President-elect to formally unveil his team of economic experts to battle the most severe U.S. financial crisis in eight decades

WASHINGTON – President-elect Barack Obama names his economic team Monday and may call for the next Congress to quickly pass a massive stimulus plan that would dwarf even his campaign proposals to salvage the country’s financial wreckage.

Timothy Geithner, left, and Larry Summers (AP Photo).

Obama speaks at a Chicago news conference against a backdrop of increasing calls for him to assert himself well before he takes office Jan. 20 in the midst of the most severe U.S. financial crisis in eight decades.

Obama senior adviser David Axelrod confirmed that the president-elect would name Timothy Geithner, the New York Federal Reserve president, as his treasury secretary. Wall Street stocks jumped on Friday when word of Geithner’s appointment began to leak. Geithner will team with Lawrence Summers, a treasury secretary under former President Bill Clinton and former Harvard University president, who will take over the National Economic Council. Both Geithner and Summers will appear with Obama at a Monday news conference in Chicago.

Democratic officials also said Obama plans to name New Mexico Gov. Bill Richardson as commerce secretary, adding a prominent Hispanic and one-time Democratic presidential rival to his Cabinet. Richardson served as U.N. ambassador in the Clinton administration and later as energy secretary.

The troika will confront an economic crisis that continues to deepen in spite of hundreds of billions of dollars in federal emergency spending in recent weeks.

Top aides said Sunday that Obama also wants Congress to use its large Democratic majority when it convenes Jan. 6 to prepare tax cuts for low- and middle-income earners as part of the massive government intervention designed to pull the country out of its frightening economic nosedive.

Some economists have endorsed spending up to $600 billion to revive the economy. Sen. Charles Schumer, a New York Democrat, and former labor Secretary Robert Reich, a member of Obama’s economic advisory board, both suggested $500 billion to $700 billion. Before winning the presidency Nov. 4, Obama had said he looked to create a $175 billion stimulus package. While the new plan will be significantly larger, it was expected to incorporate his campaign other ideas for new jobs in environmentally friendly technologies and tax cuts.

“I don’t know what the number is going to be, but it’s going to be a big number,” Obama economic adviser Austan Goolsbee said on Sunday. “It has to be. The point is to, kind of, get people back on track and startle the thing into submission.”

Over the weekend Obama directed his team to erect plan to create 2.5 million new jobs by the end of 2010, and aides said his broader economic program was designed to quickly offer tax relief to lower- and middle-income earners. Significantly the plan would not offer an immediate tax increase on wealthy taxpayers. During the campaign, Obama said he would raise taxes on people making more than $250,000.

Axelrod unambiguously voiced Obama’s overall expectations.

“Our hope is that the new Congress begins work on this as soon as they take office in early January, because we don’t have time to waste here, ” he said on Sunday. “We want to hit the ground running on January 20th.”

Congress will have two weeks to hold hearings and write legislation between its return to Washington in early January and Obama’s inauguration.

Rep. Steny Hoyer of Maryland, the second-ranking Democrat in the House of Representatives, acknowledged a readiness for quick action.

“We expect to have during the first couple of weeks of January a package for the president’s consideration when he takes office.”

Axelrod also warned executives of the U.S. auto industry to draw up plans to retool and restructure their industry if they want the billions of dollars they are seeking from Congress. Otherwise, Axelrod said, “there is very little taxpayers can do to help them.”

Obama also delved into one of the most pressing foreign policy issues facing his presidency, calling Afghan President Hamid Karzai by telephone and telling him that fighting terrorism there and in the region would be a top priority, Karzai’s office said on Sunday.

The Saturday conversation between Obama and Karzai was the first reported contact between the two leaders since the Nov. 4 U.S. election. The United States has some 32,000 American troops in Afghanistan, a number that will be increased by thousands next year.

Fighting terrorism and the insurgency “in Afghanistan, the region and the world is a top priority,” Karzai’s office quoted Obama as saying during the conversation.

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The U.N. Human Rights Council, frequently accused of coddling some of the world’s most repressive governments, threw itself a party in Geneva Tuesday that featured the unveiling of a $23 million mural paid for in part with foreign aid funds.

Nov. 18: U.N. Secretary-General Ban Ki-moon, far right, attends the unveiling of a $23 million mural at the European headquarters of the U.N. in Geneva, Switzerland.

In a ceremony attended by U.N. Secretary General Ban Ki-moon, Spanish artist Miquel Barcelo told the press that his 16,000-square-foot ceiling artwork reminded him of “an image of the world dripping toward the sky” — but it reminded critics of money slipping out of relief coffers.

“In Spain there’s a controversy because they took money out of the foreign aid budget — took money from starving children in Africa — and spent it on colorful stalactites,” said Hillel Neuer, executive director of U.N. Watch.

Click here to see photos of the $23 million ceiling art.

Spanish taxpayers paid for most of the sprawling sculpture, which has been compared to the Sistine Chapel, but around $633,000 came from Spain’s budget for overseas development aid.

Spain’s conservative opposition party blasted the government for diverting money from projects to alleviate poverty in poorer countries, though the government insisted the funding for Barcelo’s work was kept separate.

Ban himself praised the piece and thanked Barcelo for putting his “unique talents to work in the service of the world.” The artwork will soar above the Human Rights Council’s chambers at U.N.’s European headquarters in Geneva, which may soon undergo a $1 billion renovation — but only after a $1.9 billion facelift of the U.N.’s New York offices is completed.

Meanwhile, international humanitarian groups pleaded with the human rights panel to take time out from their party to address the worsening human rights “catastrophe” in the Congo, where the government is fighting a deadly battle with several rebel groups.

“Mass displacement, killings and sexual violence — involving hundreds of thousands of victims, if not more — require an urgent response,” according to a statement issued jointly Tuesday by Freedom House and U.N. Watch.

Congo has been off the radar at the Human Rights Council, which removed its monitor from the African country in March when the Congolese government and a group of neighboring nations applied pressure on the council to expel the monitor.

“When the Human Rights Council was established two years ago there were about 12 or so monitors, and gradually one after another has been scrapped,” said Neuer. “The other ones are all on the chopping block.”

Violence is worsening in the country, where an estimated 4 million people have been killed in the past 10 years and tens of thousands have been displaced in recent months.

“The [Lord's Resistance Army] leader, Joseph Kony, is continuing his brutal and abusive tactics,” said Georgette Gagnon, Africa director at Human Rights Watch. “The U.S. and U.K., along with the U.N. and governments in the region, should actively work together to apprehend LRA leaders wanted by the [International Criminal Court].”

Secretary-General Ban has supported a U.N. resolution that would increase the U.N. peacekeeping force in Congo by 3,100 troops and police, but some critics say that move would not be enough.

Human rights groups — and U.N. officials themselves — have criticized the peacekeeping force for failing to protect civilians in places like Kiwanja, where at least 20 people were killed this week.

The 17,000-man U.N. deployment is already the U.N.’s largest peacekeeping commitment, but is restricted by tough rules of engagement and has a massive territory to cover. Congo is the size of Western Europe, and North Kivu, where the fighting is centered, is one-and-a-half times the size of France.

The Associated Press contributed to this story.

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A source close to Barack Obama’s transition team is feeling out Senate Republicans to see if former Clinton Assistant Attorney General Eric Holder would pass confirmation after his role in the 2001 Marc Rich pardon.

WASHINGTON — President-elect Barack Obama’s aides have privately asked senators whether Washington attorney Eric Holder would be confirmed as the next attorney general, according to a person involved in the talks.

The talks suggest that Obama is deeply interested in Holder, who served as the No. 2 official in the Justice Department under President Clinton.

In the past week, Obama aides have asked Senate Republicans whether they would support Holder. In particular, the aides questioned whether Holder’s confirmation would be delayed because of his involvement in the 2001 pardon of fugitive Marc Rich by President Bill Clinton.

Newsweek, quoting unidentified legal sources close to the presidential transition team, reported Tuesday that Obama offered Holder the job and he accepted. Newsweek said Holder still has to undergo a formal “vetting” review by the Obama transition team before the selection is final.

One person involved in the talks told The Associated Press that the Obama team has received some assurances that, while the Rich pardon would certainly come up during hearings, the nomination likely wouldn’t be held up over that. The person spoke on condition of anonymity to describe the private conversations.

On the last day of Clinton’s term, Holder was asked whether the president should pardon Rich, a wealthy commodities dealer who had been spent years running from tax charges. Holder said he was “neutral, leaning towards favorable” on the pardon. Clinton later cited that as among the factors that persuaded him to issue the pardon.

Holder has publicly apologized for what he said was a snap decision that he should have paid more attention to. Had he taken more time to review the case, he would have advised against a pardon, he said.

A former U.S. attorney, Holder is among Washington’s most prominent defense attorneys. He would be the first black attorney general in U.S. history.

Change to the WhiteHouse and Washington?  Not this term….

In his first television interview since his historic election, President-elect Barack Obama said he will do “whatever it takes” to stabilize the economy, restore consumer confidence and create jobs to getting sound health care and energy policies through Congress, and developing a national security team is priority one.

WASHINGTON — President-elect Barack Obama said that selecting his national security team is a top priority.

“I think it’s important to get a national security team in place because transition periods are potentially times of vulnerability to a terrorist attack,” Obama told CBS’ “60 Minutes” in an interview broadcast Sunday. “We want to make sure that there is as seamless a transition on national security as possible.”

Sunday: Barack and Michelle Obama are interviewed on '60 Minutes' in First Interview Since Election (AP Photo).

In his first television interview since his historic election, Obama said he has spent the days since the election from doing “whatever it takes” to stabilize the economy, restore consumer confidence and create jobs to getting sound health care and energy policies through Congress.
The president-elect also said that as soon as he takes office he will work with his security team and the military to draw down U.S. troops in Iraq, shore up Afghanistan and “stamp out Al Qaeda once and for all.”

While investors are still riding a rollercoaster on Wall Street, Obama said the economy would have deteriorated even more without the $700 billion bank bailout. Re-regulation is a legislative priority, he said, not to crush “the entrepreneurial spirit and risk-taking of American capitalism” but to “restore a sense of balance.”

“There’s no doubt that we have not been able yet to reset the confidence in the financial markets and in the consumer markets and among businesses that allow the economy to move forward in a strong way,” Obama said. “And my job as president is going to be to make sure that we restore that confidence.”

Obama comes to the Oval Office with an ambitious list of campaign promises that will require Capitol Hill’s cooperation and approval, and the team he has been announcing in recent days is heavy on the legislative experience that Obama is lacking.

Obama resigned his Illinois Senate seat Sunday after just under four years of service, half of which he spent out on the presidential campaign trail.

During the campaign, Obama had Pete Rouse as his Senate chief of staff to take care of his business on Capitol Hill. On Sunday, Obama named Rouse to be a senior adviser in his White House. Rouse has 24 years of experience as a top Senate aide, also running the offices of former Senate Democratic leader Tom Daschle of South Dakota and Obama’s Illinois colleague, Democrat Sen. Dick Durbin.

Other names that have begun to roll out recently come with varying degrees of Washington experience. Obama is drawing on accomplished Chicago friends, longtime congressional aides and former Clinton administration officials, including some with ties to the Monica Lewinsky scandal.

The new chief of staff, Rep. Rahm Emanuel, combines the Chicago roots and the legislative connections. Vice President-elect Joe Biden’s chief of staff Ron Klain held the same role for Vice President Al Gore.

Obama has picked Mona Sutphen and Jim Messina as his deputy chiefs of staff. Like Rouse, Messina has served as chief of staff for three different lawmakers and has a vast network of relationships to show for it that he can tap on Obama’s behalf.

Philip Schiliro, who has more than 25 years experience working for Congress, is Obama’s liaison to Capitol Hill.

Biden, a longtime senator from Delaware, has said he intends to be a frequent voice on the Hill and use his 36 years of experience as a lawmaker to promote the administration’s agenda. That’s a departure from Vice President Dick Cheney, who only appeared occasionally on the Hill to meet with Republican members and cast a tie-breaking vote.

In the CBS interview, Obama also said Americans shouldn’t worry about the federal deficit for the next couple of years.

“The most important thing is that we avoid a deepening recession,” he said.

He said there hadn’t been enough done to address the plight of homeowners facing foreclosure.
“We’ve gotta set up a negotiation between banks and borrowers so that people can stay in their homes,” Obama said.

The president-elect also urged help for the auto industry.

Obama also confirmed reports that he intends to close the detention center at Guantanamo Bay, and “make sure we don’t torture” as “part and parcel of an effort to regain America’s moral stature in the world.”

Obama also said he plans to put Al Qaeda leader Usama bin Laden in the crosshairs.

“I think capturing or killing bin Laden is a critical aspect of stamping out Al Qaeda,” Obama said. “He is not just a symbol, he’s also the operational leader of an organization that is planning attacks against U.S. targets.”

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