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This Week in Politics

Reviewing the Week's Political News

Aired September 14, 2008 - 14:00   ET

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


(BEGIN VIDEO CLIP)
JOHN KING, CNN HOST: Remember those lazy days of summer?

SEN. JOHN MCCAIN, (R), PRESIDENTIAL CANDIDATE: Informed about Iraq ...

UNIDENTIFIED MALE: Hardly a maverick.

UNIDENTIFIED MALE: Learning about sex.

SEN. JOE BIDEN, (D), VICE PRESIDENTIAL CANDIDATE: John doesn't get it!

SEN. BARACK OBAMA, (D), PRESIDENTIAL CANDIDATE: Lipstick on a pig.

GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: I've noticed a pattern.

KING: Well, that was last week. This week the presidential campaign hit warp speed, in an all-out event.

(END VIDEO CLIP)

KING: We'll get the inside story on a race that's way too close right after what's in the news right now.

FREDRICKA WHITFIELD, CNN NEWS ANCHOR: Thanks, John. I'm Fredricka Whitfield in Atlanta. We'll get back to THIS WEEK IN POLITICS, but first these headlines.

Ike is now a tropical depression and it's racing through the Midwest dumping heavy rain on Illinois, Indiana and Michigan. Flash flood warnings are posted there and in parts of Missouri.

In East Texas, where Ike came ashore as a Category 2 hurricane, devastation, debris and power lines litter the streets and rescue crews continue to search for people who may have been trapped.

Meantime, Houston officials are imposing a week-long curfew to keep people off the roads at night. They say the traffic lights are out and debris everywhere. Well, conditions are too dangerous to traverse. The curfew lasts from 9:00 at night until 6:00 in the morning. Galveston, where the storm made landfall, is also under that curfew. > President Bush says he will be heading to Texas on Tuesday. He'll tour areas hard hit by Ike. The president says he wants to lend support and offer sympathy to people hurt by the storm.

I'm Fredricka Whitfield in Atlanta, now back to more of THIS WEEK IN POLITICS.

(BEGIN VIDEO CLIP) MCCAIN: Hi, how are you? Good to see you. Great to see you. You know Cindy, I think.

(END VIDEO CLIP)

KING: That's Thursday, John McCain and Barack Obama, like much of the country putting everyday business aside and together coming to ground zero in Manhattan to remember those who perished on 9/11; and thank those who responded to the call of duty on that terrible day seven years ago.

It was a moving moment and it demonstrated the essential unity that underlies our political process here in the United States. It was, however, only a moment. The rest of the week was devoted to proving how far apart these two stand, through the sort of attacks that used to only appear much closer to election day. Here's a sample of this week's campaign trail dust.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Politicians lying about their records. You don't call that maverick. You call it more of the same.

UNIDENTIFIED FEMALE: Obama air-dropped a mini army of 30 lawyers, investigators and opposition researchers into Alaska to dig dirt on Governor Palin. As Obama drops in the polls he'll try to destroy her.

(END VIDEO CLIP)

KING: Joining me to dissect a very rough WEEK IN POLITICS, CNN's Dana Bash; she's in our New York bureau, as is "Wall Street Journal" reporter Amy Chozick.

Want to begin with the forum, both candidates sitting down on the night of 9/11, a relatively tame affair but after it some politicking over remarks the candidates made when discussing the role of small town mayors. Let's listen to the remarks and talk on the other side.

(BEGIN VIDEO CLIP) OBAMA: Mayors have some of the toughest jobs in the country because that's where the rubber hits the road. You know, we yak in the Senate.

MCCAIN: Majors have the toughest job I think in America. It's easy for me to go to Washington and, frankly, be somewhat divorced from the day-to-day challenges people have.

(END VIDEO CLIP)

KING: Dana, you cover the Senate quite a bit when not out on the campaign trail. The Obama campaign trying to say, Aha, John McCain admits he's divorced from the everyday challenge of real Americans. After lipstick on a pig and everything we've seen in the last week, is this more diversions or back to some substantive issues?

DANA BASH, CNN POLITICAL CORRESPONDENT: This is definitely more diversion. Look, the reality is that both of these senators, ironically said, I do spend a lot of time in the Senate. They don't talk about invoking cloture or up-and-down votes and what trips up most senators like Bob Dole or John Kerry that run for the White House. What this shows, John, is just how desperate, frankly, both of these candidates are to put themselves forward as somebody who is outside Washington. Particularly, John McCain even going as far as saying that he's divorced or that people in the Senate are divorced from what's really going on.

You know, obviously, the Democrats are trying to jump on that comment big time, but you just heard Barack Obama. He was dissing the Senate, too. Or he was referring to his day job saying they just yak. So, you know, to answer your question, right now things are about small things or not so much about issues. But they're about trying to cast a tone and tenor over the campaign as each tried to say they're different.

KING: Well, Amy, as you know, many Democrats are upset at Barack Obama. They think he's been knocked off his game. They actually think Sarah Palin has knocked him off his game more than John McCain. I want you to listen to Barack Obama expressing his outrage last week. This, of course, a week spent debating lipstick on a pig and comments like that. Let's listen to Barack saying enough is enough.

(BEGIN VIDEO CLIP)

OBAMA: I love this country too much to let them take over another election with lies and phony outrage and swift boat politics. Enough is enough.

(END VIDEO CLIP)

KING: Amy, if enough is enough, what does that mean? What will we see new and different from Barack Obama to respond to a stretch where most Democrats say he's been back on his heels?

AMY CHOZICK, WALL STREET JOURNAL: At that event he said enough is enough but at the same time he kept that "lipstick on a pig" in the news cycle for another day by commenting on it. Some people said it came off looking defensive and he should have just taken the high road.

He's also in kind of a delicate situation. The campaign launched two new attack ads saying John McCain is out of touch. He doesn't know how to use a computer that kind of thing. But he's in a bit of a difficult situation because here is the candidate running on hope and running on a new kind of politics, so he can go on the offensive but to an extent then it will start, you know, running counter to his message.

KING: I'm going to ask both of you to listen to some advice that Barack Obama received from the most unlikely source perhaps, Karl Rove, who ran both of George W. Bush's campaigns. Karl Rove wrote this in "The Wall Street Journal" in recent days:

"Of all the advantages Governor Sarah Palin has brought to the GOP ticket the most important may be that she has gotten into Barak Obama's head. If Mr. Obama wants to win he needs to remember he's running against John McCain for president, not Mrs. Palin for vice president."

Dana, I assume in the McCain campaign that's precisely what they want, to get in his head.

BASH: That's exactly what they're trying to do with Sarah Palin. And, in fact, I was talking to one of Senator McCain's senior advisers who was basically swinging from the chandeliers saying, look, we set a trap for him and it worked with Sarah Palin. By really goading him into to debating her and to debating this idea that she is the new fresh face when he really wanted to be the new fresh face. Kind of like what Amy was saying they feel that they've been able to goad him into acting like just another politician.

KING: So, Amy, do they concede that inside camp Obama that somehow the McCain/Palin ticket has gotten under his skin, knocked him off his game?

CHOZICK: I definitely think they underestimated the kind of impact Palin would have. The Obama campaign says, look, we don't listen to polls right now. We're ahead in battleground states but the truth is she has made inroads among white women and rural voters who he needs to connect to. So I think the other thing that throws -- has thrown the Obama campaign off, is Palin, of course, but also that with her the McCain campaign has kind of - they say -- stolen his message of change. You know, he was the change candidate. McCain was driving home experience, experience and now he's running on change, as well. And that's something that on the campaign trail Obama at times looked flustered, saying how can he say he's changed? So, that is something they're approaching.

KING: So let me ask each of you, quickly, this question, heading into the final 50 days we have essentially a dead heat in the national polls, McCain, 46, Obama, 45, in the latest CNN Poll of Polls. Looking forward, I'll start with you Amy, 20 seconds or so. In the Obama campaign they say, look state by state. Show me a state where Barack Obama needs to prove he'll move the numbers his way. CHOZICK: He's slightly ahead in Ohio, Pennsylvania, but Florida, he spent a massive amount of advertising money there. He's dispatched Hillary Clinton, Bill Clinton will campaign the first state he's going to on behalf of Obama will be Florida. And yet he's still kind of losing ground there.

KING: Dana, where does camp McCain say we'll change the map in our favor?

BASH: I think the first thing they want to do is to try to make sure the map doesn't change from the last time around; and some of those states like Colorado that are really neck and neck right now, but should be in the red column. Sarah Palin is going to be in that state to try to do what they want her to do, which is fire up the base so they can feel more comfortable and confident about that red state.

But then they'll send her to Ohio to do the same thing that Senator Obama is trying to do on the other side. Because they realize that it's states like that where you have those independents, you have those undecided voters, rural, blue collar voters that they believe, if you look at the past week or so of the polls, Sarah Palin can make a difference.

KING: Fifty days, a long way to go. Dana Bash, Amy Chozick. Dana, I hope the voice gets a little better. Amy we'll see you again.

We still have a lot more to come here. A conversation with White House Press Secretary Dana Perino on what the next president will face. Each campaign's stand on national security and our semi legendary, practically award-winning "One Minute Week in Politics".

And don't forget late night laughs where all the politicians are fair game. Here's a preview.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, COMEDIAN: Sad news, ladies and gentlemen, from the world of Hollywood, Hugh Hefner, 82-year-old Hugh Hefner is breaking up with his 28-year-old girlfriend. Strange couple. Elderly man in his robe and pajamas and a hot, young babe and -- no, wait a minute, that's the Republican ticket. (END VIDEO CLIP) (COMMERCIAL BREAK) (BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Here's the bottom line. While the enemy in Iraq is dangerous we have seized the offensive. Iraqi forces are becoming increasingly capable of leading and winning the fight. As a result, we've been able to carry out a policy of return on success; reducing American combat forces in Iraq as conditions on the ground continue to improve.

(END VIDEO CLIP) KING: President George W. Bush there announcing the withdrawal of some 8,000 troops from Iraq and the deployment of several thousand new troops to Afghanistan. Most likely these are the last major decisions President Bush will make about these two conflicts. And it is now certain the next president, whoever it turns out to be, will begin his term presiding over two wars. So what is it going to be like for the next commander in chief? Joining me to give a preview of what to expect the White House Press Secretary Dana Perino.

Dana, welcome to THIS WEEK IN POLITICS. I want to begin by stealing a question from one of my colleagues, Charlie Gibson. Do you agree with the Bush Doctrine?

DANA PERINO, WHITE PRESS SECRETARY: I do. But I thought that was a strange way to ask the question. I think that a better way to have asked that question would have been, do you agree that we should, as the United States, pre-empt attacks? Do you agree that we should disrupt terrorist financing?

KING: But he was trying to see if she knew what the policy currently (ph) was.

PERINO: Well, I think that was, you know, it seemed to me more like a pop quiz than an interview question. I think that what Americans want to know is what does the McCain/Palin ticket bring to the race? And do they agree that we should continue to go -- stay on the offense against terrorists? Because that's what -- that's what the Bush Doctrine is all about.

KING: I asked the question half joking, but half serious, because we're in a campaign where we had Senator Clinton, first, in the Democratic primaries, Governor Palin now in the general election. You are a conservative Republican woman who stands up there every day, probably one of the toughest jobs in Washington. I used to call it the toughest job in Washington, at the podium, at the White House, dealing with my business. And as you know, we've had -- we have currently allegations that we're elitist from the McCain campaign, saying we're treating this woman from small town America, in our Washington liberal, elitist media perspective. And in the Clinton campaign and perhaps a little bit of it now trickling out, charges of sexism in the media. Tell me what it is like. And do you agree with those charges?

PERINO: I've been fortunate to work for a president who I consider to be the first gender blind president. I have a seat at the table. I feel very confident and very comfortable in my relationships with the others -- with others that I work with at the White House. And there's many other women throughout the Cabinet that the president has appointed.

I tend not to think of the briefing room in those terms. I would say that certainly there have been attacks about the media from the McCain campaign and from the Clinton campaign, but I would say that's the same from the Obama campaign, as well. It's part of campaigning and what they do. I think that Americans really want to learn more about the issues and they want to know what the two tickets will bring to election day on November 4th. And that's how they'll make their decisions.

I don't -- I think the media could use a little period of self- reflection sometimes and to think about why -- are these attacks serious or not? I think too often when you call to complain or niggle about something, we get blown off, or told to take a hike. That's unfortunate, but that's why we have to try harder.

KING: I want to move on to the substance, but quickly, do you think you're held to a different standard because you're a woman?

PERINO: I don't think I am held to a different standard, but I think that people do look at me slightly differently. And part of that is just simply based on appearance, because I used to say, you know, my predecessors could wear the same navy pinstripe suit three times a week and, you know, I can't -- and it is different. But it's good. And I'm so glad that we have these issues to talk about. I think it's important that more women be in politics and that more women see that you can be in politics. And I do think that more women should think about, you know, running for city council -- and looking at somebody like a Governor Palin, you see that she's able to do that and manage a family. And every woman is just going to have to choose for herself how she's going to live her life. She's chosen one way but I hope it inspires more women to get into politics.

KING: Let's move to some of the substance. I want to begin just by listening to the president, last week, making that announcement about bringing some troops home from Iraq. Let's listen.

(BEGIN VIDEO CLIP)

BUSH: This amounts to about 8,000 additional American troops returning home without replacement. And if progress in Iraq continues to hold General Petraeus and our military leaders believe additional reductions will be possible in the first half of 2009.

(END VIDEO CLIP)

KING: The president makes this big announcement. At the beginning of the campaign the Iraq war was the driving issue in our politics. Mr. Bush makes the announcement. Senator Obama says it's not enough, bring more troops home. Senator McCain congratulates the troops, doesn't even mention President Bush. How does it feel? Is it a pretty lonely job for him right now?

PERINO: Look, President Bush understands that in this campaign that every president has to run as his own person, and as an independent person. If you look back, you know, Al Gore tried very hard to distance himself from President Clinton. George H.W. Bush even distanced himself from Reagan at the time. Even Senator Clinton distanced herself from President Clinton. I think every election is about change and moving forward.

I think what's important about that announcement is to recognize the fantastic work that our troops have done, and that our civilians have done, and that the Iraqis have done. They get a lot of credit here, too.

KING: Let's listen to another example. Both candidates speaking at a forum on the night of 9/11 saying they think President Bush failed the test, didn't ask the country to serve enough after 9/11. Let's listen.

(BEGIN VIDEO CLIP)

OBAMA: Rather than tell the American people to shop, what I would have done is to say now is the time for us to meet some great challenges.

MCCAIN: I would have called them to serve.

(END VIDEO CLIP)

KING: Now, I covered him both times he ran for president. I also remember him because of all these gray hairs the three times his dad was on a national ticket. He's been around presidential politics most of his life. Take me inside the Oval Office. When he's getting kicked around by the other candidates, including sometimes the Republican candidate, is he foaming at the bit? Does he want to get involved?

PERINO: Obviously this president loves politics, loves campaigns and mostly important cares so much about this country.

I take issue with both candidates suggesting that President Bush did not call people to serve. It was this president who called on Americans everywhere to serve their country. He asked for 4,000 hours of service over their lifetime. President Bush, just this week, had 1,800 people on the South Lawn of the White House to thank them for all that they were doing because they were volunteering in America; 61 million Americans are volunteering today, a million more than in 2001.

So this president is the one who really cared about national service. In fact, he established it in an office at the White House, the USA Freedom Corps. And I hope that both candidates, whoever wins, will continue that tradition on.

KING: You know the pressure of the job and you've watched him up close. Let's put aside all partisanship for a minute. In a sentence or two on January 20th when he is handing over the keys to the White House and the Oval Office desk, to the next president, no matter who wins what do you think, in two sentences, what his advice will be? PERINO: I think that he will say that they need to make sure that they first and foremost take a very sober look at that intelligence assessment every morning and think about the most solemn obligation that they have, which is to protect the American people. And the other thing I think he would remind them it's very important to have love in the White House and that's what he's had with Mrs. Bush and his two daughters who have been around over the past seven and a half years. And that's what gives him strength and what he thinks will give the next president strength.

KING: Dana Perino, thanks for coming in to join us.

PERINO: Thank you.

KING: Thank you, very much.

Now, next weekend CNN will present a unique preview of what challenges will face the next occupant of the Oval Office. CNN will air a special program, "The Next President: A World of Challenges." Our distinguished panel includes five former secretaries of state, Albright, Baker, Powell, Kissinger and Christopher. That's next Saturday at 9:00 p.m. Eastern and again Sunday at 2:00 p.m. Eastern.

OK, in just a moment we'll discuss the issue of national security with supporters of both campaigns. But before we get too serious, a look at the perils now of talking politics at the dinner table. Just a part of our weekly political sideshow.

(BEGIN VIDEO CLIP) KING: Talk about tough critics. Supreme court of Thailand kicked out the current prime minister for the crime of -- hosting a TV show, in this case a cooking show called "Tasting and Complaining". Actually, it sounds like a great show. Combination of Rachael Ray and Bill O'Reilly.

FRAN DRESCHER, ACTRESS: Hello, I'm Fran Drescher. I'm checking in.

KING: Watch out, world. Fran better known as TV's "The Nanny" now an official envoy of the United States.

DRESCHER: Miss Drescher goes to Washington.

KING: The star, seen here at a CNN debate in January, will help raise awareness for women's health issues.

UNIDENTIFIED MALE: I'm going to rectify the situation.

DRESCHER: Wow. That sounds painful. KING: Let's hope our global image survives.

And finally, in the grand tradition of miniaturizing political personalities, Sarah Palin now has her own action figure. HeroBuilders.com is selling the governor's likeness in three different styles, Sarah Palin as governor, Sarah Palin as superhero, and for some reason we simply can't figure out, Sarah Palin as a schoolgirl. No fret, you Democrats. There are plenty of Beach Blanket Obamas in stock. But one question remains: Where is the John King action figure? You get started on that. We'll be right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

OBAMA: What President Bush and Senator McCain don't understand is that the central front on the war on terror is not in Iraq, it never was. The central front is in Afghanistan and Pakistan, where the terrorists who hit us on 9/11 are still plotting attacks seven years later.

(END VIDEO CLIP)

KING: Campaign slogans are one thing, if Barack Obama is elected president he will face tough decisions unlike he has ever faced before. To help us clarify where he stands on the issues of national security I'm joined by Susan Rice, former top official at the White House during the Clinton administration, now a senior foreign policy advisor to the Obama campaign.

Thanks for joining us.

Let me start with a threshold question. In the news this week and confirmed by CNN President Bush's decision to authorize special forces to operate inside Pakistan along that tribal area, the Pakistan/Afghanistan border. Senator Obama has talked in the past about going in to get the terrorists if you know where they are. Does he support the president in this policy and would he continue it if elected?

SUSAN RICE, OBAMA CAMPAIGN ADVISER: Well, President Bush and the administration, indeed, are doing what Senator Obama said we must, well over a year ago. If we have actionable intelligence about a high- value terrorist target inside of Pakistan and Pakistan is unwilling or unable to take that target out, such as Osama bin Laden, Senator Obama's view is we should act. Not to invade. Not to take over Pakistan's sovereignty, but to take out that target as an act of self- defense.

The Bush administration has come to that point of view. It's been doing it with predators and drones in just this past few days. Did so with some boots on the ground. So that's the kind of policy we have to pursue and continue. It's strange to me, John, that John McCain opposes that view. He's talked about bombing an ally. He was very critical of Senator Obama when he made that statement. Raises the question if Osama bin Laden were in our sights and John McCain had the opportunity, but he was on the Pakistani side of the border, would John McCain just let him sit there?

We'll get to the McCain camp's perspective and I'll ask that question in just a few minutes. Let me ask you about something else the president did this past week. And let's listen to the president first. He announced some troops coming home from Iraq, but some of them, or at least replacements, will end up in Afghanistan. Let's listen.

(BEGIN VIDEO CLIP)

BUSH: I'm announcing today additional American troop deployments to Afghanistan. In November a Marine battalion that was scheduled to deploy to Iraq will instead deploy to Afghanistan and will be followed in January by an Army combat brigade.

(END VIDEO CLIP)

KING: Now, this is something Senator Obama has talked about, sending more troops to Afghanistan. You just said the president was doing the right thing in Pakistan. Does he deserve credit for this, as well? Is this enough?

RICE: This is a baby step, but it's a baby step in the right direction. Yet again Senator Obama has been saying for well over a year, in fact, has been saying frankly since before the invasion of Iraq that the central front in the war on terror is Afghanistan and Pakistan. And we need to invest there. We got diverted by Iraq. He's been calling for putting additional U.S. combat brigades, at least two additional combat brigades, into Afghanistan, coupling that with increased economic assistance, political support for rooting out corruption and dealing with the poppy problem.

Today, or this week, President Bush acknowledged the logic there and took a baby step in the right direction. We need to do much more in terms of drawing down from Iraq than President Bush announced this week. And we need to do more than he announced with respect to Afghanistan. But it was a step in the right direction and, again, something that John McCain hasn't been willing to acknowledge.

KING: And he is drawing down some. You say not enough in Iraq. Some Democrats are begrudgingly coming around to say, you know, what, we opposed the surge, but it actually worked, or it worked a lot better than we thought it would. Is that true?

RICE: What the surge did, alongside with several other factors, the Sunni awakening, the Shia militia ceasefire and some new counterinsurgency attacks on our part and the good, brave work of our men and women, helped to reduce violence. And that's a good thing. But the purpose of the surge, John, as you'll recall was to create the political space for the Iraqi parties to compromise and reconcile. Violence has come down but there hasn't been that political reconciliation and compromise, which remains the central challenge. Barack Obama's view is the way to catalyze that reconciliation is to be -- redeploying our forces on a predictable timetable so the Iraqis can see they have a finite amount of time to compromise. And, indeed, the Iraqis now have embraced that point of view. They want a timetable. The Bush administration has grudgingly accepted a timetable and John McCain remains the outlayer unwilling to acknowledge we need to draw down on a timetable. He wants to stay still in permanent basis indefinitely.

KING: We're short on time. I want to ask one quick question in closing. You just took after John McCain on several issue, said Barack Obama was right, John McCain was wrong. Yet if you look in our polling who would better handle terrorism? John McCain still gets 62 percent 62 percent of voters say McCain would better handle it. Only 34 percent Barack Obama. Is there anything Senator Obama can do to change those numbers between now and election day?

RICE: He can remind the American people time and again on the critical issues of the day Barack Obama had the right judgment and John McCain's was wrong. Osama bin Laden issued another videotape this week. He is out there seven years after 9/11 preparing to attack us again. We have left that flank of the critical, central front in the war on terror untended, because john McCain and George Bush took our eye off the ball, diverted our effort and resources to Iraq that had nothing to do with 9/11. That failure means that they have failed in the war on terrorism.

KING: Susan Rice, thanks for coming in today.

In just a minute a different view on the issues of war and peace in a dangerous world from McCain supporter John Lehman. But first, let's go from serious to yes, downright silly. You might have noticed a lot of time this week was talking about lipstick, to be precise lipstick on animals. CNN's Jeanne Moos thinks it's all quite demeaning -- demeaning for animals, that is.

(BEGIN VIDEOTAPE)

JEANN MOOS, CNN CORRESPONDENT (voice over): Can't they just leave the animals alone?

UNIDENTIFIED MALE: Pit bulls for Palin.

UNIDENTIFIED FEMALE: How did she get the name Barracuda Sarah?

OBAMA: You can put lipstick on a pig.

MCCAIN: But it's still a pig.

WHOOPI GOLDBERG, TALK SHOW HOST, "THE VIEW": Poor pig.

MOOS: If you think you're tired of hearing this joke.

SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: The difference between a hockey mom and a pit bull? Lipstick.

MOOS: Imagine how he feels.

(On camera): Now with someone with the last name "Moos" way too often mispronounced "moose," I think I have a right to speak for the animals.

(Voice over): They should call it "Moose Hunt '08." There are moose ornaments and moose t-shirts.

Bullwinkle, beware.

UNIDENTIFIED MALE: Sorry, Bullwinkle, why are you crying?

MOOS: You'd cry too if you saw pictures like this of Sarah Palin circulating on the Web.

FRED THOMPSON (R), FORMER U.S. SENATOR: She's the only nominee in the history of either party who knows how to properly field dress a moose.

BULLWINKLE, CARTOON CHARACTER: Goodness.

UNIDENTIFIED MALE: Mother, moose hunter, maverick.

OBAMA: Mother, governor, moose shooter.

UNIDENTIFIED MALE: She loves integrity, frugality and moos, too.

MOOS: Uh-oh, he's right.

Moose, run for your life.

Even goats are being scapegoated.

SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: Staffer in the blue striped shirt, I'm going to make you the goat. You pick out somebody to ask me a question.

MOOS (on camera): And look at this. The Obama llama being sold by a supporter of Barack Obama. Sure, it makes Obama seem all soft and cuddly but what's in it for the llamas?

(Voice over): And even when Conan sends a canine correspondent to the Republican convention, Triumph the Insult Dog is loaded for bear.

UNIDENTIFIED MALE: There's a breath of freshness in the air. Her name is Sarah and she once killed a bear.

MOOS: Maybe that's it. Draped over the couch in Sarah Palin's office, but holy sow, it's the pig that's really getting verbally abused.

MCCAIN: I'm going to veto every single pork barrel big-spending bill.

UNIDENTIFIED MALE: Roll the barrel. Roll the barrel.

MOOS: From the pig's point of view it serves Senator McCain right that he bumped his head doing a photo-op with a giant boar at the Iowa state fair.

MCCAIN: Putting lipstick on a pig.

OBAMA: It's still a pig.

MOOS: But at least it's a glamorous pig.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

MCCAIN: We have succeeded in Iraq and we are winning and our troops will come home with victory and honor. They will come home with victory and honor.

If Senator Obama had had his way, we'd have suffered defeat, Iranian influence would have increased, and we would have faced greater chaos in the region.

(END VIDEO CLIP)

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: John McCain has a long history of Senate votes and opinions on how to ensure national security but if he's elected president, will it be the first time that he actually gets to make the decisions of war and peace?

What will the result be when his theories are put to the test?

In our New York bureau, I'm joined by the former secretary of the Navy, John Lehman, a foreign policy adviser to the McCain campaign.

Secretary Lehman, thanks for joining us. I want to begin with the same question I first asked Susan Rice. We have reports and CNN has confirmed this past week that President Bush, without the authorization of the Pakistani government, has sent special forces into those tribal areas where we know the Taliban and al Qaeda are resurging.

Is that a policy that Senator McCain supports and that a President McCain would continue?

JOHN LEHMAN, FORMER U.S. NAVY SECRETARY, MCCAIN CAMPAIGN ADVISER: Well, I think the significance of the announcement is that it's gone public, because these kinds of activities have been going on for a long time.

But to prevent diplomatic breach, they have not been made public and it's something that Senator McCain has supported for a long time, but he also fully understands that Pakistan is an ally and there are issues of sovereignty that you cannot provoke too far in how you go about this.

But he knows that there are segments of the Pakistani army that are totally unreliable and sympathetic to the Taliban. He knows that their intelligence service has many Taliban sympathizers in it and so we still have to realize that we've got to take military action there, as he's been advocating for years.

But we've got to balance that with how we deal with a friendly government to try to bring them more and more on helping us do that in the tribal areas rather than putting them against us so we'd have to fight not only the Taliban but units of the Pakistani army.

KING: I want you to listen to -- I think a very sober assessment from the chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, talking about Afghanistan. He sounds very -- let me just I say, unoptimistic.

Let -- listen to Admiral Mullen.

(BEGIN VIDEO CLIP)

ADM. MIKE MULLEN, JOINT CHIEFS CHAIRMAN: I'm not convinced we're winning it in Afghanistan. It is my professional opinion that no amount of troops in no amount of time can ever achieve all the objectives we seek in Afghanistan.

And, frankly, we're running out of time.

(END VIDEO CLIP)

KING: Secretary Lehman, if that's the opinion of the joint chiefs and the chairman of the joint chiefs what would a President McCain do in Afghanistan?

LEHMAN: Well, I think that a President McCain would, indeed, believe and does believe we can win in Afghanistan and by winning we mean that it -- he can turn Afghanistan into a government and an area that is not a base for the Taliban or al Qaeda or any other enemy of the United States, that it provides security for its people and does not form a threat to any of its neighbors.

That's a simple definition and it's got to be achievable.

To say that we can't win in Afghanistan is very defeatist and unacceptable, but the fact is, we now have to shift more enterprise to Afghanistan. The central front of the war was in Iraq by Osama bin Laden's declaration.

We've now won that war essentially and it's time to shift -- not on any prearranged timetable but the fact that security has been steadily improving -- to shift forces more to Afghanistan and put more emphasis in it to pre-empt and kill the Taliban and also to now begin to put more emphasis on rebuilding an agriculture and an economy that can support stability in the future.

KING: Secretary Lehman, I want you to listen to a part of Sarah Palin's interview with Charlie Gibson of ABC News.

As you know, many Democrats have said she's simply not ready to be commander in chief. One of the questions Charlie Gibson put to her was -- have you ever met another foreign head of state? Let's listen.

(BEGIN VIDEO CLIP)

PALIN: I have not and I think if you go back in history and if you ask that question of many vice presidents, they may have the same answer that I just gave you.

But, Charlie, again, we got to remember what the desire is in this nation at this time. It is for no more politics as usual. And somebody's big fat resume maybe that shows decades and decades in that Washington establishment, well, yes, they've had opportunity to meet heads of state.

(END VIDEO CLIP)

KING: So how did she do in that interview? Did she answer the question ready to be commander in chief?

LEHMAN: Well, I think she answered the question that her job and all the executive experience she's had in her past lives did not involve meeting with heads of state just like Senator Obama in organizing in Chicago did not involve meeting with heads of state.

But that's not the warp and woof of -- that makes your judgment in making issue -- or decisions of national security. It is your basic grasp and understanding of how you pull in the best opinions based on your law -- your experience and your judgment and then make the decisions that are necessary.

There's no question that Sarah Palin does not have the experience that John McCain has. But she's got a lot more than Senator Obama has, so, you know, it's -- she's got the capability and the judgment and the character that's been proven.

KING: And we can leave it there for today.

Former Navy Secretary John Lehman, a senior foreign policy adviser to the McCain campaign -- Mr. Secretary, thank you very much.

LEHMAN: A pleasure.

KING: Still a lot more to come here. We'll get the inside story behind the latest polls with pollster Peter Hart. We'll check next week's news with Bill Schneider. And, of course, our one-minute "Week in Politics" for those of you who are too busy to watch Wolf Blitzer all week And that brings us to our weekly "Twip Tip," something to keep in mind as you suffer through the long slow boring weeks before Election Day.

(BEGIN VIDEOTAPE)

KING (voice over): Well, many of you won't have to wait. For all the talk of a countdown to November more than 30 states now allow early voting and estimates are that a third of all ballots may be cast before Election Day.

The campaigns are already acting as if they were weeks, not months from the finish. More ads, tougher talking points, instant response teams. After all it could be over before you know it.

And that's our "Twip Tip." Don't go away. We'll really be back before you know it.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

KING: Welcome back to THIS WEEK IN POLITICS. I'm John King.

We're going to talk polls. But first, let's take a look at what the smart money is saying. This is the latest from InTrade.com. It's the Irish bookmaking site where you could put your money where your mouth is.

As you can see, Barack Obama's big lead -- look at that green line -- has vanished and he's now just slightly behind John McCain. You can see McCain, he's the purple line shooting up just there. That's the word from the betters. They think McCain has ascended at the moment.

Let's get the word from the voters brought to us by our favorite Democratic pollster, Peter Hart.

I want to start, Peter, by what you call the Palin phenomenon and I want to show some of the numbers from your NBC/"Wall Street Journal" poll.

Palin as a running mate, does it make you more likely or less likely to vote for McCain? 34 percent say, in your latest poll say, more likely. She makes the more likely to vote for John McCain, 25 percent less likely, 40 percent no difference.

You've been doing this, I think, 12 presidential elections. Ever a vice presidential pick in your history that changes the dynamic like this?

PETER HART, DEMOCRATIC POLLSTER: Well, at this moment, no. I mean, she's a remarkable phenomenon. She's doing exceptionally well but, remember, we're less than sort of two weeks into all of this and we need to look at these numbers as first blush and certainly first blush, Sarah Palin's doing very well. 47 percent of the voters, very favorable or favorable attitudes towards her, and a majority say I'd be comfortable with her as vice president. So all of those things bode very well for the McCain ticket at this stage.

KING: At this stage.

HART: Right.

KING: We'll keep it there at this stage a long way to go, but who is she moving? Who was in camp Obama are undecided who now says, hmm, maybe I'll go to McCain?

HART: I think there are two groups that she's helped with. Women, particularly women under 50, there's been real movement there and the second group are small-town and rural areas.

And those come particularly important, as you know, John, because you just went through Ohio and all those towns along the river and in the middle of Pennsylvania and in Virginia and in Missouri, those are towns that, I think, Sarah Palin's probably doing well with and it's helping the Republican cause.

KING: I want to read some words you wrote recently, because in my travels in Ohio, in Michigan, Democrats increasingly are nervous. They think their candidate is back on his heels, in part, of the Palin slush. These are your words:

"Barack Obama is a terrible defensive candidate. He did badly in the primaries against Clinton when he was on the defensive. He's hesitant, tight and diffident. His counterattacks usually are weak."

I assume if that's your case of Obama on defense, you think he should go on offense specifically how?

HART: Oh he's got to go on the offense. Let's -- first of all let's bring him back to where voters are. Most important thing as far as voters are concerned is what's happening to them in the economy, what's happening in health care, what's happening in energy costs.

Those are all issues where Barack Obama should be on the offensive. It's going to come back to basics as it always does but Barack Obama, his personality, the way in which he captured the Democratic convention, he didn't lose ground between our two polls, he gained ground.

The difficulty is that he has been on the defensive and he looks soft and indecisive. When he's on the offensive he's a unifier. He's an inspirer. He is a person that gives people confidence. That's...

KING: But McCain has him on defense. Has McCain changed the fundamentals of the race, what voters want most?

HART: No, it still comes absolutely back to what's happening in our lives. What Sarah Palin has done and John McCain is they've made this more of a cultural war at the early stage. But voters are voters and voters know what count and the one thing I can tell you is a month from today, we won't be talking about Sarah Palin unless she is a disaster. What we will be talking about are the candidates for president. It always comes back that way.

KING: And when you say that a month from today, you mention in that analysis I read a little bit from earlier, what you call high noon. Explain what you mean.

HART: Oh, high noon is the debate. Voters do not pay attention on a day-to-day basis. They get a formed opinion and they sort of hold it. But then there's that open window period and high noon is one of those events, and that's a debate.

And everybody is going to tune in. It'll be a huge audience, and it's Barack Obama's chance to be able to say to the voters, I'm safe, and this is somebody that you can trust. Ronald Reagan did it in his debate in 1980. That's what Barack Obama needs to do.

KING: We'll hang in and wait for high noon. The best in the business Peter Hart with us.

Peter, thank you very much.

And OK, just ahead, "Fast Track," it's all the news you need to understand in the next week in politics. That's straight ahead. But first this important program note, don't miss two excellent biographies, tonight at 9:00 Eastern, Sarah Palin, Joe Biden.

Find out who they really are. America's vice presidential candidates, "REVEALED," that's tonight, beginning at 9:00 Eastern.

And now our weekly look at the story you might have missed while you were sleeping.

Like the Ramones we're talking about the outsiders. Ron Paul, the renegade libertarian who didn't win the Republican nomination, but did rack up millions of dollars in donations -- well, he endorsed a candidate this week.

Huh? To be precise, he endorsed four candidates, saying that his followers should vote for any of the leading third party ticket because, in his view, the race between John McCain and Barack Obama is, quote, "a charade."

Now keep your eyes on this, usually not important but a candidate like Ralph Nader or Bob Barr could draw off enough votes -- a small amount but enough -- to affect the outcome in several battleground states. Stay with us. We'll be right back.

(COMMERCIAL BREAK)

KING: And time now for our "Fast Track" segment, a look at what's ahead in the next week in politics.

Joining us our senior political analyst Bill Schneider. We've seen the post convention polls and the bounces. What should we be looking for in the week ahead?

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Well, we're not seeing big changes in the polls. That's what's amazing. George Bush has dropped 25 points since 2004 but the polls look pretty much the way they did then.

We're looking at state after state and you know what's happening? They're voting almost the same way they voted four years ago. What's going on? We'll be watching.

KING: We will be watching.

Now we have watched so far and Sarah Palin has been about this close to John McCain at all of the campaign stops. We're going to see her out solo and put her into context as a VP candidate.

SCHNEIDER: Well, I think she'll be very close to John McCain, at least, in the immediate future. And one thing they don't want to grant too much media access to her, parceling it out very carefully, until they feel she's prepared. And second of all, she's the draw. When John McCain has a rally, they come to see her, so he's going to use her at every opportunity.

KING: You're right about that. I saw that on the road in Ohio last week.

OK, Congress -- you remember Congress. There is a Congress in the middle of the presidential campaign. They're back for a big debate on a big issue -- energy. What should we look for?

SCHNEIDER: I don't think we're looking for a big break-through, because remember, there's an election for Congress, too. They don't want to stick their necks out too far.

They're going to talk about new drilling, they may be talking about curbing energy speculation, but in the end, I don't think that a big deal is in the cards for energy policies.

KING: To Bill Schneider, thanks for the "Fast Track." We're going to make a little money here but first some late-night laughs.

(BEGIN VIDEO CLIP)

JAY LENO, HOST, TONIGHT SHOW WITH JAY LENO: Barack Obama is going to have lunch with Bill Clinton this week to discuss Democratic strategies. They're going to get together and talk. You know they haven't been that friendly up until this point.

Because it's tough agreeing on the restaurant because the two men are both so different. Finally they settled on a Hooters that surfs Arugula. They realized that...

CONAN O'BRIEN, HOST, LATE NIGHT WITH CONAN O'BRIEN: According to the latest polls, which came out today, John McCain has started to open up a lead over Barack Obama. That's good.

AUDIENCE: Boo!

O'BRIEN: This is true. Yes, the "USA Today" poll has McCain ahead by 10 points, the CBS News poll has the two ties, and the MSNBC poll says that Obama won the election poll last week.

LENO: Governor Sarah Palin on the cover of "Newsweek." Look at this, she's holding a shotgun. Holding a shotgun. This picture was taken right out after she announced that guy would be marrying her pregnant daughter. Yes, the picture taken right after that.

(END VIDEO CLIP)

ANNOUNCER: "Political Fast Track" is sponsored by...

(COMMERCIAL BREAK)

KING: And now a public service for those of you suffering from a short attention span. Our one minute week in politics.

(BEGIN VIDEO CLIP)

WOLF BLITZER, CNN ANCHOR: Fired it up and lashing out...

JOHN ROBERTS, CNN ANCHOR: ... on the campaign trail.

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: They want to continue punching.

MCCAIN: We will know their names. We will make them famous.

OBAMA: Words mean something. You can't just make stuff up.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: The candidate of change.

OBAMA: Change, change, change.

UNIDENTIFIED MALE: Take a big enough chunk of the change vote away...

MCCAIN: Change in reform.

OBAMA: (INAUDIBLE) the phony talk about change.

PALIN: Good progress and positive change.

MCCAIN: Real change is coming.

BIDEN: Where oh where did experience go?

UNIDENTIFIED REPORTER: The little fact check on what Governor Palin has been saying.

PALIN: Thanks but no thanks for that bridge to nowhere. OBAMA: A bridge to nowhere.

BIDEN: Bridge to nowhere

UNIDENTIFIED REPORTER: Modern day Robin Hood.

UNIDENTIFIED REPORTER: A haven for the world's best salmon.

BLITZER: Key battleground states,

KING: Carried Ohio.

OBAMA: I look forward to winning Michigan.

BIDEN: In Missouri.

SEN. HILLARY CLINTON (D), NEW YORK: May come down to Florida.

MCCAIN: Pennsylvania is a battleground state.

UNIDENTIFIED REPORTER: Lipstick, live stock and politics?

OBAMA: You can put lipstick on a pig, it's still a pig.

UNIDENTIFIED REPORTER: So-called lipstick controversy.

LARRY KING, CNN ANCHOR: May or may not have been sexist.

ANDERSON COOPER, CNN ANCHOR: Word or words over the words lipstick and pig.

UNIDENTIFIED REPORTER: Charges of sexism. Sexism...

UNIDENTIFIED REPORTER: ... are flirting with sexism.

RICK SANCHEZ, CNN ANCHOR: Is this really even about sexism, ladies?

OBAMA: Enough is enough.

KIRAN CHETRY, CNN ANCHOR: The presidential race reaching a new level of ugly.

UNIDENTIFIED REPORTER: Palin seemed a bit when Gibson asked where she stood on the so-called...

UNIDENTIFIED FEMALE: Bush doctrine. It could mean a lot of different things out...

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: ... journalistic Washington lingo.

(END VIDEOTAPE)

KING: I guess enough is enough. That's it for THIS WEEK IN POLITICS. I'm John King. Thanks for watching. Straight ahead, "YOUR MONEY."