The New York Times covers FBI director Robert Mueller's testimony on Capitol Hill yesterday, which "sharply conflicted with Attorney General Alberto R. Gonzales's sworn statements about a 2004 confrontation in which top Justice Department officials threatened to resign over a secret intelligence operation… His testimony was a serious blow to Mr. Gonzales, who insisted at a Senate hearing on Tuesday that there were no disagreements inside the Bush administration about the program at the time of those discussions or at any other time. The director's remarks were especially significant because Mr. Mueller is the Justice Department's chief law enforcement official."

From NBC's Andrew Merten
McCain today became the second GOP presidential hopeful (after Romney) to side with Clinton in her spat with Obama -- although he did not say so explicitly. During a town hall meeting in Derry, NH this afternoon, a member of the audience asked McCain what he thought about the dispute that began at Monday night's debate. McCain used Iranian President Mahmoud Ahmadinejad as an example, saying, "Are we going to come out of this meeting, and the president of Iran is going to say, 'I'm stopping the IEDs, I'm going to stop developing nuclear weapons, I will agree that Israel is going to exist,' then fine. Then lets set up the meeting." But he warned of the danger posed to the prestige of the presidency and the country as a whole if such a dictator would use a high-level meeting for propaganda purposes, similar to Clinton's warning on Monday.

Said McCain in conclusion: "There's a downside to just saying, I'll sit down and have face-to-face meetings with one of these dictatorial rulers, who violate every principle of upon which this nation was founded."

From NBC's Mark Murray

Per the Clinton campaign, Hillary Clinton will deliver her own counterpunch to Obama in an interview to appear on CNN later this afternoon -- and it includes a zinger at Obama's "politics of hope." She will say, "Well, this is getting kind of silly. I've been called a lot of things in my life but I've never been called George Bush or Dick Cheney, certainly. We have to ask what's ever happened to the politics of hope?"

More from Clinton: "I have been saying consistently for a number of years now, we have to end the Bush era of ignoring problems, ignoring enemies and adversaries. And I have been absolutely clear that we've got to return to robust and effective diplomacy. But I don't want to see the power and prestige of the United States President put at risk by rushing into meetings with the likes of Chavez, and Castro, and Ahmadinejad."

From NBC's Mark Murray

In Iowa today, Chris Dodd became the latest Democratic presidential candidate to unveil a comprehensive health-care plan, promising universal coverage within four years. The pillars of his plan are: 1) creating a heath insurance marketplace called Universal HealthMart, based on the Federal Employee Health Benefit Plan; 2) basing individual and business contributions to the Universal HealthMart on their ability to pay; 3) driving down premiums by leveraging negotiating power and reducing costs; and 4) making coverage portable -- that is, insurance would follow individuals, not jobs.

But unlike the Edwards and Obama campaigns, which released the costs of their health-care plans when they announced them, the Dodd camp tells First Read that they don't yet have a cost estimate for their plan.

*** UPDATE *** The Dodd campaign just told us that his plan will cost between $40-$50 billion a year in those first two years, and then $70 billion a year in the two years after that.

From NBC's Lauren Appelbaum
Public Citizen Congress Watch, a government watchdog organization which lobbies for various issues including campaign finance reform, has unveiled a new website that tracks the money trail of bundlers. Rebuilt for the 2008 season, WhiteHouseForSale  lists these bundlers for all of the candidates, tracking those people both released by the campaigns and disclosed by press accounts. In a release, the organization stated "candidates should be required to disclose all bundlers' identities, how much each raised and from whom each bundled contribution is obtained."
 
On a conference call with reporters, a spokesman said the organization believes all of this information should be available for everyone and views bundling with skepticism. "We are skeptical that bundling is healthy for democracy and with the lack of disclosure with bundling."
 
As of today, the site has nearly 1,900 bundlers listed -- with Edwards in the lead with 543 and McCain not far behind with 440. Clinton and Obama are listed with 220 and 262, respectively, and Giuliani and Romney have 132 and 230. One interesting tidbit the organization pointed out is that while McCain has such a large amount of bundlers, he has been suffering from money problems -- while Clinton and Obama have less but have raised more money. 
 
Kucinich, Gravel, Brownback, Paul, Tancredo, Hunter, and Tommy Thompson are all listed with no bundlers, but some of the lower tier candidates who are listed do have a few: Biden (16) Richardson (14), Dodd (12), and Huckabee (8). Overall, of declared candidates, the democratic candidates have 1068 bundlers while the republican candidates have 810.
 
Another interesting note is that while both Clinton and Obama have disclosed many of their bundlers, the website lists people as bundlers for Clinton whom were not reported by the campaign. One example is Warren Buffet; Public Citizen states he has raised at least $1 million for her, but he is not on Clinton's list.
 
The organization plans to update the website at least every quarter but hopes to do so as often as new accounts become available.

From NBC's Lauren Appelbaum

In Iowa, Edwards laid out his plan to reform the American tax code, stating the only way to have a growing economy is to lift people out of poverty and into middle class. Saying Washington is the problem, Edwards once again called the system rigged for the lobbyists and stated he would be a president to bring about a change."You can't do this by being nice," he said. "You have to tell the truth, you have to be strong, and you have to be willing to fight. The time to talk to them is after you've beaten them."
 
In order to bring the economy back on track, Edwards proposed three items: "reform our tax system to reward work instead of just rewarding wealth," "negotiate and enforce smarter trade agreements," and "demand, require corporate responsibility and for corporations to treat their workers fairly."
 
As part of his plan, Edwards called for helping the middle class in three areas: savings, work, and family. For the first two areas, he called for "Get Ahead accounts" and work bonds for low-income workers.

"The idea is, you save a dollar, we match it with a dollar, up to 500 dollars a year," Edwards said. "What this does is allow families to accumulate some assets so they have something for later and something they can fall back on in the case of an emergency."
 
The work bond is a similar concept as the Get Ahead accounts, but instead of saving for later, it is for a regular savings account. In addition to these work bonds, Edwards also called for an expansion of the earned income tax credit and to get rid of the marriage penalty as ways to help the working class. Lastly, to help families, Edwards vowed he would expand the childcare credit.
 
In order to pay for these programs, Edwards said he would repeal President Bush's tax cuts. Specifically, Edwards said he would raise the capital gains tax rate to 28% for people who make more than $250,000 a year -- noting that this would include himself. For those who still make under a $250,000, they would be subject to the present rate of 15%. He also said he would "go to war on stopping these off-shore tax havens" to prohibit people from receiving special tax breaks.
 
On a lighter note, Edwards talked about his bike ride with Lance Armstrong yesterday, telling the audience his "bottom is sore." He recalled his son Jack asking him if Lance rode faster than he did; Edwards told his son "no" -- until Elizabeth chimed in. "That's because he chose not to, Jack."

From NBC's Carrie Dann

For the first few days after Monday's debate, Clinton and Obama's GOP counterparts were content to stay on the sidelines and watch their rivals spar over the issue of diplomatic concessions to rogue leaders. But in Iowa this morning, Republican candidate Romney finally weighed in, and he's coming down on Clinton's side.
 
Speaking at a breakfast in Iowa, Romney ridiculed Obama for having "some special people he wants to visit" during his first term, referring to Obama's willingness to consider meeting with leaders like Venezuela's Chavez and Iran's Ahmedinejad.

"It's absolutely extraordinary that someone could be so out of touch with the nature of our world," Romney said of Obama. Romney scathingly added that Obama's philosophy mirrors that of Neville Chamberlain, the British Prime Minister who promoted a policy of "appeasement" towards Nazi Germany in the years before World War II.

Is Romney doing Obama a big favor by sounding a bit like Clinton in his criticism of Obama's position? After all, Obama was eager to paint Clinton as "Bush-Cheney light" when he commented on the controversy this morning. The fact that a top GOP contender is echoing her criticisms could serve the Obama camp well as it tries to draw parallels between Clinton and the Republican status quo. 
 
Asked by reporters after his event if he's uncomfortable finding himself in agreement with Senator Clinton, Romney responded with a laugh.

"Well, if two Democrats are violently disagreeing on something," he said, "I'm probably going to be on one side. But she happens to be right."

From NBC's Domenico Montanaro

When the immigration debate was piping hot here in Washington, Giuliani didn't weigh in with specific policy proposals, but instead called the Senate immigration bill a "typical Washington mess."Now, Giuliani, who has called himself pro-immigrant in the past, is calling for tougher border security, including a fence.

"I hope President Bush puts his energy now into building the fence, building a technological fence, increasing the size of the Border Patrol and creating order at the border, which is all that anyone's asking for," Giuliani said per the AP.

****UPDATE****The Giuliani campaign contacted First Read and said the former mayor has laid out four points -- including at the most recent Republican debate -- he would like to see in any immigration legislation contain going forward: (1) seal the border; (2) a universal biometric ID card; (3) a single database that all the agencies would use; and (4) identify everyone who is actually here in the country.

From NBC's Domenico Montanaro

In another attempt to appeal to the conservative base and position himself as the conservative candidate, in Iowa today Romney unveiled an "initiative to prevent pornography from reaching children on their computers."In an e-mail to reporters, the Romney campaign issued a "policy briefing" outlining his "Guarding our Children on their Computers" plan. He says this "major problem" is "easily solved through determined action."

His plan includes making sure "every parent has access to software filters," and he proposes tracking first-time sexual offenders by global positioning satellite, or GPS, for life. He calls this his "One Strike, You're Ours" law.

From NBC's Domenico Montanaro

Congressional Democrats subpoenaed White House senior adviser Karl Rove, and Judiciary Committee Chairman Sen. Patrick Leahy (D-VT) charged that "political considerations factored into the unprecedented firing of at least nine United States Attorneys last year," the AP reports."E-mails released by the Justice Department show [Attorney General Alberto] Gonzales' aides conferred with Rove" on the firing of the prosecutors, the AP reports.

NBC's Kelly O'Donnell reports, while not specifically addressing the possibility of Leahy issuing a subpoena for Rove, a senior WH official responded with another hit on congress:

"This is becoming an out of control Congress--calling for special prosecutors, launching investigations, issuing subpoenas and generally just settling scores--all while appropriations bills go unpassed and FISA modernization, energy and other important issues go unaddressed. It's unfortunate and embarrassing that this Congress continues to neglect the issues important to Americans, and Americans are taking note."

From NBC's Andrew Merten

Obama has now taken his foreign diplomacy spat with Clinton on the campaign trail, firing back against her criticism that his willingness to meet with world dictators is "naïve." Said Obama this morning during an endorsement speech in Concord, NH:  "I'm not afraid of losing the PR war to dictators," continuing, "I'm not going to hide behind a bunch of rhetoric. I don't want a continuation with Bush-Cheney. I don't want Bush-Cheney light. I want a fundamental change."
 
As First Read reported earlier, during a conference call with reporters this morning, Obama challenged Clinton to differentiate her policy of meeting with dictators only under certain preconditions with that of the Bush Administration. This came after an initial comment to the Quad Cities Times, followed by an on-camera interview with NBC News last night. But this is the first time Obama has brought up the disagreement -- which started during Monday night's presidential debate -- during a campaign speech. It proved to useful in riling up the audience, garnering cheers and applause.

He continued to speak on the importance of diplomacy and decried the current administration's reluctance to speak with some foreign leaders, saying, "We're going to be tough and smart, and we're not going to be afraid of anybody in affirming what America is all about."

From NBC's Pete Williams
Having failed to get a vote expressing no confidence in Attorney General Gonzales, four Senate Democrats today tried a new approach -- asking the Justice Department to investigate him.

In a letter to the Justice Department's solicitor general, Paul Clement, they ask him to appoint a special counsel with an exceptionally broad mandate --  to investigate whether Gonzales made false statements to Congress, whether the Justice Department has been inappropriately politicized, and whether improper political influence was involved in the decision not to prosecute any potential contempt of Congress charge.

The Justice Department says in each case of Gonzales's statements, there's an explanation that shows he was not lying to Congress.

VIDEO: Democrats seek perjury probe of Gonzales

So far, no Republicans are involved in the request for a special counsel. Sen. Arlen Specter said this morning that he thinks appointing a special prosecutor on the contempt issue would be "harsh," and indicated he thinks the public wouldn't support it.

The Democrats address their letter to Clement, because both Gonzales and his deputy were involved in the US attorney firings and have recused themselves. The associate attorney general is only in an acting position, so Clement has been assigned to handle these issues.

****UPDATE****NBC's Kelly O'Donnell has this response from a senior White House official:

"Every day congressional Democrats prove that they're more interested in headlines than doing the business Americans want them to do. And Americans are now taking notice that this Congress, under Democratic leadership, is failing to tackle important issues."

From NBC's Mike Viqueira
A spokesman from Clinton's Senate office had this response to Secretary of Defense Robert Gates' letter:

"While Senator Clinton is disappointed that Secretary Gates does not repudiate Under Secretary Edelman's unacceptable political attack, Senator Clinton nevertheless welcomes Secretary Gates's acknowledgment that congressional oversight of the war in Iraq is essential to our national debate. She continues to believe strongly that there is absolutely no room for impugning the patriotism of those who rightfully engage in Congressional oversight.

"Senator Clinton also welcomes the disclosure that the Department of Defense, according to the Secretary, is indeed planning for the redeployment of U.S. forces from Iraq, and looks forward to receiving the department's briefings. To ensure that Secretary Gates' sentiments are fulfilled, she will continue to pursue with Senator Kerry their legislation mandating that the Pentagon brief Congress on contingency planning to ensure the safe and secure redeployment of our troops from Iraq."

From NBC's Mark Murray

In a conference call with reporters this morning, Barack Obama launched another volley in his spat with Hillary Clinton, equating her answer at Monday's debate -- saying she would NOT meet with world dictators without preconditions -- to the Bush Administration's current policy. The Bush Administration says "we're not talking to these countries unless they meet these preconditions. That is the explicit policy," Obama said during a Q&A session after announcing the endorsement he won from New Hampshire congressman Paul Hodes (D).

"You'll have to ask Sen. Clinton what differentiates her position from their position." He added that his answer at the debate -- that he WOULD be willing to meet with the leaders of Syria, Iran, etc. with preconditions -- "sends a message that we're willing to sit down and talk, and that increases over leverage and our capacity to get something done."

Responding to another question on the matter, Obama then referred to Clinton's 2002 war authorization vote. "It's a debate over the same conventional thinking that led people to authorize the war in Iraq without asking questions." He said that thinking was "talking tough and not acting very smart." He continued, "Part of what I believe we have to have is a willingness ... to talk tough, but be tough and smart enough to engage our enemies."

Clinton allies have disputed that Clinton's answer at the debate can be compared to the Bush Administration's foreign policy, noting that she has called for vigorous and robust diplomacy. But she doesn't think it makes any sense to pursue vigorous diplomacy without getting the most of it. You just can't promise to meet with leaders. There need to be conditions. There needs to be leverage.

BREAKING NEWS
From NBC's Courtney Kube
NBC News has obtained a copy of a letter that Secretary of Defense Robert Gates sent to Hillary Clinton late last night in response to her complaints that Under Secretary of Defense Eric Edelman was dismissive of her request for information about plans for Iraq. [Click here for PDF copy of letter.]

In the three-page letter, Gates tells Clinton that he "emphatically assures you that we do not claim, suggest, or otherwise believe that congressional oversight emboldens our enemies" (as Edelman alleged in his letter last week).

He says that he is willing to discuss ways to keep the Senate updated on "conceptual thinking" on the drawdown plan. He also expresses his "continued strong support" for Edelman, but adds that he "truly regret[s] that this important discussion went astray and I also regret any misunderstanding of intention."

****UPDATE****We have copied the text of the letter below. Also, some points of note:

-- Gates points out that Edelman's first presidential appointment was in 1998 ... under Bill Clinton.
-- Gates cc's Senators Carl Levin and John McCain.
-- Gates points out that he is an advocate of Congressional oversight (true from his speeches and actions so far)
-- Gates does NOT apologize, but does say that he regrets the incident

FULL TEXT:
(dated July 25, 2007)

Dear Senator Clinton,
I am responding to your July 19, 2007 letter regarding contingency plans for the withdrawal of U.S. forces from Iraq.  In preparing this response, I have reviewed Under Secretary Edelman's July 16, 2007 reply to your request for information on those plans, as well your initial May 22, 2007 inquiry.

First, allow me to reiterate that I have long been and continue to be an advocate of congressional oversight as a fundamental element of our system of government.  I also have publicly expressed my belief that congressional debate on Iraq has been constructive, appropriate and necessary.  In fact, you and I have engaged in fruitful exchange along these lines.  Furthermore, I agree with you that planning concerning the future of U.S. forces in Iraq - including the draw down of those forces at the right time - is not only appropriate, but essential.  Under Secretary Edelman, along with the Department of Defense's senior civilian and military leadership, shares my views on these matters.

Specifically, I emphatically assure you that we do not claim, suggest, or otherwise believe that congressional oversight emboldens our enemies, nor do we question anyone's motives in this regard.  My statements to this effect have been frequent and unambiguous.  That said, we all recognize that there are multiple audiences for what we say, and need to be careful not to undermine the morale of our troops or encourage our enemies -- the point I think Ambassador Edelman was trying to make in his letter.

With respect to your specific request, the Department's policy is to share appropriate information regarding policies, posture, and administrative plans with appropriate Congressional oversight committees.  But as Under Secretary Edelman and officials from many previous Administrations have stated, it is also the Department's long-standing practice and policy spanning decades and multiple Administrations that operational military plans, including contingency plans, are not routinely shared with the Congress (or with other departments of the Executive Branch). There are a number of time-proven reasons for this policy, including considerations of operational security, the fact that plans are continuously modified as required by changing security conditions, and the need to protect the operational commander's ability to implement the plan as flexibly as the situation warrants.  In short, the Department has to ensure that no commander is constrained by a plan that no longer comports with the situation on the ground.

All this said, I would be pleased to work with you and the Senate Armed Services Committee to establish a process to keep you apprised of the conceptual thinking, factors, considerations, questions, and objectives associated with drawdown planning.

Further, you may rest assured that such planning is indeed taking place with my active involvement as well as that of senior military and civilian officials and our commanders in the field.  I consider this contingency planning to be a priority for this Department.

Finally, I want to close by expressing my continued strong support for Ambassador Edelman.  Dr. Edelman is a valued member of the Department of Defense team and his wise counsel and years of experience are critically important to the many pressing policy issues facing the military and our nation.  Eric Edelman is a career foreign service officer who received his first senior Presidential appointment in 1998 as United States Ambassador to Finland.  He has served our nation with distinction through multiple administrations and I rely on his able assistance in addressing the many challenges facing the Department in the months ahead.

I truly regret that this important discussion went astray and I also regret any misunderstanding of intention.  However, I trust that this response addresses your concerns and that we can continue this dialogue in the months ahead in a manner that keep you and the committee properly informed and constructively furthers the national debate.

Sincerely,
Robert M. Gates

cc: Chairman Carl Levin
    Honorable John McCain

###

From NBC's Domenico Montanaro
The Atlantic's Marc Ambinder digs into the Republican in-fighting in Michigan over the primary date and highlights cooperation between the McCain and Giuliani camps.

Currently Michigan's primary is scheduled for Feb. 5th with a big asterisk. The state party and the candidates have endorsed a joint primary of Feb. 5th or earlier -- the "or earlier" is what one Giuliani supporter objects to. For the Giuliani campaign, "it's most convenient, strategy-wise, for Michigan to choose delegates on Feb. 5 or later," Ambinder writes, because "it will dilute the momentum effect provided by Florida," whose primary is on Jan. 29th.

And other delegate selection rules "rankle" the McCain and Giuliani campaigns.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Carly Zakin
*** Clinton vs. Obama, Round 3: Well, Obama apparently got the last word in the skirmish over the unsavory-world-leaders question at Monday's debate. The last 48 hours was telling: After the debate, it appeared the Obama folks were trying to fuzz things up with Clinton's position (see Axelrod's initial post-debate quote). But yesterday, one got the sense it was the Clinton side trying to do this with Obama's position (see Holbrooke's quote below). Bottom line: Obama took Clinton's punch and seemed more comfortable hitting back. We are hearing from some Clinton fans -- not insiders -- who are wondering if in hindsight it was a mistake to hit Obama on Tuesday. Did the front-runner give the challenger some needed oxygen? Also, will Obama get in another shot at Clinton when he holds a conference call with reporters this morning announcing New Hampshire Rep. Paul Hodes' (D) endorsement?

*** Can't We All Just Get Along? By the way, one of the other campaigns finally weighed in on this spat -- but it was via spokesperson, not the candidate. Biden manager Luis Navarro issued the following statement: "This squabble is a distraction from the main event: defeating the Republicans and ending the war responsibly. Petty arguments about foreign policy credentials will not get mine resistant vehicles in the field any faster and will not get our troops home any sooner. Already Republicans are seeking to divide Democrats on the one issue that they have no credibility on after four and a half years of President Bush's failed policy in Iraq." But is this all we're getting from Biden? Shouldn't he be saying something like this?

*** Another Blow For Fred? If the bad news from the last few weeks wasn't enough before his campaign even begins (shakeup, questions about his anti-abortion views, mixed reviews of his speeches), the Washington Post reports today about his career as a trial lawyer -- a profession that's a four-letter word in many GOP circles. Do note, however, that it is not odd to see Republicans in the South who are supportive of trial lawyers. Two prominent examples: Republicans Lindsey Graham and Richard Shelby. Also, check out GOP analyst Quin Hillyer's advice not to give up on Thompson just yet, despite the lack of positive news in recent weeks. 

*** White Paper Day: Twin policy speeches in Iowa: This morning from Des Moines, Edwards gives what his campaign is billing as a major speech on tax policy. Per advance excerpts of the speech, he will "declare war" on offshore tax havens, as well as call for an end to the loophole that allows hedge fund and private equity managers to treat most of their income as capital gains. And later today, Dodd will unveil his health-care plan at a home in Marion, IA.
 
*** On The Trail: Elsewhere, Brownback is in Iowa; Clinton is in DC; Giuliani travels to Houston; Huckabee speaks in Denver and meets with board members of the National Urban League; McCain holds a town hall meeting in New Hampshire; Obama goes to South Carolina after picking up his endorsement in New Hampshire; Richardson hits New Hampshire; and Romney visits in five different Iowa counties. Also, former Iowa Gov. Tom Vilsack holds a $20-per-person fundraising happy hour for Clinton in New York City.

Countdown to the Ames Straw Poll: 16 days
Countdown to MA-05 Special Election: 39 days
Countdown to LA GOV election: 86 days
Countdown to Election Day 2007: 103 days
Countdown to LA GOV run-off (if necessary): 114 days
Countdown to Iowa: 171 days
Countdown to Tsunami Tuesday: 193 days
Countdown to Election Day 2008: 467 days
Countdown to Inauguration Day 2009: 544 days

In an exclusive on-camera interview yesterday with NBC, Obama escalated his criticism of Clinton. "I think what is irresponsible and naive is to have authorized a war without asking how we were going to get out -- and you know I think Senator Clinton hasn't fully answered that issue.The general principle that I was laying out is that we should not be afraid as America to meet with anybody." More: "Now, they may not like what we want to hear -- so if I'm talking to the President of Iran, I'm going to inform him that Israel is our stalwart ally, and we are going to do what's necessary to protect them -- that we will not accept a nuclear bomb in Iran, but that doesn't mean we can't say that face to face. And obviously, the diplomatic spadework has to be done ahead of time. The notion that I was somehow going to be inviting them over for tea next week without having initial envoys meet is ridiculous."

The Clinton campaign released this statement from former Clinton Administration UN ambassador Richard Holbrooke: "As she has said many times, Senator Clinton believes we need to engage in vigorous diplomacy after the cowboy approach of the Bush years. She has said she would initiate serious, responsible dialogue with nations with whom we don't agree in order to further the national security interest of the United States. But she is right not to risk the prestige of the presidency by unconditionally committing to meet with leaders of adversarial nations."

The New York Times Caucus blog reports on Obama's comments yesterday: "Having a presidential candidate actually make such a charge against another on camera lends it more weight than it carries in print. It shows the candidate is willing to stand behind his remarks. And it can be much more compelling."

The Washington Post notes that Richardson said he'd meet with rogue leaders, and that Bill Clinton even "met with both Hafez Assad of Syria and President-elect Hugo Chavez of Venezuela while he was in office. But Phil Singer, a Clinton campaign spokesman, said on Wednesday: 'Bill Clinton never agreed to meet with rogue leaders without preconditions his first year in office.'"

The AP provides us with the context: "Obama's comment about meeting with foreign foes came in response to a question in a Democratic presidential debate Monday night. The Clinton campaign immediately highlighted his statement as evidence that he doesn't have the foreign policy skills to be president. 'I thought that was irresponsible and frankly naive,' she told the Quad-City Times of Iowa."

And the Politico's Simon takes a deeper look at the spat.

Here's another article noting how the Democrats seem to be shifting their language on abortion. While the party hasn't necessarily shifted its position, there appears to be more tolerance (at least among congressional Democrats) of divergent abortion views. The GOP has a good chance of nominating a pro-choice Republican, but there's not a single pro-life Democrat running for president. But given this shift, are we a cycle or two away from that? There are a handful of Dem governors who are pro-life.

The Columbia State previews Obama, Edwards and Clinton speaking to College Democrats at the University of South Carolina. Obama speaks today, Edwards tomorrow and Clinton on Saturday.

CLINTON:

Sen. Dianne Feinstein's (D) endorsement of Clinton got a package on the LA local news when the two senators sat down for a satellite interview with KABC. It was mostly positive, but toward the end the local reporter asked Clinton and Feinstein about the extramarital affair story that has been haunting LA Mayor Antonio Villaraigosa. According to the reporter, Clinton stood by the mayor and said he'd remain as one of her national co-chairs. DiFi apparently got "testy" with reporters that the subject was brought up in this venue. Feinstein: "It's interesting to me that the press asks those questions. I mean here is a candidate running for president of the United States. Antonio Villaraigosa is the mayor of Los Angeles. And both of us will always work with him. His personal life is something else and leave it out of that." See their joint interview here.

There was a time when many of us thought the first woman to be elected either president or vice president was Feinstein.

Also, another anti-Clinton YouTube is making the rounds, pointing out the possible 28 years of Bush-Clinton rule -- in addition to bids by Jeb, Chelsea, and then the Bush twins. "It's time for a regime change," the YouTube concludes. "Don't vote Hillary."

EDWARDS: In his speech on tax policy today, Edwards will "declare war" on offshore tax havens, as well as call for an end to the loophole that allows hedge fund and private equity managers to treat most of their income as capital gains. Per excerpts of his speech, "[T]he people with power aren't going to give it up without a fight. And we can't sit down with them and make a deal. We can't triangulate our way to big change; we can't compromise our way to big change – we need to lead the way to big change. And that starts with me being specific, clear and honest about what I'm going to do… It's time to stop promoting the wealth of the wealthy and to start making sure that every American who works hard has the chance to move up the economic ladder."

Edwards will give an interview to CNBC later today on his tax policy.

Forget advocating for universal health care or calling potentially for higher taxes, there's NOTHING riskier for a presidential candidate than appearing in Spandex. Edwards rode with Lance Armstrong yesterday for a leg of Iowa's famed bike race, RAGBRAI. "The famously well-coiffed candidate was sweaty after about a dozen miles," the Des Moines Register reports, "but there was no evidence of helmet hair."Also: "Armstrong said he invited all the presidential candidates to ride on RAGBRAI with him but so far Edwards was the only one who took him up on it. Democrat Joe Biden's wife, Dr. Jill Biden, was also scheduled to ride today and Republican Mitt Romney's sons are riding Friday. Democrat Chris Dodd will have an event on the route in Dyersville on Friday." 
 
OBAMA:

While the campaign billed a major "national" addition to his campaign yesterday, it turns out the major addition is a "New Hampshire" in nature -- not national. Freshmen Democratic Rep. Paul Hodes becomes the highest-ranking Dem officeholder in New Hampshire to endorse, and he's backing Obama.

The Chicago Tribune examines Obama's fundraising network, and it finds that despite the small-donor hype, there's a significant big donor network as well, complete with bundlers. "Half the fundraisers live in just three metropolitan regions that are seats of financial or political power: Washington, New York and Chicago. Obama's home base of Chicago accounts for the largest proportion of the large fundraisers, about a fifth, according to a Tribune analysis."

Iowa Christian Alliance president Steve Scheffler yesterday sent an email to the group's supporters reprimanding Giuliani and McCain for not participating in its events. The group held a candidate forum at the end of June that was attended by every GOP candidate except those two. And the group notes it's hosting house parties throughout the state at various times in order to provide another venue for candidates to participate in their events.  More from the email: "While Rudy Giuliani admittedly is pro-choice and favors special rights for homosexuals he recently stated while in Iowa that he would only appoint strict-constructionist judges to the U.S. Supreme Court who are in the mold of Chief Justice John Roberts and Samuel Alito. However, most of Giuliani's judicial appointments during his eight years as mayor of New York were hardly in the mold of Roberts and Alito… McCain has also left many Iowa Christian voters confused regarding his stances on various issues such as stem cell research, traditional marriage, and illegal immigration. While we are thankful for the pro-life votes he has cast in the past we cannot understand why he would support the use of federal tax dollars to advance the efforts of embryonic stem cell research."

BROWNBACK: The Kansas senator defended his push-call attacks in Iowa on Romney's -- and Romney's wife's -- stance on abortion. "If anything we're saying is untrue, I will issue an apology," the Des Moines Register notes. MCCAIN: In another salt-in-the-wound development, McCain's camp was dealt another blow yesterday when two of his chief media consultants decided to resign. "Political ad-makers Russ Schriefer and Stuart Stevens, veterans of President Bush's 2000 and 2004 campaigns, on Monday emailed the new campaign manager -- lobbyist and longtime McCain adviser Rick Davis -- to say that they were quitting. The two men told friends they had considered leaving for days, as they hadn't been paid and the campaign's financial straits raised questions of when and how much they would be."

But let's not go overboard on this development. Many of the Bush-Cheney folks that were brought in by ex-manager Terry Nelson have been leaving. This may simply be a continuation of that exodus.McCain brought his newly refined campaign to New Hampshire on Wednesday. "Yesterday, in a series of stops, McCain illustrated the new approach, speaking forcefully on issues dear to him and traveling with a slimmer crew of staffers - and a significantly smaller cadre of reporters and television cameras.  His message hasn't changed much, though he spoke little about immigration reform, an issue that figured prominently in previous visits and on which he differs from many Republican voters."

ROMNEY: In another attempt to appeal to conservative voters, Romney told a crowd in New Hampshire he wants to appoint conservative judges. "'I will appoint justices like Roberts and Alito and Scalia . . . and Thomas,' the New Hampshire Union-Leader reports. F. THOMPSON: The Washington Post does an examination of Thompson's trial lawyer career (late '70s to early '90s). "His work representing white-collar criminals, drug defendants and lawsuit victims has given Thompson an affinity with one of the Republican Party's perennial targets, trial lawyers, and he carries that connection with him even today as he prepares to seek the GOP presidential nomination. It also helped shape a view on lawsuit reform that has frequently put him at odds with his own party."

Politico's Martin reports Newt Gingrich may end up endorsing Fred Thompson. Gingrich and his wife had dinner with the Thompsons early last week. Then there's the decision by one of Gingrich's longtime political aides, Rich Galen, to sign up with Thompson. "If a Gingrich endorsement of Thompson happens, it probably won't be until at least October. For one thing, Thompson isn't likely to formally announce his candidacy until after Labor Day. But Gingrich has also said repeatedly that he would hold off any decision until after he marks the 13th anniversary of the Contract With America -- the manifesto that spurred the GOP takeover of the House in 1994 -- by holding an online policy seminar in late September."

GOP analyst Quin Hillyer advises folks to take a deep breath regarding Thompson. The same folks, he notes, were criticizing Giuliani three months for not getting his campaign in gear soon enough and look where he still is. "Thompson isn't imploding. He has surrounded himself with smart people, and he is a very good communicator who is a proven mainstream conservative. He's gonna be very, very much in the mix, and he is well positioned to win the whole thing."

Video: New buzz about Newt Gingrich alliance with Fred Thompson

Last week, a CNN South Carolina poll had Clinton with a sizable lead over Obama, 43%-27% -- which the Obama campaign laughed at. Well, a new Insider Advantage (R) poll (536 respondents) conducted the day after the CNN/YouTube debate in Charleston, SC has Clinton with a 15-point lead over Obama, 43%-28%. The Clinton campaign gleefully notes this poll, as well as this recent quote from Obama's pollster: "We are going to outright win South Carolina." 

If the Obama folks dispute this one, they may need to release their own numbers in order to provide the pudding proof.

The AP's Beth Fouhy checks in on one of the most high-profile, yet invisible, leaders of the Democratic Party: DNC Chair Howard Dean. She notes the summer of angst he's dealing with regarding the Florida primary and its place in the primary calendar.

The New York Daily News covers Bloomberg's yesterday speech to the National Urban League, in which he said agreed with Obama on the issue of merit pay.

Per NBC's Jim Miklaszewski, US military officials say that Army lawyers are reviewing the recommendations for disciplinary action against nine Army officers -- including retired Lt. General Phillip Kensinger -- for their role in withholding the truth about the death of former Army Ranger Pat Tillman. In Kensinger's case it may require that he be recalled to active duty to face a possible reduction in rank and reduction in retirement benefits. 

The officials say the recommendations call for non-judicial punishment against the four generals and five other officers -- such as letters of reprimand, which would essentially end their military careers. There are NO recommendations for criminal action. The officials stress that no final decision has been made in Kensinger's case, which is expected to be announced sometime next week.

The New York Times front-pages the anti-Iraq war movies that Hollywood will be releasing soon. In the past, Hollywood usually gave the veteran more breathing space. William Wyler's 'Best Years of Our Lives,' about the travails of those returning from World War II, was released more than a year after the war's end. Similarly Hal Ashby's 'Coming Home' and Oliver Stone's 'Born on the Fourth of July,' both stories of Vietnam veterans, came well after the fall of Saigon."

The Washington Post: "Senate Judiciary Committee Chairman Patrick J. Leahy threatened yesterday to request a perjury investigation of Attorney General Alberto R. Gonzales, as Democrats said an intelligence official's statement about a classified surveillance program was at odds with Gonzales's sworn testimony."

Give us a moment to brag. But our former colleague, Elizabeth Wilner, has been named a member of the Commission on Presidential Debates, the group charged with putting on the general election debates. Also of note, Wilner has formed a new consulting firm specializing in media and strategic communication services.

BREAKING NEWS
From NBC's Andrea Mitchell
Sen. Obama has ESCALATED his criticism of Hillary Clinton -- taking it to political defcon three -- in an exclusive on-camera interview with NBC News.

It is a lot tougher than what he said in the debate -- or in the Iowa newspaper interview yesterday.

During a stakeout outside his senate office, Obama said in part:

"I think what is irresponsible and naive is to have authorized a war without asking how we were going to get out -- and you know I think Senator Clinton hasn't fully answered that issue.

"The general principle that I was laying out is that we should not be afraid as America to meet with anybody.

"Now, they may not like what we want to hear -- so if I'm talking to the President of Iran, I'm going to inform him that Israel is our stalwart ally, and we are going to do what's necessary to protect them -- that we will not accept a nuclear bomb in Iran, but that doesn't mean we can't say that face to face. And obviously, the diplomatic spadework has to be done ahead of time.

"The notion that I was somehow going to be inviting them over for tea next week without having initial envoys meet is ridiculous.

"But the general principle is one that I think Senator Clinton is wrong on -- and that is if we are laying out preconditions that prevents us from speaking frankly to these folks, then we are continuing with Bush-Cheney policies, and I am not interested in continuing that.
 
"I know that she has said in the past that we have to talk to our enemies -- well that's what this is about. And if we say that we will not talk to them unless they meet a series of preconditions, then that's the same position that Bush and Cheney have maintained over the last six years, and it has made us less safe. And that's what I think is going to be a significant part of this debate in 2008.
 
"We responded to her in this situation, and I think there is a genuine difference, if there isn't a difference, then Senator Clinton should explain it. I think that we should talk to everybody.

"That ultimately is what's going to create the environment in which we can reduce some of the threat levels we are facing. To fail to do that is the same conventional Washington thinking that led many including Senator Clinton to go ahead with the war without having asked adequate questions."

****UPDATE**** Clinton supporters respond to Obama's new criticism by pointing out that Clinton has been very critical of the Bush's Administration policies on diplomacy. Also, her response at the debate -- and in yesterday's skirmish -- was that it doesn't make any sense to pursue vigorous diplomacy without getting the most of it. You just can't promise to meet with world leaders, they say, without conditions. 

*** SECOND UPDATE *** The Clinton campaign has now released this statement from Richard Holbrooke, who served as UN ambassador in Bill Clinton's administration: "As she has said many times, Senator Clinton believes we need to engage in vigorous diplomacy after the cowboy approach of the Bush years. She has said she would initiate serious, responsible dialogue with nations with whom we don't agree in order to further the national security interest of the United States. But she is right not to risk the prestige of the presidency by unconditionally committing to meet with leaders of adversarial nations."