Bloomberg's Al Hunt does a great "odds" column on who is likely to be the next president. He makes Clinton a 3-1 favorite with Obama a 7-2 favorite (for you know gamblers out there, that's 3.5-1); He makes Romney the favorite on the GOP side. By the way, don't miss this great factoid from Al: "In eight of the past 10 elections, the party that settled its nomination first won the presidency in November."

The New York Daily News says that, for the Democratic candidates, Iraq has virtually disappeared as an issue on the campaign trail. "When asked, voters in the early presidential states all say the war in Iraq is important to them. But when they quiz candidates, Iraq seldom comes up these days - even for Hillary Clinton, who was grilled relentlessly on her vote to authorize the war when she launched her campaign."

President Bush continues his year-end vacation today, NBC's John Yang reports, flying by helicopter from Camp David in Maryland to Andrews Air Force Base outside Washington for his Air Force One flight to Texas, where he'll ring in the new year at his Prairie Chapel Ranch in the gently rolling hills outside Crawford.

Meanwhile, McClatchy profiles Democratic Rep. Robert Wexler, who is trying to impeach Cheney. Wexler has even begun a Web-based petition campaign.

From NBC's Lauren Appelbaum
On Meet the Press this morning, Paul called the American Civil War a mistake, criticized Ronald Reagan as a "failure," and refused to rule out a third party run.
 
Paul repeated his claim that Abraham Lincoln should not have started the Civil War to get rid of slavery. "Six-hundred-thousand Americans died in the senseless Civil War," he said. "No, he should not have gone to war. He did this just to enhance and get rid of the original tenet of the Republic," he told NBC's Tim Russert.
 
"Slavery was phased out in every other country in the world," Paul continued, responding to the question if America would still have slavery had there not been the Civil War. "The way I'm proposing that it should have been done is do it like the British Empire did -- you buy the slaves and release them. How much would that cost compared to killing 600,000 Americans?... I mean, that doesn't sound too radical to me. That sounds like a pretty reasonable approach."

Paul also criticized Reagan for not reducing the government to a "constitutional size." But Paul also is using Reagan's picture in his brochure. "He ran on a good program," Paul explained. "His idea was limited government ... and a strong national defense."
 
In 1987, Paul resigned from the Republican party. Now he's running as a Republican. "I represent what Republicanism used to be. I represent the group that wanted to get rid of the Department of Education, the part of the Republican Party that used to be non-interventionist overseas. That was the tradition, the Robert Taft wing of the party. There was a time when Republicans defended individual liberty and the constitution and decreased spending."
 
While Paul never voted for a bill with earmarks, he has included earmarks for his district in bills. "I put them in because I represent people who are asking for some of their money back," he explained. "But it doesn't cut any spending to vote against an earmark. And the Congress has the responsibility to spend the money. Why leave the money in the Executive Branch and let them spend the money?"
 
"It's like taking a tax credit," he continued, on why he doesn't refuse the money. "I'm against the tax system, but I take all my tax credits. I want to get their money back for the people."
 
Russert also asked Paul to explain his positions on abolishing agencies such as the FBI, CIA, and IRS. After listening to Paul list the reasons for abolishing the IRS, Russert asked the Republican presidential hopeful how much money would be lost without the IRS.
 
Paul replied that it would be "a lot" of lost revenue. Russert told him it would be "over a trillion dollars." Paul did not seem phased and said "the goal is to cut the spending."
 
"If you brought our troops home, you save hundreds of billions of dollars," Paul said, explaining how he would make up the lost revenue. "You can start saving immediately by changing the foreign policy and not be the policeman of the world."

Finally, Paul refused to rule out a third party run, saying he has "no intention of doing that." He previously ran for president in 1988 as the Libertarian Party's candidate, but is now running for the Republican nomination. "I can be pretty darn sure that I have no intention, no plans in doing that. And that's about 99.9% of a chance," he said. "I don't like people who are such absolutists -- 'I will not ever do this' or 'I will win' or 'I'm going to come in first.' I don't like those absolutists terms in politics."

Click here to go to the 'Meet the Press' Web site to watch video of Paul's appearance or to read the transcript.

From NBC/NJ's Aswini Anburajan
DES MOINES, IA -- Obama this morning questioned whether Edwards really had no influence in preventing a 527 group from advertising on his behalf.

Speaking with reporters, Obama said that if Edwards wanted to, he could use his influence to stop his former campaign manager -- who is now running a 527 backed by the SEIU -- from running pro-Edwards advertisements in Iowa. Starting Wednesday the 26th, Alliance for a New America, will begin running $769,000 in pro-Edwards television advertising across Iowa.

"That this is somebody who worked for John Edwards -- for who knows how many years. He's a good friend and colleague of Edwards who's now running a 527 that's running ads on behalf of John Edwards. You're telling me that he has no influence on him that's just not true," Obama said.

Late in the day yesterday, Edwards' campaign did issue a statement saying that they wanted all 527 advertising stopped.

Asked if this was an indication of Edwards' inability to lead, if he couldn't stop the advertising, Obama said, "Well, you know, he said yesterday he's going to ask him to do it. And my attitude is: If you can't get your former campaign manager and political director to do what you like, then it's going to be hard to get the insurance companies and the drug companies to do what you like." 

Obama also pledged to ask any 527s that might advertise on his behalf to discontinue advertising. But he would not pledge to disavow 527 advertising in the general election, saying he didn't want to "endanger the Democratic Party's ability to win races by letting the other side outspend us by two to three million dollars." He did say that if his Republican opponent agree to do so as well, he would abide by the public financing.

Obama today also backtracked on the claim that more foreign policy experts from the Clinton Administration were supporting him rather than Senator Clinton. A list sent out by the Obama campaign had listed 47 former Clinton advisers, while Clinton's list cited 83 -- though some of the names were ambassadors and others who wouldn't ordinarily be classified as foreign policy experts.

"Well, look, this was based on, what I said is "one could make" the argument, that was based on an argument that had been made by James Traub in an article the New York Times. We, I have not done a systematic headcount," he said.

The Traub article that Obama referenced said that there were around 200 current "thinkers" on foreign policy who had worked for the Clinton Administration who were supporting Obama rather than Clinton.

From NBC/NJ's Carrie Dann and NBC's Mark Murray
Obama today picks up nods from the Nashua Telegraph (NH) and Sioux City Journal (IA). Romney also gets the backing from the Sioux City Journal, and Clinton and McCain received endorsements from the Quad-City Times (IA).

Breaking down the Iowa papers, the Quad-City Times serves much of the typically more Democratic eastern half of Iowa, and the Sioux City Journal is the largest daily in more conservative Western Iowa.

The Quad-City Times was, notably, the venue where Obama and Clinton traded their very first set of direct hits during the summer. (Ah, the good ol days, huh?). In twin interviews with the Times' political reporter back in July, Obama derided Clinton's refusal to meet with rogue leaders, and Clinton accused Obama of being "naïve" and "irresponsible." The Q-C's endorsement doesn't reference the skirmish, but it does highlight Clinton's experience and passion for problem solving. On Obama, the board simply writes, " Not yet." 

As for the Sioux City Journal's endorsement for Obama, it's great news for him, and bad news for John Edwards, who has been largely left out of the Iowa newspaper nod race. A big part of Obama's strategy in peeling voters off from the Edwards count is converting supporters in small rural precincts in the west, where many analysts think the race ultimately will be decided. In its endorsement, the paper highlights Obama's foresight, his forward-looking vision, and his impatience for "the 'that's-just-the-way-it-is' mentality of Washington, D.C."

From NBC's Mark Murray
A new Boston Globe/University of New Hampshire poll has McCain locked in a statistical tie with Romney in the Granite State. According to the poll, Romney is at 28% among likely primary voters, McCain is at 25%, and Giuliani is at 14%. Twenty-three percent said they were undecided. A month ago, the poll's results were Romney 32%, Giuliani 21%, and McCain 17%.

It's also a tie in the Democratic field with Obama at 30% and Clinton at 28%, followed by Edwards at 14%. Twenty percent said they were undecided. A month ago, it was Clinton 35%, Obama 21%, and Edwards at 15%.

The poll was conducted from Dec. 16-20, and it has a margin of error of plus-minus 4.9%.

From NBC/NJ's Aswini Anburajan
Winterset, IA -- Obama was serenaded at a town hall in Winterset, Iowa yesterday, but it wasn't with Christmas carols.

Jerry Triplet, 73, took the microphone to ask a question about the rationale for building a $550 million embassy in Baghdad. But before Obama answered, Triplet said he had a song to sing for Obama "Of course!" Obama replied. "Don't we all want to hear a song -- is it a Christmas song? How long is it?"

That was all the permission Triplett needed. In a rich baritone, Triplett burst into "God Bless Barack Obama," retooling the lyrics from the Irving Berlin classic to cater to the senator from Illinois.

Wildly gesticulating while he sang Triplett warbled the lyrics:
God Bless Barack Obama
He's a fellow we all love
Stand beside him and guide him
Through the night with the light from above...

And so on...

Obama roared with laughter during the refrain, and burst into applause along with the rest of the audience when Triplett finished with a grand bow. "Wow! That's what I'm talkin' about!" Obama shouted.  "I just want you to know he is not a plant!" The senator added that Triplett's song would be the "highlight" of his day.

According to local newspaper reporters, Triplett has burst into song before. The last time was at a Romney event.

Obama's stop yesterday in Winterset was one of six campaign events on a snowy day in Iowa. With snow blowing wildly and cutting visibility down, Obama joked that the town was aptly named as he took the stage.

From NBC/NJ's Adam Aigner-Treworgy
SIOUX CITY, IA – The public's expectations for the success of Mike Huckabee's campaign have soared almost as high as his Iowa poll numbers. And now the campaign's newest advisor, Ed Rollins, is predicting an Iowa win. Rollins told CBS recently that he expects to emerge from the early caucus victorious, but the candidate seemed surprised by the confidence after a rally at North High School here on Saturday.

"We've never said we had to win Iowa," Huckabee said. "We certainly said we needed to be in one of the three seats out of here – either first class, business or coach. Now that Ed is willing to upgrade us to first class automatically I better call Ed and ask him…does he have the frequent flyer miles to make sure we get there?
The former-governor said that he is "playing to win" in Iowa, but if he doesn't, he feels that he can still be competitive in other early voting states like South Carolina, Michigan, Florida, Georgia and Texas. But you can't accuse Huckabee of downplaying the importance of a potential victory in the Iowa caucuses.

"If we do win in Iowa it is a true upset of the classic form," Huckabee said. "To be outspent like this and outmanned, to win here is huge and it gives us a great momentum going into the next several contests."

Also on the candidate's agenda on Saturday – Is Rush Limbaugh picking a fight with Mike Huckabee? Some members of the media seem to think so. Rush had some harsh words for the newest GOP presidential frontrunner on his show last week, supposedly in response to a Huckabee aide calling Rush an "entertainer."

"I don't know [why he's mad]," Huckabee said. "I don't know, I mean I really don't. But all I can do is hope that Rush will love me as much as I love Rush because I think he's terrific and he's been a very clarion voice for the conservative movement. Somebody said something that upset him. I don't know who and I don't know what and I can't fix what I don't know."

But Huckabee said he was willing to try. Asked by The Politico's Jonathan Martin if he had been in contact with the radio personality Huckabee said, "I don't have his number. If you have it Jonathan why don't you give it to me. I'd love to talk to him. So, maybe put it on the web that if he'll call me I'd love to visit with him because I'd certainly like to clarify if there's any issue there. I think he's a person who would probably love to see my candidacy succeed if he knew me."

We've put it on the web governor, now it's up to you and Rush to do the rest.

Huckabee will deliver the sermon at Cornerstone Church in San Antonio, TX this morning where Pastor John Hagey has gotten some heat for being critical of the Catholic Church and its failure to condemn the actions of Adolf Hitler during WWII. On Friday Huckabee distanced himself from Hagey's comments but said it would not affect his visit on Sunday.  

"I'm going to let Pastor Hagey speak to that because, you know, I can't speak for him anymore than he could speak for me. I'm sure that there're things I'll say that he disagrees with," Huckabee told reporters on his press bus.

"I would certainly never characterize the Catholic Church as being pro-Nazi, never. I don't know when he said those things or when he wrote them I have no idea…there's things I said 20 years ago I wouldn't say today. If that's still his position, I wouldn't agree."

From NBC/NJ's Athena Jones
WEST DES MOINES, Iowa -- Bill Clinton has been talking about change a
lot on the campaign trail these days, arguing that Hillary Clinton has
been an agent of positive change for 35 years. Is he now changing his
wife's message in the final days before the crucial Iowa caucuses?

In two speeches here Saturday, the former president summed up his
wife's plans for her presidency by talking about three major goals. For
months on the stump now, Hillary Clinton has been spelling out her four
big goals for America: restoring the country's leadership in the world,
rebuilding a strong and prosperous middle class, reforming the
government and reclaiming the future for America's children, but Bill
didn't mention government reform in his speeches today and he seemed to
spend the most time on economic issues and health care.

"I like Hillary's vision," Bill Clinton told an audience at a West Des
Moines school. "She says that our definition of moving toward a more
perfect union requires us to do three things. Number 1, to rebuild the
middle class dream in America and give more poor people a chance to
work their way into it. We don't want to be a country of shrinking
opportunity; we want to be a country of expanding opportunity for
everyone who will take advantage of it."

The focus on the economy comes two days after a voter in Grundy Center told the senator he was leaning toward John Edwards, citing his focus on the theme of "Two Americas."

The former president was on message when it came to the likeability issue and made sure to hit one of the campaign's main talking points this week. He mentioned the Hillary supporters, including old friends from grade school and from their years in Arkansas, who were out stumping for her.

"She's also a profoundly good person," he told the crowd gathered in the Gigglin' Goat restaurant in Boone, which the senator visited in October. "She wouldn't have all these people from Arkansas showing up here when she hasn't lived there for 15 years, if she weren't. She wouldn't have my daughter's best friend's parents working for her if they didn't have some personal experience that validated that

He also highlighted his wife's work on the Senate Armed Services Committee -- something she has been mentioning this week -- and her work with a small Pentagon committee to help redesign the military. He said trade had become a dirty word because the administration had not enforced trade deals with countries like China because America was so indebted to them. And he repeated the senator's claim a few weeks ago that she was the face of America during his presidency.

While Clinton and surrogates like Terry McAuliffe have been playing down the importance of winning in Iowa, at his second stop today, the former made it clear he thought they could seal the deal here.

"I hope you'll caucus for her," he said. "If you do, she'll win the nomination, and if she's nominated, everything I know about politics suggests to me that she'll be elected," And if she is elected, the former president said he hoped he wouldn't have to give up his work with his foundation "entirely."

Electability, campaign finance reform and Hillary's rivals
During the question and answer session at the first event, one man asked how Hillary could win enough electoral votes make it to the White House.

"Let's look at the states," Bill Clinton said. "First of all, the governor of Ohio, Ted Strickland, has been here campaigning for her. He represented a very conservative rural district. He said in his judgment, she was clearly the most electable Democrat and he expected her to win Ohio if she were the nominee. If you look at Florida, Giuliani is the most, is running the best among the Republicans in Florida. She had a 9-point lead on him on the last poll. If you look at Arkansas, Gov. Huckabee's state, there's a little enthusiasm now for him because he got ahead in the Iowa polls, so he's a couple of points ahead of her. She has a double-digit lead and an absolute majority of the vote against every other Republican in Arkansas -- McCain, Thompson, Giuliani, you name it -- and so unless he's the nominee, she will sail to victory there." Clinton added, though, that she could probably beat him in the state in the end.

When asked what Hillary would do on campaign finance reform, he said she had voted for bills the Congress passed on the issue, but that the Supreme Court was determined to say that wealthier people have more of a right to free speech than everybody else -- "the rest of us" is the phrase he used. He said third parties, including those supporting his wife, were spending money on campaigns, because the Supreme Court wouldn't limit these third-party expenses, even though most Democrats and some Republicans wanted to do so.

"They [these groups] say if they don't do it and somebody else does, we'll all be at a relative disadvantage," he said. "They're absolutely right."

He pointed out that his wife shut down her PAC when she decided to run and invited the voter -- and anyone else -- to tell him what other ideas he had for tackling the issue, asking them to ask themselves: "If the money distribution stays the way it is, can we have more effective disclosure in advance? Where did the money come from; where is it going? There's still some obscurity in that that I don't like very much."

He mentioned her rivals only in passing, to say that he liked all of them -- which he often says -- and to add that he'd campaigned for two of them.

"Bill Richardson had two positions in my Cabinet," Bill Clinton said. "Sen. Biden and Sen. Dodd are in my opinion two of the best senators America has. I campaigned for Sen. Edwards when he ran for the Senate in '98 and for Sen. Obama when he ran for the Senate in 2004."

From NBC's Domenico Montanaro and Chuck Todd
The Concord Monitor writes
an absolutely blistering editorial to be published tomorrow entitled,
"Romney Should Not Be The Next President." The paper does, however,
have a rather small circulation (only about 20,000 -- a medium-sized
paper is about 40,000 circulation), a liberal bent and the editorial
seems to be made for a direct mail piece or TV spot. Here are some
excerpts:

"If you were building a Republican presidential candidate from a kit,
imagine what pieces you might use: an athletic build, ramrod posture,
Reaganesque hair, a charismatic speaking style and a crisp dark suit.
You'd add a beautiful wife and family, a wildly successful business
career and just enough executive government experience. You'd pour in
some old GOP bromides - spending cuts and lower taxes - plus some new
positions for 2008: anti-immigrant rhetoric and a focus on faith.

"Add it all up and you get Mitt Romney, a disquieting figure who sure
looks like the next president and most surely must be stopped." …

"If you followed only his tenure as governor of Massachusetts, you
might imagine Romney as a pragmatic moderate with liberal positions on
numerous social issues and an ability to work well with Democrats. If
you followed only his campaign for president, you'd swear he was a
red-meat conservative, pandering to the religious right, whatever the
cost. Pay attention to both, and you're left to wonder if there's
anything at all at his core."
 …

"People can change, and intransigence is not necessarily a virtue. But Romney has yet to explain this particular set of turnarounds [on gay rights, abortion, stem cell research and tax pledges] in a way that convinces voters they are based on anything other than his own ambition." …

"When New Hampshire partisans are asked to defend the state's first-in-the-nation primary, we talk about our ability to see the candidates up close, ask tough questions and see through the baloney. If a candidate is a phony, we assure ourselves and the rest of the world, we'll know it.

"Mitt Romney is such a candidate. New Hampshire Republicans and independents must vote no."

*** UPDATE *** The Romney campaign responds: "The Monitor's editorial board is regarded as a
liberal one on many issues, so it is not surprising that they would
criticize Governor Romney for his conservative views and platform."

From NBC/NJ's Tricia Miller
CORALVILLE, Iowa – In the day's second media availability, Edwards again took questions on his opinion of 527s.

Asked whether he would call on the 527 run by his former
campaign manager, Nick Baldick, to quit running ads on his behalf and
disclose who his donors are, Edwards said, "I do."

"I do not support 527s," Edwards expounded. "They're part of the law
and I don't have any direct control over it because the law requires
that I stay out of it. I would prefer that all the 527s -- not just
this one -- that all the 527s stay out of Iowa, but I have no legal
authority over that."

But his campaign tried to couch this response as much more definitive in an e-mailed statement, entitled: "Edwards: Stop these ads." "Today, after an event in Coralville, Iowa, Senator John Edwards called on 527 groups to stop running ads," the e-mail begins.

"I
do not support 527 groups," Edwards says in the statement. "They are part of the law, but let me be
clear: I am asking this group and others not to run the ads.  I would
encourage all the 527s to stay out of the political process."

From NBC/NJ's Mike Memoli
MILFORD, N.H. -- Clinton today said it was "silly" of Obama to ask why top foreign policy officials from her husband's administration were now supporting him, and said the campaign shouldn't be based on lists.

Clinton, after shaking some hands and posing for pictures with patrons of the River House Café, stopped to take questions from reporters and was asked to respond to Obama's claims of greater support from Clinton administration figures.

"Obviously we demonstrated that that wasn't accurate," Clinton said, alluding to a list produced by the campaign last night, which First Read reported on earlier. "But really that's not the point. You can have lists of people who are advising you but what matters is who's sitting behind the desk in the Oval Office, and who's ready to be president on Day One."

Obama had asked rhetorically why "the national security advisor, the secretary of the navy for Bill Clinton, the assistant secretary of state for Bill Clinton" had endorsed him. "I just think that it's kind of a silly question," Clinton responded today. "I mean, honestly it's a silly question. We have hundreds of people's support. … This is not a campaign between lists of advisers. This is a campaign between real people with experience and qualifications to be president on Day One."

Clinton continued to emphasize that the real debate for voters should be which candidate, and not which policy team, was most qualified. "We cannot predict every challenge and every crisis that will come to the attention of our president, and therefore it's important to pick the person who can make the best decisions," she said. "When the door closes, and you're having to make those difficult decisions that presidents confront every day, ultimately there is no adviser you can count on. You have to make the decision and live with the consequences."

Obama had said the reason so many former Clinton advisers were backing him was based on his opposition to the Iraq war and the Kyl-Lieberman amendment on the Iranian Revolutionary Guard. Clinton countered that their records on Iraq are closer than Obama would have voters believe.

"He wasn't in the Congress at the time," she said, "and when he was running for the Senate, he said that he basically agreed with George Bush's policy and conduct of the war. When he came to the Senate he voted to support it. So I think that once you're in a position of responsibility and you actually have to be counted by what you do or what you look for, his record is the same as many of us."

Clinton added that based on her experience "during the previous administration" and on the Senate Armed Forces Committee that she is "in a very good position to withdraw our troops in a safe, responsible way, starting as soon as possible."

The Obama campaign responded to Clinton's comments in an e-mailed statement by again highlighting the Iran vote. "If Senator Clinton wants to make this election about who's made the best decisions on foreign policy, that's a comparison we're happy to make since Barack Obama is the only major candidate who opposed the war in Iraq and refused to give George Bush the benefit of the doubt on Iran."

The Milford stop was the second for Clinton today. After speaking with reporters, she went outside to greet a throng of supporters who had been pressing against the café's windows taking pictures. As she worked her way through the crowd, Clinton distributed candy canes and wished voters a merry Christmas.

From NBC/NJ's Aswini Anburajan
At a stop at Smoky Row Coffee Shop in Oskaloosa, Obama sat down to eat some pumpkin pie with four local women and ended up having to explain how he was not a Muslim.

An older woman seated at the table asked Obama to explain his Muslim
heritage, to which the candidate replied, "This is something that keeps
on being misreported, so I'm glad you asked me."

Obama was referring to an e-mail chain accusing him of being a Muslim
with an intent to undermine the United States. Early this year, false
reports also circulated that he had attended a madrassa as a child.
Obama explained his connection to Islam in this way:

"My father was from Kenya," he said, "and a lot of people in his
village were Muslim. He didn't practice Islam. Truth is he wasn't very
religious. He met my mother. My mother was a Christian from Kansas, and
they married and then divorced. I was raised by my mother. So, I've
always been a Christian. The only connection I've had to Islam is that
my grandfather on my father's side came from that country. But I've
never practiced Islam."

More: "For a while, I lived in Indonesia because my mother was teaching there. And that's a Muslim country. And I went to school. But I didn't practice. But what I do think it does is it gives me insight into how these folks think, and part of how I think we can create a better relationship with the Middle East and that would help make us safer is if we can understand how they think about issues."

"But I'm a member of the Trinity United Church of Christ and have been there 15 years," Obama added.

But the woman who asked the question still wasn't satisfied. She asked Obama to "define what a Christian is."

"Somebody who believes in Jesus Christ as our lord and savior," the senator responded.

"I'm so glad to hear that," she said.

Any other discussion of religion was quickly put to a close by campaign staffers, who ushered in a ruddy-cheeked little girl to talk with Obama.

From NBC/NJ's Matthew E. Berger
HOPKINTON, N.H. -- Giuliani told reporters that he did not think he was
having a heart attack when he was flying home to New York City
Wednesday, and said he did not know why his campaign staffers told
reporters he was suffering from "flu-like symptoms."

"You're going to have to ask them," he said outside a town hall meeting. "I'm telling you what actually happened."

Asked
about whether he thought he was having a heart attack at the time, he
said, "No, I knew it was a very bad headache. I knew exactly what it
was." He added that the cabin pressure from the plane, which is smaller
than the one he usually uses, amplified the headache he had been
experiencing throughout the day.

A senior campaign aide
said Giuliani did not have chest pains or shortness of breath, but was
complaining that it was the worst headache he ever had, likening it to
having a golf ball in his head or a root canal.

Giuliani
seemed very animated Saturday, repeatedly taking "one last question" at
the town hall meeting after his campaign suggested he needed to exit.
He spoke about what happened Wednesday first to a camera crew inside
the town hall, and then again outside, where he admonished a reporter
to "put on your jacket."

It was his first day of active
campaigning since he was taken to Barnes Jewish Hospital late Wednesday
evening. Campaign aides scaled back his schedule, but Giuliani is
expected to resume a full schedule next week, after breaking for
Christmas.

Giuliani said he received "a lot of tests"
and that they all came out normal. He also said he was specifically
screened for a reoccurrence of cancer, adding that he had received a
PSA test for prostate cancer several weeks ago and the results were
negative.

"I had cancer; I get tested for it all the
time," he said, adding his doctor will release a full report after
the Christmas holiday "so people can get a complete picture of the fact
that I am in good health."

He also said he believed the rigors of the campaign trail, including not sleeping, contributed to the illness.

*** UPDATE *** In Manchester, Giuliani staffers said the flu encompasses having a headache. Giuliani himself said that reporters should ask campaign aides why
everyone was told he was suffering from "flu-like symptoms" Thursday,
when Giuliani says it was a severe headache. So we did.

Campaign
officials told NBC News/National Journal that the first statement,
which was put out very early in the morning, was intentionally broad to
encompass both the headaches and pale complexion that Giuliani was
suffering from, and evaluations were ongoing at that time. The aides
also said that flu symptoms are encompassed by what Giuliani had, and
that doctors approved the initial statement.

But no
response as to why the diagnosis was never amended for more than 48
hours, until Giuliani described them as a "terrible headache."

From NBC/NJ's Tricia Miller
LISBON, Iowa -- In his first event of the day in eastern Iowa, Edwards responded to an attack from Obama. This morning in Oskaloosa, Iowa, Obama criticized Edwards on
the advertising a 527 group run by Edwards' former campaign manager is
running in the first caucus state.

"You've got these
outside groups that are helping out candidates," Obama said, "and it's a way of
getting around the campaign finance laws. So [Edwards] said he's
opposed to them -- we found out today that there is an outside group
spending $750,000, just bought three quarters of a million dollars
worth of television time, and the individual who's running the group
used to be John Edwards' campaign manager. So you can't say yesterday you don't believe in 'em, and
today, you have three-quarters of a million dollars being spent for you."

Nick Baldick, who managed Edwards' 2004 campaign and advised
his current campaign until April 2007, now runs the Service Employees
International Union's 527 branch. Many state chapters of the SEIU have
endorsed Edwards, including the Iowa chapter.

Edwards insisted after his Lisbon town hall he still believes
527s should be banned, adding that he found out about the ads through
the media and is not allowed by law to coordinate with the groups.

"The campaign's not allowed to be involved, I'm not allowed
to be involved," he said. "I found out about this probably after most
of you did, through the news media. I didn't know anything about it."

Edwards avoided questions about whether he would issue a
public appeal to stop the ads and strived to emphasize that he would be
the candidate, who could fight against corporate interests in the White
House. Edwards said the criticism was proof that Obama recognized that
Edwards had the momentum in Iowa.

"First, you know,
I guess he's seeing the same thing on the ground that we're seeing," Edwards said,
"which is why he's started talking about me, which is that we're
moving."

Edwards went from Lisbon to Coralville
for another event, but canceled tonight's event in Clinton, Iowa,
because of nasty weather.

*** UPDATE *** Obama campaign responds: "It's not change when you decry the influence of money in politics but
then stay silent when your former campaign manager exploits the biggest
loophole in the law to benefit the Edwards' campaign with millions of
dollars in ads from an unregulated political fund whose donors are
undisclosed. John Edwards can and should call on his former advisor to
stop this effort."

From NBC/NJ's Aswini Anburajan
OSCALOOSA, Iowa -- Hillary
Clinton is not the only candidate Barack Obama is ready to get into the
ring with as the Iowa caucuses draw near.

Obama slammed John
Edwards at a town hall today, saying he "talks the talk" but doesn't
"walk the walk" when it comes to the influence of special interest
groups. 

"Both of us agree that we have to take on the special
interests and lobbyists. Both of us agree that they have too much
influence in Washington. But I'd like to think in decisions when we
actually had the chance to do something about it, I did something and
John didn't. I don't just talk the talk, I walk the walk."

Obama
criticized Edwards for saying that he doesn't approve of 527s, while at
the same time not disavowing a group, Alliance for a New America, run
by long-time Edwards advisor and 2004 campaign manager, Nick Baldick.  
In the current presidential cycle, Baldick served as a consultant to
Edwards through the second quarter of 2007.

"You've got these outside groups that are helping out candidates and it's a way of getting around the  campaign finance laws. So he said he's opposed to them - we found out today that there is an outside group spending $750,000-  – just bought three quarters of a million dollars worth of television time – and the individual who's running the group used to be John Edwards's campaign manager. So you can't say yesterday you don't believe in 'em, and today you have three quarters of a million dollars being spent for you. You can't just talk the talk. The easiest thing in the world is to talk about change during election time."  

On Friday, according to the Associated Press, John Edwards said of 527s: "The way the law exists today is you have no control you're not allowed by law to have contact or to coordinate with 527s. So can you discourage it? Yes, and I do."  

Alliance for a New America will buy $769,610 in advertising across Iowa on Tuesday, with 1,400 gross ratings points in Des Moines, 1300 in Cedar Rapids and 1900 in Sioux City   - an Edwards stronghold. The group is backed by local branches of the Service Employees International Union, of which Edwards has the most endorsements.

Combine this ad buy with the actual Edwards ad buy and pro-Edwards groups are out-spending both Clinton and Obama.  Both Edwards and Clinton are benefitting from the help of outside groups; no major outside special interest is helping Obama.

The Washington Post reported that the group has raised $850,000 and already spent $590,000 in radio ads. The group is also considering a direct mail program. Edwards has one other 527 advertising on his behalf, "Working for Working Families," a group backed by the United Brotherhood of Carpenters also launched pro-Edwards television advertising in Iowa in mid-December.   

At a retail stop in Oscaloosa later in the day, Obama criticized Edwards but wouldn't go as far as to say that 527s should be disbanded or didn't have a role to play.

"I just think it's important to have consistency…  Yesterday you said you're opposed to it and the next day your campaign manager and political director is running one. One of the things that's really important to the people of Iowa is that there's gotta be follow through. We are delivering on that change not just talking about it," he said while ordering tea and pumpkin pie at a local coffee shop.

He went on to say the he was a strong backer of labor groups and that they had a right to advertise, but the process required more transparency.

"The concern is that there's no disclosure and we don't know where its coming from," he said.

*** UPDATE *** Edwards responds: "Senator Obama's attacks seem to increase as momentum for our campaign
grows. The truth is I am the only candidate in this race who has never
taken a dime of PAC or Washington lobbyist money -- ever. And, it's why
I support public financing of federal elections. As for
outside groups, unfortunately, you can't control them, but let me make
it clear -- I think money has corrupted our politics and these groups
should not be a part of the political process.

"Of
course, if Senator Obama is serious about real change, I hope he and
Senator Clinton will finally end their silence and join with me in
calling on the Democratic Party to end the influence of Washington
lobbyists by once and for all rejecting their money."

From NBC/NJ's Mike Memoli
MANCHESTER -- Attention President
Clinton: If you haven't bought your wife a Christmas present yet, she
could use a good pair of boots.

After an event in Manchester
today, some reporters were invited on board Hillary Clinton's campaign
bus, where the New York senator was chatting with two supporters,
Barbara Marzelli and AnnMarie Morris, as well as Clinton's mother,
Dorothy Rodham, and daughter, Chelsea. Sipping a cup of hot tea,
Clinton talked to the The group shared stories about last-minute
shopping, and proper winter footware.

"I don't get to shop all
that often, so I love going to little stores," Clinton said. "I like
going to Main Streets. … I like to go into stores that are kind of
unique and different." Yesterday in Concord, Chelsea and her
grandmother actually did some shopping there, she said.

Morse
said she likes shopping at L.L. Bean, and had done some online shopping
this week. That caught Clinton's attention, after some trouble on the
campaign trail in snowy New Hampshire last week.

"I realized I needed a better pair of boots, because what I had on weren't gripping enough with the ice," she said. "Do you have some good LL Bean boots that you use?" Marzelli showed off her footwear, which Clinton seemed to like. "Standing on your feet all day every day -- thank goodness for boots. Especially in this kind of weather." "I guess you never heard of golashes!" Doroth Rodham responded.

Morse, a New Hampshire resident, introduced Clinton earlier in the morning at an event in the local YWCA, called "Moms and Daughters Making History." Morse, whose daughter, Michelle, died of colon cancer, has been fighting for a national version of Michelle's Law, which allows college student to take medical leave and still be covered under their parents' insurance. Morse thanked Clinton for her efforts in pushing for the national version of the legislation.

From NBC/NJ's Aswini Anburajan
In a populist appeal to Iowans, Barack Obama criticizes unfair trade deals in an new ad "Enough."  

The ad, which will begin running in Iowa today, shows Obama speaking to a town hall size crowd criticizing tax breaks for companies that take jobs overseas.

"If the plant moves to China, and you've been working there for 20, 30 years and suddenly you have the rug pulled out from ya…" Obama says in the ad.   "And you don't have healthcare, and you don't have a pension, you're on your own."

He goes on to say, "We gotta stop giving tax breaks to companies that are moving overseas and give those tax breaks to companies that are investing right here in Iowa."   

The ad, which could as easily have said 'I'm John Edwards and I approve this message,'" appears to be part of a larger push on the economy by Obama, who has been hitting an economic message on the stump recently, showcasing more stories from working Americans, and holding economic roundtables both in Iowa and New Hampshire.

From NBC/NJ's Adam Aigner-Treworgy
ON THE ROAD, IA – So what happened to Tom Tancredo's Iowa supporters after his 'big announcement' earlier this week?

We
know that the former-candidate threw his support behind Mitt Romney,
but on Friday Tancredo's Iowa state chairman Bill Salier announced that
he was supporting Fred Thompson. And while riding through Muscatine on
the Huckabus this week, Mike Huckabee was confronted by a very well
informed former Tancredo staffer who argued with the Iowa frontrunner
over the issue of immigration.

Deb Miller described herself as
"looking" for a candidate after her old boss dropped out of the race,
and she came to the afternoon rally at the Rendez Vous Banquet Hall
equipped with a stack of information compiled from Newsmax and
ImmigrationWatchdog.com to help her with her search.

Reading
from the papers in her lap, Miller asked Huckabee about a passage from
his book that described enforcing current immigration laws as "shear
folly" and about three incidents from his time governor that showed
questionable strength on combating illegal immigration.

Huckabee addressed her issues point by point, defending his immigration record as compassionate but firm. On giving welfare benefits to illegal aliens:

"The point was not, that I supported giving benefits, the deal was I opposed creating another law to do what the law already did," Huckabee said, on his battle against a state legislator to defeat a law that would have curtailed the distribution of welfare benefits in Arkansas. According to Huckabee, the fight was to prevent redundant legislation, not protect illegal immigrant rights.

On his conflict with Immigration and Customs Enforcement regarding the raid of an Arkansas factory that employed illegal immigrants, Huckabee said that his issues surrounded ICE's failure to notify local authorities and to properly care for the children of the immigrants who were arrested.  

"You should never allow a six month old, a three month old or a six year old to wonder where his mother and father are," Huckabee said. "Nothing can be more traumatic to a child and I don't care if that child is here illegally. I don't want to be a part of a country that would ignore the humane treatment of a child."

But despite Huckabee's best efforts – including a one-on-one conversation after his speech in which he asked her to take a second glance at his record – the generally undecided Miller was still unconvinced.

"The scripture says we're supposed to obey the laws of the land," Miller said. "As a Christian, that was my question. You know, how can you justify furthering – rewarding someone who has broken law upon law upon law."

Duncan Hunter and Ron Paul are the only candidates left in the race who truly address the immigration issue, Miller said, but "they don't have a chance," and so she is seriously considering following her old boss towards the Romney camp.

After it became clear that Miller was not going to be persuaded by Huckabee's stance on illegal immigration, the candidate made one last ditch effort for her vote, but couched it in his now infamous good humor: "I hope you'll take a look at our plan and vote for me before it's over, and if not, then stay home that night."

From NBC/NJ's Aswini Anuburajan and Mike Memoli
NBC's John Yang, Mark Murray and Andrea Mitchell also contributed
WASHINGTON, Iowa -- In a battle for who can claim a bigger slice of the Clinton foreign policy legacy, Barack Obama said at a town hall Friday afternoon that he had more members of the Clinton Administration supporting him than Senator Hillary Clinton at a town hall in Washington, Iowa.  

It was a charge that the Clinton campaign quickly disputed.

"In fact you could argue that there are a bunch of ex-Clintonites supporting me," Obama said. "There are more foreign policy experts from the Clinton Administration supporting me than Senator Clinton. That should raise some pretty interesting questions."

Obama said that the reason so many former Clinton foreign policy advisors were supporting him was because he exercised better judgment on foreign policy. Citing his positions on talking with one's enemies, his opposition to the Iraq War and the Kyl-Lieberman ammendment and his criticism of Gen. Pervez Musharraf of Pakistan as an unwilling ally on the war on terror, he argued that his thinking was out of step with a conventional Washington approach but his positions had been proven right over time.

"Why is the national security advisor, the secretary of the navy for Bill Clinton, the assistant secretary of state for Bill Clinton, why are all these people endorsing me? It's not just because I give a good speech. They apparently believe that my vision of foreign policy is better suited for the 21st century, and is not caught up in the politics of fear that we've been seeing out of George Bush for the last seven years," Obama said.

According to a press release by Obama's campaign, there are 47 former members of the Clinton administration who are advising the Obama campaign at a senior level, including Clinton's former national security advisor, secretary of the navy and an assistant secretary of state.  The rest, campaign staffers say, include a cohort of 200 advisors who served in the Clinton administration in lower level positions and are now part of think tanks or academia and who focus on foreign policy on a day to day basis in their careers.  

Senator Hillary Clinton's campaign responded quickly to what they say is a "false charge," releasing a list of 83 foreign policy advisors who had served with the Clinton's. However, as some NBC correspondents and political editors have pointed out the Clinton list appears to be padded with the names of those who either served as assistants, with lobbyists, fundraisers or those who had little connection to foreign policy.

For example, Lissa Muscatine is a speechwriter for Clinton, whose foreign policy experience is limited to covering the French Open and Wimbledon when she was a tennis writer for the Washington Post's sports section.  

Others, such as Walter Mondale who was ambassador to Japan during the Clinton years, certainly played a role in American politics but may not necessarily be considered a "foreign policy" expert.  By players in American politics, it means they may not have had an extensive day to day role in American foreign policy, and may not be credited with having in-depth knowledge of a certain field or subject matter.  

Some of the names include politicos, including Joseph Paolino, a  Clinton bundler and the former mayor of Providence, RI., according to OpenSecrets.org.  Another was Steve Richetti who was deputy chief of staff in the Clinton White House.

Many of the experts listed served as ambassadors during the Clinton administration and are either working as lobbyists now and/or are fundraisers for the campaign such as Edward Gabriel, a former ambassador to Morocco.

Five of the experts listed are currently Clinton bundlers who served as ambassadors during the Clinton administration, according to OpenSecrets.org.  They include: Elizabeth Bagley who was the ambassador to Portugal; Robin Chandler Duke an ambassador to Norway; Arthur L. Schechter an ambassador to the Bahamas; Timothy L. Chorba who was an ambassador to Singapore; Charles T. Mannatt who was the ambassador to the Dominican Republic; and Thomas L. Siebert who was an ambassador to Sweden

Though some on the list are currently lobbyists, they did serve as foreign policy staffers during the Clinton Administration.  They include:  William Danvers who served as a staffer for four years on the national security council; Stuart E. Eizenstat who spent three years as the ambassador to the European Union; Rudy Deleon who was a deputy secretary of defense.

In the argument over advisors, both campaigns are attempting to claim the legacy of the only Democratic administration in the last twenty-seven years.  Obama in particular has paraded his advisers holding foreign policy forums with former Clinton administration officials such as Tony Lake (former secretary of the navy) and Susan Rice (former assistant secretary of state for African affairs) to offset the claim tht he does not have enough foreign policy experience.

The forums are often saccharine affairs, with experts praising Obama's vision for foreign poliicy and through the power of their own resumes try to assert that if they are backing him, then he does have the experience and foresight to chart a better course in foreign policy than the other candidates in the race.

Returning to the argument that he doesn't have enough experience to be president, Obama also said at the town hall that he would enter the White House with more foreign policy experience than either Bill Clinton or Ronald Reagan.  

"Well, first of all I sit on the Senate foreign relations committee even by the standards of Washington I have dealt more with foreign policy than let's say Bill Clinton had when he became president or Ronald Reagan who was a governor at the time," he said.  

From NBC/NJ's Erin McPike
ROCHESTER, N.H. – On the same night
that Mitt Romney returned to New Hampshire and re-inserted John McCain
into his stump speech, an anti-Romney student turned up to dog him on
flip-flopping.

Soon after broaching the economy and lauding
President Bush for imposing tax cuts amid disagreement, he said, "You
know, one of my friends is Sen. McCain. He voted against the Bush tax
cuts." And then he added the contrast, "I think the Bush tax cuts were
a great thing for our country, I support them, I want to make them
permanent and I want to add to them."

Buzz about a McCain
comeback has been brewing for weeks now, and a USA Today/Gallup poll of
New Hampshire Republican voters that came out yesterday showed McCain's
support level coming within single digits of Romney's lead at 34
percent to 27 percent.

But the McCain comment came back to bite him in the question-and-answer session when a young man grilled him with, "You yourself refused to endorse the Bush tax cuts as governor in 2003, saying you wouldn't be a cheerleader for a tax break you didn't support. Isn't your attack tonight, sir, hypocritical in this respect and is this not another flip flop added to the ones identified by Tim Russert on Meet The Press last Sunday?"

Romney chuckled and gave a hearty "no." He went on to defend himself from the question, explaining that he was busy being a governor but did the support the cuts and campaigned for Bush in his re-election race.

He also wiggled his way out of the issue: "I didn't have to vote on this—didn't get a choice to. I was running my state. So I didn't have a comment on their position, and I said I'm not weighing in on federal issues. But Senator McCain was a senator. He had to vote. He had to decide: Am I in favor of pursuing these tax cuts or not? And he voted against the tax cuts twice. That's a very different position."

Following the event, Romney New Hampshire communications adviser Rich Killion volunteered that the questioner was likely a McCain plant. Pounced on by reporters after Romney concluded, he gave only his first name – Sam – and said he's registered to vote in Massachusetts and is a student. "I like to meet the candidates," he said and added that he is undecided about his vote at this point.

Several Romney staffers, including Killion and Romney state director Jim Merrill, then approached him, and Killion charged, "Were you the guy with the bullhorn back in June outside the Red Arrow?" He shook his head and then asked, "Where's the Red Arrow, sir?" Merrill informed him that it's on YouTube, and Killion chimed in, "Yeah, we'll send you the clip. As you see, he's trying to leave very quickly."

Merrill said to reporters after that he's seen him "at events waving signs for Sen. McCain in front of the Verizon Center." Asked when the last time Merrill saw him, he said, "couldn't tell you." "He hasn't shown up at one of our events actually since this summer I think."

Merrill went on, "But it's the same person." Asked how he's sure, he smiled and said, "He's a very distinctive person. I remember him with a bullhorn at our event in Amherst and at our event at the Red Arrow in Manchester."

There is a YouTube clip from early August added by a user named "FlipFlopMitt" that features a similar-looking young man in sunglasses hounding Romney with a bullhorn. It's unclear where the event is. There is no McCain association evident in the clip, but the man blasts Romney for donating funds to "liberal Democrats," and he's joined by a character in a Dolphin suit.

From NBC/NJ's Mike Memoli
CONCORD, N.H. -- Hillary Clinton
picked a snow-covered apple orchard Friday to deliver a message of
bipartisanship as she kicks off a two-day New Hampshire bus tour.
Joined once again on the campaign trail by mother Dorothy Rodham and
daughter Chelsea, Clinton promised as president to do what she said the
Bush administration hasn't – work across party lines.

Clinton
introduced testimony from two Republicans, Steve Walter of Londonderry
and Jeff Volk, a New York native who was in Manhattan on 9/11 and in
New Orleans during Hurricane Katrina. His voice trembling, he called
the government response to Katrina the "most incompetence" he'd ever
seen, and said Clinton's was the only office who responded to pleas for
help. "Somebody called, and kept on calling to make sure we were okay,"
he said. He also called her "one of the most caring, compassionate,
kind, informed people I met in my life."

Clinton said the
problems facing America aren't Democratic or Republican problems, but
American problems. And she said it was time America got back to the
"solutions business." Then, the senator who a month ago in Des Moines
said it was time to "Turn up the heat" on Republicans touted her work
with the party, including people like Lindsay Graham, Bill Frist and
even James Inhofe. That's a bipartisan approach she said she'll take
into the White House.

"I can do that because it's what I've done for the last seven years," she said. "Because the way that I see it, making change isn't about politics or personalities. It's about standing up for what you believe, and then finding others to stand with you."

She also touted her '06 reelection, saying it was the fruit of hard work on behalf of the voters. "It's because you know when the speeches are done, and the bright lights are turned off and the cameras disappear what really matters is, are you still there?" she said. "I want you to know, that you can count on me. That when I tell you I'll stick with you that's exactly what I'll do."

She did again make a veiled reference to Barack Obama's health care plan. Clinton said that when she introduced her plan for universal coverage, people said it was "controversial" and "politically ambitious. "I said, then who do you want me to leave out?" she said, before citing specific New Hampshire voters she's met who struggle with health care. "I am not running for president to put band aids on problems. I intend to solve them."

The effort to highlight her bipartisan credentials comes as polls show a tightening race in New Hampshire, where independent voters typically decide on their vote at the last moments. "We've got a very fast schedule coming up right after Christmas," Clinton pointed out. "First with the Iowa caucuses and then a quick turnaround and we'll face the first in the nation primary. I need you to go out and stand up for me."

Clinton later stopped by Portsmouth's Popovers on the Square. She ordered a hot chocolate, and then worked the room for twenty minutes, even climbing over a snowbank to shake a few hands outside. "She's just so smart," said Keith Kohler, a Portsmouth resident who came out to see her. "If you're brilliant and driven you can pretty much run the country."

From NBC/NJ's Tricia Miller
WEST DES MOINES, IA -- This morning at Des Moines Area Community College, Edwards introduced the Lakey family, who made famous in his book Four Trials. In 1993, five-year-old Valerie Lakey was disemboweled by a pool drain, and Edwards represented her -- and eventually a dozen more children who had suffered similarly -- in court, leading to a $25 million settlement that covers her medical expenses for the rest of her life.

"I know John because he saved my daughter's life," said Sandy Lakey, Valerie's mother, in introducing the former senator. She told the audience that a lawsuit was the furthest thing from her mind following the accident, but that Edwards came alongside them and fought on their behalf. (*** Just to clarify: The Lakeys sought out Edwards' services.***)

"We went into that courtroom, and we battled and we fought. And the Lakeys can tell you the details of that battle," Edwards said. "It was a difficult, difficult time for them."

Edwards was here as part of his three-day "Fighting for America's Voice" tour through Iowa. Also traveling with him is James Lowe, whom Edwards often references in his call for universal health care. Lowe was born with a cleft palate and therefore couldn't speak. As Edwards tells it, Lowe couldn't get it repaired because he didn't have health insurance, so a surgeon generously did it for free when Lowe was 50 years old. That was when Lowe got his voice back, Edwards explained in stops yesterday.

From NBC's Ken Strickland
The bipartisan leadership of the Senate Judiciary Committee is asking the Justice Department to find, save, and turn over any remaining video or audio tapes of enhanced interrogations. The request was made today in a letter from Committee Chairman Pat Leahy and ranking Republican Arlen Specter.

They write, "Our request expressly includes copies, remnants, fragments and extant recordings of the tapes reportedly destroyed of waterboarding, wherever recorded and wherever currently held. If those recordings are in the possession, custody or control of the United States or can be obtained by the United States, we request them on behalf of the Committee."

While DOJ has previously refused to share information with the committee, citing conflicts with the department's own inquiry, the leaders say parallel investigations have occurred in the past and is "pursuant to our oversight and legislative responsibilities."

Among other things, the leaders specifically ask for "preservation orders" of all recordings and documentation related to interrogations or the destruction of interrogation tapes. They also ask that the White House, CIA and other relevant agencies or contractors be canvassed for additional tapes.

The letter was sent to Attorney General Michael Mukasey and Director of National Intelligence Michael McConnell.