Thread: Iraq/Dinar News. 09/05 to 01/14/07

UNAMI-Compact
Iraq’s international partners pledge their support - UNAMI
Baghdad, Nov 1, (VOI) – The preparatory meeting on the International Compact with Iraq (ICI) held in Kuwait on Tuesday has yielded a pledge from the partners to provide financial, technical and political support to help Iraq meet challenges, the United Nations Mission for Iraq (UNAMI) said.
“A High-Level preparatory meeting on the International Compact with Iraq (ICI) took place in Kuwait City, hosted by the Government of Kuwait (on Tuesday). The purpose of the meeting was the final consolidation of support for and endorsement of the International Compact with Iraq, as jointly presented by the Government of Iraq and the United Nations,” the UNAMI said in a statement on Tuesday.
The meeting event was attended with representation of 20 States, regional and multilateral institutions, the formal members of the preparatory group for the ICI, said the statement received by the independent news agency Voices of Iraq (VOI).
Iraq agreed with the United Nations in July on establishing new partnership for Iraq with the international community through “the International Compact for Iraq”.
The primary focus of the Compact will be to build a framework for Iraq’s economic transformation and integration into the regional and global economy.
“The meeting marks the completion of the preparatory process of the ICI which has been developed by the government of Iraq with support of the United Nations and the World Bank, under the prevailing difficulties,” UNAMI statement said.
The ICI is an initiative of the Government of Iraq for a new partnership with the International Community, it added.
“The Compact, jointly co-chaired by the Government of Iraq and the United Nations, with the support of the World Bank, will over the next five years, bring together the International Community and Multilateral Organizations to support Iraq in achieving its National Vision.
“This Vision seeks to build a secure, unified, federal and democratic nation, founded on the principles of freedom and equality, and providing peace and prosperity for all its people, and fully integrated within its region and the international community,” the statement said.
The UNAMI said that domestically the Compact aim was to complement a National Compact around the government’s political programs and restore the Iraqi people’s trust in the state and its ability to protect them and meet their basic needs.
“Internationally, the Compact establishes a framework of mutual commitments that will support Iraq and strengthen its resolve to address critical reforms and policies,” it said.
“Iraq’s international partners have pledged to provide financial, technical and political support to help meet these challenges on the basis of mutual commitments to the necessary steps required to realize their shared vision for the normalization of Iraq,” the statement said.
The UNAMI said the formal adoption of ICI is scheduled for a high-level meeting during the next six weeks.
It was not clear where the meeting will take place.

UNAMI-Compact :: Aswat al Iraq :: Aswat al Iraq

http://64.233.179.104/translate_c?hl...l%3Den%26lr%3D

National Security Advisor will meet the Emir of Kuwait, the Foreign Minister and discussed with them the issue of the debt of Kuwait on Iraq and ways to develop relations between the two countries

The United Nations Mission in Baghdad (Ionami) that the meeting of the Covenant
عنInternational with Iraq hosted by the Kuwait yesterday, Tuesday, resulted in the
ي International partners pledge to provide financial support, technical and political
To help Iraq. "
الكاتب:Writer : non14Non14


القراءات:Readings : 22
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المشاركات:Participants : 27962796
التسجيل:Registration : الجمعة 22-08-2003Friday, 22-08-2003


انA statement issued by the mission received a radio (Tigris) today, Wednesday, a copy of which was that "
لىThe meeting, which was held at the headquarters of the Kuwaiti Fund for Economic Development, aimed at
التو".A final version to support Iraq. "

، علىPointing out that the meeting represents the vision to build an Iraq that is secure, democratic, unified, based on
".Liberty, equality and achieve peace and prosperity for all its citizens. "

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France decided to cancel 80% of the debt of Iraq

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The Ministry of Finance
Economists disagree and concerned Iraqis and foreigners alike on the above subject at the time believed part of these people that the Iraqi government has rushed to resort to the IMF and the World Bank to reschedule its debt on the terms of the implementation of the policy of economic reform, what happened was a fire (11.6) billion dollars

External debt in the first stage and are not only (7.8%) of the foreign debt is a small percentage compared to succumb to the conditions of the economic reform policy, which include :
One-raising support for the prices of fuels and other services.
2-cancel the ration card.
3-privatization of the public sector and transfer most of its business to the private sector.
However, the application of these procedures in light of the current circumstances of the country and this speed is a serious negative repercussions on the Iraqi society who are suffering, It weighs on his shoulders, it is unreasonable to be converted centrally planned economy based on the absolute leadership of the public sector and over the last four decades to a liberal economy based on free market economy between overnight has been Iraq after the events of 2003 / September 4 to the shock of political and economic shock and the trauma outside shoulder developing countries such as Iraq and unable to afford.
According to the latest statistics of the Ministry of Planning and Development Cooperation that in Iraq (60%) of the citizens below the poverty line if it is to be abolished the ration card, the removal of subsidies on fuel prices and services will be a lot of these? Moreover, the unemployment rate was between (40% - 50%), when taking these measures, the increase would amount to more than this percentage, this means that poverty line will increase and thus increasing rates of crime and corruption as the peoples of Iraq and the young population which are broad base of the population pyramid and unemployment are concentrated in the younger ages as a there n (3) persons of the unemployed (4) Each Iraqi people under the age of 25 years, and the resulting concentration of unemployment in this age group the consequences of political and social problems associated with unemployment situation among young people, as unemployment is fertile and conducive environment for the growth of crime and extremism and acts of violence which emerged strongly to the surface in a in Iraq, and particularly after the events of 2003 / September 4 and left serious negative effects on Iraq and there are many examples recall, for example, is not limited to (revolution of bread in each of Egypt, Tunisia, Revolution raise fuel prices in Yemen, etc.).
Despite all this, but we believe that Iraq can be achieved accession to the IMF and the World Bank and the benefits thereof, there will be a genuine development, as the case now in some Gulf countries Emirates for example, through the promotion of investments in certain sectors, such as the agricultural vital task through many inducements such as the granting of loans and tax exemption. etc..
The remaining investments is left free to supply and demand, Since Iraq where natural resources prices surely will be cheap production costs much less than other countries therefore feasible manufacturing and export why we are now importing cement types poor while the raw materials for the luxury industry this article are we? One of the benefits of the accession, we will get cheap raw materials can be carried out by industry, and we will also import expertise and technology to create industry and agriculture unsophisticated.
But what is happening in Iraq now is that there is somewhere in the building and demolition in another place, here is the words of the poet :
When the building on Lady
If you build and others destroy
Therefore, Iraq is at a crossroads important requires everyone - especially economic policy-makers in the country and transform them to review the premise of intellectual and economic theories which they depart in the formulation of policies and applications compatible with the concepts promoted by the modernization and reform and this is the biggest challenge Alaghtassa had we face today.
Thus, about the reality of bad-check society and with the requirements of the policy of the State economy faces up question about how that could be followed out of this crisis without a flaw adversely affect the economic process in the conduct of the citizen and the state alike?

Translated version of http://www.alsabaah.com/
_________________

Interview : Jalal al
The functions of fiscal and monetary policy in the new Iraq. work to reduce inflation without damage or negative impacts on the citizens and economy. But what happened is that the citizen surprised steady rise in inflation rates, unprecedented in Iraq and the region.

These policies and stood unable to curb the escalation and reduction. " Morning, "she discusses experts and officials fiscal and monetary policies and planning in Iraq on the practical means to stop this escalation and is working towards a gradual reduction of inflation.
D. The Ghalib Baban / Minister of Planning and Development Cooperation
We can deal with inflation only a comprehensive reform of the economy
* Inflation is present in all the economies of nations, the enemy is the well-being and prosperity. and we consider to be an indicator of economic dislocation in the country. It gives a full picture of the economy and levels.
The Ministry of Planning, I rise in the rate of inflation to 69%, and this percentage higher than other years, At the same time Antogaa of credit policy can play a role in mitigation. Also policies can the Iraqi Central Bank to raise interest rates to reduce it, Conversely, the productivity of individual Iraqi Mitrajahoutattabr unemployment of the main reasons for inflation, as they hit rate of 35 to 45% in the Iraqi society. a large proportion of the community is facing the problem of inflation. Monetary policy to offer any radical solution, , which would deal with inflation. All these factors led to the rise in inflation rates in Iraq and the weakness of the productive sectors, and it can only deal with inflation reform of the economy in general.
D. The Skinner / government spokesman
The state is determined to develop plans to contain inflation and high prices
Inflation big problem, and have branches overlapping political, social, It affects directly in the daily life of the people, and, therefore, it draws feelings of the tasks of fiscal and monetary policy in the new Iraq. work to reduce inflation without damage or negative impacts on the citizens and economy. But what happened is that the citizen surprised steady rise in inflation rates, unprecedented in Iraq and the region.
. People direction of discontent and demand by the fast may not be available, or can not be provided in the near term unless other objective elements such as security and increase the effectiveness of the Iraqi economic sectors such as industry, agriculture and services, The possibility of implementing projects Strtejeh may contribute to solving the problems of unemployment and poverty, and attracting foreign capital to work and invest in Iraq. all these elements can be in solidarity to limit runaway inflation, but that can make it Eroah at levels low so as not to negatively affect the lives of citizens and the mobility of society towards economic construction and reconstruction.
For that we need at this stage to further efforts through scientific conferences, symposia and research to study this phenomenon, frameworks and strengthen cooperation between the scientific institutions concerned, such as universities, research centers, civil society organizations, and between the institutions of the State, which has a responsibility to search for solutions and treatments. Because of the scientific conferences and symposiums to discuss the pressing economic issues (including inflation) to make available all relevant data and statistics, which are often derived from reality, including contribute to the development Stratijiat deal with the problem, which can be translated through cooperation, and continuous consultation between frameworks such as universities and scientific research centers and operational frameworks such as the Iraqi Central and other economic institutions and mechanisms Mikanzmat enable the state and society to develop solutions and approaches to reality j.
The state is determined to develop plans and strategies which they can contain the problem of inflation and high prices. and the reduction of aggravation, We can achieve this goal only through the concerted efforts of institutional and popular adding that the government of the elimination of administrative corruption and the adoption of Security Council resolution of social problems resulting from the forced displacement and many other problems.
The transition to a market economy stands behind these developments and unrest price which is reflected in the fact of living of its citizens, This is a progress would be overcome if the stability of the new economic structures on the basis of incorrect.
D. Haitham Karim / Studies Center
Strategic and Legal / University of Mesopotamia :
Moving away from a policy of absolute openness
Identify a mechanism to reduce prices
Inflation is a continuous rise in prices is not commensurate with the income obtained by the citizen whether salaries or wages and note that the increases in salaries, wages eroded with the rise in the prices of goods and services and increases in salary scales are not suitable for the high volume of authorized There marginalized in the real income for the rise in the value of wages or salaries. As we know, the situation in Iraq is exceptional and not specific constants and no mechanism for controlling prices, and there is the question arises : Have we live in a market economy or a planned economy based on the Department of State?
I believe that the ways to address that inflation is moving away from a policy of openness and absolute determination mechanism to reduce prices, and thus access to a state of imbalance means that the ceilings set high prices continuing to rise and that pricing random and thus reduce the inflation rate constant
D. Kamal visual / Undersecretary of the Ministry of Finance.
Equation reform fuel prices and achieve social protection *
The phenomenon of economic inflation derived from the existence and abundance of cash with the scarcity of goods and services, This abundance of liquidity in the cash came from the budget for this year allocated amounts of cash many of the salaries and wages increased by 90% from what it was last year. This pumping major financial market, while goods and services in the market started less for a variety of reasons, including security reasons, which made the market confused, as well as the crossing of goods through the border crossings have become confused also, in addition to the lack of fuel and the lack of electricity has affected the production of services and goods in the market, Consequently, all these factors involved in reducing what is of such goods and services. In addition, the availability of cash when individuals led to a rise in prices, Therefore, we believe that addressing the issue of security is necessary to solve any problem. Stability security addresses many issues.
With regard to fuel, it should state that these derivatives to prevent the continuation of the black market and the rise in Alasarulhta We encourage the state to expedite the implementation of the law on the import of oil derivatives and non-monopoly by the state and only allow the private sector to play a role in this subject.
The prices of oil derivatives, reform is necessary but must proceed according to the true by creating a climate logical to protect the poor despite the existence of the social protection project, but boy needs to Alttwiro other hand we need to support the services of water and electricity and other basic needs, because without such services, any reform will be distorted and non-integrated and affect the economic well-being of the citizens.
The figures, the frightening statistics of inflation now do not represent the reality of Maisbbh inflation and if the case was just the same, the inflation rates escalate more than any time previously. d. the appearance of Muhammad Saleh / Director of Research / CBE
Reducing inflation : the solution of the unemployment problem, The priority for housing projects
Can Nesher that the Iraqi economy weak in a great organizational structure because of the domination of the oil sector and other sectors in the small contribution to support the national income. And Nakkathalasasih is that the economic projects which the States have started to generate vibrations on the old traditions. direct support as it is known, is 80% in Iraq and this strange phenomenon in the world why any interference in this support or deal with such support will lead to many imbalances in the forefront of inflation. In my opinion, we can resolve these issues only, such as, inter alia, the solution of the unemployment problem, and adopt priority projects, or projects that could repeal or eliminate the issue of unemployment, Ole important economic projects are housing projects, they occupy 20% of the labor force
Iraqi addition to the housing projects and the construction of two thirds of the capital formation of the national wealth in the country. as well as a strong incentive for all activities, such as construction and other industries, It also creates operational activities indirectly to other industries.
Growth must proceed in a natural addition to some monetary reforms to contain such phenomena which distort the economy to control inflation bloc, We must pursue economic policies to reduce inflation, that is on the increase, If we take, for example, the rate of inflation between July of last year and even this year, we see the proportion rose to 70% and this figure is very dangerous inflation, which could be called the wild, This Maether the standard of living and prosperity in the country.
If they were to control the prices of oil derivatives, and work on ration cards for a long time, I believe that the indicators of inflation will subside relatively
. D. Mahdi Ilaq / general manager of the
The statistical and information technology to address cash-flow and in-kind
Investment and trade policies
* Inflation is an imbalance in economic structure between cash flows and flows kind, If we are to address this imbalance must address both in kind and cash flows. There are many treatments, some of which are linked to the actions of financial, monetary and investment policies and the balance of trade, both in terms of imports is the reduction of consumer goods and others, as well as exports and encouraging investment and capital products. These relate to the many actions hub statute of inflation.
The reasons for the persistence of inflation are many :
1-increase in the amount of money compared Balcmihalsabqh and also compared to the quantity of the goods under deliberation.
2-velocity and movement of money between individuals and institutions.
3-wars and spending on armaments.
4-budget funding.
5-foreign obligations and the burden of taxes and how to deal with them.
All these causes interference and influence in the subject of inflation.
This results in serious consequences, including inflation : -
- A decline in the value of money and the amount of individual pride.
B-disturbances in the balance of payments.
C-redistribution of wealth randomly to the benefit of civilians because of the decrease in the real value of the criticism.
A negative result of the increase unequal increases in the prices of services, which negatively impacted on the citizens with limited income.
D. Ahmed Al-Wazzan
Faculty of Administration and Economics / Mustansereya
A quiet excited about the prices
The Iraqi economy and a major shift Anataka of strong government intervention in economic totalitarianism towards the adoption of free-market mechanism and forces of spontaneous creativity in the context of the state known in contemporary literature (creative chaos or constructive), the rise in the general level of prices in light of the stability of the dollar disbursement of the Iraqi dinar to other currencies is the most important matter and is acceptable within certain limits that can control and the range of time can be unpredictable.
At a time when the public satisfied with the high level of incomes and improved purchasing power with the others complain about high fuel prices. And the right to raise fuel prices is behind a number of reasons and factors accepted and useful familiar with the scientific experience and expertise, but to raise the prices of fuel, the pricing of public services and other procedures required for the transition to a market economy would have cost to the extent a short - or medium - according to the prescriptions of the International Monetary Fund j and the International Bank for Reconstruction and Development.
And it can count the rise in the general level of prices in the current Iraq accepted and routine matters associated with the above long as those factors were still under the control of economic decision makers in the field of financial and monetary policies, as long as the issue comes within the framework of expectation prior to them in conditions of deportees e transition to a market economy and which adds to the ease of our prior determination that certain security conditions contribute to the formation and the creation of the emergency played a role in raising the general level of prices and once they disappear temporarily, this part of the rise in prices will end the demise of emergency conditions.
And it can be recognized (from the economic point of view) that the current rise in the general level of prices in Iraq Was phenomenon or a departure from the scope of the familiar is a kind of creeping inflation region, which does not worry hyperinflation, which accelerated generate a crisis and despite the optimism of this vision but that does not mean there is no impact negative harsh on the poor and low-income Anya.
D. Dia net-College
Administration and Economics / Mustansereya
Inflation Bsiashaghtassadeh balanced and comprehensive approach to achieving prosperity

Faced with the Iraqi economy in recent decades and rising inflation in the early 1980s, which led to be called the beginning of the collapse of the dinar exchange rate and deepen it by the imposition of the economic embargo on Iraq and led to low supply Commodity growing and significant increases in commodity demand and thus led to a major breakdown in S. Er Iraqi exchange rate.
The real problem lies in the absence of economic and financial policies and monetary designed primarily to increase the base rate of the Iraqi dinar against the dollar and government economic measures imposed as conditions by the International Monetary Fund, the World Bank and the so-called Group of States (Paris Club group).
In raising the subsidy on the prices of oil derivatives by nature and the nature of economic interdependence, which links call for economic sectors in the whole country were the first batch of inflation, which will stop at certain limits and that inflation could go over the application of the remaining conditions of the abolition of the ration card, which represents a basket of food Chairperson of the majority of the population of Iraq (70%) and could further deepen the privatization of the public sector, which is a significant increase because of unemployment in the country and catching up with globalization through accession to the WTO, which means killing the national industry and agricultural products for export or marketed to the domestic market Jazy blood potential to compete with foreign goods.
To face the dangers of inflation, we can not adopt a piecemeal, but through a balanced economic policy and working towards comprehensive economic welfare of the individual and society is not only through the diagnosis of all monetary and fiscal policies and work to raise its production capacities for the purposes of increasing the supply of the commodity that is my right, Ka causes leading to inflation.

Source: Kuna

The US voiced on Tuesday overall support for the International Compact with Iraq (ICI) in its current state and form.

During a press conference at the conclusion of ICI's fifth and final preparatory meeting which was held in Kuwait, US Deputy Treasury Secretary Robert Kimmit said "I signaled in today's meeting the US government's strong support both for most of the concept of the international compact, also our strong support for the draft as emerged." He added "based on today's successful meeting, I think we are in a position to move to a ministerial level meeting" to enable concluding the compact.

He believed that the amount of international pledges to ICI would be announced during the anticipated ministerial meeting.

He noted that the US has extended Iraq with debt relief, technical assistance, as well as donor assistance for economic development and boosting security bodies.

He said despite political and security difficulties, Iraq's economic progress has made significant progress through a stable currency, sizeable foreign currency reserves and almost back to pre-war levels of oil production, which enabled Iraq to fund a considerable amount of government operations.

However, there was still a gap between their requirements and available resources, which stresses the necessity of ICI, he said.

A number of nations, including the US, have made the decision to write off 100 percent of Iraq's debts, while others wrote off 80 percent, and other nations are closely considering similar write offs that would be decided through bilateral talks, he said.

Kimmit represented the US during this one-day meeting.

Earlier, Special Representative of the UN Secretary-General for Iraq Ambassador Ashraf Qazi said ICI's final adoption would either take place during the end of November or the beginning of December and the final location of the meeting was under consideration.

ICI directly linked to bringing stability to Iraq -- Kuwaiti FM

01/11/2006

Source: Kuna


The importance of the International Compact with Iraq (ICI) derives from its direct link to Iraq's security as many of its friends seek to take part in instilling stability in the country, said Foreign Minister Sheikh Dr. Mohammad Sabah Al-Salem Al-Sabah on Tuesday.

Speaking to a press conference on the sidelines of the ICI meetings, he reiterated Kuwait's readiness to contribute to bringing security, stability, and prosperity to its neighbor, Iraq.

He noted the ICI meeting came soon after the Mecca Conference that brought together Muslim clerics of the country.

The conference witnessed the signing of the "Mecca Document" which called for bridging the gap between Sunni and Shiite Muslims in Iraq and underlined the gravity of the sectarian crimes that were being committed.

He added that the ICI meetings, held in Kuwait, would also serve the interests of Iraq's neighboring states and those of the international community as a whole.

Sheikh Mohammad said the ICI meeting was an Iraqi proposal and unlike the donors' meeting held in Madrid, adding that there was "a global responsibility shouldered by the international community on one side, and a responsibility that must be shouldered by the Iraqi side in honoring political, economic, and security commitments." He described the meeting as being an "innovative idea", adding that Iraq was a country of boundless resources and that of rich culture.

"The ICI meeting is a bridge over which Iraq crosses into a state of stability," he said, but stressed that "development is not possible without security and stability... and no security can be achieved without national reconciliation." Moreover, Sheikh Mohammad said that it was time for Iraqis to stand united and that "once they (Iraqis) unite, the whole world will be there to support them." The Minister noted Kuwait's allocation of USD 500 million in aid to Iraq, saying that a plan was being placed for the utilization of this money to boost the country's economy.

In response to a question on writing off Iraq's debts, Sheikh Mohammad said this depended on "constitutional tools" and required the approval of the National Assembly (parliament).

As for whether or not the security situation in Iraq was hindering economic development, he said, "Iraqis are better able to handle their issues and that Iraq must remain united and not fall into a civil war.

The fifth and final preparatory meeting for the International Compact with Iraq (ICI) Tuesday said recognizing challenges facing Iraq has helped shaping up strategies, objectives and benchmarks to overcome all difficulties facing the nation.

In a final communique following a one-day meeting, the ICI said the participants recognized the current challenges facing Iraq, which lead to shaping a series of strategies, objectives and benchmarks that would help in composing an integrated plan to overcome all difficulties.

"The compact, jointly co-chaired by the Government of Iraq and the United Nations, with the support of the World Bank, will over the next five years, bring together the international community and multilateral organizations to support Iraq in achieving its national vision" that would achieve security, democracy, freedom, equality and prosperity for Iraq, noted the communique.

ICI aims at creating a mutually reinforcing dynamic of national consensus and international support that would back up the Iraqi government's programs, restore Iraqi people's trust in the state, establish a framework of mutual commitments to support Iraq, settle security and political challenges, ascertain good governance, as well as kick start economic development.

The compact's members have pledged to provide Iraq with financial, technical and political support to overcome all current difficulties.

"Mindful of the urgency of rapid progress and firmly endorsing the compact as presented, the formal adoption of ICI is scheduled for a high-level event during the next six weeks," explained the communique.


If you look at this article it was posted to the news sites on the 30th of October but at the bottom it's dated October 6th so the meeting should be held by the 17th of November. This strangely coincides with the rumored date , November 13th(from IIF) that BoA will begin trading dinar. It has also been rumored that the FIL will automatically be enacted around the 10th-12th of November.

RUSH: Mr. President.

THE PRESIDENT: Hey, Rush, how are you?

RUSH: Never better. It's a thrill to have you on the program today and many thanks for making time for us.

THE PRESIDENT: Thank you, sir, for giving me a chance to visit with you.

RUSH: How are you doing?

THE PRESIDENT: I'm doing great. I really am. You know, when you've been doing this as long as I have you feed off the crowds and feed off the enthusiasm and you like a contest, and we're in a really important contest, and so I'm doing fine. It's kind of like a reminder of how I got here in the first place, and that is: go campaign hard and tell people what's on your mind. That's what I'm doing.

RUSH: Well, you have maintained optimism throughout. Many people, I guess -- in the opposition press, the opposition party -- are incredulous that you are optimistic about the outcome next Tuesday. Why is that? Why are you optimistic? What do you know that they don't?

THE PRESIDENT: First of all, I fully understand that here in Washington people are trying to proclaim the election over with, but I've had that experience before. That's what happened in 2004, and it's what happened in 2002. So one reason I'm optimistic is I trust the will of the people and not the national punditry. Secondly, I know that we're right on the issues -- and the issues, the two main issues, are low taxes and winning the war on terror and protecting the American people. So I believe if our candidates continue to talk about the strong economy, based upon low taxes, and an administration in a Congress that was willing to give professionals the tools necessary to protect them, we'll win this election.

RUSH: When you go out on the campaign trail or when you're in your private moments, do you think of the consequences of governing with a Democrat majority in either the House or the Senate when it comes to things like tax cuts and the war on terror?

THE PRESIDENT: No, I really don't think about the idea of having a Democrat-led House and Senate because I don't think it's going to happen. I do believe, though, that there's a big difference of opinion between the two parties. Every tax cut we passed, which has helped this economy grow, was opposed by the Democrat leadership. The people that would assume power are the very ones who oppose letting people keep more of their own money, and then when it came time to fighting this war on terror we had votes on whether or not we should be able to listen to al-Qaeda or an al-Qaeda affiliate making a phone call to the United States and the overwhelming majority of House Democrats voted against that bill. Or when it came time to question detainees that we picked up on the battlefield, the overwhelming majority of House and Senate Democrats voted against that bill. So there's just a different mindset, Rush, a different attitude about how to protect the American people. My attitude is to give the professionals the tools, and to stay on the offense and fight the enemy wherever we find them and defeat them overseas so we don't have to face them here.

RUSH: Yeah, but you've got -- as you've just said, you've got -- a sizable majority of people, not majority, but sizable number of Democrats who are trying to stop you from even finding these people. Let me go through a list of things. The New York Times, some other national newspapers, have published classified secrets of the United States during wartime. Everything from blowing up the financial tracking program that you had, to trying to destroy the Patriot Act, to trying to destroy your Foreign Surveillance Act, the leakers haven't been identified or punished. The American people are outraged about this Mr. President, because they consider this... They remember 9/11, and they know that this is not just a mere episodic event in their lives and they want to know when these people, media and leakers, are going to be held accountable for this action that, to them, is an attempt to sabotage and undermine victory over this enemy.

THE PRESIDENT: Well, I share the concerns of the people who wonder why there are leaks, which tells the enemy how we're conducting the war against them. Obviously as Commander-in-Chief, Rush, I'm deeply concerned about our secrets being made known. There's a Justice Department Task Force or Justice Department group that are in the process of gathering the information necessary to find whether or not they can find the leakers. But you talk about the fact that some people don't want to give us the tools necessary to fight the war. All that means is we gotta win on November 7th. Now, I recognize some people don't think we're in a war. I know we're in a war, and I know there's an enemy that still wants to strike us. As a matter of fact, I spend a lot of time thinking about how best to protect the American people -- and the idea that, you know, some in Congress don't agree with me, I accept. But they should not deny the tools necessary to this government to do our most important job, and that's the fundamental issue in this campaign. So when I say that, you asked why I'm optimistic, because when I spell it out to the people I'm in front of, they fully understand. People come up to me all the time and say "Thank you for protecting us." My answer in this campaign is, "I'm going to continue to protect you, but I need a Congress that understands the stakes."

RUSH: You riled the press corps at one of the press conferences at the White House when you intimated that their work in Iraq has sometimes advanced the cause of the enemy, and there's a recent example of this. CNN recently aired video that they got from terrorists. They reached out to these terrorists, and according to accounts, the way they got the tape from the terrorists was to promise the terrorists a "fair shake." This video showed terrorists taking pot shots, assassinating US soldiers in cold blood. What are your thoughts as the Commander-in-Chief when you see this and when you hear about this?

THE PRESIDENT: My thoughts are that we face an enemy that will kill innocent people. They murder to achieve their objectives, and they use propaganda in order to do two things. One: proclaim their might, and secondly to discourage us. Obviously the idea of their propaganda being displayed is something that bothers me in the sense that I don't want the American people to become discouraged. One: I want them to understand the stakes in this war; and, two, that we're going to win this war and not to be discouraged about the violence and the propaganda that they see. Obviously, some of the violence is not propaganda, but these tapes that they put out are all aimed at shaking our confidence.

Osama Bin Laden himself has said that it's just a matter of time before the United States loses its will and retreats. Give me a second here, Rush, because I want to share something with you. I am deeply concerned about a country, the United States, leaving the Middle East. I am worried that rival forms of extremists will battle for power, obviously creating incredible damage if they do so; that they will topple modern governments, that they will be in a position to use oil as a tool to blackmail the West. People say, "What do you mean by that?" I say, "If they control oil resources, then they pull oil off the market in order to run the price up, and they will do so unless we abandon Israel, for example, or unless we abandon allies. You couple that with a country that doesn't like us with a nuclear weapon and people will look back at this moment and say, 'What happened to those people in 2006?' and those are the stakes in this war we face." On the one hand we've got a plan to make sure we protect you from immediate attack, and on the other hand we've got a long-term strategy to deal with these threats, and part of that strategy is to stay on the offense. Part of the strategy is to help young democracies like Lebanon and Iraq be able to survive against the terrorists and the extremists who are trying to crush their hopes, and part of the democracy is for a freedom movement, which will help create the conditions so that the extremists become marginalized and unable to recruit.

RUSH: Well, that is extremely visionary. One of the things, if I may make this personal, one of the many things I've admired about you is that you see down the road 20 or 30 years. You just illustrated that with your comment. What if down the road 20 years we look back to this time and with 20-20 hindsight realize we blew it. You're not, as far as it sounds to me, you're not going to let that happen. You're going to do whatever it takes to secure victory.

THE PRESIDENT: I am and I fully understand the nature of this enemy. One: they're great propagandists, and two: they truly believe they can cause us to retreat by inflicting enough damage, and three: they're lethal. But I also understand they have no vision; they have no ideology. I mean, they have an ideology, they just can't convince people that their ideology makes sense, and I also understand that we're inflicting damage on them. That we're on the hunt, that we're bringing them to justice; that if you're al-Qaeda you know the United States of America is breathing down your neck, and we will continue to do so so long as I'm the president -- and Iraq is a tough fight. The recent debate here on Iraq, some say Iraq is a "distraction" from the war on terror. My answer to them is, listen to Osama Bin Laden who says: "Our objective is to defeat America, which will disgrace America, which embolden the terrorists," which will then enable them, them being al-Qaeda and extremists, to have safe haven just like they had in Afghanistan -- and we're not going to do let them do it. No matter how tough it gets, the United States of America must remain firm and resolved to protect a generation of young Americans, and that's precisely what I'm going to do as your president and that's precisely what I'm telling the people on the campaign trail.

RUSH: Mr. President, we hear a lot of things from troops in Iraq, both troops that are there and troops who have returned. To a man and woman, they are shocked, they say, when they get back here, turn on the news, and look at the reporting of how things are going. They think there are tremendous successes that have taken place in Iraq. Not just governmentally over there, but military successes that aren't being reported, and it frustrates them. I think they're a large voting block, they and their families, and as they come back and watch I think they're going to be active in this election as well.

THE PRESIDENT: Let me say something about our troops, Rush. I am... I guess "amazed" is the proper word at how courageous our troops are, and I am amazed at the fact that they are so capable, and that they volunteer in the midst of this war to defend us, and these troops deserve all the support of the United States of America, and they understand as well as anybody that we are making progress in Iraq, and they know when their comrades are out there fighting that they're bringing enemies to justice. They see that firsthand. The enemy has got an advantage in that by killing innocent people it looks like they're winning, because it gets on our TV screens. We have taken a measured approach to talking about casualties, but I can assure your listeners: our troops are on the offense, and they're after an enemy. When they find the enemy and the enemy confronts, we win.

They can't beat us on the battlefield. The only way we can lose this is if we leave, and our troops are -- the other thing people say, "Well, you know, it's a long slug and therefore it's going to be hard to maintain morale in the military." One: it is going to be a tough fight, but I will tell you something. The morale in our military is high because these young men and women understand the stakes. Reenlistment rates are very high and recruitment rates are strong, which all says to me we've got an amazing country when we've got people who put on the uniform say, "Put me in. I want to go fight for this country."

RUSH: Yeah, and then they turn around and get insulted routinely. John Kerry is not the first. He's just the latest, Mr. President. We don't really have to focus on him. You've spoken about Senator Kerry. He's now trying to laugh this off by saying he was talking about you, but clearly he has a Vietnam era mind-set, back when we had a draft, that if you didn't have a college deferment you got drafted -- and that's his thinking on who comprises military members, that they're basically uneducated boobs, but it's not just Senator Kerry. We've got Senator Durbin who has impugned interrogators at Guantanamo Bay. Throughout this war effort some Democrats have done their best to impugn the people who are volunteering, offering their lives in sacrifice to defend this country. They have questioned their motives. They've questioned their backgrounds and so forth -- and frankly, Mr. President, the American people are outraged by this because John Kerry is just the latest. This is not the first.

THE PRESIDENT: Anybody who is in a position to serve this country ought to understand the consequences of words, and our troops deserve the full support of people in government. People here may not agree with my decision. I understand that. But what I don't understand is any diminution of their sacrifice. We've got incredible people in our military, and they deserve full praise and full support of this government. Secondly, what they deserve is a plan for victory, and we have a plan for victory. Our victory, as you know, is really to help the Iraqis win, to help the 12 million people, to help Iraq realize the dreams of 12 million people who voted. To help the political process and help the security process and help the economic process and we're doing just that. It's not easy work, because there's an enemy that still tries to derail the process. They're trying to foment sectarian violence, and on the other hand it's necessary work. My problem with many of the Democrat voices in Washington is they have no plan for victory.

This is an essential part of the war on terror, and I believe responsible leaders must come up with a plan for victory in order to achieve peace, and yet the only plan I hear is, one: let's get out of Iraq before the job is done -- which would be a disaster for a future generation of Americans. Getting out of Iraq, Rush, all that would do is embolden an enemy and dash the hopes of millions who count on the United States to help them secure freedom, and getting out of Iraq would make the country less secure. One of the interesting things about this war that is different from previous wars, is in previous wars you could leave the battlefield and the enemy would stay close to the battlefield. In this war, if you leave the battle, the enemy follows us home to America -- and that's one of the lessons of September the 11th, and that's one of the reasons why we will win in Iraq. I repeat: the only reason we could lose in Iraq is if we leave, and, therefore, we've got kids sacrificing in Iraq, and when they hear politicians say, "Get out before the job is done," that's discouraging to them, and it's discouraging to the Iraqis, and it's encouraging to the enemy. That's why my voice is so loud in saying to our troops: "What you're doing is noble and important and you're going to win and history will look back and thank you for your sacrifices."

RUSH: Before we go -- I know time is dwindling -- I must ask you about North Korea, because I find this fascinating.

THE PRESIDENT: Sure.

RUSH: Your critics have been demanding bilateral talks, just the United States and North Koreans. You've been telling them we did that and it didn't work, and you've been insisting that we have six party or multi-lateral talks to deal with the North Korean nuclear problem. North Korea sets off their so-called nuclear test and now, all of a sudden, after you maintaining the six party talks as being key to solving the issue, it's North Korea who appears to have blinked and you have been proven correct in your assessment of how to play this thing. It's a stunning development that has been greeted with silence, Mr. President. It really has. You stared them down. The United States did. Let me not make this personal. The United States stared them down. You stuck to your guns, as you do on everything, and the way you think is best to be handled is going to happen.

THE PRESIDENT: I think that, yes, the news that North Korea wanted to come back to the six party talks is very positive. I want your listeners to understand this, that I made the calculation having watched what happened during the last attempt to have bilateral relations with North Korea, that if it didn't work then, it's not going to work now. The second part of my calculation was: It's better to have more than one voice saying to the North Koreans, "There's a better way forward than you attempting to have a nuclear weapon," and some of those voices are the voices of the Chinese, for example, or the Japanese and the South Koreans and Russians, obviously, and it's that combination of voice saying loud and clear to Kim Jong Il that there's a better way. It will make it more likely we can solve this issue peacefully and diplomatically and now the task is, when the North Koreans come back to the table, is to make it clear that our intention is to help them move forward so long as they give up their weapons in a verifiable way. Our objective is to rid the Korean Peninsula of any nuclear weapons threat. It was good news. The announcement of Monday was good news and we will pursue the opportunities ahead of us. But the key is to make sure that the North Koreans, when they sit at the table, look around and see more than just the United States. That they see other parties who can either help them succeed or cause them to become isolated.

RUSH: Does this mark any kind of a shift, dramatic or otherwise, in our relationship with China?

THE PRESIDENT: Our relationship with China is a very complex relationship, and it's an important relationship. Obviously we have an economic relationship, and we're trying to put that relationship in a position where our Americans can realize that trade is not only free but it's fair. One great opportunity for China, Rush, is to encourage China to develop a society in which there are savers. In other words, a society in which there's a pension plan. Let me rephrase that: a society in which there's consumer because now there's a society of too many savers. The reason they're saving so much money is because there's not a pension plan or a legitimate healthcare system. The people horde the money they have in anticipating there's going to be a bad day. If we can encourage China to be a country of consumers, you can imagine what it would mean for US producers and manufacturers to have access to that market.

An interesting statistic is India, for example, has 350 million people in their middle class. That is a significant opportunity for US firms to sell into those markets, which means better US jobs. So one, there's an economic relationship. Secondly, there's the security relationship. How do we work together to make sure the Far East is secure and peaceful? And obviously the issue we're now dealing with is North Korea, and it's in both our interests that the Korean Peninsula be nuclear weapons-free, and the Chinese understand it's in their interest. So we found common interest here to be able to work together, and the more we're able to work together, the more likely it is that a future president will be able to maintain the peace. One really important issue in the Far East is -- for your listeners to understand -- how important it is for there to be a United States presence in the Far East. We serve as a way to make sure that there's stability, and stability in the Far East obviously is essential for the United States in the long-term, and therefore that's why we'll have a presence there and should have a presence there for the long-term.

RUSH: Mr. President, we have to let you go, but before I do so I have to share something with you. When I announced yesterday when the schedule was firmed up that I'd be talking to you today, I got tremendous -- I would say inundated -- with e-mails from people asking me to tell you that they're praying for you.

THE PRESIDENT: Yes.

RUSH: So I wanted to pass that on.

THE PRESIDENT: My answer to those who say they're praying for me is, one: thank you; two: I'm grateful, and three: It matters a lot, and it's a remarkable country where people from all walks of life and all faiths pray for me and Laura and has made a significant difference in my life and I'm grateful.

RUSH: Mr. President, thank you for your time, and all the best. I look forward to the next time we speak.

THE PRESIDENT: Yes, sir. Thank you.