THE WHITEBOARD
WATCH: POLITICO's Nia-Malika Henderson takes you to scenic Martha's Vineyard, site of Barack Obama's first presidential vacation.
HAPPENING NOW: The president and first lady are at Sweet Life, a restaurant on Circuit Avenue in Oak Bluffs. A crowd has gathered outside and cars are backed up in the surrounding blocks. (7:35 p.m.)
A sit-down with POLITICO
Goolsbee on budget, Bernanke
Council of Economic Advisers member Austan Goolsbee spoke with POLITICO Tuesday afternoon about the administration's new budget review, which projected a $9 trillion deficit over 10 years, and Ben Bernanke's reappointment as Fed chairman. "We're down in the wonkiest of wonk land," Goolsbee said of the latest budget numbers.
Arguing that the administration faced a "tough headwind" on spending challenges, Goolsbee predicted a "return to issues of fiscal responsibility once we're out of the woods on this crisis."
On Bernanke: "Chairman Bernanke has been there at one of the most harrowing, scariest times since the Depression and has handled himself extremely well."
Deal or no deal?
![Grassley offers bleak outlook](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_grassley_ap_163.jpg)
Grassley offers bleak outlook
Sen. Chuck Grassley says he's increasingly pessimistic the Senate can work out any deal with the White House.
Read Glenn Thrush's blog post.
What light news week?
![Making news on vacation](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_obama_bernanke_ap_163.jpg)
Making news on vacation
So much for that news-free week at the beach. Less than two days ago, President Obama had a clear message for the reporters ...
... following him on his Martha's Vineyard vacation: Chill out.
"I have specific instructions from the president for the press corps," Bill Burton, the flip-flop clad deputy White House press secretary, told reporters en route to the Vineyard on Air Force One.
"He wants you to relax and have a good time," Burton said. "Take some walks on the beaches. Nobody is looking to make any news."
Then, on Monday, Attorney General Eric Holder named a prosecutor to investigate possibly illegal abuses by CIA interrogators, a headline-grabbing move that prompted a statement from the White House.
Later on the same day, when deadlines had begun giving way to dinner and drinks, word began to leak that Obama planned to renominate Ben Bernanke to his post as Federal Reserve chairman. The appointment was expected, but Obama's decision to fly Bernanke to the Vineyard to make it official at a morning news conference was a big surprise.
On Tuesday, the press corps was setting up in Oak Bluffs School at 7 a.m. for the announcement. Reporters were in their seats less than two hours later.
"Good morning, everybody," Obama said. "I apologize for interrupting the relaxing that I told all of you to do, but I have an important announcement to make concerning the Federal Reserve."
Afterward, reporters went about filing their stories. And Obama was off to hit the links at Mink Meadows golf course.
King: Holder 'disgraceful'
!['You wonder which side they're on'](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_king_reuters_163.jpg)
'You wonder which side they're on'
A "furious" Rep. Peter King blasted a "disgraceful" Eric Holder for opening an investigation of CIA interrogators. Read Ben Smith's blog post.
Cheney vs. Holder
![Ex-VP: Investigations 'political'](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_cheney_holder_163.jpg)
Ex-VP: Investigations 'political'
Former Vice President Dick Cheney released a statement to The Weekly Standard late Monday evening responding to ...
... developments in the Obama administration's handling of Bush administration investigation practices:
"The documents released Monday clearly demonstrate that the individuals subjected to Enhanced Interrogation Techniques provided the bulk of intelligence we gained about Al Qaeda. This intelligence saved lives and prevented terrorist attacks. These detainees also, according to the documents, played a role in nearly every capture of Al Qaeda members and associates since 2002. The activities of the CIA in carrying out the policies of the Bush administration were directly responsible for defeating all efforts by Al Qaeda to launch further mass casualty attacks against the United States. The people involved deserve our gratitude. They do not deserve to be the targets of political investigations or prosecutions. President Obama’s decision to allow the Justice Department to investigate and possibly prosecute CIA personnel, and his decision to remove authority for interrogation from the CIA to the White House, serves as a reminder, if any were needed, of why so many Americans have doubts about this administration’s ability to be responsible for our nation’s security."
Swine flu concerns
![Sebelius pushes vaccine](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_vaccine_ap_163.jpg)
Sebelius pushes vaccine
Health and Human Services Secretary Kathleen Sebelius said Tuesday that she has “accelerated the campaign” for ...
... a swine flu vaccination.
Sebelius’s comments come a day after a presidential advisory panel said that up to half of all Americans could be inflected by the virus and that between 30,000 and 90,000 could die.
Appearing on MSNBC’s Morning Joe, Sebelius called the illness, “a serious virus” and that “it could affect a lot of folks.”
Asked if there was anything being done to accelerate releasing the vaccination before the virus peaks in mid-October, Sebelius said, “the clinical trials are under way right now, and a lot of the trials are about what the effective dose is.”
“We’ve asked the manufacturers… to go ahead and fill and finish based on what we know so far that we think is the right dosage so that step is being taken,” Sebelius said. “We’ve also asked that they accelerate the manufacturing of IV anti-virals. When people get very sick and end up in the hospital, they need to be able to take anti-viral medication intravenously. So we’re doing everything we can… to push this production line along, but we need to make sure that the vaccine is effective before we roll it into people’s arms.”
Deeds marshals POTUS
![Obama ads in Va. race](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_deeds_reuters_163.jpg)
Obama ads in Va. race
Virginia gubernatorial nominee Creigh Deeds is using President Obama in an ad — but not many voters will be able to hear it. Read Josh Kraushaar's blog post.
Grass-roots push
![More than 1,000 events planned](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_grassroots_ap_163.jpg)
More than 1,000 events planned
Faced with a souring public mood on health care reform, Democrats and their supporters are launching a national grass-roots push ...
... Wednesday to show lawmakers that the majority of Americans still support overhauling the system.
Reform supporters are planning to hold more than 1,000 events between Wednesday and when lawmakers return to Washington Sept. 8, ranging from neighborhood organized phone banks to professionally staffed rallies with hundreds of people.
The Democratic National Committee and its grassroots arm, Organizing for America, are helping to organize the effort along with the Health Care for America Now, a group pushing to create government-run insurance plan.
Supporters have their work cut out for them.
Many lawmakers were thunderstruck over the August recess by the anger and outrage expressed by their constituents in town hall meetings across the country. And in poll after poll, support for reform has eroded throughout the month.
But Democrats and their allies insist that the majority of Americans still support reform and have organized the grassroots campaign to buck up lawmakers as they get ready to head back to Washington.
A health-insurance-reform-now bus will travel the country starting Wednesday and anchor events in 11 cities: Phoenix; Albuquerque, N.M.; Denver; Des Moines, Iowa; Pittsburgh; Raleigh, N.C.; Charlotte, N.C.; Milwaukee; St. Louis; Indianapolis; and Columbus, Ohio.
But the talk of broad health insurance reform does mean that progressives have backed off their push for a government-run insurance option.
Read the full story.
Schumer on Bernanke
!['Right choice' for 'tough times'](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_schumer_reuters_163.jpg)
'Right choice' for 'tough times'
Sen. Charles Schumer is backing Obama’s decision to reappoint Ben Bernanke, calling the Fed chairman ...
... “the right choice for these tough times.”
“The recession America is currently suffering through is the most severe since the Great Depression, but it is hard to dispute that it could have been considerably worse without Ben Bernanke’s strong and resolute actions,” Schumer (D-N.Y.) said in a statement on Monday night. “He is smart, thoughtful and not an ideologue — the kind of person we need as we work to turn the economy around, get [gross domestic product] rising and start creating jobs again.”
Obama taps Brennan
![Bush CIA insider key to Obama plan](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090806_brennan_Ap_307.jpg)
Bush CIA insider key to Obama plan
Obama has sought distance from Bush-era interrogation policies but now has chosen a man who was at the heart of Bush’s ...
... intelligence effort to play a key role in overseeing the new administration’s own policies: John Brennan, a 25-year CIA veteran who was privy to the extreme tactics Obama has declared off limits. Read Josh Gerstein’s full story.
McCain defends POTUS
Ariz. senator draws boos
At a town hall meeting in Sun City, Ariz., Sen. John McCain stuck up for the president in response to a questioner who challenged Obama's commitment to the Constitution. "He respects the Constitution," McCain said, drawing loud boos from the crowd. "He is sincere in his beliefs. We just happen to disagree. He's the president of the United States. Let's be respectful."
Back at the ranch
![Gibbs sticks around the W.H.](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_gibbs8_ap_163.jpg)
Gibbs sticks around the W.H.
Spotted back at the White House Tuesday afternoon: press secretary Robert Gibbs, still at work. While many senior aides ...
... are taking a little time away from the job this week, Gibbs has been at the office the past couple of days.
Confirmed dead
![Taliban concedes Mehsud killed](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090702_afghanistan1_ap_163.jpg)
Taliban concedes Mehsud killed
AP reports: "Pakistani Taliban commanders acknowledge leader Baitullah Mehsud killed by U.S. missile strike." ...
In his interview last week with radio host Michael Smerconish, President Obama pointed to the elimination of Mehsud as a sign that the U.S. strategy for fighting Al Qaeda in Afghanistan and Pakistan was working.
"You've got the Pakistani army for the first time actually fighting in a very aggressive way, and that's how we took out Baitullah Mehsud," Obama said. "We're eliminating their allies, it's making it more difficult for them to communicate, making it more difficult for them to operate safe havens, and over time what we hope to do is to flush them out."
Re-upping Bernanke
Obama hails 'experimentation'
Spinning the MSR
![Budget deficit to grow slightly](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090320_peter-orszag.jpg)
Budget deficit to grow slightly
Peter Orszag and an agency fact sheet make the case that the expanded deficit is not a result of increased spending.
Read Ben Smith's blog post.
Taking a hit
![Obama's Gallup numbers suffer](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_poll_reuters_163.jpg)
Obama's Gallup numbers suffer
The president’s weekly average approval rating slipped to a new low this week, according to a Gallup poll.
Just 52 percent of Americans say they approve of President Barack Obama’s job performance for the week ending last Sunday, down from 59 percent for the same period a month ago. POTUS’s average disapproval rating last week was 41 percent.
The president’s approval numbers are down among all age groups and have taken a huge hit among adults age 18-29, where his job performance rating dipped 11 points. Senior citizens seem to view the president the least favorably, with his approval rating among that group now below 50 percent.
The survey was based on telephone interviews with 3,628 adults from Aug. 17-23.
Cash for clunkers ends
![Program spurs sales, complaints](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090802_clunkers_ap_163.jpg)
Program spurs sales, complaints
The cash for clunkers program expired Monday night but the government is allowing car dealers to submit ...
... their paperwork for repayment by noon on Tuesday, USA Today reports.
The paper says that the Department of Transportation System was flooded with applications all weekend and crashed on Monday afternoon.
As of Monday, applications for $2.58 billion worth of vouchers has been submitted, according to the DOT. The cash for clunkers program has a budget of $3 billion.
Dealers have complained that they’ve only received a small portion of the money they are owed for the cars they sold.
No drama Obama
![POTUS has pet peeves too](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090402_obama1_163.jpg)
POTUS has pet peeves too
White House aides have learned that their boss, who earned the nickname “No Drama Obama” during the campaign ...
... is a pretty laid-back guy. Even so, aides have learned that the commander in chief has a few peccadilloes that are best avoided.
Read the full story.
S. Korea rocket launch
![Comes after N. Korea criticism](https://webarchive.library.unt.edu/web/20090826014326im_/http://images.politico.com/global/politico44/090825_rocket_ap_163.jpg)
Comes after N. Korea criticism
South Korea fired a rocket into space on Tuesday after an aborted attempt last week, the AP reports.
The launch comes months after North Korea came under fire from the international community for its own launch. On Tuesday, the communist nation said it would “closely watch” how the U.S. and other neighboring countries responded to South Korea’s launch.
South Korean officials said they hoped the rocket would help the country become a regional space power, competing with China, Japan and India. But the launch encountered immediate problems after a satellite the rocket was carrying failed to enter its intended orbit.
In April, North Korea claimed it launched a multistage rocket that was mounted with a satellite. But the U.S. and other nations called the launch a test of ballistic missile technology since the rocket could be mounted with a warhead. U.N. security council also sanctioned the country and called the launch a violation of resolutions banning it from conducting missile-related activity.