Inside President Obama's inauguration and second term

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Running me now is a member of the president's inner -- senior advisor David -- and David welcome back to Fox News thanks for having Chris before we get to the inauguration.

And the president's second term I want to ask you about this terrorist attack in Algeria.

What's your latest information on how many Americans were taken hostage.

What's the status of -- Americans.

And what does the president think of the way the Algerian.

Military handled the situation.

Well we have no additional information reporter and wanna do the State Department will do that.

I think this is a reminder that countries around the world.

Share joint threat from these terrorist organizations that's why we are selective about providing.

Expertise in -- information technology to help them destroy these networks where there exist.

And it's reminder obviously northern Africa and other parts of the world al-Qaeda and al-Qaeda affiliated groups remain a real threat and I think we've got to remember.

You know.

The terrorists deserve all the blame and fault here he -- -- And I think we are going to be talking to the Algerian government in the days to come to understand more fully exactly what happened here any.

Second thoughts about the way the algerians -- the source an awful lot of not only militants -- hostages who were killed.

Well listen I think that we're gonna obviously being contacted -- about this but I think the focus here needs to be.

On the terrorists and it's it's a reminder that all across the globe.

Countries are threatened by terrorists who will you civilians.

To trying to advance their twisted and sick agenda and I think that -- that's why this really isn't Internap is gonna require an international response.

And that's what we are so focused on where there counterterrorism partners around the globe in northern Africa and Middle East and elsewhere.

In working with you know sharing intelligence technology expertise so the day can.

Do a good job of destroying these networks before -- like this -- let me ask you about -- because during the campaign President Obama often talked about al-Qaeda as a spent force but.

It just this week when this terrorist action happens Defense Secretary Panetta talked about al-Qaeda.

In a very different way let's walked.

We got limited Al qaeda's core leadership from -- Al-Qaeda is still there they're still a threat.

There are threatening him and there threaten Somalia's.

Third threat as we speak.

In Molly.

Does the president now recognize that al-Qaeda is not decimated but -- in fact resurgent.

-- the countries that that secretary of defense Panetta talked about and what as he prepared to do.

To take them out in Algeria and Molly and Libya and across the region.

While the president's always recognize that for each and every day.

He's leading an effort.

To monitor.

Terrorist activities.

And to disrupt them why the -- in the campaign well decimated there isn't -- There's no question that the core al-Qaeda leadership particularly in Afghanistan Pakistan region has been desperate.

Obvious you're seeing across the globe.

Groups mushroom -- from -- up and so that's why.

You know what we've done in Yemen what we've done what we're in northern Africa but again we're gonna take the lead where we can obviously.

To do all we -- we have to partner with our allies.

And our counterterrorism partners to make sure they themselves have the expertise technology.

-- to disrupt these -- so we're gonna have to remain vigilant it's gonna remain a challenge but I don't think anybody can question.

Then in the last four years you know the -- title leadership has been seriously weakened but challenges remain.

What will the president say in his inaugural address Monday what's the path he will lay out.

For his second care -- I -- be very careful not to get him but I I do think.

He's gonna talk about on on tomorrow how our founding values and vision can still provide us I think -- guiding pathway in a changing world.

He's gonna talk about our political system doesn't require us to resolve all our disputes are political difference but it does require us.

To seek common ground when it can and should exist he's gonna make -- point very strongly.

That that people here in Washington need to see common ground.

He's gonna talk about how the American people if they're not engaged in these debates and -- and Washington progress and change won't happen.

And I think it's important Chris look at this in the state of the union is a package -- happen within three weeks -- -- -- We -- way out as his vision for this second term more America needs to go.

Tomorrow.

And the specific details and blueprint will be in included in stating.

I think it's fair to say that the president has been more combative even confrontational.

With Republicans here in Washington since is reelected that's certainly the way he handled the fiscal -- I want to.

Point to a clip it of the president in his press conference earlier this week -- They have suspicions about.

Social Security.

Their suspicions about.

Whether government should make sure that.

Kids in poverty.

Are getting up to -- Now we learned that the president is taking his campaign organization.

And transforming it into an issue advocacy group.

Organizing for action it is it fair to say that the president has given up.

On the inside game of negotiating.

Here in Washington.

And as much more existed in bringing outside pressure to bear.

On the people up on Capitol Hill Chris you have to do both and I think that's a lesson from the force for years you can't do one or the other and so I think that we're gonna continue and listen.

And the fiscal cliff -- you talked about we had just about every Republican senator.

Who voted for this you know -- cut taxes for the Republicans -- cut spending with the Republicans and Democrats obviously we've done a lot of other things we're gonna continue to work with them.

But the American people have to be engaged in -- and you know we -- or campaign supporters we did a thorough research after the election this is what they wanted to do they wanna focus on balance steps reduction.

How to help the middle class immigration.

Gun safety energy and we want to make sure that out in the country these debates aren't quite debates here in rooms in Washington exclusively.

That there is people out there in the country pushing for action.

But -- when the president talks and a clip about that Republicans have suspicions about Social Security they have suspicions.

About feeding poor kids.

That's not true.

Well listen Chris I mean I have different ideas about and fact -- different ideas about how to save social scared out of suspicions about Social Security.

Well I think there's there's there's again where I think common ground -- it does exist on the need to reduce the deficit and balanced -- it's gonna help the economy -- Amongst Democrats on the hill and a few Republicans that buried -- progress here is not and you know the president.

We need to see more Republicans in congress willing to compromise even on revenues.

Let's say they need to see the president will not compromise on spending -- on entitlement reform let let's look at what we offered speaker Boehner has been public over.

We have from 400 dollars 400 billion dollars in health care -- 200 billion dollars in additional cuts in domestic spending over trillion dollars in savings if you look at where we started negotiating process where the speaker did is that we went more than halfway.

If -- Hathaway I guess and gives up front I don't know what this is the president still willing to adjust the cost of living increase for entitlements is he still willing to.

Raise the eligibility age for Medicare and those still on the table.

Well we know I think I'm not gonna talk about specifics that may be -- package and it's it's well reported in discussions with speaker Boehner.

We were well into it entertain the cost of living adjustment.

But if you're depends on the overall package we've we put over trillion dollars including that proposal -- -- Over a trillion dollars in spending cuts.

Now there was some of the Republicans saying they don't want revenue.

Speaker Boehner himself said there -- 800 billion dollars to revenue simply from -- closing corporate loopholes and -- for the wealthy.

So surely there's additional revenue we can get from closing loopholes operates.

That was done in that deal the end of the year so if we can have a balanced package where we get revenue from closing loopholes like making either ship jobs overseas or.

For the energy company subsidies.

And spending cuts us spending cuts and as you said we've gotten some criticism you know from some members are parties that's letting the president has shown he's willing to do tough things and apparent reform because he believes.

That we have to reduce deaths and we also have to preserve these important programs like Medicare and -- -- there's a long history.

Of president's running into trouble in their second term Reagan and in Iran Contra.

Clinton and Monica Lewinsky.

Bush with Katrina and the financial meltdown.

Has President Obama thought about this aunt aunt and how does he hope to avoid what most people seem to think as a single biggest problem -- second terms.

Which is variously described as hubris and presidential -- Well I think we have started history I think you know vital if you look at President Reagan he accomplished tax reform and second.

President Clinton made a lot of progress towards a balanced budget so there was good second term accomplishments.

I think of a few things one is it's not like we're Roman around the White House looking for things to do we have on immigration gun safety -- reduction measures to help the economy energy.

We've got a pretty stacked agenda here.

And I think there -- urgency in the country first addressed so we're gonna bring the same energy folks who did to a second term.

Obviously some other administration's got you know in trouble with scandals we've we've avoided that and we hope to continue that.

But I think there's an -- -- those issues and others education reform.

There's just.

No shortage of things we can do to help the American middle class and help the economy we're gonna pursue those and vigor and energy official we're mindful of -- I also think get to stay connected what she ran out.

And you can't bring stuff out of out of thin air.

You know I think one of the problems of the so security privatization effort during the Bush Administration was that was a really a -- thing that he campaigned -- So the things we campaigned on were gonna bring Ford in the second term and try and find common ground -- -- the time we have left and wanna go through several second term -- would view and because we're beginning to run at times I wanna do a lightning round which I know you love quick questions quick answers.

What does the president think of this new house Republican plan of extending the debt ceiling for three months till April.

But clean except for the fact they do want elected to the idea that both the house and the senate pass a budget and if they don't pass a budget they lose their -- Well I think we don't think -- short term as Smart for the economy.

Two or three months still -- and certainly we're very pleased to see the Republicans in the house drop.

Their previous position which was you know they were only gonna.

Pay the bills essentially that they've racked up.

If they got what they -- in terms of deep spending cuts in Medicare and other programs so that's progress but what we need to do is Washington needs to start contributing.

Certainly.

And help to the economy.

And right now one of -- if you talk anybody -- the country.

Particular Zito a tree mile extension well again I think that.

Getting some certainly long term veterans were from but no we think that this was progress I think listen we have made progress on the budget.

We cut spending by the way you know in 2011 that much -- like over trillion dollars.

We -- -- like you were kind of forced ended up by the Republicans -- -- -- forced into it as you know we're sitting around the table with them for a long time -- to -- -- that.

Position so that the budget and product we we cut over trillion dollars in spending we just had a steal and revenues so I think that both sides.

Again this comes back to where there's common ground.

We should be able to come out of the -- I think we'd all be better served if congress starts working more regular order so we're not -- crisis a crisis deadline today I don't let's -- resident and how regularly I would be passing the -- what resolution we've got to wrap up its Speed Racer but the regular water would be passing a budget which the senate hasn't done since 2009 but my point is we have made by your progress -- -- house passed a budget resolution on the level of Paul Ryan budget which didn't go anywhere and was deeply unpopular so they -- -- -- -- the key thing is on.

If if the house Republican senate Republicans are willing to compromise on closing loopholes they also there were four.

So they just need to be consistent in their previous position.

And we can come to agreement on the kind of spending cuts we need kind of -- reform we need to do think about that there's no reason that at some point this year.

We can't have a fiscal package that not only reduces the deficit in the long term.

But you -- you don't in the short term.

To help the economy you've blown up the lightning round but let's try to go back back to it this week the president proposed some of the toughest new gun control measures ever.

But when it came to violent games and violent videos.

All the president's it was let's have a starting.

Why not why didn't he challenge his friends in Hollywood -- supporters and Hollywood.

Clean up Iraq and knock at all.

Well presence was spoken about the -- -- given.

Yeah on Saturday hero last night I want to say Ali what stop the video again well first of -- This starts with parents.

We ought to take responsibility for our children secondly this study is really important.

Because we can with some scientific background understand.

The direct.

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But we are given as -- -- -- jungle -- I think he's been clear about this but let's focus on.

On let everyone's trying to divert from the core issue which is.

There is a huge consensus in the country including a vast majority Republicans.

That things like assault weapons high capacity magazines universal background checks making progress on mental health.

These are things we should and can do to help reduce gun violence no longer a set of laws is gonna and violence obviously.

Or these episodes but if we can save one life direction we should take it and we think there's consensus on Capitol Hill for this we think we can get.

Sixty votes in the senate -- -- eighteen is going to be very very assault weapons well we're gonna we you know president -- -- variety of things assault weapons high capacity magazines.

Universal background checks some.

Mental health school safety so.

We think there's support for a lot of these things and we're gonna push as hard as we -- -- less than a minute left most of obamacare goes into effect at the end of this year.

Beginning in next -- states.

Are already having problems.

Putting -- the the exchanges into effect insurance companies are having problems -- players are having problems is there any chance that the president will say.

Let's slow down let's delay that the January 1 when he fourteen.

And it kick in of a lot of this stuff and allow people more time to implement.

No I think no but I will be HHS or Health Department and secretary Sebelius has worked with employers and states to be very flexible.

To make sure that we're working when it very closely but I don't know if you don't play.

In when its -- -- January 1 when he Forte now and I think that.

The implementation of health care even though it's a legislative.

Victory accomplishment that that happened while though is still going to be incredibly important first -- -- for the country but also for this present we have to implement it smartly.

We're gonna have to really work very hard to make sure that the promised health care becomes a reality.

David -- thank you for coming in today as always and while you're leaving the White House at the end of this week you're going to be an advisor.

-- this new advocate advocacy group organizing for actions or you're not done with Scioscia -- -- -- That's -- that's a prominent thank you.

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Inside President Obama's inauguration and second term

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