And -- yes, just a reminder to our viewers what you are seeing here, which is Tom Daschle, the former Senate majority member -- or leader, and former senator from the state of South Dakota. There in South Dakota right now introducing Barack Obama. Again, Watertown.

When we hear from Obama, we will bring that back to you live. You are watching this live only right here on CNN.

But again, the major part of this speech today, the comments we are expecting to hear, Obama respond directly to President Bush making comments in Israel yesterday about appeasement and Democrats wanting to appease terrorists.

Stay here. We're going to take a quick break, where we're monitoring this rally.

(COMMERCIAL BREAK)

WHITFIELD: All right. We're taking you to Watertown, South Dakota, right there. Former Senate majority leader Tom Daschle kind of warming up the audience awaiting Senator Barack Obama's arrival there.

Senator Obama expected to kind of set the record straight as it pertains to President Bush's remarks in Israel yesterday about the Democrats appeasing rogue leaders and terrorists. And Senator Obama going to take this opportunity to set the record straight on how he feels about talking or negotiating with -- talking with terrorists or rogue leaders. And taking his position there to the halls there, this town hall meeting there at Watertown, South Dakota.

HOLMES: And want to bring back in Dawn Turner Trice, a "Chicago Tribune" columnist still with us there in Chicago.

Thank you for sticking around here.

DAWN TURNER TRICE, "CHICAGO TRIBUNE": My pleasure.

HOLMES: How forceful do we expect this language to be from Obama? How forceful does this language need to be from Barack Obama today in response to the president? TRICE: Yes. Well, I think what he has to really do is elevate the conversation of negotiations beyond that whole tough guy model, the approach that we've seen in the last several years. He's got to show that he understands diplomacy. And he can also bring in the various presidents from Nixon, Kennedy, Reagan who have used diplomacy in talking to rogue states and terrorists.

HOLMES: Well, how -- that tough guy model you talk about, some might argue, you know, we need to see a little more tough guy from Barack Obama.

TRICE: Well, I mean, they could argue that, but we've seen a lot of tough guy in Iraq. And that approach has not been successful. And so I think he has -- what he'll be able to do with this discussion, maybe similar to the discussion he had on race, is make it a little more nuanced and elevate it.

HOLMES: This audience today -- and we see the audience sitting there in South Dakota in this live picture. But who is more so speaking to today? Is he speaking to a general election audience? Is he speaking to any more primary voters? Or has he moved on from that?

TRICE: Well, I think he's speaking to anybody who will listen to him. There are a number of people who may still have concerns about his foreign policy experience. And so he is talking to the people who will go to vote in Kentucky next week. He is talking to anybody who will listen.

HOLMES: And we are about to listen to him here shortly. We just heard Tom Daschle introduce Senator Obama.

You see him -- I'm sure it's going to take him a minute here to make his way to that podium. But here he is again.

Talk to us about this -- just this image itself today. We've seen this time and time again with him on stage with a lot of big-name Democrats, a lot of familiar faces. And here he is again in South Dakota with, still, I guess, a fairly popular guy, Tom Daschle, who even though he lost his seat back in '04 -- about this image of him once again on the stage with someone seen as a leader of the Democratic Party.

TRICE: Well, I tell you, it just makes him look more and more presidential. And it shows that he's got a lot of support behind him.

There's been a lot of talk about the Democratic Party being very fractured. But people are really lining up. Democrats are lining up behind him. And that just -- it helps him. It helps him a lot.

There are a number of things this week -- with the endorsement from John Edwards, the win in Mississippi, Travis Childers' win. All of that just really adds a lot of heft to his campaign.

HOLMES: Well, it's awfully hefty right about now, because he got blown out in West Virginia by some 48 points by...

TRICE: He did.

HOLMES: ... Senator Clinton. Nobody has mentioned that since that night it seems. The next day...

TRICE: It has -- it's amazing.

HOLMES: Yes.

TRICE: Yes, it's amazing. And since then, I mean, you've got the United Steel Workers Union lining up behind him. You've got delegates continuing to line up. And, I mean, he's had -- it's almost -- it's eerie almost. You're right, West Virginia is way in the distance.

HOLMES: It sounds like we hear him saying some "thank yous." We will take a listen in here.

Thank you so much, Dawn.

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Thank you, everybody. Thank you.

Thank you so much. Thank you. Thank you very much.

Well, thank you so much. Please, everybody have a seat.

What a wonderful -- what a wonderful welcome. There are a number of "thank yous" that I've got to say.

First of all, I could not have a better friend and a greater supporter than your former senator and majority leader, Tom Daschle.

(APPLAUSE)

So, Tom -- Tom gave us a chance. But, you know, that's the kind of person he is. When he believes in something, he sticks with it, even if sometimes it's tough.

And Tom has been with me through thick and thin during the course of this campaign. He has also been one of the greatest public servants that this country has ever seen. And so I'm very grateful for his friendship and his support.

(APPLAUSE)

Just a couple of other acknowledgements.

First of all, we've got Senator Nancy Turbak Berry and her husband Dave. Please give them a big round of applause.

Stand up, Nancy.

(APPLAUSE)

Thank you. Also, Joel Vacarat (ph), who's a supporter and board member of the Chamber of Commerce here. I want to thank Joel for all his great support.

Sharon Stroshine (ph), thanks for her support.

Thank you, Sharon (ph).

I want to acknowledge my regional field director for northeast South Dakota, Maggie Thompson (ph).

Where is Maggie? Where is she? She is doing a great job wherever she is. She is probably out there signing up some more people.

And we've got a couple of wonderful folks who I've gotten a chance to know just recently -- Jody Ringling (ph) and Adam Rammal (ph). And I'm going to be talking to them. They're going to kick off sort of the Q&A session of this.

This is a town hall meeting. And so I'm not here just to talk. I want to hear from you. But I do want to offer some initial remarks. And I was going to just talk about rural issues today, but because there was a little dustup yesterday about foreign policy, I feel obliged just to make a few comments about that, as well.

(APPLAUSE)

So I just hope you'll bear with me. I'll speak for about 15 minutes, and then we'll get to the Q&A. But I do want to say something about yesterday.

You know, after almost eight years, I did not think I could be surprised about anything that George Bush says. But I was wrong.

Yesterday, George Bush was before the Israeli parliament, the Knesset, to help commemorate the 60th anniversary of Israeli independence. That's a wonderful occasion and a time for celebration. But instead of celebrating and offering some clear ideas about how to move the situation in the Middle East forward, the president did something that presidents don't do. And that is launch a political attack targeted toward the domestic market in front of a foreign delegation.

On a day when we were supposed to be celebrating the anniversary of Israel's independence, he accused me and other Democrats of wanting to negotiate with terrorists and said we were appeasers no different from people who appeased Adolf Hitler. That's what George Bush said in front of the Israeli parliament.

Now, that's exactly the kind of appalling attack that's divided our country and that alienates us from the world. And that's why we need change in Washington. That's part of the reason why I'm running for president of the United States of America.

(APPLAUSE) Now, that was frustrating enough, but then John McCain gives a speech. Now, he gave a speech in the morning where he talked about the need for civility in our politics.

He talked about elevating the tone of debate in our country. He talked about reaching out in a bipartisan fashion to the other side. And then not an hour later, he turned around and embraced George Bush's attack on Democrats.

He jumped on a call with a bunch of bloggers and said that I wasn't fit to protect this nation that I love because I wanted to sit down and negotiate with tough diplomacy with countries like Iran. Accused me of not being fit to protect this nation, a nation that my grandfather served in World War II, and this nation's that's given me everything that I had.

So much for civility.

Well, I want to be perfectly clear with George Bush and John McCain and with the people of South Dakota. If George Bush and John McCain want to have a debate about protecting the United States of America, that is a debate that I'm happy to have any time, any place, and that is a debate that I will win because George Bush and John McCain have a lot to answer for.

(APPLAUSE)

George Bush and John McCain have a lot to answer for. They've got to explain why we are now in our sixth year -- entering our sixth year of war in Iraq.

We were supposed to be going over there for weapons of mass destruction that we never found. We were told that it was going to last a few months and cost a few billion dollars. We have now spent over $600 billion, thousands of lives lost, and we have not been made more safe.

They are going to have to explain the fact that Osama bin Laden is still at large and is sending out videotapes with impunity. They need to answer for the fact that al Qaeda's leadership is stronger than ever because we took our eye off the ball in Afghanistan.

They've got to answer for the fact that Iran is the greatest strategic beneficiary of our invasion in Iraq. It made Iran stronger, George Bush's policies.

They are going to have to explain why Hamas now controls Gaza. Hamas, that was strengthened because the United States insisted that we should have Democratic elections in the Palestinian Authority. They are going to have to explain why it is that Iran is able to fund Hezbollah and poses the greatest threat to America and Israel and the Middle East in a generation.

That's the Bush/McCain record on protecting this country. Those are the failed policies that John McCain wants to double down on, because he still hasn't spelled out one substantial way in which he would be different from George Bush when it comes to foreign policy.

(APPLAUSE)

So I'm a strong believer in civility and I'm a strong believer in a bipartisan foreign policy. But that cause is not served with dishonest, divisive attacks of the sort that we've seen out of George Bush and John McCain over the last couple of days.

And, you know, let me just say one -- a couple of other things about this. I was going to say one more, but I've got a couple of things.

John McCain has repeated this notion that I'm prepared to negotiate with terrorists. I have never said that. I have been adamant about not negotiating with Hamas, a terrorist organization that has vowed to destroy Israel and won't recognize them.

In fact, the irony is, yesterday, just as John McCain was making these attacks, a story broke that he was actually guilty of the exact same thing that he is accusing me of. And in fact, was saying maybe we need to deal with Hamas. And that's the kind of hypocrisy we've been seeing in our foreign policy, the kind of fear-pedaling, fear- mongering that has prevented us from actually making us safer.

They are trying to fool you and trying to scare you. And they are not telling the truth. And the reason is because they can't win a foreign policy debate on the merits.

But it's not going to work. And it's not going to work this time and it's not going to work this year.

(APPLAUSE)

Our Iran policy is a complete failure right now. And that's the policy that John McCain is running on. He has nothing to offer except the naive and irresponsible belief that tough talk from Washington will somehow cause Iran to give up its nuclear program and support for terrorism.

I'm running for president to change course, not to continue George Bush's course. I believe...

(APPLAUSE)

I believe we need to use all elements of American power to pressure Iran, including tough, principled and direct diplomacy. That's what John F. Kennedy did. That's what Ronald Reagan did when dealing with the Soviets. And that's what the president's own secretary of defense wants to do.

I mean, understand George Bush's secretary of defense suggests we talk directly to Iran. So I don't know if George Bush is calling his own secretary of defense an appeaser. I don't know who he is talking about.

It's time to present Iran with a clear choice. If it abandons its nuclear program, support for terror, and threats to Israel, then Iran can rejoin the community of nations. If not, Iran will face deeper isolation and steeper sanctions. But in the Bush/McCain world view, everyone who disagrees with their failed Iran policy is an appeaser.

And back during his No Surrender tour, John McCain said anyone who wants to end the war in Iraq wanted to surrender. He even said later on that he would be willing to keep troops in Iraq for 100 years, although I think he noticed that it wasn't polling well because yesterday he said suddenly that our troops are going to be home by 2013, although he didn't explain how he was going to do it.

He offered the promise that America will win a victory with no understanding that Iraq is fighting a civil war. Just like George Bush's plan isn't about winning, it's about staying. And that's why there will be a clear choice in November, fighting a war without end or ending this war and bringing our troops home, because we don't need John McCain's predictions about when the war will end.

We need to plan to end it and that's what I provided during this campaign. The American people have had enough of the division and the bluster. Both Bush and McCain represent the failed foreign policy and fear mongering of the past. I believe the American people are ready to reject this approach and choose the future. I think you are ready for change that unites this country and ends this war and restores our security and standing in the war and that is serious about a bipartisan foreign policy. You can't suggest that you want to be bipartisan and then run the kinds of campaign tactics we've been seeing over the last couple of days. You've got to start while you are campaigning. That's why we need to bring about some change in the White House.

All right. I just wanted to get that off my chest, guys. That's about our foreign policy. Now the change that we are seeking begins not just abroad, but also has to happen here at home, here in rural America. Washington has failed to hear your voices for far too long. It's about time that your voices were heard because when you get out and talk to people across the heartland, you are reminded that there's an awful lot that America can learn from rural communities.

I am reminded of my grandparents who came from small towns in Kansas and they brought those heartland values west where they helped raise me. And when I travel across the heartland, I see those values in the people that I meet in small towns and on family farms and ranches. Hard work, innovation, rugged independence joined with the belief in community that says I am my brother's keeper. I am my sister's keeper. These are American values. They are the values that I will fight for as president and they are the values at the core of my agenda for rural America.

We are at a turning point -- we are at a turning point right now. Our economy is in transition. Our environment faces growing peril and our communities are changing. Young people in small towns don't know if they can make a good living and raise a family and achieve their dreams without moving far away from where they were raised. That's what you hear when you go out and talk to people. That is not a future that I accept. The problem in part is Washington. Over the past decade we've handed out $1.3 billion in Federal farm money to people who aren't even farmers. We've got farm money going to fortune 500 companies. That's what happens when rural policy is written by lobbyists in Washington.

Here is what I'm going to do as president. I will cap Federal farm payments at $250,000. I will close loopholes that allow big agri business to work the system. I will immediately implement country of origin labeling so that American farmers can distinguish their products. I will stand up for the packer ban and strengthen and enforce laws to ensure that ranchers get a fair deal. That's what I've stood up for in the Senate, but it's what John McCain stood against when he voted against common sense measures like country of origin labeling and the packer ban. He stood with Washington and Washington failed to stand by you.

We also need to invest in the opportunities that are being created right here in rural America. I fought along with Tom Daschle, along with Tim Johnson for renewable energy sources for a decade, for wind and solar, for advanced biodiesel and ethanol. And when I'm president, I will set a goal to produce the first two billion gallons of advanced biofuels by 2013 and will invest in clean energy sources like wind and solar so that by 2025, America meet a new standard that will require 25 percent of all our electricity comes from renewable sources. And that will help South Dakota because we've got a lot of wind and we've got a lot of sun right here in the state of South Dakota.

When we do those things, we can not only lift up the rural economy, we can also secure our energy future and help save the planet in the bargain, but only if we have leadership that understands that the solutions to our problems are right here in places like South Dakota. The fact is when John McCain had the chance to support alternative energy, he rejected the single biggest investment in renewable energy in history, including incentives that contributed to a nearly 50 percent increase in wind power generation last year. He has voted against renewable fuel mandates and investment in clean energy over and over again.

That is not a record that rural America can count on. That's not the support that we need to show for our rural economy. Most of all, we need to show young people that they can live their American dream right here in places like Watertown. No child in America -- no child in America should grow up thinking that their hometown is not part of the American story or that they'll have to move away to live their dreams out. We need to recruit new teachers and doctors and nurses and make new investments in our rural schools and our rural hospitals. We need to invest in broadband and infrastructure to connect the entire country to the 21st century economy and 21st century technology. We need to support small businesses in small towns and we need to show that small farming and ranching is a big part of the future of this country.

That's why I propose a program to give a hand to the next generation of farmers and ranchers. We'll work with our land grant schools and community colleges with 4-H and FFA to give young people the skills they need to make it and we'll give them incentives to afford their first farm or ranch while giving a tax break to land owners who sell to beginning farmers. We can do these things. We can do these things, but only if Washington understands the struggles that rural America is facing. We can't afford another president who will say he will veto a farm bill that will help South Dakota farmers and ranchers and yet that is exactly what John McCain says he will do in the White House. That is not the change we need. That is exactly what we've had from George Bush for the last eight years and it just won't do.

We know the farm bill isn't perfect. We would like to see more reform and that's what I'll pursue as president. We'll close loopholes that let agri business break the rules and we'll put more fruits and vegetables in our schools and fight hunger. We'll help farmers to do more to conserve their habitat so that they have the stability that they need. But we won't turn our back on legislation that gives rural America a hand. That is what George Bush and John McCain have promised to do. It is time to come together, all of us, urban, rural from every state, from every race, every religion with a sense of urgency so that our politics work for the people of America. We can't settle for anything less. We can't settle for anything else than fundamental change.

Your voices are heard in Washington. We have to fight to ensure that the child in Cottington (ph) County can dream as big as the child in Chicago because the dreams of rural America are worth fighting for. That's what my rural agenda does and that's what I'll do as president of the United States. All right. Thank you, everybody. Thank you. Thank you. All right. Thank you. Thank you very much. Thank you.

We've got Jody and Adam here as sort of guinea pigs for us because sometimes it's hard to get people to open up and start asking questions and giving comments. What we wanted to do was to start off just by letting me ask a couple of representatives of your community about what they are seeing, the kinds of help they would like to see from Washington. And then I'm just going to open it up for questions from everybody. So Adam, you've got a ranch. You are a fifth generation rancher. What are the biggest challenges that you are facing? And you are going to school at the same time. You are an example of a young modern rancher getting your degree. He is getting his MA and smart guy, knows all kinds of stuff. What are the biggest challenges that you are facing and what do you think would be most helpful in terms of Federal policy or from Washington that would make sure that you've got a sixth and a seventh and an eighth generation of ranchers here in the Watertown area?

ADAM: All right. I guess the first thing, obviously, in order to raise cattle and to finish them off and get them into the grocery store for everybody to enjoy a nice steak at night takes corn to get the cattle to that point. Everybody knows right now that corn prices are high and a lot of the farmers are liking that. It's been a long time coming that they've finally been making a really good living currently. However, fuel prices are becoming a little out of hand for the agricultural community. Our input costs are definitely going extremely high. Fertilizer to use on the fields to plant that corn and get it to the cattle are all getting a little out of control. If we could get our input costs a little lower with the biggest example being our fuel that we are using would definitely help out a great deal.

OBAMA: So your fuel costs have gone up just like people's prices at the gas pump has gone up over the last year.

ADAM: That's right.

OBAMA: And that means even if you are able to sell your product at a higher price in terms of what you are profiting or what you are netting, it's not what it should be.

ADAM: That's correct.

OBAMA: OK. Jody, anything you would like to see? Obviously fuel prices are critically important. We've got to bring those down.

JODY: Yeah.

OBAMA: What else?

JODY: It's kind of a trickle-down effect. There are so many petroleum-based products. It just drives everything, you know. It makes it really, really hard for the small family farmer. My husband and I are fourth generation farmers and ranchers in south central South Dakota and the fuel, of course and the price of corn is just out of the roof. But another thing that I see and it's so nice to see Adam here as a fifth generation farmer and wanting to come back. There are so many young people in the state of South Dakota who can't come back. The corporate farms move in and the big consignment ships (ph) and what not and kids can't afford to farm.

OBAMA: Because the capital requirements for farming at that scale are prohibitive.

JODY: Yeah.

OBAMA: Has there been a lot of consolidation? A lot of folks getting bought out?

JODY: Yeah. You know, back home, of course we have a lot of - the pheasant hunting thing is a big deal and maybe several areas around here have pheasant reserves and what not, but we see a lot of people and they are corporate people that come from out of state into our state and buy up land. Well, you know, not every kid, even us, we can't afford $1,500 an acre for land and the cost has just gone through the roof. It's been really, really hard.

OBAMA: One other thing in my home state, Illinois, obviously is an agricultural state, as well and when I talk to farmers, something that is of deep concern to them is also health care. They are essentially business people and getting your own health care these days is tough. What do you guys do in terms of health care coverage?

JODY: Obviously, when you are an independent family farmer, you don't, you have to get your own insurance. I was just thinking the other day --

OBAMA: you look really healthy, by the way. You don't look like you get sick that much. But it's always nice to have a backup plan.

JODY: Well, you know what? I have a grandmother that lived to be 98.

OBAMA: Good genes. All right.

JODY: I'm working on that. Anyway, for us we have to buy our own insurance. We are insurance poor, I'll tell you. Between health insurance, you know, just insurance any kind. It's crazy. It's insane.

OBAMA: The costs have really gone up high for you.

JODY: Yeah.

OBAMA: Absolutely. You get some applause for that. The other thing, part of -- I was mentioning this farm bill that we just voted on, very imperfect. There are aspects of it that I wanted to change. One thing that was in there that I thought was really important was permanent disaster protection and relief. I know that's something a lot of farmers want, just some security that you don't if there is a drought, if there is a flood, that you are not having to wait for a year or a year and a half to get everything processed. But people have some assurance, some stability there. Obviously, you always want to deal with --

FREDRICKA WHITFIELD, CNN ANCHOR, NEWSROOM: This is an interesting personal exchange between Senator Barack Obama and folks who have turned out for this town hall meeting there in Watertown, South Dakota, kind of Oprah-esque, if you will, just a little Q&A between he and the folks who have come out. While they are talking mostly about rural issues where that Q&A is kind of being driven by health care and matters of what it is to be a fourth and fifth generation farmer, at the very beginning of this town hall meeting, Senator Obama said there was a dust-up, describing yesterday's occasion with President Bush in Israel, talking about and describing Democrats being appeasers wanting to talk to or negotiate with terrorists or rogue leaders. He said he wants to talk about this right off the top because this is kind of something that has been something that he wants to get off his chest. So senior political adviser for CNN Gloria Borger is with us now to talk a little bit more about what we heard from him. He was very kind of cavalier about this. But clearly, this is an opportunity for him to clarify his positions on foreign policy. He said he was very surprised, and his words, he called it appalling that the president would use this kind of language yesterday. He said this is an example of exactly what has divided America and what has separated the United States from the rest of the world. Was this a statement that really hit home, that was a good retort for what he heard from the president yesterday?

GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: Well, All I can say is welcome to the general election. This is exactly the kind of debate you are going to be having in the general election. What Obama did was link John McCain in any way he could to George Bush because he understands that George Bush is unpopular, 27 percent popularity rating. He came out and said that John McCain wants to double down on, that was his phrase, double down on the policies of George Bush that he said have not made us any safer. Then he went through a laundry list of all the things that he said that the president has done that has not made us safer. And then he said, you know what? I welcome this debate in the general election.

He was clearly offended by the use of the word "appeaser" which is really an explosive word and he made it very clear. OK. I am going to have this debate. Because the one question that people have about Barack Obama is, yes, he wants change, but will he make us safe? They want change, but they don't want risk. So the debate he's going to have is, OK, who is the riskier person to vote for? Is it me or is it John McCain? His point is, well if you want more of George W. Bush, there is John McCain. That is the fight he wants to have.

WHITFIELD: Right and he was really trying to get to the heart of that very matter because he says, I'm running for president to change course. He went down that laundry list of things that exemplify this this is this administration's position on foreign policy. And is this really, are these the mistakes that have been made that need to be underscored during this so-called debate. He talked about, why are we entering the sixth year of war? Why is it America was told that we would be going to the Iraq war for WMD? Americans were told it would cost one thing and it turned out it cost another.

He really is kind of looking back at eight years as something we saw John McCain trying to do yesterday, looking back on his four years if he were, indeed, elected president. And Senator Obama made the parallel between McCain and the president and he used yesterday as an example saying, was this a coincidence the two would come out and talk about these very things?

BORGER: Right. I think he made the point that McCain said yesterday that combat will be done in Iraq by 2013 because we would have won the war in Iraq. Obama's point was he didn't tell us exactly how that would occur. The larger question here really is how much is Barack Obama going to be able to tie John McCain to George W. Bush? He'll clearly be able to do it on foreign policy. You saw that today. The question is whether he's going to be able to do it on domestic policy because John McCain has for the last month, gone out of his way to distance himself from the president. One of the ways that any Democrat believes that they can win this election is to tie McCain to Bush and make it look like it's a third term. Here we are. This was I believe one of the first sort of speeches of the general election campaign.

WHITFIELD: All right. We are at the starting point once again, aren't we? Gloria Borger, thanks so much from Washington. We'll talk again with you later on in the day and we'll have much more in the NEWSROOM right after this.

(COMMERCIAL BREAK)

TJ HOLMES, CNN ANCHOR, NEWSROOM: If you haven't heard, Barack Obama has responded to President Bush's comments made overseas, made in Israel in Bush about Democrats, including Obama wanting to appease terrorists and other rogue leaders by sitting down and talking to them without conditions. Here now is Senator Barack Obama who is in South Dakota, made these comments just a moment ago.

(BEGIN VIDEO CLIP)

OBAMA: Yesterday, after almost eight years I did not think I could be surprised about anything that George Bush says. But I was wrong. Yesterday, George Bush was before the Israeli parliament, the Knesset, to help commemorate the 60th anniversary of Israeli independence. That is a wonderful occasion and a time for celebration, but instead of celebrating and offering some clear ideas about how to move the situation in the Middle East forward, the president did something that presidents don't do and that is launch a political attack targeted toward the domestic market in front of a foreign delegation.

On a day when we are supposed to be celebrating the anniversary of Israel's independence, he accused me and other Democrats of wanting to negotiate with terrorists and said we were appeasers, no different from people who appeased Adolf Hitler. That's what George Bush said in front of the Israeli parliament. Now, that is exactly the kind of appalling attack that's divided our country and that alienates us from the world. That's why we need change in Washington. That's part of the reason why I'm running for president of the United States of America. I want to be perfectly clear with George Bush and John McCain and with the people of South Dakota, if George Bush and John McCain want to have a debate about protecting the United States of America that is a debate that I happy to have any time, any place and that is a debate that I will win because George Bush and John McCain have a lot to answer for.

(END VIDEO CLIP)

HOLMES: With all this back and forth you might be thinking, oh, yeah, isn't there a primary on Tuesday? Oh, yeah, there is. Dan Lothian, he's standing by in Kentucky where the primary is taking place. Are people taking note of what's happening right now? And also are they taking note of the fact it appears that have gone into general election mode? Are people there still excited for their seemingly playing a role in this process now?

DAN LOTHIAN, CNN CORRESPONDENT: People obviously are very excited about the upcoming primary. This is a state though where Senator Clinton had a commanding double-digit lead now for quite some time. Obviously, there are Obama supporters here, as well. While they are very concerned about those bread and butter issues, they are obviously paying attention to what is happening today, as well. The Obama campaign, my take on watching what was happening in South Dakota today, the Obama campaign speaking not only to folks here in South Dakota but also here in Kentucky made two points, I think.

First of all, the first point, wanted to tie Senator McCain to George Bush. This is something that we can see as a strategy going into a general election. The second thing too is that Senator Obama really wants to let voters out there know that he is strong on national security. This is an area where he has been criticized by his opponent Senator Clinton and he wants to show that can protect America. TJ

HOLMES: Dan Lothian there. Again, primary coming up in Kentucky on Tuesday. Dan, we appreciate you today.

WHITFIELD: TJ "Time" magazine political analyst Mark Halperin is with us, as well. He was listening and Senator Obama said the president is trying to say that I'm not fit to serve. Did what we hear from him today turn that opinion around? (INAUDIBLE) thought that he is not fit to serve?

MARK HALPERIN, SENIOR POLITICAL ANALYST, TIME: Well, it's a start up as Gloria Borger said to general election debate. Look, Senator Obama himself and his senior staff are well aware of the history of recent presidential elections. They are not going to let the debate simmer below the radar. If something gets said, even if it is ambiguous, even if it's not a direct attack. The president we should all remember didn't mention Senator Obama by name. They are not going to let it go. They're not going to let it drift. They're going to come back and respond. I'm a little surprised he didn't give that speech yesterday. But he gave it today and it's going to keep the story alive for another day. As he said and it is true, they are not going to shy away from this debate. They're going to argue not just that Barack Obama is just as good as John McCain and George Bush on national security, they're going to argue that he would be better for American security.

WHITFIELD: All right, "Time" magazine's Mark Halperin, thanks so much. Good to see you.

HOLMES: CNN NEWSROOM will continue in just a moment with Don Lemon and Brianna Keilar. Don't you go anywhere.

(COMMERCIAL BREAK)

DON LEMON, CNN ANCHOR, NEWSROOM: Appalled about appeasement, Barack Obama fires back at President Bush's claim that Democrats want to appease terrorists and tyrants.

BRIANNA KEILAR, CNN ANCHOR, NEWSROOM: The Democratic presidential front-runner says when it comes to foreign policy, Mr. Bush and John McCain as well have a lot to answer for. Hi there. I'm Brianna Keilar at CNN world headquarters in Atlanta.

LEMON: And I'm Don Lemon.