Return to Transcripts main page

This Week in Politics

Examining the Week's Political News Stories

Aired August 02, 2008 - 18:00   ET

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


JOHN KING, CNN ANCHOR: It's arguably a presidential candidate's most scrutinized decision -- choosing a running mate. With the national convention just weeks away, the speculation about who Barack Obama and John McCain will pick increase considerably during THIS WEEK IN POLITICS.
(BEGIN VIDEOTAPE)

KING (voice over): Will John McCain call on former rival Mitt Romney or maybe Minnesota governor Tim Pawlenty to be his wingman on the Republican ticket? Will Barack Obama refer to Virginia governor Tim Kaine or senators Joe Biden, Evan Bayh or Sam Nunn to complete a Democratic dynamic duo?

John McCain has tried to sidestep VP talk.

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: We're in the process -- in the process. As you know, if I comment on it in any more detail then it causes a flurry of speculation.

KING: Much the same from Barack Obama.

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: The next time I talk about my vice presidential selection, it will be to introduce that selection.

KING: And then there's the question of timing.

Back in 2004, John Kerry tapped his VP choice John Edwards 20 days before the Democratic convention. That's the earliest announcement on record.

Back in 1988, then vice president George H.W. Bush waited until the second day of the GOP's gathering before announcing his pick, Dan Quayle.

With this year's Olympic Games expected to push politics off the center stage for most of August, both candidates must decide if they want to declare their choice within the next few days or keep up all the summertime suspense.

(END VIDEOTAPE)

KING: So how much impact will the vice presidential picks really have on the campaign?

Let's turn to two men with considerable experience in this election process. Republican strategist, Scott Reed, and as Bob Dole's 1996 presidential candidate, Steve Elmendorf, Democratic strategist, formerly the deputy manager for John Kerry's 2004 campaign.

Welcome all. Let's start with the basic premise. When you're picking a running mate -- Steve, you first as we think Obama will go first -- what's your biggest worry?

STEVE ELMENDORF, FMR. KERRY DEPUTY CAMPAIGN MGR.: Your biggest worry is do no harm. Don't do what George McGovern, David or Sargent Shriver, don't find anyone who's going to cause you trouble. Vet them perfectly. Make sure they're going to be a positive pick and roll it out in a smart way.

KING: How difficult is it when you think you have a smart pick to then go to the next level? Is there a personal comfort level? Is this person high maintenance, if you will, when it comes to -- do they want to bring their own staff, do they sometimes run off message?

SCOTT REED, FMR. DOLE CAMPAIGN MANAGER: Well, it's important you set the ground rules early on exactly how the presidential campaign is going to manage the vice presidential entire operation.

This is a big decision, though, for both candidates because it's really the first time the American public will get to understand and see them make a big decision.

This is a big decision. This is going to either help them win or lose the election. And I think you're seeing a methodical situation in plays with both campaigns as a lead up to making this decision.

You want to have an element of surprise, you want to have a little bit of a wow factor to cause people to take a good, solid look at you, because this is when it really starts, at these conventions, when the ticket's in place, as you see a real contrast.

KING: You mentioned, Steve, do no harm. The Quayle pick in '88 was viewed as a debacle from a rollout standpoint. It wasn't a highly crafted media rollout, then there was vetting issues about the National Guard and some other issues, and yet George H.W. Bush went on to win 40 states in that election. So many would say, there is your proof if you ever need that it really doesn't matter.

But is it different this year in that Barack Obama is new, pretty new on the national stage, and he's young, and that John McCain is old? He'll be 72 years old, the oldest elected president and so some might have a legitimate health question.

Does it matter more this time?

ELMENDORF: I think it always matters. I think, you know, '88 you can go through why Michael Dukakis lost. I don't know that that's the big -- the big issue. I think what matters is that the candidate is comfortable with who he picks. Because if he's not comfortable, it's going to show and it's -- you know, he's going to have to live with the person through four years and possibly eight years. And I think it's interesting, Obama is looking at a lot of people from red states which, to me, is a sign -- if he is looking to take this election from John McCain, he's looking to expand the field of where he's going to play and he's looking at people who can get elected in states that are going to help him get him get a bigger majority.

KING: If he is looking red state, what's John McCain's biggest -- should be John McCain's biggest target?

REED: I think McCain's biggest target is he needs to pick a conservative, someone that the conservative movement can rally behind. And there's some -- there is some mistrust out there with McCain, with conservatives, and this would kind of pick at the bid.

Obviously, someone that can help him carry a message. McCain needs help with his economic growth message. The governors he's looking at right now would complement that type of a campaign in the fall. I think that -- this is -- but the most important, this is a personal decision, you know?

There's a myth that there's these rooms full of posters looking at anybody. This is really the candidate, usually the campaign manager, one or two trusted people, that are taking the time to size these people up.

Yes, they do the research on them and they analyze their taxes and everything else, but it's really about, is there chemistry there, is e going to help me win, am I going to be able to put up wit him sitting next to me all this time?

And that's a big decision.

KING: After the pollsters go through all the data -- I want to move on to the bigger issue of the tone of the campaign. But first, let's just play a little gotcha. Give me a prediction -- Obama picks who and McCain picks who?

ELMENDORF: Evan Bayh and Tim Pawlenty.

REED: I think it'll be Bayh on the Democratic side and I think it'll be Romney on the Republican side.

KING: All right. We have that on tape -- videotape. We have that keep -- let's move on to the issues in the campaign. It's the two candidates at the top who will decide who wins or loses this by how they run the campaign.

In this past week, pretty big charge from the McCain campaign that Barack Obama, the first African-American candidate for president, that he's the one playing the race card by saying, don't listen to what my opponents say because they're going to say I'm risky, they're going to say I have a funny name, they're going to say I look different. Barack Obama essentially trying to insulate himself maybe from some attacks.

So the McCain campaign says that's the race card and we won't stand for it.

I got a chance to ask Senator McCain about this tactic. Let's listen to it. The question was, do you think this is fair?

(BEGIN VIDEOTAPE)

KING: Is that a fair criticism for Rick Davis to say the Obama campaign is playing the race card?

MCCAIN: It is. I'm sorry to say that it is. It's legitimate and we don't -- there's no place in this campaign for that. There's no place for it and we shouldn't be doing it.

(END VIDEOTAPE)

KING: He didn't want to -- I tried to ask him a follow-up question. He couldn't, didn't want to spend much time on the issue, preferring to leave it to his staff to fight this one. But the Republican say the Democrats are playing the race card.

Where are they going here?

REED: One of the biggest advantages McCain and his campaign had this spring was that -- they were able to watch the Obama and the Clinton campaigns. And this is one of the lessons they learned -- what -- how Obama goes out and tries to frame races and put the other opponent on the defense.

I think the fact that this happened 30 days ago, the McCain campaign was very disciplined, they didn't say anything about it. They waited for him to do it again. They set this bear trap. He walked right into it and it shows a pattern of behavior.

So now the race is about race and it's because Obama -- it's how they've set it up. And I think that's politically an advantage for McCain as you go into the fall.

KING: Do you agree? Advantage McCain if we're talking about race?

ELMENDORF: No. I don't think this is about race this week. I think this was about John McCain being and his campaign being relentlessly negative this week. And I think in a time the American public thinks the country is going the wrong direction, that's not the campaign they want.

I don't think they're going to want to hear constant attacks. I think they want to hear something about health care and the economy and energy prices. And I think McCain is making a mistake if he sort of does this Paris Hilton low road stuff.

KING: You mentioned Paris Hilton low road. Let's take a quick listen to McCain and Obama on the tone of the campaign this past week.

(BEGIN VIDEO CLIP, CAMPAIGN COMMERCIAL)

UNIDENTIFIED FEMALE: He's the biggest celebrity in the world. But is he ready to lead?

John McCain, his attacks on Barack Obama, not true. False. Baloney. The low road. Baseless.

(END VIDEO CLIP)

KING: Silly season leading into the convention or is there a legitimate struggle going on trying to, essentially, frame what's in and what's out in the fall campaign?

ELMENDORF: I think this is a pretty silly week and I think both campaigns got to be careful about elevating the tone a little bit, because I really do think the American people want a different kind of campaign this cycle. I think they really see real problems and they want people with solutions.

KING: Agree?

REED: I do agree. I think it was a silly ad on both sides. It's -- the good news is it's over. It's about to have been forgotten about. And as soon as they get on issues that people care about, it's going to raise the whole level of debate. That's what the conventions are really for.

KING: We'll end on that note. Fire up the breaking news animation "rare bipartisan agreement" in this election year.

Scott Reed, Steve Elmendorf, thanks for coming in and joining us today.

Later this hour, we'll reveal our all-time favorite dynamic duos. Also as all eyes turn to the Olympics in Beijing, we'll speak to one U.S. lawmaker who says the Chinese government may be watching you.

But straight ahead, our campaign insiders have the lowdown on the war of words between the presidential candidates on THIS WEEK IN POLITICS.

But first, the Senate's longest serving Republican is in a big legal fight. This week Ted Stevens of Alaska pleaded not guilty in federal court to charges of conspiring to conceal thousands of dollars worth of gifts from an oil services company.

You may remember Stevens drew fire from critics for his support of building what was known as the bridge to nowhere in his home state of Alaska.

Stevens is up for reelection this year. His trial begins in September.

ANNOUNCER: THIS WEEK IN POLITICS brought to you by...

(COMMERCIAL BREAK)

KING: That's a Lupe Fiasco song, "Superstar." And although Senator Obama repeatedly says the excitement around his presidential campaign is not all about him, the McCain campaign is playing up the celebrity angle and questioning Obama's experience.

Joining us to talk about a contentious week on the campaign trail, the former Democratic leader of the United States Senate and senior Obama adviser, Tom Daschle.

Senator, thanks so much for joining us.

TOM DASCHLE, OBAMA SENIOR ADVISER: Good to be with you, John.

KING: A pretty dynamic charge from the McCain campaign late in the week, that it was Barack Obama, the first African-American candidate for president -- playing the race card. Now the McCain campaign bases that on this comment from Barack Obama where Barack Obama says, don't listen to what John McCain says about me because...

(BEGIN VIDEO CLIP)

OBAMA: Since they don't have any new ideas, the only strategy they've got in this election is to try to scare you about me. They're going to try to say that I'm a risky guy. They're going to try to say, well, you know he's got a funny name. And he doesn't look like all the presidents on the dollar bills and the $5 bills.

(END VIDEO CLIP)

KING: Now John McCain has said Barack Obama is risky in his view on the question of experience of commander in chief.

But can you give me one example where John McCain or any one on his payroll has said anything about Barack Obama's name or anything about the color of his skin?

DASCHLE: Well, I don't think that John McCain has said anything about the color of his skin. This is not about race, John. This is about change. This is fundamentally about whether or not we're going to take this country in a new direction. That's really what Barack was talking about.

(CROSSTALK)

KING: Excuse for interrupting, but if he's -- if he is talking about that, why not say that? Why say, they're going to tell you I have a funny name, they're going to tell you I don't look like those other guys when, at least up to this point, John McCain himself and the best I can find looking at the research no one on his payroll has raised those issues?

Those are big, pretty explosive issues if they did.

DASCHLE: Barack Obama didn't accuse John McCain of saying that. Others have said that. You've heard that. You reported it. But the real issue is not whether or not he's got a funny name or whether he's different in looks than anybody else, the real difference is -- and I think what Barack is talking about here is the direction that this country is going to be taken if he's elected president. The fact that he's new, the fact that he hasn't been around in Washington that long, the fact that he's -- he is a different kind of candidate. I mean that is -- that is, to me, the excitement of the Obama campaign. That's what has ignited the excitement and enthusiasm all over the country.

But it's -- that's what it's about. And I think the real sad thing, John, is that we're being denied the opportunity to talk about the issues tat really ought to matter. I mean the economy -- the fact is that we've got the highest unemployment rates now in four years -- energy prices, we've got real problems in health care. We've got tremendous problems abroad with our status and the image that we've got.

So we've got to address those issues. And the longer we deny the American people that kind of debate, the worse off this campaign is going to be.

KING: Well, that takes me to my next point. I would just say, though, for the record, he did say John McCain on his way into that sound bite we just played. But we'll leave the continuation of that for another day.

But you make the point about we do have the economy, energy price, what are we going to do in Iraq, what about climate change, what are we going to do with the world. And yet this past week, the McCain campaign launched an ad that compared Barack Obama to Britney Spears and Paris Hilton, saying, this guy -- essentially their message was he vapid, he's a celebrity, it sounds good, but if you peel back the curtain, there's not much there.

John McCain was asked about this and he defended this ad. Let's listen to Senator McCain.

(BEGIN VIDEO CLIP)

MCCAIN: All I can say is that we're proud of that commercial. We think Americans need to know that I believe that we should base this campaign on what we can do for Americans here at home and how we can make America safe and prosperous. And that's the theme of our campaign.

(END VIDEOTAPE)

KING: Now you're an Obama supporter. But you've been through the rough-and-tumble of politics a long time. In the McCain campaign they call Obama supporters fans, not voters. They're trying to play up this celebrity thing.

What are they trying to do? I know you disagree with it, but what are they trying to do?

DASCHLE: Well, they're really desperate. They're really desperate. They know their message isn't working, John.

What they're trying to do is change the subject. They know they can't win on the issues. They know they can't win by defending the status quo. They know they can't win by their partnership with the Bush administration, the fact that this would be a Bush third term, so they want to change the issue. They want to change the image.

This is the low road that we've seen on so many other occasions. This is the politics of the past. What Barack Obama is saying is we've got to change that tone, change that direction, change that rhetoric, and that's really the contrast between John McCain and Barack Obama.

KING: The big issues are the economy, energy prices, things here at home. But there was a pretty significant announcement this past week -- U.S. casualties in Iraq in the month of July at an all-time low. President Bush came out in -- at the White House to -- celebrate is the wrong word -- but to make note of this fact and say that it would allow the United States to start bringing home some troops.

Let's listen to the president.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Violence is down to its lowest level since the spring of 2004 and we're now in our third consecutive month with reduced violence levels holding steady. General Petraeus and Ambassador Crocker caution that the progress is still reversible. They report that there now appears to be a degree of durability to the gains that we have made.

(END VIDEO CLIP)

KING: "A degree of durability to the gains" is the term the president used. As you know, Senator, even many Democrats who oppose the surge have come around to say, OK, I still see fundamental flaws with the Bush administration's Iraq policy. They broke so much. They were incompetent about so many things.

But, on the issue of the surge, it has put the United States in a position where we're in a better shape to start drawing down troops. Many Democrats now say that, some publicly, some privately. Senator Obama still insists the surge was failure, was a reckless policy.

Why?

DASCHLE: The surge is not the issue, John. The issue is how soon is it going to be before we can all agree that we've got to start drawing down our troops, that we've got to look for other ways at which to utilize those troops and the resources we have?

We've got huge problems in Afghanistan...

KING: But the surge -- again, forgive me for interrupting. But Senator McCain would say the surge is an issue because it's a question of adjustment. That he made the judgment to push for it and he has been proven right. Senator Obama says it was reckless. He was proven wrong.

DASCHLE: We'd love the argument on judgment on Iraq because Barack Obama had the good judgment to say, in the first place, this was a huge mistake. We now look back and realize what a big, big mistake it's been. So we can argue over tactics. But the real question is, what do we do strategically? What do we do to make sure that this country is safer? What do we do to make sure that, especially in those other countries where we are seeing real threats, that we have the resources to fight them?

And I think that is the essence of the judgment Barack Obama's shown from the very beginning on this debate.

KING: Senator Tom Daschle, the former Democratic leader in the Senate, now a top Obama supporter, thanks for joining us here today...

DASCHLE: My pleasure, John.

KING: ... on THIS WEEK IN POLITICS.

And coming up next the McCain insider defends the controversial celebrity ad coming ahead in THIS WEEK IN POLITICS.

Elsewhere, some are taking the dog days of summer a bit too literally. We dug up the evidence in our political side show.

(BEGIN VIDEOTAPE)

KING (voice over): Politicians are well-known for rolling over for the media, for lobbyists, for their constituents. Yet one candidate may take that command a bit too seriously.

A woman in Fairhope, Alabama has entered her 7-year-old Labrador retriever Willie Bean into that city's race for the mayor's seat.

UNIDENTIFIED FEMALE: He loves attention.

KING: The pooch has plenty of supporters and we're told the mayor's mansion has a big backyard.

LLOYD BENTSEN, FORMER VICE PRESIDENTIAL CANDIDATE: Senator, you're no Jack Kennedy.

KING: But is he the next Mario Lopez? Former vice president Dan Quayle was invited to put on his dancing shoes for the upcoming season of ABC's "Dancing with the Stars." But he declined the invitation.

Hey, we think he would have been great. It's not like it's a spelling competition or anything.

UNIDENTIFIED MALE: ... little bit on the N. There you go, all right.

KING: And speaking of embarrassing mistakes, Senator Obama can't be too happy with a new campaign button in Idaho. The design company was asked to create a button with Obama and Senate Democratic candidate Larry Larocco. Problem was they picked a different Larry -- Larry Craig.

No word on who was angrier -- the Republican Craig who looks like he's supporting a Democrat, or Barack Obama who's pictured with someone who, well, you know.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

KING: Our musical interlude there, Toby Keith singing "I Want to Talk About Me." That's a sentiment John McCain's campaign can probably relate to.

Joining us to talk about the Republican candidate for president, and maybe a little bit about his Democratic rival, is McCain communications director, Jill Hazelbaker.

Jill, welcome to the program.

JILL HAZELBAKER, MCCAIN COMMUNICATIONS DIRECTOR: Great to be with you.

KING: I want to start with a big discussion this past week. Your campaign lobbing a bombshell saying that the first African-American candidate for president of the United States is playing the race card, that Barack Obama is playing the race card by saying every time John McCain lobs a policy criticism, he responds by saying, don't listen to my opponents. They want to make you think I'm risky. They want to remind you I have a funny name. They want to remind you I don't look like those other presidents on the dollar bills.

The McCain -- the Obama campaign, excuse me, says, no, they're not saying -- they're not accusing John McCain of playing the race card at all.

Conversation over or is this a continuing issue?

HAZELBAKER: Well, John, Barack Obama's statements implied that somehow John McCain was going to use race as a tool in this election. And that's absolutely false. It's also entirely inappropriate. We know that in campaigns, charges that go unanswered have a tendency to become truth. So we set out to aggressively correct the record yesterday. We feel we did that and we want to get back to talking about the big issues.

KING: You say you want to get back to talking about the big issues. Another complaint, not only from Democrats, Jill, as you know, many Republicans have been quoted in media accounts on CNN and elsewhere this past week, worrying about the tone of the McCain campaign.

One of the big ads this past week you put out essentially said week Barack Obama is not a serious candidate for president, he's a celebrity like Britney Spears, like Paris Hilton. And some Republicans think that's too negative and Barack Obama himself commented on it this past week.

Let's listen.

(BEGIN VIDEO CLIP) OBAMA: You know I don't pay attention what John McCain says, although I do notice that he doesn't seem to have anything very positive to say about himself, does he? He doesn't -- he seems to only be talking about me.

You need to ask John McCain what he's for, not just what he's against.

(END VIDEO CLIP)

KING: How, Jill, do you answer the concerns -- you've seen them publicly -- from many prominent Republicans, veteran Republicans who've been involved in presidential campaigns past, including successful campaigns, saying you need to frame the debate about what John McCain stands for and not be so negative about Barack Obama?

HAZELBAKER: Well, John, one of the problems with running against a candidate who's reached a dizzying celebrity status as Barack Obama has that it makes it more challenging for you to get your message out into the media environment. So we need to be more clever and creative about our advertising.

We have a very fun, light-hearted ad that drives a very serious message. And that that is that Barack Obama is opposed to measures that would reduce the cost of gas and energy in this country and also that -- and also that Barack Obama wants to raise taxes.

I'd also note that the Obama campaign has negative advertisements on the air and we didn't complain. One of the things that you see from the Obama campaign -- and they did this in the primary against Hillary Clinton -- is that whenever you attack Barack Obama for inexperience or weak judgment or having a thin resume, somehow you're being -- you're the candidate of negativity and none of those issues are serious or allowed to be on the table.

And we intend to make Obama's inexperience a factor in this race. It's something that gives voters pause and it's a cause for concern. These -- these contests are leadership contests and it will certainly be an issue and a factor on this campaign.

KING: You mentioned energy in that answer. There's -- Senator McCain has public opinion on his side in saying, let's at least try in the short term some offshore drilling to help ease, again, in the short term, the reliance on foreign oil.

Barack Obama's response this week is a new plan from him, $1,000 stimulus check to every American. He says would be funded by putting a windfall profits tax on the big oil companies.

What do you think of that idea?

HAZELBAKER: Well, that's Obama's answer to everything, let's raise taxes. The reality is that he has failed to propose a comprehensive solution for how we reduce energy costs in this country. John McCain has short-term and long-term solutions. He also wants to talk about wind and solar and nuclear. McCain believes that we should be drilling at the state -- if the states agree offshore as a way to reduce the reliance on Middle East oil. Obama has been rigid in his opposition to that and Americans agree with John McCain.

KING: And your own candidate, though, Jill, has had a bit of a muddled message on the issue of taxes. He says, on the one hand, I will not raise your tax, Barack Obama will. But he also has said that he would go into any negotiations over a long-term fix for Social Security with an open mind. He says he would not go in saying let's raise taxes but he says everything has to be on the table.

If you have a bipartisan summit, we'll try to work this out. Everything has to be on the table. The "Wall Street Journal" said this this past week about your candidate.

"If Mr. McCain can't convince voters that he's better on taxes than is a Democrat who says matter-of-factly he wants to raise taxes, the Republican is going to lose in a rout."

Has John McCain, because of his open to bipartisanship on Social Security and other issues, left the door open to tax increases?

HAZELBAKER: Well, Americans want a leader who's willing to reach across the aisle. And that's who John McCain is and that's the record that he has over two decades in the United States Congress.

Barack Obama, on the flipside, has no record of bipartisan accomplishment to speak of. He talks a lot about changing the direction of this country but if you have no record of reaching across the aisle, it's very difficult to see how he achieves that.

On the specific question that you asked about Social Security taxes, history has taught us that when we put specifics on the table in the Social Security debate, it poisons the debate. And so John McCain was simply saying that he wants to get all parties sitting around the table talking about how we're going to hammer out a solution to this pressing problem.

He's absolutely opposed to tax increases, always has been and always will be.

KING: Jill Hazelbaker joining us from the McCain campaign. It's August, the campaign heating up. Convention still to come.

Jill, thanks so much for your time.

HAZELBAKER: Thanks, John.

KING: Thank you.

And coming up next, it's been a cruel summer. But we'll get some relief from the political heat with our reporter panel.

And speaking of cool, it's about time for viral videos.

(BEGIN VIDEOTAPE)

KING (voice over): Most people recognize the theme song to the 1971 hit film "Shaft" by the legendary Isaac Hayes.

Brett Eidman has updated the groove for the presidential campaign.

BRETT EIDMAN, COMEDIAN/ACTOR (Singing): Who is the man who change the economy for the working man, Barack. Can you dig it?

Who knew economic policy could be so cool?

UNIDENTIFIED MALE: Widely admired by members of the media, myself included...

KING: John McCain missed the media love last week but in this MediaMatters video, hope springs eternal.

UNIDENTIFIED MALE: They love me, they love me.

UNIDENTIFIED MALE: For the press, so I think every last one of them would move to Massachusetts and marry John McCain if they could.

UNIDENTIFIED MALE: The 2008 candidate girl Olympic Games.

(END VIDEO CLIP)

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: And, finally, with the Olympic Games, just days away, the Obama girl is training for her key event.

UNIDENTIFIED MALE: Candidate girls are going to attempt to woo the evangelical vote by walking on water.

KING: If curling's in the Olympics, why not chicken fights?

And we're off to go for the gold in Marco Polo. Hope you find us after the break.

(COMMERCIAL BREAK)

(NEWS BREAK)

KING: It's a cruel summer. That's Bananarama. You know we're required to do the music credits here.

And it's been a testy, some might even say sizzling week in politics, starting with the blistering back and forth between Barack Obama and John McCain.

Here to cover this and other hot topics-get that?-are two cool observers in Washington politics, Dan Balz, the National Political Correspondent with "The Washington Post," and here in our D.C. studios, congressional correspondent Dana Bash.

I want to start with the headline grabbing story of the week, which was the McCain campaign asserting that Barack Obama, the African- American candidate for president, is playing the race card.

Dana, you cover the McCain campaign every day. Here's the statement from Rick Davis, the campaign manager that started all this.

"Barack Obama has played the race card, and he played it from the bottom of the deck. It's divisive, negative, shameful, and wrong."

What are they trying to accomplish here?

DANA BASH, CONGRESSIONAL CORRESPONDENT: It's really about laying down a marker. That's really what this is about.

What they say inside the McCain campaign, John, is that they watched during the Democratic primaries Barack Obama make similar statements that he made this past week about the fact that people think he's risky, that his opponents will paint him as "other."

But in this particular statement that Barack Obama made, actually he made it three times, he did it in the context of John McCain, and he talked about the fact that people would say, well, he doesn't look like other presidents on the dollar bill.

They saw that, and they said, you know what? Again, we saw what happened in the Democratic primaries, that Barack Obama would perhaps try to use questions about his policies and turn it into a question about race, and they said we're going to stop this now.

But you know what? They should put out the statement that that was obviously extremely explosive. They knew that, and they that would be questioned about whether or not they were actually injecting race into this campaign, and they were.

KING: Dan, McCain himself has not said Obama has a funny name or look at the color of his skin. So, a, did the Obama campaign walk into this one, if you will, and where do you think this debate is headed?

DAN BALZ, NATIONAL POLITICAL CORRESPONDENT, "THE WASHINGTON POST": I think they did walk into it, John. I think they walked into it unexpectedly. In many ways what Barack Obama said this week was quite similar to things he has said throughout the campaign about what people may think about him.

He knows down deep that one of the biggest obstacles to him becoming president are doubts that people have about him, not only doubts about whether he's ready to be commander in chief, but doubts about who he is, where he comes from. He has an exotic biography, as even he admits.

But what he did this week is he put John McCain into that same sentence. And in doing so, I think he opened himself up to what happened here with the McCain campaign.

I think the Obama campaign was totally unprepared for the kind of charge that Rick Davis laid down on them. They have tried to back away, to say, no, we were not saying that directly about John McCain. But the issue is joined, as Dana said, in a very explosive way. And I think that it's going to be still out there as we go through the campaign.

KING: Still out there as we go through the campaign.

Let's move from the tone, which has become quite negative, to the substance--the economy, and the subset especially of energy prices--a huge dividing line in the campaign, and a point of contention between the candidates.

John McCain, on the one hand, thinks he is on the side of public opinion in saying, hey, let's drill offshore. It won't solve everything, but it might help a little. Barack Obama says that's not the answer.

Barack Obama's response as the week closed was to say, I will have a new stimulus package. Every American gets $1,000 check. And they way we pay for that Dan Balsah is a windfall profits tax on the big oil companies, a populist pitch, if you will, from Barack Obama.

His effort to get back in a debate where, whether you agree or disagree with McCain's policies, McCain has been ahead of the curve in laying down what he thinks should be done.

BALZ: I think that's right, John. I think that Senator McCain clearly is on the side of public opinion, given where gas prices have gone this summer, I think there is a view within the public that this country needs to do everything it possibly can to figure out a way to produce more energy no matter what it is.

And I think Senator Obama has been somewhat behind the curve in getting there. He tried late in the week to try to get back on top of that. Going after the oil company profits is always a popular thing as well.

But I think at this point in the debate, it's a standoff. And I think Senator Obama is fighting to get some piece of that back for himself.

KING: And a tough one, Dana, for McCain to deal with, because a lot of Americans would say, great, get the oil companies, give me the money. But, as you know, McCain already has has his own problem about raising taxes, and that's something he doesn't want to do.

BASH: It's absolutely something he doesn't want to do that.

And on this issue of oil drilling, this is one of those issues where, frankly, it's probably one of the only issues given this terrible climate for John McCain that he did, as Dan said--got on the right side of early.

And they are pounding away at it. And they did it this past week. They're going to do it next week.

John McCain, we've been talking about the issue of race, we've been talking about some attack ads. But at its core, what John McCain is doing in terms of his message, that he is getting attention for at the local level, is talking about this issue--oil drilling, and the fact that Barack Obama is against it. He talks about it over and over again.

KING: Striking. We're heading into convention season. If you look at the national polls and the fundamentals of this elections, you would have to say advantage, Obama.

But I want to walk through with our panel three new state polls out. Big battleground states, as they always are, where John McCain is getting closer.

Still advantage Obama, but let's look at these Quinnipiac University polls. Here's Florida for you--Obama, 46 percent; McCain, 44 percent. John McCain now a bit closer than he was a month ago.

Move on to Ohio, the Republicans need to win that one, of course. Obama is ahead. That's encouraging to the Democrats, but it's 46 percent to 44 percent, within the margin of error, and again, closer, John McCain better than he was a month ago.

And, lastly, Pennsylvania--back in June that was 52 percent for Obama, 40 percent for McCain, a 12-point gap, now 49 percent to 42 percent, down to seven-points.

Dan, you were on that overseas Obama trip. He got all the attention in the world. Did he perhaps, though, pay a price for being over in Europe, over in the Middle East when John McCain was making his way around the battleground states, talking about jobs and the economy?

BALZ: If you look at this current round of polls, you would certainly draw that as a possible conclusion. I think that we don't quite know yet what the longer term effect of that will be.

But when I talked to Senator Obama on the trip late in the week and asked him why this race continued to be so close despite the fact that so many of the fundamentals seem to work in his direction, he said, I've been off the campaign trail in the United States for what will end up being ten days at a time when the economy is the main issue, and I'm over here basically talking about foreign policy.

I think he understood that there was some risk in that, but that he had to directly address the issue of his readiness to be commander in chief.

I think the other interesting thing about these polls, though, John, is that two of those states are, in essence, must-wins for McCain, Florida and Ohio. He really can't afford to lose either. So the degree to which those are still very close, in a sense it doesn't matter at this point who's up two points or down two points. The fact those two states are very close is still worrisome for Senator McCain.

KING: And, Dana, is that the way the McCain people look at it? They understand the national fundamentals. It is a Democratic year if you look at the fundamentals. When they go state by state, do they share that view Dan just articulated, that if you look at the map now, we're competitive, and given the fundamentals, great. Yet Obama, at the moment, is taking more of the red and putting into play than they are reaching in and putting the blue in play?

BASH: They do think that, and they obviously do see that. But they also recognize the big picture that this is, as I said before, and I think we can say a million times between now and November, a terrible, horrible year for any Republican.

And given the fact that even in these must-win states, that John McCain is at least within striking distance, they see that as a positive sign.

Maybe they have no choice but to look at this as glass half full kind of thing. But they're certainly are hoping that at least the fact that he's in striking distance now after the fact that Barack Obama has gotten a lot of attention, that he came off this big win from the Democratic primaries, they say, we'd rather be here than where we thought we would be at this point.

KING: "It could be worse," I guess, is the mantra of the McCain campaign at the moment. Dana Basher in the studio, Dan Balz at "The Washington Post." Thank you both for spending some time with us today.

Still to come on "This Week in Politics," one is the loneliest number. So as the presidential candidates make their picks for second in command, we'll take a look at some of history's best tag teams.

And straight ahead, it's time for the Olympics. All eyes are on China. And, according to our next guest, their eyes are on us. We'll explain right after the break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DANA PERINO, WHITE HOUSE PRESS SECRETARY: The president says he's going there to support our athletes and all of the athletes who have made it this far in their sporting careers. So he will go to cheer them on.

(END VIDEO CLIP)

KING: That was the White House spokeswoman Dana Perino is past Wednesday defending the president's decision to attend the Olympics, which begins next week in Beijing.

Kansas Senator Sam Brownback is an outspoken critic of the China's government and doesn't think the president should be going. He joins us now from Topeka.

Senator, thank you so much for your time. You obviously think it's a mistake for the president to go to the ceremonies to give that gift, if you will, to the Chinese government. But he is going.

Since he is, is there anything he could say or do that would mitigate some of your concerns?

SEN. SAM BROWNBACK, (R) KANSAS: Yes. He could talk about the human rights record, the abysmal human rights record of the Chinese government and what they are doing to allow the biggest and the most human rights abuses around the world in places like North Korea or Myanmar, Sudan, Zimbabwe.

I would hope that he would raise all of those issues with the media when he's in China if he's going to go.

KING: He did have a meeting at the White House with a half dozen of dissidents, activists, people that the Chinese government was appalled that President Bush would have this public show of support for these anti-government or pro-democracy activists at the White House.

On the one hand, I assume you think that's a good step by the president, but, on the other, I assume you take that as a sign that he wanted to make that step here, and he won't do it in the face of the Chinese government there.

KING: Well, I was very pleased the government met with those dissidents. A couple of them I know quite well, and they are heroes.

They are people that have stood up against the Chinese government and their persecution of individuals over there and for human right activities and democracy activities, for religious freedom activities.

So I was very pleased the president met with them. I just think he ought to go ahead and do that in China, or/and talk with the press about the human rights record, the lack of human rights in China, and talk about Tibet when he's there.

KING: One of the big issues that the Olympic Committee thought it had resolved was Internet access for the news media during the games. It's now a possibility that news media from all over the world will not be able to get unfettered access. They will only get the filtered Internet, if you will, that the Chinese government allows.

And the State Department says this for any Americans who might be going to Beijing for the games--

"All visitors should be aware that they have no reasonable expectation of privacy, in public or private locations. All hotel rooms and offices are considered to be subject to on site or remote technical monitoring at all times."

Are you worried, sir, that the Chinese are essentially spying on their guests?

BROWNBACK: They are spying on their guests. They are requiring-and I think this is so galling--the hotel chains to put in Internet monitoring, filtering equipment, and then the hotel has to pay for it. And then they can have real-time access to be able to have economic espionage, to be able to spy on dissidents or communications or contacts.

Or maybe people travel to the Olympics, go to the hotels, maybe they're talking to a human rights or a religious freedom advocate in China. Then after the Olympic Games the Chinese can go round up the dissidents. I think that's what's going to take place.

KING: Put yourself in the seat of one of these athletes who have trained forever to get this great opportunity. Do you think, given the record you've laid out by the Chinese government, it would have been better off for the United States to say, sorry, we're not going?

BROWNBACK: No. The United States should go. The athletes should go. They should not be penalized for what the Chinese government is doing and that the Chinese government is not complying with what they said they would do on human rights activity in allowing unfettered access on the Internet.

But our athletes should not be punished. I wish them all god speed. I hope they win. I hope they perform very well. I hope they are healthy as they perform in the venue that's taking place. But they clearly should perform.

KING: We'll leave it on that note. Senator Sam Brownback of Kansas, who thinks the president shouldn't be going, but wishes the athletes well.

Senator, thank you so much for your time today, sir.

Coming up next here on "This Week in Politics," "Fast Track," everything you need to know to get through the next week in politics.

Plus late night laughs, the lighter side of this election season. Here's a preview.

(BEGIN VIDEO CLIP)

CONAN O'BRIEN: Barack Obama visited a doctor, and he received treatment for a sore hip.

After hearing about it John McCain said if he wants it replaced, I know just the guy.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

KING: Time now for "Fast Track," our look ahead at some stories likely to dominate the political headlines in the week to come. As always, our senior political analyst Bill Schneider joins us.

Bill, a pretty big decision in the federal courts, a ruling that White House aides are not shielded, that if Congress subpoenas them, they must testify. Where is this going? BILL SCHNEIDER: The House Judiciary Committee wants to hear from Harriet Miers, and the Senate wants to hear from Josh Bolton and Karl Rove about the firing of those nine U.S. attorneys.

Now, the court says they can be compelled to testify. Will it matter in the end? Because you have three months, the White House can appeal the decision. And when Congress leaves in November for the election, the subpoenas expire.

KING: If it's August, that means congressional recess.

The lawmakers always say they've worked hard, they deserve this time. But they've left without passing a big energy bill. Say I'm a senator, I'm filling up my tank at the pump, but I run into a constituent.

SCHNEIDER: It's likely to be an angry constituent.

President Bush's job rating is at 30 percent, Congress's job rating- 22. People are very angry.

Congress did act to rescue housing, the housing market, to help people who were facing foreclosure, but they couldn't do anything on energy. People are facing terrible problems with gas prices.

Why not? Possibly because there's really no agreement on what is needed to fix the problem.

KING: Maybe fewer people driving this week ahead, because the Olympics starting. There has been all this talk all summer long that, as fascinating as it is, the political campaign will get shoved to the sidelines while Americans focus in on the games in Beijing. Likely?

SCHNEIDER: It's possible. And that why the candidates are under pressure to name their running mates before the Olympic, possibly in the next week, because they want to capture attention. After the Olympics, it's only a couple of days before the conventions.

But get this--Barack Obama is spending a lot of money, which he has raised, to run ads during the Olympics, because he wants to reach an audience that doesn't necessarily follow politics.

UNIDENTIFIED MALE: The golden TV ads spending goes to Obama.

Bill Schneider, thanks for joining us with this week's "Fast Track."

Now let's look at some late night laughs.

(BEGIN VIDEO CLIP)

JAY LENO: Did you see this new commercial? The McCain campaign compares Barack Obama to Britney Spears and Paris Hilton. Woo!

Today the Obama campaign released an ad comparing John McCain to Zsa Zsa Gabor and Bea Arthur. JON STEWART: Her parents, the Hiltons, contributed $4,600, the maximum you can contribute, to the campaign of none other than John McCain. John McCain saying to the Hiltons, "I thank you kindly for your support. Now if you'll excuse me, I've got to go take a nationally televised dump on your daughter."

(COMMERCIAL BREAK)

KING: While vice presidential picks tend to have little impact on the outcome of an election, the choice can inject needed excitement into a campaign.

But while the candidates mull over their potential political partners, let's look at how some other dynamic duos have fared.

Hats off to Abbott and Costello, whose work in radio, film, and television made them the most popular comedy team of the '40s. Their "Who's on first" routine is of course a classic.

Things didn't turn out so well for Bonnie and Clyde. The notorious robbers both fascinated and frightened Americans back during the great depression. They were eventually killed, though, in a hail of police gunfire.

Thank Meriwether Lewis and John Clark for finding out just what the United States was getting with that big 1803 Louisiana Purchase. Their expedition into the Pacific Northwest revealed America's vast and beautiful landscape.

And our favorite here, Batman and Robin. They proved to be a winning ticket against the forces of evil. I'll bet most of us would welcome a caped crusader and a loyal sidekick in this election cycle.

And that's if for "This Week in Politics." No sidekick here. I'm John King. Thanks for watching.

Straight ahead, "Lou Dobbs this Week."