David Axelrod: Obama's 'magical journey'

by Mark Silva

David Axelrod, President-elect Barack Obama's senior political strategist, is savoring the moment, the culmination of a "magical journey.''

Near the eve of Obama's inauguration, the Chicago-based political strategist who helped steer Obama's election campaign appeared on a new addition to the Sunday news-show lineup, CNN's State of the Union with John King.

Asked about the meaning of the moment at hand, Axelrod said, "It's hard to put in words, John. It's been such an extraordinary journey. I mean, we started off together trying to
persuade people that he could get elected as senator from Illinois, and it's been a magical journey ever since. ..

"But you can't help but be here this weekend and not be moved by the magnitude of this. And mostly, I'm thrilled because I really believe in him. I think this country needs an extraordinary president right now, and I think he'll be one. ''

King asked Axelrod about the Treasury secretary-designate's personal income tax problem, about the economic stimulus package, peace in the Middle East and more.

Asked about the tone the new administration is attempting to set, Axelrod said: "I think it's telling that his first acts happened before he was president. He came to town two weeks early to begin working on an economic recovery package, because
getting this economy moving again is absolutely paramount. And so he is going to continue to work on that.

"And, you know, he's going to follow through on some of his other commitments. He will be meeting with the Joint Chiefs of Staff to... begin an orderly and responsible withdrawal from Iraq. He will be doing many of the other things that you heard him commit to during the campaign.''

With Israel's agreement to a cease-fire in Gaza, the president-elect's advisor was asked if Obama plans to have "an envoy on the ground in the Middle East on Tuesday, on Day One?''

"Well, first of all, let me say that all of us are hopeful that a cessation of violence will hold,'' Axelrod said. "But the president-elect has said repeatedly that he intends to engage early and aggressively with diplomacy all over the world and using the men and women, the professionals who are in place, who are great, and, where appropriate, special envoys.

"I think that the events around the world demand that he act quickly, and I think you'll see him act quickly.''

Asked about the economic stimulus that Obama is proposing, a package weighing in at $825 billion and more now that Congress is putting its pieces together, Axelrod said, "Well, we -- we have been involved in discussions with Congress for the last few weeks. We started with a figure that was somewhat lower than that.

"Obviously, there are limits to what we can do, but we do have to think boldly right now, that the scope of the emergency we face is so large that economists from the right to the left agree we have to do something big,'' he said.

"But let me just say this on the question of how the money is spent. We were determined and we are determined not to simply spend money to create jobs in the short term -- and we do believe it will create 3.5 to 4 million jobs -- but we're determined to make investments that will strengthen the economy in the long run. Investments in alternative energy, investments in creating the classrooms of the 21st century, so our kids can be competitive, investments in computerizing medical records across this country to reduce health care costs and improve care. These are the kinds of investments that we need to make as a down payment on our future. And it does have economic -- profound economic implications. So we have to think long term and short term here. ''

King also asked about the nominee for Treasury Secretary, Timoty Geithner, who had failed to pay some $30,000 in taxes. He has paid up, with interest, "but the transition disclosed that to the Senate Finance Committee on December 5th,'' King noted, and "the American people were not told about this publicly until January 13th. Is that -- can you call that truly open and transparent, when the American people were not told something for more than a month that's pretty critical? ''

"It is absolutely appropriate for us to first take this matter to the Finance Committee,'' Axelrod said. "It was very clear that that was going to be discussed in open hearings for the American people to watch and formulate their own judgment. So I wouldn't say this is a transparency issue.

"And as to Tim Geithner, yes, he made a mistake on his taxes. It was related to his service overseas and how certain withholding was treated. Most accountants say this is a fairly common mistake. When it was discovered, he redressed it.

"The bigger point is, here is a guy who'd been involved in public service all his life, who was a major architect of the last international financial rescue in the '90s, who has vast experience and great values and a great insight into this process. So I think when the American people get to know Tim Geithner, it's going to inspire the same kind of confidence that those in the financial and economic community feel. ''

.