Russian Revival?

" On a Journal Editorial Report President Obama attempts to reset relations with a Frontline didn't succeed. We'll ask former chess champ and Russian opposition leader Gary -- plus. Sarah Palin's surprise resignation and the future of the GOP. Do Republicans have any national leaders out there. The incredible shrinking stimulus where's the money where our good jobs The Journal Editorial Report charged."

" I agree. The relationship between Russia and the United States has suffered. From a sense of -- We resolved to reset US Russian relations so we can cooperate more effectively. In areas of common interest."

" Welcome to The Journal Editorial Report I'm polish ago President Obama traveled the Moscow this week for the first summit between Russia and the United States in seven years. In his two days there the president met with Russian political leaders business people activists. And dissidents as part of his effort to reset. Relations between the two countries former chess champion Garry Kasparov was part of a group of Russian opposition leaders that met with the president in Moscow. I spoke with him earlier this week and --"

" How that meeting went. I think what's most important by the meeting is the fact that despite those strong -- objections. This administration decided to build relations. We is that Russian civil society and was Russian opposition groups. Back and they you'll listening Denney made certain comments. Hyde being that sit it was not just one off show as president indicate it. That is what it's an attempt on the administration. To open this new communication channels so I think that's the main result of the visits so just."

" By making the appearance with you in the opposition leaders that sends a message do you think to the Kremlin leadership that. The American president is paying some attention to democratic process season in Russia."

" I think that have been more because our light cut. Bush Administration Clinton administration. Obama -- doesn't want to build relations between Russian and Mary guys relations between the White House and Kremlin. He shows that its embattled Russian and American people. And meeting all the visual years and also meeting the ngos -- before. And meeting with the business groups he indicated that it will -- the business as usual. Not like you buddy -- relations between two leaders and the rest is irrelevant. And I think that is consistent message throughout he's staying Moscow was that America wants to vote was to push present -- But it's not. Just a formality I mean union's. The what do you what he's the president talks about resent. What is he who do you think that he really is trying to accomplish and how does the Kremlin leaders in particular defined. Reset when they're talking about US us Russia relations. Oh we knew very it very well promise agenda they wanted these so called the -- truly zone of Russian influence in the ex Soviet Union. They wanna marry get too hot cancel the missile defense system in Europe. Hot everyone in America can ignore. Problems with -- democracy in Russia. And debt before Obama's in Damascus Republican senators are wrote to let union voting -- not to you. Odd -- missile defense system to defend Georgia and Ukraine and to build up our relations with Russian angels and political position. And he needed it was very specific about Georgia and Ukraine about territorial. -- integrity and some aren't of this country's so as far as I can see. He didn't biased on every or any important issue and Kremlin failed in trying to establish. -- to say relations was Obama as they had was president -- one of the goals that the president mama shares with President Bush is to get some kind of Russian cooperation against Iran to stop Iran's nuclear. Ambitious do you think you made any progress with a Kremlin on that front. I think Obama the recognizes. And -- from -- mistakes that. It's a goal that is probably what was it not within his reach. Because put his injuries he's he's completely opposite to the American injuries Putin needs nuclear Iran with the -- tension within these prices. Because that's the only hold off Russian regime that the oil prices will go up again. So Obama made his statement in Moscow and he didn't want to tie -- and his Al so if you guys sold drain and problems we can talk again about missile defense which means for me that. He has very little hopes -- any. That Russia will be helpful in the run. Okay that's advising you share Russia has an interest in in Ohio prices and other US goal here is to prevent further Russian. Diplomatic or military assault into Georgia. They've been staging military operations there do you think the president sent a -- it will it would get any kind of cooperation from Putin on that. This is not about cooperation -- this about the warning and Obama made a lot of general statements and -- B in Russia and I I I like many of them. But she was not specific when he talked about democracy he didn't want to mention other props -- you this but. He mentioned Georgia many many times. Act -- at dean official meaning press conference arguing his speech urine meaning was opposition. And I think that message could not could not be. Needs by Kremlin. He. Says Georgette is a sovereign country America is fully behind Georgia. To protect aids that's original integrity. And -- Conflict in fact. But it Kremlin. No no official web sites. Agencies Obama's speech and debate it on on Georgia trying to make it the last. Less aggressive and more rough. Complacent wiese was it was good that does it -- warrants that if you can read English original. It was -- I apps that anecdotal statement protecting Georgia and Ukraine -- one of the things I also read is that the only one Russian network actually broadcast the president's president Obama's speech -- full. At the at Moscow University is that correct. Absolutely the day they try to play down being bottles of this visit. Basically they were trying to say oh we sat. It's it's it's just too good I'm meeting between the president's easy. Is being introduced an inventive he met who did so that the Russians of state controlled media. Didn't want to talk about these substantial things. That Obama mentioned in he's speech act and the economy school. You know what -- think this fascinating to for American to watch this trip that the -- crowds. The audiences he addressed word isn't as enthusiastic -- large. As the president that's president Obama's head when he is visited other foreign countries in his first year in office. Why do you think that is why the more subdued reaction. Oh Kremlin had no interest in being -- gathering to be proud to have to listen to Obama because. Obama is quite popular here full -- many reasons. I -- present -- and that Russian -- say no deviated like this story about a half primary cannot. Getting to the top of American political limbo as. Death -- didn't like these Obama money in indeed in front and they wanted to make sure that. His visit will will be will be what was in the very. Small official space controlled by the state needed."

" All right Gary Castro thanks so much for joining us. Thank you. When we come back first there was Mark Sanford then there was Sarah Palin not a good summer so far for GOP up and comers it was left to lead the party now went into the 2010 and 2012 elections. Our panel -- then. After the break."

" Alaska governor Sarah -- stunned the political world last week with a surprise announcement that she'll leave -- post eighteen months early widely considered to be a rising star in the Republican Party in a front runner for the presidential nomination in 2012. Palin's abrupt. Departure leaves many wondering if her future in politics is dead. And who will lead the GOP. Joining the panel this week Wall Street Journal columnist and deputy editor Dan -- there. Editorial board member Jason Riley and Washington columnist Kim -- making a rare appearance here in New York."

" Welcome -- all right so how much cancer -- her political future plumbing it depends on if she did it for her political future on the merits. A group of people out there who think that she may have just. Been sick of the -- sick of the complaint sick of everything was happening to our friendly and that she's. Stunner at least going out for -- this was stumped for political reasons I think she hurt herself a lot Obama people be able to say in the future looking kind of earlier governor. You one executive position why should we let's try it too much more rigorous job as as a president illustrate and the problem she always had Paul was in giving independence to think that she had a policy chats from this job thinking that. I mean she always had the base out there they loved it loved her charisma they love to personality. He needed to convince even intellectuals within the GOP that you could do this and and you don't do that I returned eighteen months."

" But I think it also has a certain logic if she wants to run for president is campaigning. From Alaska with the lower 48 so far away would be very good return was gonna end in 2010 anyway she could if that's true let's not kill time and make some money raised the money. For the party. And sort of control her -- her public image and bone up on the on the on the issue is on the on the side then. And you know sit back and wait and see what happens after the mid term."

" again I think that she didn't she show -- unfortunately I agree that with a lot of people say the media was merciless and attacking her neighbor and her family which is rare. But she didn't demonstrate that she was up to the rigors I think of a presidential campaign and had done the hard work. Of preparing on the issues to run for president. "

" No not at all and I still don't think she can quite quickly. Fall across the goal line she's gonna have to really go to school. And show it means to me she can speak intelligently about a wide range of issues. Did she does that and if there is Jason suggest she goes out and races big box for the GOP. Which is capable of doing and which is a crucial element in being a presidential candidate these days. I think given her gift of -- her charisma when the time comes she might have shot but she does have to get across that sophisticated."

" I -- itself so Republican Party doesn't have really any of the national -- identifiable. Leaders. It does it matter. Here that right now or who warned."

" A little -- look you what we've got coming up here's a couple of years in the Obama administration we're gonna have a lot of opportunity for some new Republicans to define themselves and we should expect that to happen people don't he's gonna be people in congress -- these -- people of the state houses and he's going to be people in private life."

" Who may be or like Mitt Romney who ran before former governor and and then 10000 private life again."

" I think you're gonna see more of that the private life and also the governor's look right now one thing that the GOP -- got going for is with everything that's happening in Washington huge chance for them to define themselves. In a different way especially from statehouses this say this is what you may be doing in Washington this is Austin and different way the -- states as laboratories are those -- right now you've got people that the people -- talked about so far you've got -- region doll down and we CNN you've got people like Tim Pawlenty out of Minnesota maybe you've got. Mitch Daniels and Indiana he got there a bunch of different."

" But the reality is now they all have to resign you cannot be a sitting governor and run successfully for the presidency he just can't do what George Bush did. George Bush dividend 2000 you Barack Obama ran from the from the Senate. I think I rules have changed the amount of money you have to raise me to have to be out in the country great thing about Mitch Daniels is one of the things understand some Pawlenty is they wanted 2006 and 2008 very big years for Republicans and not in southern Republican conservative states. Don't we have don't Republicans need somebody from the north not another southern candidate. The Republicans have a twofold problem one they need a leader they need someone who can articulate an alternative narrative how we got into the situation how we can get out. But two they need someone with the sort of star wattage to match Barack Obama at target that if anything it is a tough could very tough road. -- Tahoe but that is what. The dilemma that the Republicans face right now I think it's to pull. -- If if if you're -- talking about a celebrity aren't very many of those in politics that come around can't you just -- somebody who says this Kim suggests. Look I've governed well but I did it was different principles. And in an offer kind of sober even stolid kind of alternative leadership I'd start with finding someone whose confidence and then they have to -- that first but I think -- also gonna need a charismatic figure which is why I think -- Still has a shot geez do you think they're still gonna OK all right I. And again what do you think should 2012 or you're talking me for -- in 2620. Briefly. I think there will be no longer on the road she's got a wanted to put forth first right thanks can still ahead as unemployment hit a 26. 26 year highs. The Obama administration admits it misread how bad the economy would -- opens the door for a second stimulus is a time. To rethink. Obama I'm."

" is weak and everybody else misread the economy. The figures we worked off of in January where the consensus figures in most of the -- most of the blue chip. Indexes out there."

" Vice president Joe Biden acknowledging this week what critics have been saying for months that the administration's. Underestimated the depth of the economic recession when a predicted earlier this year that the unemployment rate would peak at. 8% of congress passed the 787. Billion dollar. Economic stimulus President Obama signed that legislation in February but figures released last week show that the national unemployment rate has reached nine and a half percent that the economy is still shedding. Nearly half a million jobs a month we're back with Dan and anger. -- Russell and Jason Riley and we're also joined by Wall Street Journal columnist Mary honesty is yet. Oh Grady so Mary White House economic adviser Larry Summers says -- is working just give it time Warren Buffett says no it's not who's right."

" Yeah I think warmed -- it's closer to the easy answer. Unemployment it's gonna go quite a bit higher 10% up yeah and I I think may be even higher and the White House even. Admits that of course unemployment is a lagging indicator in other words it starts to look better at the very end of the recession so. That's really not the concern the bigger concern here is that. Even the bits of the recovery that we're starting to see you look very very weak and we have to ask why with 787. Billion dollars committed that's on the spending side and think that this doesn't include all the monetary stimulus the Federal Reserve has pushed him regularly. A couple of trillion dollars. Right and I think the answer to an -- you can say that while only a portion of the stimulus has been sent and so forth but. The real answer is that they this administration and congress have created an extremely uncertain environments for investors so people are. Even if they get money they're holding back there they're not willing to commit capital because of the tax regime and that that. -- the impending. Possibility that taxes are going higher all around on energy on income. And so forth and also I think that there's a lot of concern about the regulatory environments of that this whole."

" Policy question you've got to health care train I'll have to -- would pass what -- let's take cap and trade regime will look past what formally take. You've got to house just deciding to find raise taxes two percentage points more. I'm people making 200000 -- or more than even the president has said he would raise taxes in 2011. This is the kind of policy and certainly I think Mary is getting. Is this what is --"

" On the can. Economic recovery absolutely acting you've seen that in the stock market which is retreated some and young -- gotten from the gaps and really rose for lab announced flat -- almost for two months come back because everyone is looking -- congress and and all of the ambitious proposals that they have and not knowing what's -- as -- because you -- all of that is about taxes all the -- Texas which would. Huge hit to the economy so it's of the sons and also the problem and he. This 787. Billion dollars or. I think we've gotten of those before wasn't really directed -- the way it's and way to create jobs sustainable long term jobs as well to. He's -- funds some people to go out and and collect names for census for a while and maybe. Build a bridge occasionally but it's not designed to stimulate the capital markets to create long term damage is -- gonna -- going to be 20102011. Through my."

" The money gets faster. You -- believe fascinating aspects of this is how old president Obama's approval ratings have not suffered much despite. The condition of the economy sort of sailed above this. And you wonder how long this can last because his policies are not as popular as he personally as Wall Street Journal had a poll looks at. 35%. Of voters not put the unemployment rate as their top issue. If it does is -- just sell about 10% bushel on sent this time next year will Obama's popularity --"

" Suspend the day I I I think I got and I agree with Mary on this point I think that the economy is gonna recover. I mean some don't the housing market will hit bottom you can't throw three trillion dollars and an economy that he's some kind of bounce back but the real question is how strong will be how sustainable will be if you unemployment at ten and -- half 11%. You're gonna need a lot of growth in the economy to be able to get that back down -- get a new job creation."

" Now you are not going to get a lot of growth in this economy could they get up over zero. But obviously this has been designed to stimulate that consumer led recovery yet put money in the pockets exactly site. Honestly think you are not going to get the sort of spending we had in the 1990s. And -- for the last eight years I think. This has been a depression. Like experience for most people the loss of wealth and I think they're gonna take that money. And say that they simply are not going to spend at the levels they did their -- which really need is to incentivize producers. And there is nothing in this package to do that."

" is at present amount propose a second stimulus she's resisting now but does he go there."

" I I don't think he well I think he he knows that he has a real problem was projected deficits and the pressure they're putting on. Ten men on congress to somehow come up with some -- to pay for everything he wants to do. I think there's another problem here to and that is that this administration has not allow markets to clear in housing and in the financial system it's trying to sort of problem. Propped up institutions that failed and made that decision to what you mean that is as hard as it is for two to twenty home prices fall."

" They could only recover if they actually are allowed to hit upon us."

" Another talking more about modifying more mortgages and you know finding ways just keep pumping money into. People who made bad decision into that that houses the people made bad decisions and I think that that is going to delay the recovery is our I think you all we can sure hope this word with too little more optimism here in the second half of the year we have to take one more break when we come back our hits and misses of the."

" Time now for our hits and misses of the week and."

" Call a big mess the house leaked letter this week. Claiming that the CIA misled them about what it was doing after nine elevenths and it demanded the CIA director Leon Panetta say so publicly. This is obviously another attempt to bailout House Speaker Nancy Pelosi who got caught way off base earlier by saying she knew nothing. But what the CIA was doing earlier with interrogations. But this is. Escalated into a death struggle between the CIA and the Democrats and you know the real losers here are going to be the American people because the CIA is gonna decide that the safest thing for -- to do is to do."

" Nothing all right Jason. This is another -- for Obama and his odd foreign policy speech is back in April he went to Prague. And gave a speech that included a thinly veiled apology for our use of nuclear weapons during World War II. This week he's in Russia where he suggested to an audience that the US played no distinctive role. And ending the Cold War and it's no wonder that this president so popular brought when he goes around talking down. US accomplishments but is it too much after the US president be proud."

" Of our history our Jason there."

" This is -- for Honduran deposed under president on while some via. He was removed from office on June 28 and claims that he was in his pajamas shoved on a plane and sent Ted Costa Rica but apparently. -- in his pajamas he has credit cards because by July 3. The new government of Honduras had to cut up his credit cards he had spent 80000 dollars over those five short days."

" Sorry Danielle we give a present moment hit because he threatened to veto promised to veto that house bill. -- for the house Democrats stealing power from the executive self -- give President Obama credit for that that's it. For this week's edition of The Journal Editorial Report thanks to my panel and it won't view oncology -- We'll just deal right here."