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(generated from captions) Hello, I'm Ricardo Goncalves. Indonesia has ramped up security in Bali following threats towards leaders attending this Friday's 10th anniversary commemoration of the deadly bombings. Prime Minister Julia Gillard is determined to be there.I do want to be in Bali for the 10-year commemorations. Families will be travelling there. It will be a day in which we pay our respects.The Opposition has accused the Prime Minister of sticking with former Federal Speaker Peter Slipper for too long. But they've also admitted that they will accept Mr Slipper's vote in parliamentary divisions. It comes as some politicians admit sexism in politics is a growing problem. I think in the life of this Parliament there has been almost a sense that anything is fair game, especially with regard to the Prime Minister.Others though aren't as easily offended.I brush them off as false and idiots

(CROWD CHANTS)
Ten... nine... eight...

seven... six... five...

four... three... two... one...

TV: 11 p.m. on the East Coast
and we have news.

Barack Obama will be the 44th
President of the United States.

(CROWD CHEER AND CLAP)

(CROWED CHANTS)
Obama! Obama!

(CROWD CHANTS)
Yes, we can! Yes, we can!

And the citizen becomes a president.

Following him through
the election day,

I caught up with him
at the end of the night,
after all the speeches were over,

in fact, after
they pulled security down.

And there's this cloak that
sort of gradually descends on them

through that day.

It's security, but it's also
the burden of what the job entails.

The economy had already collapsed,
he was now responsible for two wars.

And as much as they have
prepared for it,

I could see at the end of the day
that there was...

there was an appreciation in him

that nothing would ever be
the same again.

And then we come into the White
House and we're in the White House.

And to walk into the West Wing
and see all of my friends

in every office,

the people I'd just been
through the campaign with...

You know, my friend Katie,
the president's secretary,

sitting right outside
the Oval Office.

And all my other friends just
scattered around the West Wing.

It was like "What are you doing
here? Who let you into this place?"

Office of the president...

It was just extraordinary
and a sense of...

just excitement and inspiration
that we had done it.

So I think there was a sense that
we're in unchartered territory.

And all of a sudden I realised
there was this sense of -

okay, now this really gets serious.

You gotta remember,
everybody then is new.

This was a generational change
in some ways, this administration,

not a full generation,
but pretty close to one

in terms of the president coming in
and a lot of new faces.

A lot of young people, fresh people,

people who had left
their home towns to come.

In this Oval Office, it was

People showed up
in jeans and t-shirts,

they were unshaven,
including the president.

You get the sense that Obama
still can't believe he's in...

For as long as he's been in it
and as far as he's gotten,

he still has this sort of
shake your head sense of, you know,

"What a ridiculous business.
What am I even doing in this?"

Yes, sir?
What's up?

You weren't supposed to film that.

The beginning of the presidency
is like a window, right.

Everything is new, everybody's new.

There's a lot of good will,
and that window closes very quickly.

There is a literally
awesome responsibility

that comes with that job.

I don't think they really
feel it until it's right there.

You get into office
and you're faced with

the incredible series
of tradeoffs and complexities

of doing what you promised to do.

That's the natural disparity
between being a candidate

and being a president.

They have almost nothing
to do with each other.

Until you've been there you don't
really fully understand.

He did not bring
a revolutionary group.

He reconstituted some of the people
who had experience

from the Clinton White House.

He was compensating
for his lack of experience.

He appointed people
like Larry Summers

who had already been
the Treasury Secretary,

Bob Gates, who had already been
the Secretary of Defence,

Hillary Clinton who had more
experience in Washington.

To have people with that standing
and that stature

was not only reassuring to the
president,but also to the country.

With Barack Obama at the helm,
but nonetheless, let's get the best!

The people he brought in with him
were people like David Axelrod,

people who've known him a long time.

Robert Gibbs, who went on to be
his very close adviser

and White House Press Secretary...

NARRATOR: Robert Gibbs will be
Obama's voice, his spokesperson,

his communications adviser.

He chose to release a photograph
of the president

with his feet propped on his desk,

showing the holes
in the soles of his shoes.

David Axelrod will become
Barack Obama's strategist,

When he was 13, he sold campaign
buttons for Robert Kennedy.

He met Obama in 1992
and has never left him since.

He introduced Obama to the
'West Wing' series scriptwriter,

who based the character
of the young Democratic candidate

on Barack Obama.

After Obama's election,
Axelrod wrote to the screenwriter

"We're now living your script."

There was a small group of us
who were the inner circle,

which is Ax and Gibbs and...

So I'd say that was the real...
his core group.

The vice-president as well.

Biden, he knows the role
that he's supposed to be playing,

not only inside the administration
but in public as well... very well.

He is the anti-Obama
very much outside...

warm, loud, effusive,
silly at times.

What you see is what you get.
He's no different.

He's the same person,
there's no artifice.

He had an ability
to connect with people.

Hey, how are you?
Sorry, I'm...

You know, just the three
different pieces on Boston...

So in a way, that was the friend
group that they were swimming in.

A lot of people in Obama World
were really surprised

when Barack Obama chose Rahm Emanuel
as his chief of staff.

He's got a strong personality,
absolutely. No question about that.

Barack Obama appoints him
as White House chief of staff,

similar to the prime minister,

arguably the most important position
under the president.

A former ballet dancer,
he quit everything to fundraise

for the Bill Clinton campaign

and became a White House adviser
after Clinton's election,

resigning after
the Monica Lewinsky scandal.

He supported the Congress resolution
authorising the war in Iraq.

The warlike campaign style
of Rahm Emmanuel

earned him the nickname "Rahmbo".

I think he gave the job to him
frankly because of insecurity,

not just for him,
but for his core team.

He had a knowledge of Washington
and the way Washington works

and very few of the inner team had
been in the executive branch before

and been in the White House before.

To see how all of the levers
of power kind of come together,

the press, the Congress obviously...

Hey, it's Rahm. Give me a call...

Rahm was a guy who knew
how to pull the levers of power

and work the bureaucracy
and the Congress,

and had the energy to do so.

He's a fighter.

He's extremely smart incoming,

but not really intellectual
in the way that Obama is.

He's a deal-maker.

Somebody who actually wants
to get things done,

no matter how many
four-letter words he uses.

And so in bringing him in,
President Obama was saying

"I want somebody
who makes things happen.

"I want somebody
who is gonna get me results."

Obama is the latest of several
presidents who come to Washington

saying "I'm gonna change it.
I'm gonna make it work better."

He didn't want to be known
as the president who signed
a bunch of bills,

but as the president
who changed the country.

And he decided to push forward...

It was wise for Obama to pick
someone as chief of staff

who knew Washington well.

But then you're stuck with someone
who knew Washington well,

a Washington you wanted to change.

Michelle knew Rahm pretty well
from Chicago

but she saw him as a tactician,
as a field marshal,

but not as a keeper of the flame.

The First Lady,
it ought to be noted, is...

THE most influential person
in the White House.

The president listens to
Michelle and...

her logical and reasonable judgement
quite frequently.

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a chief of staff's meeting

which was basically
the interior to the staff's office

plus the key senior people.

So, Larry, at the time, Summers...

and the White House council

and, you know,
the kind of the senior folks.

We'd have a meeting

to talk about the day
and strategy and issues.

I'm glad she mentioned it
at the end...

As soon as he arrives
at the White House

Barack Obama sets six priorities -

to lift America
out of the economic crisis,

to reform health care,

to obtain a peace treaty
between Israelis and Palestinians,

to end the war in Iraq,

to withdraw American soldiers
from Afghanistan

and most of all,
to close down Guantanamo.

So do we do the whole agenda
all at once?

He decides to go forward
with everything.

In the White House
they call this the Big Bang.

24 hours after arriving
at the White House,

Obama signs the executive order
requiring the camp be closed.

By the authority vested in me
by the Constitution

and the laws
of the United States of America...

and we then provide the process
whereby Guantanamo will be closed

no later than one year from now.

We can abide by the rule
that says we don't torture.

So with that, let me sign
the next executive order.

There you go.
All right?

His team was divided
between some old campaign...

more idealistic campaign hands
like Greg Craig

who was the White House counsel

and really took it on
as his issue to close Guantanamo.

Making the pledge to close
Guantanamo...

He was opposed by
people like Rahm Emanuel

who thought that idealists like Greg
Craig trying to shut Guantanamo down

were screwing things up for Emanuel.

I had been given the responsibility
for closing Guantanamo.

That was not something the White
House Counsel was in charge of.

I had views and I shared my views
with the president.

He said there are some things
we have to do to fight terrorism.

He thought you did not have to
apply torture.

And in fact,
torture didn't necessarily mean

you'd get more reliable information.

Torturing people made no sense.

Torture does not produce
good intelligence.

No one who has ever been
involved in the business of being

a professional intelligence officer
thinks that torture works.

President Obama's position was
criticised as giving terrorists

constitutional rights,
which people objected to.

His concern was that people that
worked in our intelligence community

might believe that
he was turning on them

and that he was going to prosecute
them for criminal activity.

So he was very careful
to meet with them.

There would not be any kind of
criminal prosecutions.

To make it absolutely clear that no
torture was gonna be involved

in any prosecution.

We all know that the way in which
many of those Guantanamo prisoners

have been treated
over the course of the last decade

raises the most
significant questions

about whether they could ever
get a real, serious trial.

Khalid Sheikh Mohammed,
the tactical mastermind

of the attack of September 11,
has been tortured.

His rights have been abused.

That's not a subject for debate,
it's a fact.

That severely impacts
any kind of legal process

that's going to be conducted,

and it means that
keeping him in Guantanamo

may be the best
of a lousy set of options.

(CALL TO PRAYER)

It was an open question
about what you did with people

who were arrested
under suspicion of terrorism,

what we'd do with them,
how we were gonna do it.

He came to the conclusion
that it was best to release them.

It was his decision to release them.

I think the president
didn't understand

just how hard that was going to be.

You had to find a place
to put those people.

Some of them could be sent home,
but some of them can't be sent home.

Their home countries don't want them

and the most dangerous ones
are precisely these.

But no American governor,
no American mayor,

no American senator wants them
to come to their home

or to the prison in their state

That was not what caused
the failure to close Guantanamo.

It was the fact we had to go through
Congress to get appropriations

and agreement in the plan that we
were proposing to close Guantanamo

and the Republicans just would not
agree and would not help.

Many American politicians
do have a degree of hysteria

in how they respond to the issue
of putting Guantanamo prisoners

in the United States.

The Republicans were then looking
for opportunities to take him on,

to make his presidency difficult.

And this was one of the early ones.

The real question was
were we going to get in a fight with
the Republicans about that language?

And the decision was made
not to get in that fight.

I said "Mr President,
it's your call.
I'll never second-guess your call.

"There's clearly a political price
you'd have to pay to do this.

"By going into an extended fight
with Republicans about Guantanamo,

"you would distract the country
and dilute your political power."

They decided that
they had higher priorities.

I was not successful
in pursuing the closure

and achieving the closure
of Guantanamo.

And I don't think the president
really had thought through,

nor his advisers, just how difficult
closing Guantanamo will be.

And I don't see any sight, any
prospect in the foreseeable future

for how we are gonna
close down Guantanamo.

They're not gonna be tried.
They're not gonna be released.

They'll be held for a while.

But the urgent priority is the
Middle East, where the peace process

between Israelis and Palestinians
has stalled.

Obama declares West Bank settlements
undermine peace efforts.

His popularity in Israel is
one of the lowest ever recorded

for an American president.

It will be the policy
of my administration

to actively and aggressively
seek a lasting peace

between Israel and the Palestinians,

as well as Israel
and its Arab neighbours.

To help us pursue these goals,

Secretary Clinton and I
have asked George Mitchell

to serve as special envoy
for Middle East peace.

He will be fully empowered
at the negotiating table

and he will sustain our focus
on the goal of peace.

No one doubts the difficulty
of the road ahead.

And George outlined
some of those difficulties.

I started calling a list of friends,
seeking their advice.

And the first six or seven I called
urged me not to do it

because there was
no possibility of success.

So I stopped calling people.

President Obama probably was naive
about how difficult

the Israeli-Palestinian conflict
was gonna be.

I think he set off
with the right intentions,

I think he set off
with the right team.

But I don't think
he quite realised just how bruising

a political battle
this was going to be.

He urged me to leave immediately
for the region.

He wanted to get going right away.

He knew, as Secretary Clinton knew
and I knew,

that the circumstances were not
very good at the time in the region.

That there was a great deal
of hostility and mistrust
on both sides.

We had hoped that
the Government of Israel

would express an acceptance
of a two-state solution

and when
Prime Minister Netanyahu did so,

we regarded that as a positive
statement and a step forward.

I said at the outset
to both leaders -

there can never be
an end to the conflict

without direct negotiations
between the parties.

It can't be done.
You've got to sit down to talk.

I made three visits to the region
in which I met with the leaders

of about 14 Arab countries,
including the Palestinians,

and almost without exception,
every one of them said

there has to be a settlement freeze

before we can consider
doing anything.

And so the president asked Israel
to stop settlement construction.

I'm confident
we can make real progress...

They did agree,
and there was announced in November

a moratorium of ten months

on any new housing
construction starts.

That was a very significant action.

Clearly President Obama thought
he could push Netanyahu

further than Netanyahu was gonna
let himself be pushed.

The irony is that when
Prime Minister Netanyahu

put the moratorium in place,

the Palestinians
were very sceptical.

They said
"Ah, this doesn't do anything."

And it turns out,
to Prime Minister Netanyahu's credit

and to
the Israeli government's credit,

the settlement moratorium
has actually been...

significant.

George Mitchell is someone that the
vice-president had known for years

as they were very close colleagues.

He wanted Vice-President Biden
to be with him

when he was making these fundamental
and difficult decisions.

So we were about to engage
in that process.

But it didn't work out that way.

The vice-president's trip
to Israel

was designed to demonstrate
our ongoing support for Israel,

the closeness of the relationship.

The hope and expectation
was that Vice-President Biden,

who is widely respected in Israel,

would encourage the government
of Israel to take steps

that would create a more conducive
atmosphere for negotiations.

Progress occurs in the Middle East
when everyone knows

there's simply no space between
the United States and Israel.

He's known Prime Minister Netanyahu
for three-plus decades.

The prime minister at one point had
on his desk a signed photograph

from Vice-President Biden
when he was a senator

that said, as I recall,
something to the effect of

"Bibi, I love you, but I think
you're wrong most of the time."

It was on the evening that the
vice-president arrived in Israel.

Earlier that day I met in Jerusalem
with Prime Minister Netanyahu

and then in the afternoon I met
with President Abbas in Ramallah

and they gave their final assent.

And just as we were leaving
and getting into our cars,

we got a little notification
on our Blackberries

that the Israelis announced...

a new step
in a particular settlement.

I, the secretary of state,
the vice-president and the president

were of course
all surprised by the announcement

and were concerned about it

and the effect that it would have
on the relationship.

We had been assured repeatedly
by our Israeli counterparts

that there would be no surprises,

that there would be nothing
to cause any upset or concern

during the visit,
and then this erupted.

Apologies for the delays, guys.

I would say this...

that the United States condemns
the decision today

by the government of Israel

on advance planning for new housing
units in East Jerusalem.

He was scheduled to have
dinner that night

with Prime Minister Netanyahu
at his home, alone.

Then he went to dinner and talked

The prime minister said
he did not know about it,

he had not been informed about it.

These were actions taken by
cabinet ministers in his government

but their positions on some issues

are not identical to those
of the prime minister

and settlements
is one of those areas.

He said "It's not something that's
brought to my attention.

"I really regret that the
announcement was made at this time,

"if it in any way
embarrassed you,

"and the prime minister
didn't control that."

And the vice-president said
"We think that moving forward

"on settlements is not advancing
the peace process."

The Palestinians were quite clear
and explicit and consistent

even before the first meeting, but
they began every meeting by saying

"If there isn't an extension
of the settlement moratorium,

"we're not gonna be able
to stay in."

So there wasn't any surprise
when they didn't stay in.

They had made it clear
from the outset.

And the direct negotiations

between the Israelis
and the Palestinians ended.

The president's
probably biggest deficiency

in his first term of office
on foreign policy issues

is his failure to understand
how to really manoeuvre

in Israeli politics effectively.

The fact is that
President George W Bush

took action against
Israeli settlement construction

in the form of deductions from
US loan guarantees to Israel,

which President Obama never did.

So measured in terms of actions,
not words,

President Bush was more vigorous

in his opposition to settlements
than was President Obama.

The president has been
a strong supporter of Israel

and he's proved his support
in all the important genuine ways.

approval of better than $200 million

in additional funding over and above
the billions of dollars

which we already provide.

Israeli-Palestinian conflict breeds
an atmosphere in the Islamic world

among one billion Muslims

of humiliation and anger
towards America and the West.

He has failed in his effort
to bridge the gap

between the Israelis
and Palestinians.

And this president has failed to
do that. It's a striking failure.

If your objective is
to obtain a peace agreement

and you don't get a peace agreement,

then you have failed
to get a peace agreement.

They thought it was a joke.

When the president was woken up to
hear he'd got the Nobel Peace Prize,

he thought it was a hoax...

I do remember us all being shocked

and when we got an email
saying he...

from the staff saying by the way,
the Nobel Committee called.

I didn't think it was real.

I mean, I literally
thought it was not...

That couldn't be right.

But of course,
a very flattering thing

even if he felt
it was unjustified.

He's a wartime president
who gets the peace prize.

I remember having a conversation
about how do you deliver

a Nobel Peace Prize speech when
you're in the middle of a war.

And how do you talk about peace

even though you're engaged in these
hostilities in Afghanistan at least.

And so I remember that
really being on his mind

in terms of
how do we talk about this...

I think he has been
burdened by the prize

and that was the intention of it -

to set expectations high for him
and what he could achieve.

One of 12 exciting business-class
escapes can be won daily in 'The Australian'.

So, don't miss out. Get your copy
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Barack Obama received
the Nobel Peace Prize

"for his extraordinary efforts
to strengthen international diplomacy

"and cooperation between peoples."

The prize was awarded on the sole
and meagre basis of his beautiful,

but purely theoretical speeches.

Outside the Nobel Institute in Oslo,

where Barack Obama
received his prize,

protesters held a banner -

"Obama, you have your Nobel...
Now earn it!"

I got a phone call
from President Obama,

and he asked me if I would come in.

He wanted to get as good
an understanding he could get,

as quickly as he could get, of the
dynamics of the war in Afghanistan.

He didn't have a lot of time.

The most free time he was going to
have early on in his presidency

was a flight to California,
where the phones couldn't ring

and he couldn't be interrupted.

So the president invited me
to fly with him to California

where we would have three or four
uninterrupted hours

to talk about
the war in Afghanistan.

The president came into a situation

that had simply been
plopped on his desk,

left in his lap...
as a new president,

as a young, new president
who didn't have military experience.

President Obama was probably
deeply affected by the Iraq War.

And I think Obama, scarred
by having seen that experience,

was determined that he wasn't
gonna repeat it in Afghanistan.

Undoubtedly for many
of his older advisers

there was another spectre
in the room,

the spectre of the war in Vietnam

and the realisation that it's easy

to get in deeper
and deeper into a war.

So... Bruce Riedel was asked
to lead a review

of our strategy
in Afghanistan and Pakistan.

That would try to bring about
a resolution of the conflict.

And the president just turned
to the vice-president and he said

"You know, Joe,
I'd like you to go to Iraq

"but also to Afghanistan
and Pakistan.

"And I just want a clear...

"baseline assessment of where we are
and where this is going.

"I'd like you to do this."
And that was it.

Vice-President Biden
went to Afghanistan.

His trip was a disaster.

He and President Hamid Karzai
had a shouting match at dinner.

Biden stormed out of the dinner,

leaving us with a very ugly mess.

He reported when he got back
to President Obama

that US policy in Afghanistan
was really at a dead end.

We, in the Obama administration,
inherited a disaster in Afghanistan,

a war that we were losing
and losing very, very quickly.

Before the president made
any further decisions

about increasing
the number of troops,

we got that report from
General Stanley McChrystal.

It's a devastating indictment
of America's military strategy

in Afghanistan in the years
between 2001 and 2009.

General McChrystal concluded

that not only were we
losing the war in Afghanistan,

but that it was much worse
than anyone had thought.

..a wake-up call
in the morning. Like...

Oh, I did not know that.
That's the first I've heard that.

Have a seat.

All right...

Well, we have a number of issues,
Mr President.

But we're gonna concentrate
on Afghanistan and Pakistan.

So we...
we are getting it teed up

and we were somewhat handicapped

because we're not actually
doing the delivery.

But the Pakistani military
is certainly diving into...

You guys got more role here
than you have in any other meeting.

General McChrystal's report
ignited a furious debate

inside the administration

between those...
particularly in the military,

but also Secretary of State Clinton

who argued that
this made it imperative

that we send more troops to
Afghanistan and send them quickly,

and those like Vice-President Biden,

who felt from the beginning

that this mission
might be Mission Impossible.

Generals say "Increase the troops."
Obama doesn't really want to do it.

It seems like he gets pushed
into making that decision.

It seems like the military
have the upper hand there.

He listened to all sides
and concluded by December of 2009

that additional
American military forces

had to be rushed to the region.

He is coming into office having said
that Iraq was a mistake

but spends three months on his
review trying to figure out
what the right decision...

He doesn't quite know
what he's gonna end up.

So when your generals
and your secretary of defense,

the man you asked you to stay on,

come in and say
"We need more troops",

it's a political minefield
for the president.

Now, arguably you could say
he gets rolled by the military

in the run-up to the decision
to increase troops in Afghanistan.

General Stanley McChrystal,
Commander of US Forces in Afghanistan

gives an interview
to the magazine 'Rolling Stone'.

In it he is highly critical
of Obama's reluctance

to send extra troops to Afghanistan.

McChrystal speaks
of their first meeting -

"It was a 10-minute photo op.

"Obama clearly didn't know
anything about me, who I was.

"He was uncomfortable,
intimidated, not very engaged."

Obama, furious,
summons him to the White House,

ends his mission and ousts him.

This president inherited
a disaster in Afghanistan,

a global economy
that was melting down,

an American auto industry
that was going out of business.

Things were even worse
on a variety of fronts

than we even thought coming into it,
and we thought it was pretty bad.

And they kept coming.

So you'd think

"Okay, well... maybe we've hit
a little bit of a breather."

But no! Now there's some other
issue.

I'd always say"I don't know how you
manage to get through every day

"and still keep some sense of
humour, some sense of lightness,

"some sense of yourself,
given all the pressures out there."

Where you going?
I'm going down to Rahm's office.

Who wants (unclear)?

You want a hamburger?
I do.

I had two burgers for breakfast.

We're gonna get some burgers
and I can bring them in.

And I remember him saying
"Who wants the burger?"

And I was saying "I just...
I'm coming back from the gym,

"so the last thing I need is
a cheeseburger and French fries."

I'll take one.
You want fries?

Sure.

Katie?
Yes, sir?

You on?
Ready...

..and he took his detail
and I took mine...

Hold on one second, Mr President.
I don't wanna hold on.

What's goin' on?

(CROWD SCREAMS AND CHEERS)

Hey, guys...
How y'all doing?

You got your orders?

What you got?

One cheeseburger
and one fries for me.

All right, so then I got a little
cheeseburger with lettuce,

tomato, ketchup and pickles.

Put lettuce on mine too, all right?

Two fries,
one for him and one for...

All right,
and these are all small.

How you doing?
Good!

I'm good. What's your name?
How are you?

You've been playing some ball
or what's going on?

We're with the soccer team here.

Thanks, guys!

Whether you're a butcher
or a banker, a dairy farmer or a designer, whoever you are,
whatever you do, at Holden, we'd like to thank you
for many years of support. So now you're one of us. We're proud to offer
Holden's employee discount to all Australians. But you'd better be quick,
it ends this weekend. Pay what Holden employees pay
on a huge range of new Holdens,

The guys are already lined up?

Lined up and ready to go...

Good Morning, Mr President.
Morning!

of Barack Obama's economic reform.

The budget deficit
is 13 trillion dollars,

the highest since World War II.

Unemployment is nearly 10%,

and the automobile industry
is in crisis.

General Motors is going to file
for bankruptcy

and without government aid,
Chrysler will go under.

Life has changed since the briefing.

All of the indicators were on paths
worse than they had been

after the fall of 1929.

It was like a ball
rolling off a table

and the challenge was
to stop all of that.

Dramatic numbers of people
losing their jobs,

the banks not being able
to lend money.

700,000 jobs a month being lost.

The economy was
going over the cliff.

We were almost in negative growth
at that point.

They didn't know at the time
how bad the economic collapse was.

But nobody knew how bad it was.
This was really unprecedented.

Obama does not have
a strong economic message.

This was never the centrepiece
of his campaign.

The Obama administration
inherited a series of crises

and probably none
was as acute as autos.

This was a train about 100 yards
away barrelling at them full-speed.

I just had a meeting
with my economic team

and start establishing a foundation
for long-term economic growth.

That involves making investments
on health care and energy,

and education.

That means increasing
our productivity across sectors

and not just relying on
the financial sector

for all our economic growth.

And I think that's what
the American people are looking for.

And those were our marching orders.

They basically said,

"We'd like you to put together
a team and solve this problem."

The president really
looked to his political advisers

like Rahm Emanuel, and asked me
to coordinate the economic team.

There was no one in the government
who knew anything about the autos,

so this whole team had to
come together like that movie

'Ocean's Eleven',
out of nowhere to do this job.

He was quite prepared to handle
his advisers having differing views.

But it was great having two bosses

because it was a challenging
time for anyone to focus.

Larry Summers and Rahm Emanuel are
complicated, neurotic characters,

just poisonous.

And Rahm Emanuel believed that,
for his part,

he could do everyone's job better

He and the president
had a close relationship

and I certainly wasn't privy
to much of their dialogue.

Rahm probably doesn't know the
difference between a balance sheet

and an income statement.

He couldn't solve
the financial crisis.

Rahm is nothing if not assertive.

And he was like Larry Summers,
another larger-than-life character.

Different, they are two
very different people.

Whose internal dynamics
with their rivals

were... incredible waste of energy
and effort inside the White House.

Larry Summers presided over

the single-most dysfunctional
group of advisers.

I didn't personally think
that Larry was a bully.

So I...

And does he have a strong
personality too? Yes, absolutely.

Larry Summers would be
the first to say that

he is a strong personality.

He's been quoted
as having told Obama

when he was asked to head the NEC

that if you want someone who doesn't
have opinions, I'm not your man.

Rahm Emanuel has
slightly different tactics.

Rahm Emanuel's just much more...

I don't think
he stabs people in the back.

He stabs people in the chest.

I don't...

Certainly there were
moments of disagreement.

They would play games to...

delude, deceive,
undermine each other.

But it really did sort of...
who's the political director?

Who's really running it?

Is Rahm Emanuel running
the political side of things?

Isn't he overstretched?

What does the president
think about these things?

All of those questions were raised
and the fallout was...

the evaluation was that it was
doing a very poor job.

And then they had serious policy
disagreements as well,

like how important is the deficit,

how important is stimulus spending
at that point,

what should we do with the banks,
how active and interventionist
should we be?

Rahm Emanuel doesn't want
too audacious a reform

but criticises Larry Summers

for having limited the size
of the stimulus package

at a time when Obama
could still have imposed it.

His financial reforms
remain controversial.

His detractors accuse him
of being conservative.

Careful not to side with
populist anti-bank sentiment,

Larry Summers expresses
his scepticism

concerning Rahm Emanuel,
and finds it hard to look on

as the president listens to
the chief of staff's advice

rather than his own.

I was with him on a trip
out to California and he was...

shirtsleeves rolled up, screaming
about the banks on Wall Street

and how unfair this was
and how rotten it was,

and I thought "Wow, this is someone
who is really gonna take this on."

The next day in Washington
he was talking about contract law

and honouring contracts.

They extended the Bush-era tax cuts

somewhat to the chagrin
of the Democratic base

because it still included the tax
cuts for the wealthiest Americans.

A lot of Democrats felt that
he was the past.

He perpetuated...

he didn't punish...

he refused to prosecute anyone
for the financial collapse.

He said "We have to move on."

So there was this incredible
and natural tension

between idealism and pragmatism,
if you want to define it that way,

that shaped almost every decision,

whether it be on domestic policy
or foreign policy.

A number of his key advisers who,
for good reason,

argued that to attempt to do more
than one thing at a time,

that saving the economy and turning
this economic disaster around

is going to require full attention,

concentration and concerted effort
within his entire administration.

He wanted to defy the odds
and forge his own path

and ignore a lot of expert advice.

And it did not work as well.

And the first bill he put through
the Congress was legislation

to try to stimulate the economy.

He had faith in the idea
that in the middle of crisis,

Republicans wouldn't act the way
that they would normally act.

And he sat down
with Republican leaders

and they said we don't want anything
to do with this legislation.

They won't...
won't go along with it.

So in the House of Representatives,

he did not have a single
Republican vote that would help him.

He had this ambitious agenda
that he'd laid out for two years

and he had to decide
now should he put all that aside

because of the economic crisis?

And as the economy is still
obviously in a deep, deep hole,

the president's already embarked on
health care and it's gone wrong.

Reforming health care
was the flagship project

of Obama's campaign.

He wants to provide health insurance
and access to medical care

to 47 million Americans
who lack it.

And to put an end
to an unfair system.

He said "Tom, this is my legacy
and if you ever doubt

"that I will fully carry out
my administration

"to ensure that that legacy can be
fulfilled, talk to me."

The president felt that...

it was now or never
for universal health care.

The one big speech
that I wrote that summer

was his speech
launching health care.

And that was a major speech.

The intent of that speech
was very much to lay out
the health care reform.

I remember talking to him
about that speech

and him pacing around
the Oval Office

outlining and dictating
what he wanted to say.

He clarified it, he simplified it.
He knew what he wanted to say.

I realise there are some in my party

who don't think we should
make any changes at all.

But here's the truth.

And if we don't
gradually reform the system

while protecting
current beneficiaries,

it won't be there
when future retirees need it.

We have to reform Medicare
to strengthen it.

But they worried that
if he used too much for that,

he would be not able to get other
pieces of legislation through.

What if he had listened to...

the more experienced
Washington hands

within his own administration?

Don't do something
that involves spending again.

Don't take on health care yet.
He ignored that advice.

The idea that health care reform
could be passed really quickly

so he could move on to other
business - it just wasn't realistic.

Rahm Emanuel said
"Look, this thing is killing you."

Not just Rahm, David Axelrod said

"This thing is killing you.
Drop it. Get out, move on."

Once a decision is made,
he doesn't like to look back.

It says a huge amount
about this president,

his stubbornness, his ambition,
his strategic thinking,

that he said
"I'm going to do it my way."

"I'm gonna do it, and if it...

"collapses my presidency, I don't
care, I'm gonna go through with it".

Which ended up being a harder fight
that anybody anticipated.

And then the Tea Party movement
in the United States

decided to take off after the bill

saying they didn't want government
to be involved in health care.

"Don't touch health care, don't make
government run health care,
leave my Medicare alone!"

The Tea Party, that element
of the wing of the country

has always been there.

But for whatever reason, the health
care issue really animated that

as a voice and really coalesced it
around with a political movement.

And then obviously lots of people
saw an interest in that politically

and it got money
and figured out how to...

turn itself into something
that was politically oriented

as opposed to just a...
a voice in broader society.

There was this populism running
wild in the country.

It was disgusting that people would

campaign against
his health care bill,

campaign against him, saying
he wasn't born in the United States.

A lot of them had signs
that he was a Nazi...

It was very, very low.

There are some in our society
who may not be reconciled

to the fact that an African American
has been elected president.

Sarah Palin...
She just was electrifying.

She was able to call Barack Obama
a liar and a terrorist sympathiser

with a smile on her face, you know,

and a... twang in her voice

and, you know, people ate it up.

I think there are lots of people
who truly believe...

got lots of misinformation
about who he is.

That's why you have lots in the
country who think he's a Muslim.

Only a President who is as
comfortable in his skin

as Barack Obama is could endure
those kinds of personal attacks

with the kind of grace
and the kind of comfort level

that he's demonstrated.

They were going after
President Obama

and stirring up
opposition to him.

That's what they wanted, to defeat
him, not just his health care bill.

Who is it who wanted to shut down
the government? They did!

But the strategy here has been
a scorched-earth policy

of just trying to beat
the president, stop everything.

He's been struggling against
the greatest obstructionism

in the history of the Congress.

It's the most cynical thing
that I've seen.

Republicans, in his view,

were most determined
to ruin his political future.

The president also lost
the House of Representatives,

so he was aware of
the extraordinary repercussions.

It was a turning point
for the president,

He didn't have the ability to have
the House run by the Democrats

that could further his agenda.

All the overtures
that he made on health care,

on the economy,

on any one of a number of issues,

were always rebuffed.

And he was furious.

And there are very rare moments
when this man loses his control

and his ability
to suppress his emotions -
that was one of them.

He said
"Even if I'm only in for one term

"I want to be in the presidency
to get big things done.

"I can see a way to get
health care reform passed

"using a certain particular
procedure

"and I want to finish this job
and I think we can do it."

But I think it ultimately
became clear to everyone

that he wasn't gonna back down.

As he tried to assemble a coalition
in a Democratic Congress

he had to try to figure out
how much was he going to sacrifice
from his plan.

The president to continue to try to
work with Republicans,

to compromise with Republicans,

which I think is what angered
his own party so much at times.

It seemed like a fool's errand.

The staffs of both the House
and the Senate,

as well as the White House staff

have been working very hard
to try to narrow the differences.

We made some progress today,

those differences
have been narrowed.

If he didn't change the way
he was trying to...

push through his health care bill,
it was gonna die.

Well, the president had many
legislative near-death experiences

with health care, I mean...

I can't tell you the number of times
it was pronounced virtually dead.

They said his presidency
was finished,

that he would never get
anything done ever again.

If he didn't get more involved,

if he didn't take this thing
by the throat and make it happen,

it was gonna fall apart.

Everyone, Democrats,
Republicans, the media,

everyone said
that was finished, over.

Health care was dead
and the presidency was over.

Two months later
he signed health care into law.

That's a remarkable turnaround.

After fierce bargaining and many
concessions, the bill was passed

thanks to a procedure which required
only a simple majority.

Though Obama won,

the reform falls short
of his electoral promises

and will leave 23 million people
without medical coverage.

Moreover, the final outcome will
depend on the Supreme Court

and that could take months.

Not perfect - health care
not perfect, frankly not perfect,

but compared to nothing,
much better.

He played the game
brilliantly and judiciously

and he's coming out
ahead in the end.

And to quote my favourite
vice-president,

"That's a big fucking deal!"

It was a euphoric moment, the night
that health care was passed.

We were on the Truman Balcony,
celebrating,

and one of the things he said was
"Enjoy this.

"This is why we're here.

"The feeling you have right now

"and the exuberance and the praise
we're all getting now

"you know, that's not gonna last.

"There are gonna be tough times
ahead, so savour this."

He recognised that there would be
tougher times to come.

At the beginning of November 2010,

Barack Obama will have to face
mid-term elections,

the Congressional elections,

which take place halfway through
a president's four-year term.

The election doesn't bode well.

The economic crisis is ongoing

and has destroyed any hopes
of growth in the near future.

Inequality is entrenched.

The bailout's effects have
rapidly run out of steam.

The president's approval rating
has sunk to under 50%.

The grace period is over.

Captions (c) SBS Australia 2012

This program is captioned live. Ali security threat. World leaders will be targeted at anniversary services.I do want to be in Bali for the 10-year commemorations.The fall-out from the Peter Slipper scandal. Senior MPs talk to us about sexism in politics. That I had not jumped up and down to claim sexism. I have brushed them off as fools and idiots. Sexism needs to be condemned wherever it comes from. A Russian court rules on Pussy Riot. The world on Pussy Riot. The world of reels in horror when a girl his shot for going to school. I will get my education whether it is in the home of these school. Good evening. hese school. Good evening. There are fears tonight a terrorist group is targeting the group is targeting the 10th anniversary commemorations ofanniversary commemorations of the Bali bombing. Security officers in Bali have confirmed the threats. The Prime Minister says and that she will be at the service on Friday, no matter what. Indonesian authorities are leaving nothing to chance. Security forces were on show today, scores of heavily armed police, they paraded before the cameras.

And they might need every one of those officers. Police revealed they had information of a credible threat to Friday's ceremony, marking the 10th anniversary of the bombings.