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Obama Speaks This Hour; U.S. Markets Watching Europe Closely; Greek Crisis Dominates G-20 Summit; 80,000 Jobs Added in October; Unemployment Rate Falls to 9.0 Percent

Aired November 04, 2011 - 10:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: And good morning everyone. Welcome to our special coverage this hour. I'm Kyra Phillips in Atlanta.

WOLF BLITZER, CNN HOST, "SITUATION ROOM": And I'm Wolf Blitzer here in Washington. We're only minutes away from President Obama. He's due to hold a news conference of the G-20 economic summit in France.

PHILLIPS: And Wolf, right now, French President Nicolas Sarkozy speaking. As you heard Wolf say, President Obama is going to follow-up in about 15 minutes.

Both will apply Greece's decision to accept the European bailout and not leave the matter up to a public vote. Greece's prime minister actually canceled the referendum under heavy international pressure.

Now he's facing turmoil at home with a confidence vote tonight that could boot him from office -- Wolf.

BLITZER: And the stakes, Kyra, certainly are enormous right now. We're covering all the angles on this international crisis. Why it hits home for Americans and our wallets from our Wall Street to London, Washington to Cannes.

Our correspondents are standing by live to break it all down for us. But let's go to the site of the summit right now. Let's go to Cannes. That's where our chief White House correspondent, Jessica Yellin is standing by.

Jessica, first of all, set the stage for us. What do we expect to hear from President Obama?

JESSICA YELLIN, CNN CHIEF WHITE HOUSE CORRESPONDENT: Hi, Wolf. Well, the president will certainly hit on some of the major themes here that took place during the G-20 discussions about global growth, about working to achieve financial regulation standards that are uniformed or more consistent across the world.

But, of course, the major topic, the overarching issue here has been resolving the euro zone crisis and finding a way for other nations to help Europe in achieving a stable end to this crisis.

Now, the message from the -- has been that Europe has to find the money and the solution to solve its own problems. And that administration believes that it's gone a long way to doing with the framework that it worked out.

That they even argue that Greece, this chaos in Greece yesterday helped tip Europe into resolving its crisis even more quickly because they realized they come together quickly, even more quickly than they may have thought.

But, Wolf, let me finally say that we should expect that there should be some -- by the end of the G-20, some kind of acknowledgment by many of the other countries that participated here that they will be willing at a future date to make a financial contribution to a fund primarily it's need.

They won't set a dollar figure, but other nations are willing to contribute some funds to a future crisis if needed. And that's one of the big commitments out of the G-20 -- Wolf.

BLITZER: And a lot going on. Jessica, we got some transmission issues with you. We're going to fix that, get back to you. I want to make sure that everything is set correctly.

But obviously, there's no doubt that from the U.S. perspective, a lot of people are wondering especially on Capitol Hill, will the Obama administration make any commitments -- financial commitments to bail out the Europeans?

What's happening in Greece could spread to Italy, Spain, Portugal, Ireland, and other countries. Stand by. We'll get back to Jessica once we make that connection.

Kyra, you know, as we get ready to hear the president, he's going to be speaking obviously to the summit, the G-20 Summit, the allies, the world's major economic powers. But you know what?

He's also going to be speaking to the American people right now. He's got these dual audiences he's got to work with. It's not always an easy challenge for an American president.

PHILLIPS: Sure and a lot of people, Wolf, standing by, waiting to see what exactly he's going to say. There's been back and forth about how much he should get involved considering what we're dealing with here in our country.

But what happens there among those leaders, Wolf, impacts our markets, our banks. So this is why it's so important for everybody to be paying attention to what these leaders do and how involved the U.S. does take part.

BLITZER: Yes. It's going to be a huge, huge challenge for the president. Because you know the Europeans, they're going to be seeking greater support from the International Monetary Fund. They're going to want the U.S. to participate even more as far as money is concerned.

I don't think there's a great appetite in Washington right now to start bailing out the Europeans. Even though and you'll hear this at the conference, I suspect, what happens in Europe could have an enormous impact on the U.S. economy and jobs, the markets and all of that given the very close economic relationship.

Kyra, we're going to stand by and see -- there you see some video of the president in Cannes. It's a very brief visit for him yesterday and today. After this news conference, he's going to have a few other meetings with the allies and you know what? He's going to get out of there pretty quickly.

PHILLIPS: Yes, and Zain Verjee, you've actually been following the G-20 Summit as well and how it's playing out on the international stage. Various op-ed pieces talking about who should be more involved than others with regard to bailing out Greece.

ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: Exactly. And, you know, over the past few days there's been a lot of talk about the people who do have the money, the budget surpluses. There's been a lot of focus at this G-20 Summit on China, India, and Brazil. What can they do to help?

Let's take a quick look at the international headlines. The "Wall Street Journal" in Europe has this. Europeans open a Cannes of worms. For the first time the euro zone has acknowledged a country could quit the euro. The referendum is dead, but Greece's euro membership is now firmly on the agenda.

"The Independent" had this headline. Talk of Greece leaving the euro is reckless. It says, a middle of the confusion what's clear is that the efforts to solve the euro zone's problems are far from over. Now is not the time for careless talk about Greece's exit. It's time for concerted efforts to find a solution. The alternatives are immeasurably worse.

Finally, the "South China Morning Post," no Cannes do. Consumed by seemingly unending troubles over Europe's debt wars, global leaders have barely begun to tackle the serious economic imbalances and other structural problems at the heart of the world's job crisis.

So all eyes are on Athens right now even though there's a lot of action going on in Cannes, it's had a lot of political brinksmanship, there's been a huge internal power struggle.

The question is will the Prime Minister George Papandreou win that crucial confidence vote. In just a few hours, we will find out. But Greece and the rest of the world is on a knife's edge -- Kyra.

PHILLIPS: And as you mentioned, thanks, Zain, so much. President Obama has made it clear that the G-20 Summit has to resolve Europe's financial crisis. How what happens overseas impacts us directly.

Wolf Blitzer and I talking as we are waiting for the president to step to the mic and speak live. Wolf, also our Candy Crowley weighing in. BLITZER: In our Washington studios, Kyra and I want to pick Candy's brain on this because this is a tough challenge. It's one thing for a president whether President Bush or President Obama to bailout American banks who are on the precipice back in 2008. It's another thing for an American president to participate in the bailing out of the Europeans.

CANDY CROWLEY, CNN CHIEF POLITICAL CORRESPONDENT: Right, which is why he's saying to Europe, you guys have to do this. You have enough resources. You have the most at stake here. But the truth of the matter is that we've seen this administration time and time again saying well, our economy has been buffeted by all these head winds and what's one of the head winds?

It's the economic crisis in Europe. So it is not as though the U.S. is some uninterested observer because the administration makes the case in this global economy that Greece goes down or Spain or Italy or any of these other countries, it makes a weak economic recovery here even weaker.

But it's a hard sell because you've got people up on Capitol Hill even as we speak talking to one another about what programs are we going to cut? Whose taxes are we going to raise, how are we going to get out of this?

Wait, the president is giving money to bail out Greece? What about bailing out America? In his mind and the administration's mind that's what they are doing because what happens to Greece, what happens to Spain, what happens to Italy affects the U.S. economy. But it's a tough sell.

BLITZER: Candy, stand by. Christine Romans is standing by in New York as well watching what's going on. If we thought some of the American banks, Christine, back in 2008 were quote, "too big to fail," what about Greece or Italy or Spain? Obviously they're way bigger than those banks.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: You know, they are -- it's interesting because Greece is the 32nd largest economy in the whole world. It's got an economy of $300 billion, but a debt that's $470 billion.

But it's a domino effect. It's not the outright size, Wolf, it's the domino effect, the interconnected nature of all of the global financial system. In terms of the United States, the president isn't going there to talk about whether or not the U.S. is going to bail them out.

The president is going there to say listen, what's good for you is good for us because $400 billion of our exports go to Europe. We have $1 trillion of direct investment in E.U. You know, our companies, municipal governments, retirement funds in this country have almost $3 trillion in loans and other E.U. commitments.

So this is about a very big economy in Europe potentially being on the brink of disaster if there's a financial crisis and that would hurt the U.S. So the pressure from the United States here is just about making sure that they've got their recovery plan, their E.U. bailout deal on track.

And that -- the other thing that's interesting, I think, Wolf, is that the U.S. isn't really in much of a position to push them on this because we have our own debt issues here. There are many people in the world especially in some of these big G-20 back room meetings who are like, look, you guys you brought the whole global economy to the brink in 2008.

Don't tell us what to do. We've got it under control. They don't have it under control yet, but hopefully the next few days they can get Greece on track and then get that bailout deal back on track. And then, you know, you can avert a big recession there and something dangerous here too.

PHILLIPS: And Christine and Wolf, feel free whomever wants to respond. I mean, leaders also have to take a look at which countries are richer, right? The rich countries, the less rich countries and OK, here's how we're suggesting you play a part and you help out.

BLITZER: You know, I would just make one point. I'd love Christine to weigh in as well. What's a fascinating development right now, Christine, is that the Europeans they are looking to a certain degree to the United States.

But guess what, they're looking to China, perhaps even more because China has so much money at stake right now. They're so involved. Obviously, the U.S. debt to China is enormous, but the Chinese clearly they have their own interest at stake. They could potentially help bail out the Europeans.

ROMANS: That's what this was supposed to be. This was supposed to be a chance for the G-20 to sort of say look, we've got this E.U. bailout deal. Now, look, global investors like Brazil, India, China even Russia, but especially China, look at what we're doing here now.

This is an area where you can help rebuild Europe and it can be profitable for you. Instead the whole Greek referendum took that conversation off the table. We took three steps backward on moving forward. You are absolutely right, Wolf and that's such a good point.

The people who have the money are not the people who are sitting here trying to fix this problem and putting all the pressure on them. The people who have this money are China and other emerging economies who will be given, I'm sure, a voice in investing to try to get this thing turned around.

PHILLIPS: All right, Christine Romans and Wolf Blitzer. We're going to continue to wait for the president to step up to the mic. He'll be speaking live at any moment. It'll be interesting to see as he's made it clear that Europe's financial crisis has to be resolved.

There has to be some sort of plan on the table. The question is how involved will the United States get involved in that? What will President Obama say? And as you heard Christine and Wolf point out, we've got our own debt crisis to worry about.

So how involved will he get with regard to the U.S. role overseas? We're going to take a quick break. More of our special coverage as we await the president of the United States stepping up to the mic in Cannes, France at the G-20 Summit.

(COMMERCIAL BREAK)

BLITZER: Welcome back. We're standing by to hear from the president of the United States. He's getting ready to handle a news conference in Cannes at the G-20 Economic Summit. The president will open with a statement that answers reporter's questions.

I'm here with Kyra. Kyra, we're watching all of this unfold. For a lot of our viewers in the United States, they may not necessarily appreciate the stakes involved, but what happens in Europe certainly could directly impact the U.S. economy, the state of the job creation.

All of the economic indicators could have an enormous impact based on what these leaders at the G-20 at Cannes decide in the next few hours.

PHILLIPS: That's right. Our banks, our pocketbooks, and the markets and we're watching the markets right now. After the markets opened at 9:30 Eastern Time, we weren't quite sure how it would play out.

Alison Kosik is over there at the New York Stock Exchange. Alison, we're paying close attention now to the Dow Industrials that are down in negative territory, down 121. It's not just all of us talking about what's happening overseas.

But as you can see, there on Wall Street, they're paying close attention to what's happening at the G-20 Summit and what's going to happen in Greece.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: You said it. Investors are still worried about how things are going to unfold in Greece. How things are going to unfold at the G-20, but really the focus today is mostly on the jobs situation, the jobs picture here in the U.S.

We found out today that the unemployment rate moved down to 9 percent from 9.1 percent, but you know, that's not a big, big move there. It's a move in the right direction, but it's really just a small move. And the reality is it's not good enough to really bring down unemployment.

So that's really got Wall Street in a funk. We once again see the Dow down 129 points. You know, this week, we also heard Fed Chairman Ben Bernanke come out and say, you know what? You're going to have to expect the jobless rate to stay above 8 percent through the next year.

Because the problem is this economy is just not adding enough jobs. Eighty thousand jobs were added last month. That's OK, but it's not great. You know, if we were in a normal economy, in a normal situation, you'd need 150,000 jobs a month just to bring down unemployment.

But after what this economy has been through, after the great recession, we need to add even more than that. The good news is that we've got jobs being added, unemployment rate is falling. The question is, is it enough? And it really isn't. The good news is once again, Kyra, it is enough to keep another recession at bay -- Kyra.

PHILLIPS: OK. Alison Kosik at the New York Stock Exchange. Wolf Blitzer and our Candy Crowley joining us out of Washington, have more of a discussion on the politics of all of this.

Wolf, a lot of people waiting to see what exactly the president has to say, I mean, he's got to be careful, right? He's got to be sensitive to Americans and the fact that they're out of a job.

Many Americans are out of a job. They want to see a resolution with our own crisis here and they're wondering, how involved should he get overseas? But there's an overall impact here and the president has a delicate balancing act, I guess you could say.

BLITZER: Yes. He's been president now for almost three years. So he knows and appreciates that every word he says at this news conference could have an enormous impact on market reaction, what Alison was just talking about.

And hovering over all of this, and I want to bring in Candy Crowley to discuss it. These new numbers that came out this morning. Unemployment going from 9.1 percent down to 9 percent, just a little bit of good news.

On the other hand, 80,000 jobs were created. That's not enough to keep pace with the increase in the population, if you will, to really start bringing that number down. You need at least 150,000 new jobs a month.

CROWLEY: You do. I mean, it's one of those things. I'm going to recall my childhood. My parents say it's better than a sharp stick to the eye. You know, I mean, 80,000 jobs is not enough. The 9 percent, there's a psychological barrier there.

First of all, it's just -- you hear millions of Americans out of work. Long-term unemployment continues to rise. People have been out of work six months or more. This is a very difficult setting for a president who, A, wants to put Americans back to work, but who, B, also wants to get re-elected so he can continue what he's doing.

And they understand at the White House and in fact, you know, sounds like Bernanke was a little more optimistic than the White House has been because they expect and have said unemployment may be around 9 percent in November of election year.

That's not -- that would be unprecedented, I will tell you, if the president got re-elected with the 9 percent unemployment rate, which is why the re-elect campaign has begun to frame this as, look. You can look at his record and we have a lot of things that we want to brag about.

But let's just look at where this other guy would take you. So they are anxious to have that Republican candidate out there. In fact, they've already declared it, as you know, to be Mitt Romney and they are going after him with everything they've got.

Because they believe that their best shot is to say this is not an election, a referendum on the president as most of these elections are for a sitting president. This is which way do you want to go?

This is do you trust this guy to now, you know, move us forward. He'll only move us backwards. So 9 percent is not good. It's better than 9.1 and it's certainly better that the trajectory is good. Down is a lot better than up.

BLITZER: It's a little bit encouraging if you look at the revision, the revised numbers for August and September. Remember August originally they say zero jobs were created back in August. Now they've revised it to go up to more than 100,000 jobs back in August.

And in September, they revised the number going up a little bit as well and in October now 80,000 jobs. We'll see if they revise it next month. So it's obviously much better than losing 700,000 jobs a month, which was the situation when he took office.

CROWLEY: Absolutely. That's what they're telling, trajectory. We've gone from point A to where we are now, which we freely admit it's not enough jobs being created, but it's a heck of a lot better than when the president first took office. That is sort of the campaign in a nutshell.

And can I say, it's also why it's so important what's going on with the B-20. Because they truly know and we have heard time and time again how the debt crisis in Europe affects the U.S. recovery.

What they want is to keep these little mini steps going. They fear certainly at the White House and across the world that if Europe gets into a deep debt crisis, you know, it's clearly going to affect the American economy. And going the other way is not a great basis on which to campaign.

BLITZER: All right, Candy, stand by for a moment. Kyra, we're awaiting the president. Stand by please as well. We're going to go back to Cannes in France, the G-20 Summit.

President Obama getting ready to host a news conference there. He'll open with a statement, answer reporter's questions. You'll see it. You'll hear it live here right on CNN. Stand by. We'll be back.

(COMMERCIAL BREAK)

PHILLIPS: Live picture now out of Cannes, France. Any second the president of the United States is set to hold a news conference right here at the G-20 Economic Summit in France. Why are we all paying attention, because an act on the debt deal impacts all of us.

Not with just what's happening overseas, but us as well here in the United States. Wolf Blitzer, Candy Crowley, we're going to continue our discussion. The president was set to speak at 10:15 Eastern Time.

We've been told it's just going to take a few more minutes for things to get organized and get going. As we wait, Candy, I want to ask you and Wolf, we've all been talking about this. The fact that we're having our own issues here at home, we're having our own economic crisis.

So when -- as we await the president of the United States to address all the leaders here, he's got to be grappling with, OK, how much am I going to say, not say, how direct should I be, how diplomat should I be.

Because there are European leaders, right, and finance ministers saying, OK, we have questions here about the credibility of what you say because you're having your own issues there at home.

CROWLEY: Sure. That's been absolutely, but that's been true throughout all the economic meetings. International economic meetings the president has had since the first when he took one early on in his administration. People were looking and saying, let's talk about this capitalism stuff because it's not working that well for you right now.

So this has been, you know, lots of talk about the U.S. no longer has the high ground when it comes to selling the benefits of capitalism and democracy, et cetera, et cetera. But in the end, I think that they are probably worried less about, you know, what message is this to the American people.

But let's just say that when the president of the United States goes overseas, on a grand international stage without protesters, and being burn an effigy and all that kind of stuff, it is good for a president.

People like to see their president acting presidential overseas. So in all I think this is a setting and this is a place where the president can talk about American leadership. When he's going to say and ask the European countries to do this and this so I think it's less about the words when we're talking about to the American audience than it is about I am over here fighting for your jobs.

Here I am and just the whole picture of the president of the United States in an international forum. I should add when it comes to approval ratings for the president, one of his highest approval ratings is foreign policy. So this is a good day with good opportunity for the president. BLITZER: I was just going to say, you could make the case right now and some many already have that the number one foreign policy or national security global issue affecting the United States right now has nothing to do with Iran or Afghanistan or Iraq or China. It's the economy.

Because if the U.S. doesn't have a strong economic base, it weakens the United States around the world so that a domestic economic situation here in the United States is a huge national security issue for the U.S. we've heard this from some of the top officials.

Even the Secretary of State Hillary Clinton said not that long ago that she worries about the American economy and the impact, the spill over impact it has on all these national security issues around the world.

Candy, I'll just give our viewers one example of that. The U.S. wants to say, the Obama administration says it wants to maintain troops in Afghanistan for another three years until the end of 2014.

A 100,000 American troops are still in Afghanistan. That costs American taxpayers $2 billion a week, more than $120 billion a year. That's money that could go to pay down the debt. It could be spent on infrastructure, education, all sorts of other projects. But it's being spent in Afghanistan. That economic factor could impact that national security decision whether to maintain that military presence in Afghanistan.

CROWLEY: It certainly could when you're on the cusp of, you know, weighing the pros and the cons. I think probably the administration as most all administrations do would say national security comes first.

We will pay what we need to. This is the most important job the federal government has is to protect this nation so if he wants to argue it that way. But when you look at the polling when it comes to the war in Afghanistan as you know it's just the approval of it. People don't get why we're still there.

BLITZER: Bin Laden is dead. What's the point? Karzai emerging as waffling, people are unsure whether he's supporting the U.S. position there. Whether the Afghanis themselves want American troops in their country. In the meantime, American taxpayers are shelling out $2 billion a week.

CROWLEY: Precisely and they don't get. They say why are we still there? Yes, let's get out. It's not that simple to just say OK, we're going to out by next month because there's equipment and all kinds of things to be handed over.

BLITZER: They're going to be out of Iraq.

CROWLEY: Yes, Iraq, they're out of next month, but that withdrawal has been going on for some time. You can't just automatically snap your fingers in Afghanistan and say let's get out. I mean, for the president, that's a sales job. I think any president would say to you, if it's necessary for our defense and if it's necessary for the stability of Afghanistan, which is in our best security interest then I'm going to spend that money. But it becomes then a sales job.

BLITZER: And one of the things, Kyra that we should be focusing in on as well, and I'm sure Jessica Yellin, our chief White House correspondent who's on the scene there. Ali Velshi is on the scene.

As important as these summit meetings are the bilateral direct meetings, one on one meeting that the president has with world leaders, whether Sarkozy or David Cameron of Britain or Angela Merkel of Germany.

What happens one on one in these kinds of meetings, those are very significant because it gives the president is chance to discuss not only the economic issues, but some of the foreign policy issues whether Iraq, Afghanistan, Iran or situation in Iran right now very tenuous given the fact that the International Atomic Energy Agency is about to come up with a new report next week on Iran's nuclear program. I read a story --

I read a story, Kyra, in "The Guardian" quoting one British official saying that could be a quote, "game changer," that IAEA report. We'll see how significant it is. But these are the kinds of issues the President can deal with at a summit like this.

PHILLIPS: Well, you mentioned Germany and France; and the President did meet with both of those leaders sort of on the sidelines. How much of an impact, because he does have unique relationships in particular with those two leaders, how much of an impact do you think those conversations -- those sort-of side line conversations -- will have on what he's going to say as he addresses those at the summit? Actually addresses all of us in a few minutes.

BLITZER: He's very close with those European leaders. They like him, he likes them. So clearly he'll be influenced by the appeals they make. They will be influenced by the feels that he makes all behind closed doors. Very quietly he's going to be having a joint interview on French TV later today after this news conference with President Sarkozy.

So they do have a good working relationship. And look, this is a relationship that's very, very significant. The EU is, I think, the second largest trading partner of the United States after Canada. Canada's our largest trading partner. So these meetings, they have enormous impact on jobs here, the economy here in the United States because if the U.S. increases exports, that creates jobs. That's what the President clearly has an interest in trying to achieve.

PHILLIPS: Wolf Blitzer, Candy Crowley; we will keep talking. We are waiting for the President of the United States to step up to the mike there in Cannes, France. He is about to hold a news conference at the G-20 economic summit there in France. As soon as he steps up to the mike which will be any minute now, we'll take it live.

Quick break. More from CNN NEWSROOM straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: All right.

We are still waiting for President Obama's news conference at the G-20 economic summit in France. He is expected to applaud Greece's decision to accept the bailout without allowing the public to decide in a referendum. And this is a very pivotal day for the Greek prime minister as well who faces a confidence vote that could boot him from office.

We've got team coverage. We're breaking it all down for you. You know, one angle about the Greek debt crisis that has some people discussing the so-called nuclear option, and that is Greece actually leaving the EU. But is that even possible?

Our Nina Dos Santos is live in London. She's been talking about this. Nina, what's your take?

NINA DOS SANTOS, CNN CORRESPONDENT: Yes. Let's hone in particularly on the Euro Zone because that's the issue. The EU's 27 countries in the block. 17 of those actually share the euro and that's why they're part of the Euro. And they have to answer the best part about 12 years.

Now the answer to whether Greece could actually leave the Euro Zone as a whole is contained within this meaty document 403 pages of it. It's essentially the European treaties or the consolidated framework that governs the European union. A lawyer helped me take a look to get an answer as to whether Greece could exit the Euro Zone.

Take a listen to what he had to say, Kyra.

(BEGIN VIDEO CLIP)

There is no exit door either because Greece wants to go through one or the other member states may wish to push it through one. There is no legal basis at all for a departure from the Euro Zone, voluntary or force.

(END VIDEO CLIP)

DOS SANTOS: There you have it. Don't take it from me, take it from a top lawyer a top lawyer who is used to digesting these kind of documents. What he said at the moment is that because these kind of documents have a few black holes in them, they're going to have to likely re-examine them and add to some of these treaties. Of course this is extremely important because the Euro has become the second most reserve currency. 25 percent -- a quarter of the world's total reserves held in Euros; it's second only to the dollar.

PHILLIPS: Nina Dos Santos, I think you need to give yourself a little more credit. I know you thumbed through the majority of those 403 pages as well. Discussing it with an expert in the field.

Nina, thanks so much.

Wolf Blitzer once again joining me from Washington, D.C. As we are waiting for the President of the United States to step up to that microphone and address the G-20 summit in Cannes, France. The world awaiting on him to see exactly what he's going to say about this worldwide economic crisis that we're all facing.

BLITZER: It'll also be interesting to see, Kyra, what the questions are, what the President is asked at this news conference. You can see some activity there in Cannes right now as the President we hope is getting ready to begin his opening statement and then answer reporter's questions.

Our own John king is standing by. John, you're in IOWA right now. When we talk about the American heartland, we really mean it. That's where you are right now. You had a chance yesterday -- you had a chance to speak to folks in Iowa today as well. Including the Governor of Texas Rick Perry who's campaigning for the Republican presidential nomination. What are they saying out in Iowa about what's unfolding in Europe right now? Is this an issue with this campaign?

JOHN KING, CNN HOST, "JOHN KING U.S.A": When you talk to voters, Wolf, certainly they're not going to have every last detail of, you know, Greek is about to do its deal. And this problem will move on to Italy and maybe Spain and Portugal.

Most everyday Americans you run into including here in Iowa don't have that level of detail. But they do understand the interconnectivity of the economy. You hear a lot of anxiety about China. You hear a lot of anxiety about why are the markets so volatile. You hear a lot of anxiety about why isn't the economy bouncing back? Just last night I met a woman who was laid off from her job at a hotel because the owner of the hotel can't get financing from the banks.

How long have we been talking about that issue. They're businesses, they're having hard time getting money from the banks. Corporations aren't spending. So are they following every last minute detail of the European crisis? No. But do they understand there's a global economic crisis that is hurting them on Main Street, USA? Absolutely yes. And they're looking to the President for some help.

You mentioned that conversation with Governor Perry. His argument and this will be part of the Republican argument in the campaign is that the President of the United States is weakened on the global stage on these issues because he can't go to Europe and say solve your debt crisis because the United States has such a debt crisis.

He can't go to Europe and say get more growth into your economy because the United States doesn't have much growth in its economy. So the political argument from the Republicans will be President Obama has no standing on these issues. The personal pain of the American people will be the deciding factor in the election. Wolf, without a doubt, do you still feel it when you travel.

BLITZER: Yes. And we're told that we're only a few seconds away now from the President getting ready to open up with a statement then answer reporter's questions. As I can testify from various summits that I've covered, that John's covered, Candy's covered over these many years, you don't know what the reporters are going to ask. There's no requirement that the reporter asked the question on the summit. Here comes the President right now.

So let's listen in.

(BEGIN LIVE SPEECH COVERAGE)