News Conference by the President

South Court Auditorium

Please note the correction to the transcript below.

THE PRESIDENT:  The answer to your second question is yes.  And so I already told Prime Minister Kan that we will provide whatever assistance that they need.  My understanding is that the main assistance that we’re going to be able to provide them is *lift capacity, the ability for us to I think help in the cleanup.

12:33 P.M. EST

THE PRESIDENT: Good morning, everybody. Before I begin, I want to say a few words about the terrible earthquake and tsunami that struck Japan earlier today.
 
First and foremost, our thoughts and our prayers are with the people of Japan. This is a potentially catastrophic disaster and the images of destruction and flooding coming out of Japan are simply heartbreaking. Japan is, of course, one of our strongest and closest allies, and this morning I spoke with Prime Minister Kan. On behalf of the American people, I conveyed our deepest condolences, especially to the victims and their families, and I offered our Japanese friends whatever assistance is needed.
 
We currently have an aircraft carrier in Japan, and another is on its way. We also have a ship en route to the Marianas Islands to assist as needed. The Defense Department is working to account for all our military personnel in Japan. U.S. Embassy personnel in Tokyo have moved to an offsite location. And the State Department is working to account for and assist any and all American citizens who are in the country.
 
Tsunami warnings have been issued across the Pacific, and we’ve already seen initial waves from the tsunami come ashore on Guam and other U.S. territories, in Alaska and Hawaii, as well as on -- along the West Coast. Here in the United States, there hasn’t been any major damage so far. But we're taking this very seriously, and we are monitoring the situation very closely. FEMA is fully activated and is coordinating with state and local officials to support these regions as necessary. And let me just stress that if people are told to evacuate, do as you are told.
 
Today’s events remind us of just how fragile life can be. Our hearts go out to our friends in Japan and across the region and we’re going to stand with them as they recover and rebuild from this tragedy.

Now, before I take a few questions let me say a few words about something that's obviously been on the minds of many Americans here at home, and that’s the price of gasoline.

In an economy that relies on oil, gas prices affect everybody -– from farmers and truck drivers to restaurant owners and workers as well as consumers. Businesses see rising prices affect their bottom line. Families feel the pinch every time they fill up the tank. For Americans already facing a tough time, it’s an added burden.

Of course, rising prices are not a new phenomenon. Three years ago, before the recession hit, a combination of factors, including rising demand from emerging economies like China, drove gas prices to more than $4 a gallon. The worldwide recession and the decrease in demand pushed prices back down. But over the past year, as the economy has picked up steam and global demand for oil has increased, prices have increased again. Turmoil in North Africa and the Middle East has added uncertainty to the mix and lost production in Libya has tightened supply.

Now, here’s the good news. The global community can manage supply disruptions like this. Other oil-producing nations have committed to filling any gaps –- and we will continue to coordinate closely with our international partners to keep all options on the table when it comes to any supply disruptions.

Here at home, everybody should know that should the situation demand it, we are prepared to tap the significant stockpile of oil that we have in the Strategic Petroleum Reserve. We’re also using the resources at our disposal at the federal level to monitor any possible manipulation in the oil markets. And I’m asking the Attorney General and relevant state -- relevant agencies to work with state attorneys general to monitor for price gouging to make sure that nobody is taking advantage of working families at the pump.

In addition, America is better prepared for supply disruptions than we used to be. Today, we use 7 percent less oil than we did in 2005, even as our economy has grown since then, partly because our economy as a whole is more efficient. We’re adapting. We’re producing more oil and we’re importing less. Our automakers, for example, are manufacturing more fuel-efficient cars -– some that now get more than 50 miles to the gallon –- and our consumers are driving more of these cars.

In December, Democrats and Republicans came together to pass a payroll tax cut that is already helping to grow our economy and create jobs. In the wake of rising gas prices, it should also help act as a cushion for working families. This doesn’t lessen our commitment to do everything that we can to get gas prices down, but that tax cut will total about $1,000 for the average working family this year, or an extra $80 or so showing up in your paycheck each month. And that tax relief package is a key reason that even with these higher prices, economists and investors like Warren Buffett believe we should still expect solid growth and strong private sector job creation this year.

Now, the hard truth is, is that as long as our economy depends on foreign oil, we’ll always be subject to price spikes. So we’ve got to get moving on a comprehensive energy strategy that pursues both more energy production and more energy conservation. We need to increase our access to secure energy supplies in the near term, and we’ve got to make our economy more energy-efficient and energy-independent over the long run.

Let me be more specific. First, we need to continue to boost domestic production of oil and gas. Last year, American oil production reached its highest level since 2003. Let me repeat that. Our oil production reached its highest level in seven years. Oil production from federal waters in the Gulf of Mexico reached an all-time high. For the first time in more than a decade, imports accounted for less than half of what we consumed.

So any notion that my administration has shut down oil production might make for a good political sound bite, but it doesn’t match up with reality. We are encouraging offshore exploration and production. We’re just doing it responsibly. I don’t think anybody has forgotten that we’re only a few months removed from the worst oil spill in our history. So what we’ve done is to put in place common-sense standards like proving that companies can actually contain an underwater spill. And oil companies are stepping up -- we’ve approved more than 35 new offshore drilling permits that meet these new safety and environmental standards.

There is more we can do, however. For example, right now, the industry holds leases on tens of millions of acres –- both offshore and on land –- where they aren’t producing a thing. So I’ve directed the Interior Department to determine just how many of these leases are going undeveloped and report back to me within two weeks so that we can encourage companies to develop the leases they hold and produce American energy. People deserve to know that the energy they depend on is being developed in a timely manner.

We’re also taking steps that will enable us to gather data on potential gas and oil resources off the mid- and south Atlantic, and we’re working with the industry to explore new frontiers of production, safety measures, and containment technology. We’re looking at potential new development in Alaska, both onshore and offshore. And when it comes to imported oil, we’re strengthening our key energy relationships with other producer nations, something that I will discuss with President Rousseff when I visit Brazil next week.

All these actions can increase domestic oil production in the short and medium term. But let’s be clear -– it is not a long-term solution. Even if we started drilling new wells tomorrow, that oil isn’t coming online overnight. And even if we tap every single reserve available to us, we can’t escape the fact that we only control 2 percent of the world’s oil, but we consume over a quarter of the world’s oil. T. Boone Pickens, who made his fortune in the oil business -- and I don’t think anybody would consider him unfriendly to drilling -- was right when he said that “this is one emergency we can’t drill our way out of.”

We can’t place our long-term bets on a finite resource that we only control 2 percent of -– especially a resource that’s vulnerable to hurricanes, war, and political turmoil.

So beyond increased domestic production, if we want to secure our long-term prosperity and protect the American people from more severe oil shocks in the future, the way to do it is to gradually reduce demand and then do everything we can to break our dependence on oil.

For example, last year we established a groundbreaking national fuel efficiency standard for cars and trucks. It’s going to save consumers money while conserving about 1.8 billion barrels of oil. And we’re working with automakers, autoworkers, and states to ensure that the high-quality, fuel-efficient cars and trucks of tomorrow continue to be built right here in the United States of America.

To satisfy our broader energy needs, we’re working to diversify our entire portfolio with historic investments in clean energy. Right now, all across America, our farmers are producing homegrown fuels, our scientists are looking for the next breakthroughs, and our workers are back in once shuttered factories, manufacturing wind turbines and solar panels and advanced batteries that will help our cars get hundreds of miles to the gallon. These are jobs that didn’t exist two years ago, and we want to create millions more of these jobs.

And in this year’s State of the Union address, I set a goal for America: By 2035, 80 percent of our electricity will come from a broad array of clean energy sources –- from renewables like wind and solar and homegrown biofuels, along with natural gas, clean coal, and nuclear power.

So these are just some of the steps that we’ve already taken to secure America’s energy future. And over the course of the weeks and months ahead, we will take more.

But the bottom line is this. We’ve been having this conversation for nearly four decades now. Every few years, gas prices go up; politicians pull out the same old political playbook, and then nothing changes. And when prices go back down, we slip back into a trance. And then when prices go up, suddenly we’re shocked. I think the American people are tired of that. I think they’re tired of talk. We’ve got to work together -– Democrats, Republicans, and everybody in between –- to finally secure America’s energy future. I don’t want to leave this for the next President, and none of us should want to leave it for our kids.

So, with that, let me take a few questions. And I’m going to start with Mr. Todd.

Q Thank you, Mr. President. I want to go to -- start with Libya. You had said that you want to see Qaddafi leave power, leave office. Are you prepared to use any means necessary in the United States government to make that happen? And if not, why not? I know in the cases of some of these other uprisings there’s been a careful consideration not to take sides, let the Libyan -- let the people in those countries make this decision. But in this case, it does seem we have taken sides. So what -- what’s the red line here?

THE PRESIDENT: Well, first of all, let’s take a look at what we've already done. My first priority obviously was getting out American citizens and embassy personnel out of Libya, and we got that done. The very next day we had already instituted the largest financial seizure of assets in our history. And the day after that we’d imposed sanctions and we had mobilized the international community through the United Nations, so that across the board we are slowly tightening the noose on Qaddafi. He is more and more isolated internationally, both through sanctions as well as an arms embargo.

In addition to that, we've provided a host of humanitarian aid measures to make sure that people are not adversely affected as they cross the borders into Tunisia or Egypt. And we will continue to do that.

And what we've done is we've organized in NATO a series of conversations about a wide range of options that we can take -- everything from 24-hour surveillance so that we can monitor the situation on the ground and react rapidly if conditions deteriorated, to further efforts with respect to an arms embargo, additional efforts on humanitarian aid, but also potential military options including a no-fly zone.

NATO will be meeting on Tuesday to consider a no-fly zone, and we've been in discussion with both Arab countries as well as African countries to gauge their support for such an action.

In addition, Secretary Hillary Clinton will be meeting with the opposition in the next several days, and we have determined that it’s appropriate for us to assign a representative whose specific job is to interact with the opposition and determine ways that we can further help them. And so we're going to be in close consultation with them.

So the bottom line is, is that I have not taken any options off the table at this point. I think it is important to understand that we have moved about as swiftly as an international coalition has ever moved to impose sanctions on Qaddafi. I am absolutely clear that it is in the interest of the United States, and more importantly, in the interest of the Libyan people for Mr. Qaddafi to leave. And I have not foreclosed these options.

Now, I do take very seriously making sure that any decisions I make that involve U.S. military power are well thought through and are done in close consultation with Secretary Gates, Chairman of the Joint Chiefs of Staff Admiral Mullen, and all relevant personnel. Any time I send the United States forces into a potentially hostile situation, there are risks involved and there are consequences. And it is my job as President to make sure that we have considered all those risks.

It’s also important, from a political perspective, to, as much as possible, maintain the strong international coalition that we have right now.

Q Are you concerned that because you’ve called for his removal, you’ve imposed all these sanctions, that Qaddafi feels cornered, has no other option in his mind but to just keep fighting, keep fighting? And, in the words of your Director of National Intelligence, he may have the firepower to potentially win this standoff with the rebels.

THE PRESIDENT: I am concerned, absolutely. And I think that’s why it’s so important for us not to stop where we are, but to continue to find options that will add additional pressure, including sending a clear message to those around Qaddafi that the world is watching and we’re paying attention, and that there have been referrals to the International Criminal Court.

Part of what we’re going to be wanting to do is to change the balance not just militarily inside of Libya, but also to change the balance in terms of those who are around Qaddafi and are thinking about what their future prospects are if they continue down the course that they’re on.

But, Chuck, there’s no doubt that I am concerned about it. Qaddafi has a stash of weapons. He not only has some troops that remain loyal to him, but there have been reports that he’s also been hiring mercenaries. Even with the financial freeze that we’ve imposed, he still has some assets. The rebel groups are just now getting organized. And so we’re going to have to continue to apply pressure, and that’s why I say we have not taken any options off the table at this point.

Mimi Hall.

Q Thank you, Mr. President. Just to follow up on Libya, and I also have a budget question. You say you’re concerned, but is Qaddafi staying, is that an acceptable option for you ever?
 
And my question on the budget is -- there’s been some criticism from members of your own party about your leadership on negotiations on spending. And I’m wondering, given that, if you can talk about where you stand on a three-week CR, on longer-term priorities, and what you would and would not accept on cuts.

THE PRESIDENT: Sure.

Q Thank you.

THE PRESIDENT: Going back to the Qaddafi question, as I said before, it is in the United States’ interest and the interest of the people of Libya that Qaddafi leave. And we are going to do a -- we’re going to take a wide range of actions to try to bring about that outcome. When you say is it ever acceptable, I think what you’re asking is are we going to do -- engage in any potential military action to make that happen. And as I’ve said before, when it comes to U.S. military actions, whether it’s a no-fly zone or other options, you’ve got to balance costs versus benefits. And I don’t take those decisions lightly.

But let me be as clear as I can about the desired outcome from our perspective, and that is that Qaddafi step down. And we are going to continue to work with the international community to try to achieve that, and we are going to be in close consultation with these opposition groups as they get organized to see how we can bring about that outcome.

Now, with respect to the budget, I think it’s important to understand that right now the discussion is about last year’s business. We’re talking about how to fund the remainder of this fiscal year. This is an appropriations task. And we have been in very close contact with all members of Congress -- both parties. I’ve had conversations with Mr. McConnell, I’ve had conversations with Mr. Boehner, I’ve had conversations with Nancy Pelosi, and I’ve had conversations with Harry Reid about how they should approach this budget problem.

Here’s what we know: The Republicans in the House passed a budget that has been now rejected in the Senate. They are not going to get 100 percent of what they want. The Democrats have put forward spending cuts, many of them pretty painful, that give Republicans already half of what they were seeking, because they’re the right thing to do. Many of those cuts are ones that were already embodied in the budget that I proposed for 2012. Now, that’s been rejected as well.

So here’s what we know -- that both sides are going to have to sit down and compromise on prudent cuts somewhere between what the Republicans were seeking that’s now been rejected and what the Democrats had agreed to that has also been rejected. It shouldn’t be that complicated. And so what I’ve done is, every day I talk to my team, I give them instructions in terms of how they can participate in the negotiations, indicate what’s acceptable, indicate what’s not acceptable. And our expectation is, is that we should be able to get this completed.

Now, because I think neither Democrats or Republicans were in the mood to compromise until their 100-percent maximal position was voted down in the Senate, we’ve probably lost some time. And we may not be able to fully resolve this and meet next week’s deadline for the continuing resolution, which means that there may be potentially one more short-term extension.

But let me just make some broad points about this. Number one, we can’t keep on running the government based on two-week extensions. That’s irresponsible. We’ve got a war in Afghanistan going on. We’ve got a wide range of issues facing the country on a day-to-day basis. And the notion that we can’t get resolved last year’s budget in a sensible way with serious but prudent spending cuts I think defies common sense. So we should be able to get it done.

Point number two. There are going to be certain things that House Republicans want that I will not accept. And the reason I won’t accept them is not because I don’t think we’ve got to cut the budget; we do. And we’ve already put forward significant cuts in the discretionary budget, some of which have not made members of my own party happy.

But the notion that we would cut, for example, Pell Grants, when we know the single most important thing to our success as a nation long term is how well-educated our kids are, and the proposal that was coming out of the House would cut this year about $800 out of Pell Grants for 8 million kids, and if were extended into next year would cut in half the Pell Grants that they’re receiving -- that makes no sense. The notion that we would decide that, under the Republican budget proposal, to eliminate 200,000 Head Start slots that also would mean the layoffs of 55,000 teachers -- that doesn’t make sense.

The principle that I’ve tried to put forward since the State of the Union is we’ve got to live within our means, we’ve got to get serious about managing our budget, but we can’t stop investing in our people. We can’t stop investing in research and development. We can’t stop investing in infrastructure -- those things that are going to make us competitive over the long term and will help us win the future.

And so I’ve communicated directly to Speaker Boehner as well as to Republican Leader McConnell that we want to work with them to get to a sustainable discretionary budget. And we think it is important for us to stop funding programs that don’t work. But we’re going to make sure that we hold the line when it comes to some critical programs that are either going to help us out-educate, out-innovate, or out-build other countries.

Last point I’ll make on the budget. The Republican budget that passed out of the House included a whole range of what are called riders. These aren’t really budget items. These are political statements. And I want -- I’ve said, again, directly to Speaker Boehner that we’re happy to discuss any of these riders, but my general view is, let’s not try to sneak political agendas into a budget debate. If Republicans are interested in social issues that they want to promote, they should put a bill on the floor of the House and promote it, have an up or down vote, send it over to the Senate. But don’t try to use the budget as a way to promote a political or ideological agenda.

I think that’s the American people’s view as well. I think one of the messages that the American people have clearly sent is get serious about living within our means and managing our budget in a responsible way, and stop with the political bickering. And if we have that view in mind, then I think that not only can we get this short-term issue resolved, but I think we can actually solve the long-term budget issues as well.

Jake Tapper. Where’s Jake?

Q Thanks, Mr. President. Experts say they can’t recall a time when the U.S. ever had to rush assistance to a nuclear power plant in another country before. What can you tell us about how serious this is with the U.S. rushing coolant to Japan because of the nuclear plant there?

And then, a second question -- the State Department spokesman, PJ Crowley, said the treatment of Bradley Manning by the Pentagon is ridiculous and counterproductive and stupid. And I’m wondering if you agree with that. Thank you, sir.

THE PRESIDENT: On point number one, when I spoke to Prime Minister Kan, I specifically asked him about the nuclear plants and their potential vulnerability as a consequence of the earthquake. He indicated that they are monitoring the situation very closely. So far, they have not seen evidence of radiation leaks. But, obviously, you’ve got to take all potential precautions. And I’ve asked Steve Chu, our Energy Secretary, to be in close contact with their personnel to provide any assistance that’s necessary, but also to make sure that if, in fact, there have been breaches in the safety system on these nuclear plants, that they’re dealt with right away.

With respect to Private Manning, I have actually asked the Pentagon whether or not the procedures that have been taken in terms of his confinement are appropriate and are meeting our basic standards. They assure me that they are. I can’t go into details about some of their concerns, but some of this has to do with Private Manning’s safety as well.

Q Do you disagree with PJ Crowley?

THE PRESIDENT: I think I gave you an answer to the substantive issue.

Q One quick question. On the coolant, how did that happen? Why was it --

THE PRESIDENT: I don’t yet have all the details, Jake. So I’m going to have to defer that question until we get more. Obviously the tragedy just happened a few hours ago, and there’s going to be a lot of fact-finding that we’re going to have to determine.

Chip Reid.

Q Thank you, Mr. President. I’d like to go at the Libya thing in a slightly different way. In an interview with CBS News, Qaddafi’s son Saif said, “The plan” -- said the plan is “to squash the rebels with no mercy.” If he follows through, if the Qaddafi regime follows through on that, can the United States simply stand by and do nothing? And I say that in light of the fact that in the past you have said there are times when a brutal government is massacring its own citizens that the United States has a moral obligation to intervene militarily.

THE PRESIDENT: I continue to believe that not only the United States but the international community has an obligation to do what it can to prevent a repeat of something like what occurred in the Balkans in the ‘90s, what occurred in Rwanda. And so part of, for example, maintaining 24-hour surveillance of the situation there is for us to have some sort of alert system if you start seeing defenseless civilians who are being massacred by Qaddafi’s forces.

But obviously we’re going to have to look at what develops on the ground on a case-by-case basis. I don’t want to generalize right now and say that’s what’s happening and we’re prepared to step in. It’s going to require some judgment calls, and those are difficult ones. But we have sent a clear warning to the Qaddafi government that they will be held accountable, particularly when it comes to assaulting civilians. And some of the rhetoric that you’ve seen -- for example, the idea that when Qaddafi said that they’d be going door to door hunting for people who are participating in protests -- that implied a sort of lack of restraint and ruthlessness that I think raises our antenna.

But, as I said before, what I’ve got to do is make sure that we’re monitoring the situation and matching our actions with what we think will be helpful on the ground and also sustainable, and we’ve got to do so in consultation with the international community.

Q Can I follow up? Can I ask you do you agree with your top intelligence official, James Clapper, who said before Congress yesterday that it is likely that the Qaddafi regime will prevail in the long run? And did he err by saying that in public? And if so, is this something he needs to be taken to the woodshed for?

THE PRESIDENT: He was making a hardheaded assessment about military capability. And I don’t think anybody disputes that Qaddafi has more firepower than the opposition. He wasn’t stating policy.

So let me be clear, again, about what our policy as determined by me, the President of the United States, is towards the situation there. I believe that Qaddafi is on the wrong side of history. I believe that the Libyan people are anxious for freedom and the removal of somebody who has suppressed them for decades now. And we are going to be in contact with the opposition, as well as in consultation with the international community, to try to achieve the goal of Mr. Qaddafi being removed from power.

Zachary Goldfarb.

Q Thank you, Mr. President. You talked about the option of tapping the Strategic Petroleum Reserve. Can you walk through which steps or which targets have to be hit before we do that -- oil price, gas price -- and how much would you want to release in any particular moment? And secondly, can you talk about, in addition to energy shocks, what are the other two or three gravest threats to the economic recovery and what your administration is doing about it?

THE PRESIDENT: The answer to your first question is, no, I will not go through the prices that would trigger the release of the Strategic Petroleum Reserve. But what I can do is to give you a sense of how historically it’s been understood.

The idea behind the Strategic Petroleum Reserve is, if there was a severe disruption in supply -- similar to what happened in the ‘70s, for example, when you had OPEC making a decision not to sell for a while -- how would our economy continue to function, and making sure that we’ve got sufficient supplies for that. Another example would be during Hurricane Katrina, when you’ve got a whole bunch of refineries that have been impacted and production in the Gulf has been impacted. That’s another example where in a short term you can fill that hole.

Right now, what we’re seeing is not a shortage of supply; refineries are actually operating at fairly full capacity at the moment. The problem is, is a great deal of uncertainty in the oil markets -- part of it prompted by the fact that the economy is growing faster in some places than others, but you’ve got China and India and Brazil and other emerging nations that are using more and more energy as their economies advance.

We already saw that trend in 2008. Because of the worldwide recession, oil prices went back down. But to some degree, a lot of what’s happening in prices is as a consequence of economic growth and countries and economies starting to use more oil.

Part of it, though, is also uncertainty in terms of what’s happening in the Middle East. And so one of the messages that I want to send today is that we are confident about our ability to fill any potential gaps in supply. Libya, for example, does not account for a large portion of overall world production. They provide a type of oil that is highly valued and there’s a high premium on it, but basically even if Libyan oil production was suspended for a significant period of time because of the unrest there, we’d be able to fill that gap.

So a lot of this has to do with uncertainty in the market. And part of what I want to communicate to the market is, is that we’re going to do what we need to do, in consultation with both other producer nations as well as in consultation with our allies who also have reserves, to make sure that oil supplies remain stable and that economic growth is going to continue.

I do want to repeat the point that I made, though, that, look, the American people feel this pretty acutely. We can talk all we want in the abstract about world oil markets; what they’re concerned about is, this is money out of my pocket. Some of the steps that we’ve already taken are making a difference. But, obviously, if you are in a house that requires you to commute 50 miles every day to your job, you’re not going to be able to sell your house immediately, particularly in this market, and move closer. You may want to buy a fuel-efficient car, but you may not be able to afford it. And so you’re stuck with the old clunker that's getting 8 or 10 miles a gallon.

And so -- and in fact, a lot of folks who are having the toughest time, who are either unemployed or have low-wage jobs, they’re the ones that are most severely affected because they’re using a higher portion of their income just to fill up the gas tank.

So we're going to try to do everything we can not only to stabililze the market -- as I said, to the extent that we see any efforts to take advantage of these price spikes through price gouging, we're going to go after that. If we see significant disruptions or shifts in the market that are so disconcerting to people that we think a Strategic Petroleum Reserve release might be appropriate, then we'll take that step. And we're going to monitor very closely -- and obviously we have it teed up, so this isn’t a situation where it would take a big bureaucracy and several weeks for us to implement. This is something that would take several days.

With respect to the overall economy, I think my assessment and the assessment of most economists is that, although gas prices are hurting individuals right now and obviously taking some of that tax cut that we gave them and forcing them to use it on gas as opposed to buying other items -- that, in part because of the steps we took, both Democrats and Republicans, during the lame duck session, that the economic growth continues in a positive trend.

We saw that in the jobs report, which in the private sector, at least, was better than expected. We’ve seen the unemployment rate drop a full point. And so, overall, I’m positive about the fact that we’re moving slowly but surely into positive job growth over the next several months.

There are some areas we’re still concerned about. Housing is one that I just mentioned. We’ve got a lot of folks who, because housing prices have fallen so steeply, are still hurting. Some of them are threatened with foreclosure, maybe because they lost a job. In some cases, they want to sell their house so they can move to a new job and their house is underwater; essentially their mortgage is higher than what the house would sell for right now.

We have a number of steps to encourage loan modifications, to encourage banks to take steps that would alleviate some of that burden and start clearing some of those homes on the market, but it’s a slow process. It’s a five -- you’re talking about $5 trillion worth of product out there. And I mentioned that I had this conversation with Warren Buffett a couple weeks ago when I was giving him the Medal of Freedom, and his point was, look, I’m bullish about this economy; when it comes to the housing market, it just takes some time to work itself out because we had such a housing bubble. We had so much construction, particularly in certain states that are harder hit than others. That was then compounded by the overall recession. And it’s going to take some time for the housing market to improve. But we’re continuing to take a range of steps to try to strengthen that process of recovery in the housing market.

The last point I’ll make on the economy overall relates back to the budget issues that we talked about. If you looked at the last jobs report, growth in the private sector -- very strong; 220,000 jobs created. Where you lost jobs was in state and local government. And that means teachers being laid off, firefighters being laid off, police officers being laid off. Now, we were able to cushion some of that over the first two years of this recession through the Recovery Act, and it made a huge difference all across the country. But now states are continuing to cut, local governments are continuing to cut.

I think it’s very important, when we think about the budget, to understand that our long-term debt and deficits are not caused by us having Head Start teachers in the classroom. Our long-term debt and deficit are caused primarily by escalating health care costs that we see in Medicare and Medicaid that is putting huge pressure on the overall budget.

And that’s why I think it’s going to be important for us to have a conversation after we get the short-term budget done about how do we really tackle the problem in a comprehensive way. And that means not just going after Head Start or Corporation for Public Broadcasting -- that’s not where the money is. What it means is, is that we’ve got to make sure that we’re tackling defense spending; we’re tackling tax expenditures and tax loopholes; that we’re tackling entitlements; and that we’re thinking about how do we really get our arms around those things that are driving the debt and deficit, in a serious way and in a bipartisan way.

I’ll make this the last question. Hishan Bourar.

Q Thank you, Mr. President --

THE PRESIDENT: Why don’t you get a microphone so we can hear you?

Q Thank you, Mr. President. Did you have contacts with other leaders in the Middle East? And when you appraised them for reforms, are you looking at other options where other leaders in the region can be supported to stay in power in the Middle East?

THE PRESIDENT: I’m in constant contact with leaders throughout the Middle East, and I’ve had a fairly consistent message to all of them: Number one, the United States believes in the right of peaceful protests and the ability of ordinary people to express their grievances to their government. And we oppose the use of violence in response to peaceful protestors. So that’s one clear message that we’ve try to send.

The second message we’ve try to send is that it is in the interest of the entire region to reform itself -- to reform itself both politically and economically so that the incredible talents of young people throughout that region can be tapped; so that the young man whether he is in Sanaa or he’s in Tripoli, or she’s in Cairo or Amman, that they know that if they work hard, if they are getting an education, that they have an opportunity to live a better life; that they can get a job that pays a good wage and supports their family, and that they can have the basic necessities of life, and that they have personal security and they have personal freedom.

Now, each country is different and so the evolution, the process towards that vision is going to differ in each country. But my consistent message to leaders in the region is that this process of change can be a great opportunity for the Middle East -- because if you can tap into the talents of those young people, then you can start seeing the kind of economic growth in that region that you started to see in other places in the world.

And there’s no reason why countries in the Middle East shouldn’t have the same kind of growth rates that you’re seeing in China and India. There’s nothing inherent about the people in those countries that would prevent that. What’s preventing it is the fact that for many decades you’ve seen a lack of opening up that allows you to take advantage of the global economy.

And I think that, as I said, each country is going to be different and it’s going to ultimately be up to the people in those countries to determine the best form for them to seize this opportunity, but we should be on the side of those who want to seize this opportunity.

Okay.

Q Japanese press -- Mr. President, from the Japanese media?

THE PRESIDENT: From the Japanese media, because of -- because, obviously, we’re concerned about what’s happening in Japan.

Q Thank you, Mr. President. I’m Toshi Ogata with Asahi Shimbun, a Japanese newspaper. I have two questions on the tragedy in Japan. You already touched on the issue in your opening statement. I’d like to ask about your personal feeling on the situation. You went to Japan last year; you went to Kamakura. Now a tsunami hit the coast of Japan and waves washed away cars and houses, and Japanese people are devastated. I just want to ask about your personal thoughts and feelings on that.

And secondly, you also touched on the possibility of assistance from the United States to Japan. And the Japanese government publicly said that Japan asked for help from U.S. forces in Japan. Are you ready to provide those assistance?

THE PRESIDENT: The answer to your second question is yes. And so I already told Prime Minister Kan that we will provide whatever assistance that they need. My understanding is that the main assistance that we’re going to be able to provide them is life capacity, the ability for us to I think help in the cleanup.

Obviously, when you have a tsunami like this as well as an earthquake, you have huge disruptions both in the infrastructure -- you have boats and houses and cars that are washed into main thoroughfares, and that requires heavy equipment. And so, any assistance that we can provide, we will be providing.

I’m heartbroken by this tragedy. I think when you see what’s happening in Japan you are reminded that for all our differences in culture or language or religion, that ultimately humanity is one. And when we face these kinds of natural disasters, whether it’s in New Zealand or Haiti or Japan, then you think about your own family and you think how would you feel if you lost a loved one, or if your entire lifesavings were gone because of the devastation.

And the Japanese people are such close friends of ours, and I have such a close personal friendship and connection to the Japanese people -- in part because I grew up in Hawaii where I was very familiar with Japanese culture -- that that just makes our concerns that much more acute.

But I am very confident, though, obviously, that the Japanese people are so resourceful, Japan is such a powerful economy and such an advanced economy technologically, that Japan will successfully rebuild. And it has experience dealing with natural disasters. It has dealt with them before and will deal with them again. And Japan, I’m sure, will come back stronger than ever -- hopefully with our help.

Thank you very much, everybody.

END
1:20 P.M. EST

Remarks by the President and First Lady at the White House Conference on Bullying Prevention

East Room

10:25 A.M. EST

MRS. OBAMA:  Good morning.  Thank you.  (Applause.)  Everyone, please.  Good morning, and welcome to the White House.

I want to thank all of you for joining us here today to discuss an issue of great concern to me and to Barack, not just as President and as First Lady, but as a mom and a dad.  And that is the problem of bullying in our schools and in our communities. 

As parents, this issue really hits home for us.  As parents, it breaks our hearts to think that any child feels afraid every day in the classroom, or on the playground, or even online.  It breaks our hearts to think about any parent losing a child to bullying, or just wondering whether their kids will be safe when they leave for school in the morning.

And as parents, Barack and I also know that sometimes, maybe even a lot of the time, it’s really hard for parents to know what’s going on in our kids’ lives. 

We don’t always know, because they don’t always tell us every little detail.  We know that from Sasha.  Sasha’s response is -- “What happened at school today?”  “Nothing.”  (Laughter.)  That’s it.  It’s like, well, we’re taking you out of that school.  (Laughter.)

So as parents, we know we need to make a real effort to be engaged in our children’s lives, to listen to them and be there for them when they need us.  We need to get involved in their schools and in their activities so that we know what they’re up to, both in and out of the classroom.  And when something is wrong, we need to speak up, and we need to take action.

That’s just what Jacqui Knight did.  She’s a mom from Moore, Oklahoma, who’s here with us today.  We got a chance to spend some time with her before.  But when her child was bullied, she got together with other parents and planned community meetings where parents and students could share their stories.  They also held meetings for the public to raise awareness about bullying.  And they’ve been meeting with the school board and superintendent to discuss steps that they can take to keep their kids safe.

But parents aren’t the only ones who have a responsibility.  We all need to play a role -- as teachers, coaches, as faith leaders, elected officials, and anyone who’s involved in our children’s lives.  And that doesn’t just mean working to change our kids’ behavior and recognize and reward kids who are already doing the right thing.  It means thinking about our own behavior as adults as well. 

We all know that when we, as adults, treat others with compassion and respect, when we take the time to listen and give each other the benefit of the doubt in our own adult lives, that sets an example for our children.  It sends a message to our kids about how they treat others. 

So we all have a lot of work to do in this country on this issue.  And I hope that all of you, and everyone who is watching online, will walk away from this day, from this conference, with new ideas and solutions that you can all take back to your own schools and your own communities.  And I hope that all of us will step up and do our part to keep our kids safe, and to give them everything they need to learn and grow and fulfill their dreams.

So with that, it is my pleasure to introduce this guy here -- (laughter) -- my husband and our President, President Barack Obama.  (Applause.) 

THE PRESIDENT:  Thank you.  (Applause.)  Thank you, everybody.  Thank you.  Thank you, everybody.  Thank you.  Well, welcome to the White House.  I want to thank Michelle for her introduction, and for marrying me -- (laughter) -- and for putting up with me. 

I want to reiterate what Michelle said.  Preventing bullying isn’t just important to us as President and First Lady; it’s important for us as parents -- something we care deeply about.

We’re joined here by several members of Congress who’ve shown real leadership in taking up this cause.  We’ve got a number of members of my administration with us today who are going to help us head up the efforts that come out of the White House on this issue.  And I want to point out Judge Katherine O’Malley, the First Lady of Maryland.  She is right here -- Katherine.  (Applause.)  Thank you for being here.  Thank you all for being here.  You have a chance to make an enormous difference, and you already have.

Bullying isn’t a problem that makes headlines every day.  But every day it touches the lives of young people all across this country.  I want to thank all of you for participating in this conference.  But more importantly, I want to thank you for being part of what’s a growing movement -- led by young people themselves -- to put a stop to bullying, whether it takes place in school or it’s taking place online. 

And that’s why we’re here today.  If there’s one goal of this conference, it’s to dispel the myth that bullying is just a harmless rite of passage or an inevitable part of growing up.  It’s not.  Bullying can have destructive consequences for our young people.  And it’s not something we have to accept.  As parents and students, as teachers and members of the community, we can take steps -- all of us -- to help prevent bullying and create a climate in our schools in which all of our children can feel safe; a climate in which they all can feel like they belong.

As adults, we all remember what it was like to see kids picked on in the hallways or in the schoolyard.  And I have to say, with big ears and the name that I have, I wasn’t immune.  (Laughter.)  I didn’t emerge unscathed.  But because it’s something that happens a lot, and it’s something that’s always been around, sometimes we’ve turned a blind eye to the problem.  We’ve said, “Kids will be kids.”  And so sometimes we overlook the real damage that bullying can do, especially when young people face harassment day after day, week after week.

So consider these statistics.  A third of middle school and high school students have reported being bullied during the school year.  Almost 3 million students have said they were pushed, shoved, tripped, even spit on.  It’s also more likely to affect kids that are seen as different, whether it’s because of the color of their skin, the clothes they wear, the disability they may have, or sexual orientation.

And bullying has been shown to lead to absences and poor performance in the classroom.  And that alone should give us pause, since no child should be afraid to go to school in this country.  

Today, bullying doesn’t even end at the school bell -- it can follow our children from the hallways to their cell phones to their computer screens.  And in recent months, a series of tragedies has drawn attention to just how devastating bullying can be.  We have just been heartbroken by the stories of young people who endured harassment and ridicule day after day at school, and who ultimately took their own lives.  These were kids brimming with promise -- kids like Ty Field, kids like Carl Walker-Hoover -- who should have felt nothing but excitement for the future.  Instead, they felt like they had nowhere to turn, as if they had no escape from taunting and bullying that made school something they feared.  I want to recognize Ty’s mom and dad who are here today; Carl’s mother and sister who are here today.  They’ve shown incredible courage as advocates against bullying in memory of the sons and the brother that they’ve lost.  And so we’re so proud of them and we’re grateful to them for being here today.  (Applause.)

No family should have to go through what these families have gone through.  No child should feel that alone.  We’ve got to make sure our young people know that if they’re in trouble, there are caring adults who can help and young adults that can help; that even if they’re having a tough time, they’re going to get through it, and there’s a whole world full of possibility waiting for them.  We also have to make sure we’re doing everything we can so that no child is in that position in the first place.  And this is a responsibility we all share -- a responsibility we have to teach all children the Golden Rule:  We should treat others the way we want to be treated. 

The good news is, people are stepping up and accepting responsibility.  They’re refusing to turn a blind eye to this problem.  The PTA is launching a new campaign to get resources and information into the hands of parents.  MTV is leading a new coalition to fight bullying online, and they’re launching a series of ads to talk about the damage that’s done when kids are bullied for the color of their skin or their religion or being gay or just being who they are.  Others are leading their own efforts here today.  And across the country, parents and students and teachers at the local level are taking action as well.  They’re fighting not only to change rules and policies, but also to create a stronger sense of community and respect in their schools.

Joining this conference today is a young man I just had a chance to meet, Brandon Greene from Rhode Island.  Brandon is 14 years old.  Back in 6th grade, when he was just a kid, he did a class project on bullying.  Now, two years later, it’s a school-wide organization with 80 members.  They do monthly surveys in their school to track bullying rates.  And what they realized is that stopping bullying isn’t just about preventing bad behavior -- it’s also about working together and creating a positive atmosphere.  So Brandon and his fellow committee members are now also doing activities like coat drives and community service at their school.  And it’s making a real difference.  So we’re very proud of Brandon and the great work he’s doing.  (Applause.) 

There are stories like this all across the country, where young people and their schools have refused to accept the status quo.  And I want you all to know that you have a partner in the White House.  As the former head of Chicago’s public schools, nobody understands this issue better than my Education Secretary, Arne Duncan.  He’s going to be working on it, along with our Health Secretary, Kathleen Sebelius.  Arne is going to head up our administration’s efforts, which began last year with a first-of-its-kind summit on bullying.

And we’re also launching a new resource called stopbullying.gov, which has more information for parents and for teachers.  And as part of our education reform efforts, we’re encouraging schools to ask students themselves about school safety and how we can address bullying and other related problems -- because, as every parent knows, sometimes the best way to find out what’s happening with our kids is to ask, even if you have to -- if it’s in the case of Sasha, you have to keep on asking.  (Laughter.)  

Now, as adults, we can lose sight of how hard it can be sometimes to be a kid.  And it’s easy for us to forget what it was like to be teased or bullied.  But it’s also easy to forget the natural compassion and the sense of decency that our children display each and every day -- when they’re given a chance. 

A couple other young people that I just had a chance to meet -- Sarah and Emily Buder, who are here from California.  They’re right here next to the First Lady.  And Sarah and Emily, they read a story about a girl named Olivia in a nearby town -- this is a girl they didn’t know -- who had faced a lot of cruel taunting in school and online because she had had an epileptic seizure in class.  So they decided to write Olivia a letter, and asked their friends to do the same. 

They figured they’d send Olivia about 50 letters. But in the months that followed, thousands and thousands of letters poured in from every corner of the country -- it really tapped into something.  A lot of the letters were from young people, and they wanted to wish Olivia well, and let her know that somebody out there was talking -- was thinking about her, and let her know that she wasn’t alone.  And because those children treated Olivia with that small measure of kindness, it helped Olivia see that there was light at the end of the tunnel.
    
The fact is, sometimes kids are going to make mistakes, sometimes they’re going to make bad decisions.  That’s part of growing up.  But it’s our job to be there for them, to guide them, and to ensure that they can grow up in an environment that not only encourages their talents and intelligence, but also their sense of empathy and their regard for one another. 

And that’s what ultimately this conference is all about.  And that’s why all the issues that we’re talking about really matter.  And that’s how we’re going to prevent bullying and create an environment where every single one of our children can thrive.

So thank you for the good work that you’re already doing, and I’m sure you’re going to come up with some terrific ideas during the course of this conference.  Thank you very much.  (Applause.) 

END
10:40 A.M. EST

Remarks by the President in Announcing Secretary Locke as New Ambassador to China

Diplomatic Reception Room

10:55 A.M. EST

THE PRESIDENT:  Good morning, everybody.  As many people know, our current Ambassador to China, Jon Huntsman, has decided to step down from his current job.  During his tenure, Jon has been an outstanding advocate for this administration and for this country.  He made a real sacrifice in moving his family out of the state that they loved and has helped to strengthen our critical relationship with the Chinese government and the Chinese people.  And so I am very grateful for his service. 

In replacing Ambassador Huntsman, I can think of nobody who is more qualified than Gary Locke.  More than 100 years ago, Gary’s grandfather left China on a steamship bound for America, where he worked as a domestic servant in Washington State.  A century later, his grandson will return to China as America’s top diplomat. 

In the years between these milestones, Gary has distinguished himself as one of our nation’s most respected and admired public servants.  As our country’s first Chinese-American governor, he worked tirelessly to attract jobs and businesses to Washington State, and he doubled exports to China. 

Two years ago, I asked Gary to continue this work as Commerce Secretary.  I wanted him to advocate for America’s businesses and American exports all around the world, make progress on our relationship with China, and use the management skills he developed as governor to reform a complex and sprawling agency. 

He has done all that and more.  He’s been a point person for my National Export Initiative, and last year, Gary’s department led an historic number of trade missions that helped promote American businesses and support American jobs.  He’s overseen an increase in American exports, and particularly exports to China, a country we recently signed trade deals with that will support 235,000 American jobs. 

As Commerce Secretary, Gary oversaw a Census process that ended on time and under budget, returning $2 billion to American taxpayers.  He’s earned the trust of business leaders across America by listening to their concerns, making it easier for them to export their goods abroad, and dramatically reducing the time it takes to get a patent.  When he’s in Beijing, I know that American companies will be able to count on him to represent their interests in front of China’s top leaders.

As one of the world’s fastest-growing economies, our relationship with China is one of the most critical of the 21st century.  Over the last two years we worked hard to build a relationship that serves our national interest -– addressing global security issues and expanding opportunities for American companies and American workers.  Continued cooperation between our countries will be good for America, it will be good for China, and it will be good for the world. 

As the grandson of a Chinese immigrant who went on to live the American Dream, Gary is the right person to continue this cooperation.  I know he will bring the same skills and experience that he brought to Commerce Secretary to this new position that he’s about to embark on. 

I want to thank him and I also want to thank his gorgeous and extraordinary family, who’s standing here -- Mona, Emily, Dylan, and Maddy.  It’s always tough to move families.  Maddy just turned 14 today, so I was commiserating --

SECRETARY LOCKE:  Emily.

THE PRESIDENT:  Emily just turned 14 today, so I was commiserating with her as somebody who moved around a lot when I was a kid as well.  I assured her it would be great 10 years from now.  (Laughter.)  Right now it’s probably a drag.  But I'm absolutely confident that this is -- we could not have better representative of the United States of America in this critical relationship than we're going to get from the Locke family.

And, Gary, I wish you all the best of luck in Beijing.  Thank you so much.

SECRETARY LOCKE:  Thank you, Mr. President.  Well, thank you very much, Mr. President.  And I'm deeply humbled and honored to be chosen as your next ambassador to China.

It was a little over a century ago that my grandfather first came to America to work as a houseboy for a family in the state of Washington in exchange for English lessons.  And he went back to China, had a family, and so my father was also born in China, and came over as a teenager a few years later.  He then enlisted in the United States Army just before the outbreak of World War II, became part of that “greatest generation,” and saw action on the beaches of Normandy and on the march to Berlin, and then came back to Seattle to raise a family and start a small business.

My father never imagined that one of his children could ever serve as the Secretary of Commerce in the United States of America.  And he was beaming with pride, Mr. President, the day you presided over my swearing-in ceremony.  Sadly, Dad passed away this past January.  But I know that if he were still alive, it would be one of his proudest moments to see his son named as the United States ambassador to his ancestral homeland.

I'm going back to the birthplace of my grandfather, my father, my mom and her side of the family, and I'll be doing so as a devoted and passionate advocate for America, the country where I was born and raised.

As Commerce Secretary, I’ve helped open up foreign markets for American businesses so they can create more jobs right here in America.  And I’m eager to continue that work in China and to help you, Mr. President, manage one of America’s most critical and complex diplomatic, economic, and strategic relationships.

I’m excited to take on this new challenge, as is my wife and our children -- to varying degrees among the kids.  (Laughter.)  And we’ll be leaving Washington, D.C., with great memories and many new friends.

Being Commerce Secretary has been one of the best jobs I’ve ever had, thanks to the immensely talented and dedicated men and women within the Department of Commerce, in the White House, and within the Cabinet.  And I’m proud of the work that we’ve done at the Commerce Department, delivering services faster, serving the needs of U.S. businesses and workers, saving taxpayers billions of dollars by being more efficient in everything that we do.  And I’m confident that these accomplishments will stand the test of time.

Mr. President, I’m eager to assume this new position.  And it’s a privilege and a solemn responsibility to serve you and the American people as the next United States ambassador to China.  Thank you for the confidence and the trust that you’ve placed in me.  Thank you.

THE PRESIDENT:  Thank you.  Thank you so much.

END
11:02 A.M. EST

Remarks by Vice President Joseph R. Biden, Jr. at a Roundtable Discussion with American and Russian Business Leaders

Moscow School of Management Skolkovo
Moscow, Russia

3:20 P.M. (Local)

THE VICE PRESIDENT:  Thank you, Deputy Prime Minister.  I can assure you our support is real.  What you're being told by our European friends and others is true.  We are working very hard to make WTO a reality for Russia and for us.  It's very much in our interest as it is in Russia's.

I want to thank you all for being here and giving me the opportunity to have a chance to have a conversation with you.  Resetting our relationships with Russia has in the view of the President and my view, as well, provided the momentum for some improved cooperation on a whole range -- a whole range of issues including arms control and nuclear proliferation, Afghanistan, Iran, North Korea.  But one area which we need to do more -- excuse me, I have a cold -- one area which we have to do more is to fully realize the potential -- and there's real potential -- in our relationship which lies in bilateral trade and investment. 

And the primary purpose of my visit is to explore how we can resolve the remaining challenges in our economic relationship -- because they must be resolved.  To begin with -- I'll say it again -- the United States strongly supports Russia's accession to the WTO.  And we are working with Russian negotiators in Geneva to move this process forward.  And I think we're making real progress.  We're making real progress on bilateral issues that have caused friction in the past such as agricultural trade and enforcement of intellectual property rights.

And our administration also strongly supports -- I want to make this clear -- strongly supports the lifting of Jackson-Vanik.  And we are aware of the benefits that will flow to U.S. companies from a freer and more open trade regime between the United States and Russia and quite frankly worldwide.  But we also know -- we've often told Russian leaders that investors and companies are looking not just for better trade policies but for assurances that the legal system that exists in each of the countries in which they wish to invest, the legal system treats them fairly and acts on their concerns swiftly.

That is why we're working with you, Mr. Deputy Prime Minister, and your colleagues to improve the investment climate, to promote the rule of law and to tackle some endemic corruption.  The Bilateral Presidential Commission is an important venue for our intergovernmental efforts.  And we are using it to develop a more adept cadre of managers on both sides of the Atlantic, to improve our procurement systems, and to address issues that you and your colleagues have raised such as the difficulty of obtaining visas.

But beyond negotiations between our governments, we're also relying heavily quite frankly on the emerging connections that all of you around this table represent between Russian and American business leaders and leaders in civil society.

Contacts among citizens are critical, almost as critical as the contacts between our governments, in fostering greater understanding and building our societies together.

And finally, I want you to know that we fully support President Medvedev's vision of a nation powered by innovation and human capital, and that we have a deep respect -- a deep respect -- for the pool of talent and the passion of the Russian people.  Indeed, we share a similar vision for our own nation.

So I want to thank you all for being here, and I'd like to open this for discussion.  And maybe with your permission, Mr. Deputy Prime Minister, we obviously want to see this new venture succeed.  It's an impressive facility, and with a great deal of promise.  And I look forward -- I've been visiting Russia since 1973, I look forward to come back when this a rival of Silicon Valley.  It would benefit all of us were that occur.

And it's an impressive building, but one of the questions that I think we -- I'd like to ask all you business leaders, particularly you Russian CEOs, is how can we help.  How can we help?  How can each of our governments help?

We understand the free enterprise system is the engine that's going to ultimately create -- make this a success, but we also know from our own experience in Silicon Valley that government can either be an impediment or it can be a help.  I would argue that Stanford University wasn't an impediment.  I would argue that the hundred of billions -- millions of dollars we invested in Stanford wasn't an impediment.  And so the question is what can we do to help.

And my observation -- and I have a bad habit of being straightforward -- my observation is if a company is big enough and successful enough and has deep enough pockets, it can weather the difficult terrain that sometimes exists in doing business here and in other places.

But the SMEs -- the capricious nature of the system, sometimes is viewed as a real impediment to the small- and medium-sized enterprises.  So I hope we can have an open discussion about how each of our governments can be a positive influence in realizing what again is in the mutual self-interest of both our countries, and that is the success of this venture and the growing success and relationship between American and Russian businesses and enterprises.

So again, I thank you all very, very much for being here.

END
3:27 P.M. (Local)