The AP's headline: "McCain backs off his no-new-tax pledge." "McCain drew a sharp rebuke Monday from conservatives after he signaled an openness to a higher payroll tax for Social Security, contrary to previous vows not to raise taxes of any kind." The Club for Growth was one conservative group that went after him in a letter.

The DNC has a new Web video hitting McCain on his support for lifting the moratorium on offshore drilling.

"Obama yesterday blamed 'irresponsible decisions' by the Bush administration and Wall Street for the country's economic woes as government officials said the budget deficit would soar to record heights next year."  (Or here.)
 
"[M]any of Clinton's supporters aren't so willing to embrace Obama, at least not yet," AP writes. "Independents and moderate Republican women remain a question mark, too. So Obama is working fiercely to win their votes. He has put out a report explaining what his economic plans would mean for women, reinforcing the message with town hall meetings devoted to the subject. He talks frequently about being raised by a single mother, her economic struggles (including a period on food stamps) and her worries about health insurance as she was dying of cancer. He's hired former Clinton aides, including Dana Singiser as a senior adviser on female voters. His Web site offers a prominent "welcome" to Clinton supporters and an extensive section for women. Aides are planning events nationwide on the 88th anniversary of the day American women won the right to vote."

VIDEO: Barack Obama and John McCain are both shifting towards the economy - the issue that concerns Americans the most. In Monday's "The Strategists," Republican strategist Ron Christie and Democratic strategist Rich Masters discuss what the candidates should do to convince voters they have the economic answers Americans need.

RNC spokesman Alex Conant released this statement in anticipation of Obama's meeting today with Pakistan's prime minister. "Over the course of this campaign, Obama's inexperience has led to careless statements about Pakistani sovereignty. We need to take every step necessary to fight terrorism, but careless statements from an inexperienced would-be commander-in-chief have no place in that constructive dialogue."

Compiled by NBC/NJ's Carrie Dann…
The Washington Post reports that the DNC and the Obama campaign will pour $20 million into Hispanic outreach in battlegrounds with high Latino populations. "Targets will include Florida; Western states such as Colorado, Nevada and New Mexico; and Ohio, Pennsylvania and Michigan, industrial battlegrounds with sizable Hispanic populations. The money will be spent on niche advertising and other outreach, along with mobilization efforts aimed at identifying, registering and turning out new Democratic voters." 
 
IOWA: Pawlenty 2012? The Minnesota governor will be doing an awful lot of stumping in caucus state Iowa, with three visits planned in the next three months. 
 
The Des Moines Register's Yepsen writes, "While there's plenty of historic and electoral evidence to predict an Obama victory, those of us who dismissed McCain when he was in the primary doldrums may want to take a little time before we do it again." McCain finished fourth in the Iowa caucuses -- behind Fred Thompson even -- and essentially pulled out to focus on New Hampshire. 
 
NEW HAMPSHIRE: The Washington Times pinpoints movement among independents in New Hampshire that could spell trouble for John McCain.
 
OHIO: PolitickerOH talked to RNC Chairman Mike Duncan about how he plans to combat Obama's grassroots effort. The answer: new phone technology and a leaner, meaner Republican operation. 
 
VIRGINIA: A new office in the heart of Shenandoah brings the Obama campaign's total in the Old Dominion to 25.

CALIFORNIA: Could the fact that Republicans have failed to put ballot inits on the state ballot in order to draw conservatives to the polls cause the GOP problems in some congressional races and other key state contests? "Republicans have been tripped up by mishaps and errors that have kept measures off the ballot. One leading ballot measure activist was sidelined for this November's contests after being arrested in Oklahoma on charges of violating petition rules. Some conservative strategists also blame a lack of new ideas for initiatives. They say the right, beaten down by the Republican Party's dismal rankings in the polls and its lukewarm electoral prospects, has no stomach this year for expensive initiative battles."

"'There has been a lack of funding on the right side, up and down. The right is despondent and demoralized,' said Tim Mooney, an Arizona initiative consultant. At the same time, an energized left has fought harder to keep conservative-backed measures off ballots and put their own measures on them. Although there will be ballot measure fights in several states, many will be taking place in states where there is little question about the outcome of the Barack Obama vs. John McCain contest."

MICHIGAN: Michigan congresswoman Carolyn Cheeks Kilpatrick is locked in a tough reelection battle, encumbered by her scandal-ridden son -- Detroit mayor Kwame Kilpatrick. She enlisted House Speaker Nancy Pelosi (D-CA) to campaign on her behalf as she prepares to face her primary challenger next week.

From NBC/NJ's Matthew Berger and Carrie Dann
THE SHORT LIST. Obama traveled Monday afternoon to the Washington office of Eric Holder, his vice presidential search committee chair. Campaign manager David Plouffe also joined him Monday on the road, a rare occurrence.

Virginia Gov. Tim Kaine "has emerged as one of the campaign's potential finalists" for vice president, Politico says. 

VIDEO: Time is running low for Barack Obama and John McCain to pick their running mates. NBC's David Gregory and Chuck Todd weigh in on the possible short lists. Also interviewed is analyst Mike Murphy.

McCain told donors that choosing a veep is a "very tough decision" and said there were many "highly qualified people" to choose from, including party "stalwarts" to governors, senators and business people.

Terry McAuliffe told "Morning Joe" that Obama picking Hillary Clinton would create a "50-state sweep" for the Democrats.

A dark horse being talked about on the McCain side is Federal Express CEO Frederick Smith, Ambinder reports. 

ON THE RECORD. McCain laid out his criteria for a veep to Bermuda donors via webcast: "You want to make sure you have a candidate that's not going to hurt the ticket," he said. "The second thing is, and I think it's the key criteria, is it someone who shares your principles, your values, your philosophy and your priorities. The hardest thing for the president is to establish priorities and I'm -- I think we're blessed with having a wealth of candidates. But I haven't -- we really aren't mentioning names."

NBC's Andrea Mitchell reports that on a conference call following a meeting with Obama economic advisors, former Sen. Bill Bradley answered "no" when asked if he would be willing to serve on the ticket.

WHAT THEY'RE DOING. Kaine has a full schedule this week that will not take him to Washington, a spokesman said. More interestingly, he is scheduled to go on a Va. beach vacation with his family all next week.

Gov. Tim Pawlenty is scheduled to speak Wednesday morning in Chicago before the American Legislative Exchange Council. He also plans to campaign for McCain in Iowa on Saturday.

Former Mass. Gov. Mitt Romney is expected to return from a vacation at Lake Winnipesaukee, N.H. next week and travel 8/7 to Beijing for the Olympic Opening Games, his spokesman said. He was CEO of the Winter Games in 2002.

Kansas Gov. Kathleen Sebelius on Wednesday will meet with T. Boone Pickens and might also join him for a public event, but otherwise plans to stay busy in Kansas, her camp says. No political events of note, and her only out of state travel is non-political as well.

NM Gov. Bill Richardson is busy handling his state's flooding damage from the remnants of Hurricane Dolly. Per his office, "Governor Richardson is scheduled to tour the flooded areas by air and by land later this afternoon." He declared Lincoln County a disaster area earlier today.

Sen. Chris Dodd will lead a hearing tomorrow on the state of the insurance industry. (Dodd chairs the Senate Committee on Banking, Housing, and Urban Affairs.)

Sebelius says she won't raise gasoline taxes to pay for a proposed transportation plan in home state Kansas. 

Kaine appears tomorrow on a monthly radio program with fellow metro leaders DC Mayor Adrian Fenty and MD Gov. Martin O'Malley. (WTOP, 10am). Kaine is also catching flak from his state's Republican Party Chairman, who is demanding an investigation around what he believes to be a "coordinated and widespread effort in Virginia to commit voter fraud." 
 
CHATTERING CLASS. Despite the clues from Obama's "Meet the Press" interview, don't rule out senators like Bayh, Biden and Dodd just yet, according to Chris Cillizza. 

Jim Geraghty offers the idea of McCain announcing his choice at the convention "with the entire political world waiting in breathless anticipation, and with all of the finalists in the convention arena, the curtain suddenly rises on..." 

From NBC's Mark Hudspeth
Obama will meet with Pakistani Prime Minister Gilani tomorrow in DC, the campaign confirms. It will be a closed meeting.

From NBC/NJ's Adam Aigner-Treworgy
BAKERSFIELD, Calif. -- Speaking via webcast to donors gathered at a fundraiser on his behalf in Bermuda, McCain got a bit more specific about his vice presidential selection process than he has in recent weeks when speaking to reporters. But he stopped short of naming any names.

"I just want to assure you that we're going through the process," McCain said. "There are so many highly qualified people in our party ranging -- and I won't mention names -- but ranging from people who have been stalwarts in our party for a long time, and great governors and senators and business people. It's a very tough decision."

He then educated the listeners as to some of the criteria he is considering in selecting his running mate.

"You want to make sure you have a candidate that's not going to hurt the ticket," McCain said. "The second thing is, and I think it's the key criteria, is it someone who shares your principles, your values, your philosophy and your priorities. The hardest thing for the president is to establish priorities and I'm -- I think we're blessed with having a wealth of candidates. But I haven't -- we really aren't mentioning names."

From NBC's Alex Wall
Former New Jersey Sen. Bill Bradley (D-NJ) said he would not accept a vice presidential offer from Obama in a conference call this afternoon. 

VIDEO: Democratic presidential candidate Barack Obama discusses what he's looking for in a running mate with NBC's Tom Brokaw of "Meet the Press."

When asked about the position by NBC's Andrea Mitchell, Bradley replied with a simple "no" and continued to discuss Obama's meeting on the economy.

Bradley characterized the meeting as a "good exchange and free flow of discussion" while calling it a "very positive day." He later added, "the meeting that was held here today is an example of Barack Obama putting the economy number one on his agenda."

From NBC's Domenico Montanaro
Fiscal conservative group The Club for Growth went after presumptive GOP nominee McCain on social security.

"We listened with concern yesterday to your interview with George Stephanopoulos on Social Security," the club's president Pat Toomey writes in a letter to McCain. "When asked if you would be open to raising the payroll tax, you refused to rule out a tax increase, saying 'There is nothing that's off the table.' This statement was particularly shocking because you have been adamant in your opposition to raising taxes under any circumstances."

Then, the club pulls out one of McCain's own quotes from February of this year: "No new taxes . . . In fact, I could see an argument, if our economy continues to deteriorate, for lower interest rates, lower tax rates, and certainly decreasing corporate tax rates, which are the second highest in the world, giving people the ability to write off depreciation in a year, elimination of the AMT."

"We strongly applaud the above statement and believe further tax cuts would play an important role in stimulating the country's economy," Toomey continues. "But your comments yesterday send American taxpayers and businesses a mixed message about where you stand on this issue."

The close: "We hope you will clarify where you stand on this important issue and reaffirm your commitment to eschew all tax increases."

Full letter:

Dear Senator McCain:

We listened with concern yesterday to your interview with George Stephanopoulos on Social Security.  When asked if you would be open to raising the payroll tax, you refused to rule out a tax increase, saying "There is nothing that's off the table."

This statement was particularly shocking because you have been adamant in your opposition to raising taxes under any circumstances.  In a March 2007 interview with Ramesh Ponnuru of the National Review, you ruled out accepting tax increases as part of a compromise to entitlement reform.  And on February 17 of this year, you told George Stephanopoulos, "No new taxes . . . In fact, I could see an argument, if our economy continues to deteriorate, for lower interest rates, lower tax rates, and certainly decreasing corporate tax rates, which are the second highest in the world, giving people the ability to write off depreciation in a year, elimination of the AMT." 

We strongly applaud the above statement and believe further tax cuts would play an important role in stimulating the country's economy.  But your comments yesterday send American taxpayers and businesses a mixed message about where you stand on this issue.  Raising the payroll tax or the wage cap on Social Security taxes will increase the tax burden on many Americans and will only exacerbate the key problem with the current Social Security program—the low rate of return workers receive on their contributions into the system. You have long been a strong supporter of personal Social Security accounts, and we hope you will reaffirm you commitment to free-market-based reforms without tax increases so that we can truly empower and enrich workers in their retirement years.

We hope you will clarify where you stand on this important issue and reaffirm your commitment to eschew all tax increases.

Sincerely,
Pat Toomey
President, Club for Growth

From NBC/NJ's Mike Memoli

WASHINGTON -- After a week spent shoring up his foreign policy credentials with a trip overseas, Obama turned his focus to the domestic economy with a meeting of economic advisers in Washington today. Saying that the there is an "economic emergency" that is "growing more severe, Obama called for bipartisan solutions while pinning some of the blame on Wall Street.

"It was not an accident or history nor a normal part of the business cycle that led us to this situation," he said. "There were some irresponsible decisions that were made on Wall Street and in Washington. In the past few years, I think we learned an essential truth that in the long run we can't have a thriving Wall Street if we don't have a thriving Main Street."

VIDEO: John R. Talbott, author of "Obamanomics," stops by "Morning Joe" to discuss his book, the state of the economy, and the potential economic policies of an Obama administration.

He said the economic stimulus package enacted earlier this year has provided some relief, but said more action is necessary.

"I'm glad to see we have a broad representation of people here," Obama said of the group joining him, which included former Republican and Democratic administration officials and business and labor leaders. "It's a group that I will be convening periodically over the next few months because of the dynamic situation and one that the next president will need to be prepared to deal with the moment he takes office.
 
After his opening remarks, the press pool reprentatives were ushered out of the room, so the group could continue to meet in private.

From NBC/NJ's Adam Aigner-Treworgy and NBC's Mark Murray

Obama hasn't been the only one who's been to the doctor lately... McCain had a regular three-month check-up this morning in Phoenix, and the doctor decided to remove a mole-like growth from the right side of his face near the temple, according to a spokesperson for the campaign. The removal was precautionary and the doctor was not concerned about a recurrence of the skin cancer that has left a scar along his left cheek, the spokesperson said.

The campaign's spokesperson was vague about whether McCain was awaiting further tests -- but repeatedly reassured the press corps that there was nothing to worry about and the procedure was purely a precaution.

*** UPDATE *** McCain just made a statement to the press at an oil rig -- again calling Obama Dr. No on a series of issues, including energy. He also addressed the mole that was removed. Sans band-aid, McCain said his dermatologist took a "small, little nick from my cheek -- like she regularly does."

NBC's Kelly O'Donnell adds he responded "absolutely" and gave a thumbs up when asked if his doctor thinks he is fine.

Advisors say they are waiting on the written statement from Dr. Connolly, McCain's dermatologist expected within the hour.

Before ending his news conference, McCain implored the country to "wear sunscreen" and said melanoma was avoidable.

"If you have any slight discoloration, go to your dermatologist," McCain said, before joking that that was the end of his lecture from the American Dermatologists Association.

*** UPDATE II *** Michael Yardley, chair of Public Affairs at the Mayo Clinic, released this statement: "This morning, as part of his commitment to monitor his dermatological health on a regular basis, Sen. John McCain visited the Mayo Clinic in Scottsdale, Arizona, for a routine examination. As a precaution, a biopsy was ordered of a very small area on Senator McCain's right cheek. This is a routine minor procedure."

From NBC's Mark Murray
MoveOn has announced it will spend $150,000 to air this new pro-Obama TV ad on MTV and Comedy Central. The ad -- which won MoveOn's "funniest video" in its recent ad contest -- features Rider Strong of "Boy Meets World" and Amber Benson of "Buffy the Vampire Slayer."

[Youtube:BncNpB6IZ9I]

From NBC/NJ's Mike Memoli

Obama departed Reagan-National Airport in DC 10 minutes ago en route to his economic event.

It's worth noting that campaign manager David Plouffe is traveling with the candidate today (which I understand has happened only a handful of times so far this campaign). He's joining David Axelrod and Robert Gibbs for the DC trip.

As I noted Friday, Caroline Kennedy is in Washington or a DNC Victory Fund event. Eric Holder, the other VP search team leader, is based in DC.

The convergence of all the senior staff here with that search committee only further signals that the process is at a critical stage. The campaign, of course, is not commenting on it.

From NBC/NJ's Carrie Dann and NBC's Alex Wall

Gov. Ed Rendell (D-PA) called Obama's growing grassroots organization in Pennsylvania "unprecedented" and said that he was "confident" but not "overconfident" of an Obama victory in the Keystone State, in a conference call this morning.
 
Craig Schirmer, Obama's Pennsylvania campaign state director, emphasized the campaign's 24 state offices and approximately 700 neighborhood teams as key for Obama's success in November.

"Our campaign has been about the grassroots," Schirmer said. "Every day, Americans have been working to enact change through D-I-Y, or what I like to call do-it-yourself."
 
Neighborhood team tasks include organizing canvasses and phone banks, voter registration, church visits and faith outreach, recruitment and organizing house meetings, according to Schirmer. Each team is responsible for between five and 15 precincts.

"Neighborhoods are the ideal place to address voters, [and for supporters to] talk to their neighbors and their friends about why they are supporting Barack Obama," Schirmer said.
 
On voter registration: Gov. Rendell and Schirmer were both optimistic about the campaign's ability to register new voters, citing the Obama campaign's efforts before the Pennsylvania primary.
 
"The Obama campaign does that better than anyone anywhere," Rendell said. "If they hadn't registered so many voters before the primary, [Hillary] could have won by 14 or 15 points."
 
According to Schirmer, there are currently about 1.1 million eligible unregistered voters in Pennsylvania that the campaign sees as potential pick-ups.

"We are absolutely going to target them and go after them," he said.
 
McCain campaign's response: In contrast to Obama's 24 offices in Pennsylvania, the McCain campaign has only two statewide. But McCain has outpaced Obama in media spending in the state, with television ads running in every major media market. And McCain organizers remain skeptical of the efficiency of Obama's proposed army of neighborhood volunteers.

"The numbers may be impressive on paper," Regional Spokesman Jon Seaton said. "But when you look at what that actually means in terms of a real grassroots movement, we have philosophically figured that our committed volunteers will get our message out more effectively."
 
On winning over Hillary supporters: Part of the job of Obama's volunteers will be outreach to disappointed former Hillary Clinton supporters, who carried Clinton to a nine point walloping of Obama during the bitterly fought Pennsylvania primary. Rendell, formerly an influential cheerleader for Team Hillary, is optimistic that the holdovers will be converted with the help of Obama's widely dispatched foot soldiers.

"Not all of us are there yet," Rendell acknowledged. "But 90 percent of us are there, and we're getting more and more enthusiastic every day about Sen. Obama."

Rendell on Tom Ridge: Gov. Rendell acknowledged that a Tom Ridge VP pick for McCain "would make things harder," but also insisted that, "the basic message of [Obama's PA campaign] would remain the same."
 
"I don't underestimate Tom Ridge's popularity in Pennsylvania," Rendell said, "but I think that if we do our job we'll still win."

From NBC's Chuck Todd and NBC/NJ's Mike Memoli
... Obama's economic meeting today? Former Bush Treasury Secretary Paul O'Neill, who famously broke with the Bush Administration in Ron Suskind's book, "The Price of Loyalty: George W. Bush, the White House, and Education of Paul O'Neill."

Below is the entire list of participants, according to the campaign:
-- Bill Bradley, former US senator, managing director of Allen & Company

-- Warren Buffett, chairman and CEO of Berkshire Hathaway

-- Anna Burger, secretary-treasurer, SEIU

-- Jon Corzine, governor of New Jersey

-- William Daley, former Commerce secretary, JP Morgan Chase

-- James Dimon, chairman and CEO of JP Morgan Chase

-- William Donaldson, SEC chairman, 2003-2005

-- Indra Nooyi, chairman of PepsiCo

-- Paul O'Neill, former Treasury secretary, Blackstone Group, Alcoa special Adviser

-- Federico Peña, former Energy and Transportation secretary, Vestar Capital Partners

-- Penny Pritzker, CEO of Classic Residence by Hyatt

-- Robert Reich, former Labor secretary, professor at the University of California (Berkeley)

-- Robert Rubin, former Treasury secretary, Citigroup

-- Eric Schmidt, chairman and CEO of Google

-- William Spriggs, economics professor and chairman of the department at Howard University

-- Lawrence Summers, former Treasury secretary and former president of Harvard and

-- John Sweeney, president of the AFL-CIO

-- Laura Tyson, former chairman of Clinton's Council of Economic Advisers
 
-- Paul Volcker, former Fed chairman

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** Analyze this: We've now crossed the 100-day mark before Election Day, and the chattering class is going to obsessed with two things this week: 1) over-analyzing the veepstakes and 2) over-analyzing any overseas bounce for Obama. So here's your handy-dandy pundits question prep guide for both topics, especially for the many of you going online or on the air to talk about both.
-- Veep Timing: The CW was that neither candidate could name their running mate during the Olympics. But with Obama planning a week vacation sometime in August, now the betting is he'll either name his running mate just before he leaves for vacation (sort of odd, but it would allow a week's worth of attention ONLY on the running mate) or he'll announce just after (meaning, second week of Olympics?). It may be tough to break through the Olympics (especially if something unexpected happens), but if there is one political story that could break through, it would be a VP pick. As for McCain, the backseat driving advisers -- those who don't work for McCain but send him advice through the media -- are saying that waiting is still the best bet for the candidate who holds so few timing cards.
-- The Bounce: Sunday's daily Gallup poll had Obama up nine points over McCain (49%-40%), which is Obama's biggest general-election lead in that tracking. Of course, beware of placing too much stock into any one poll, particularly this tracking poll, which has shown a pattern of being better for Obama on certain days of the week than others. So let's wait a bit until the next few national polls are released before declaring whether Obama got a bounce from his overseas trip. But do consider this question: Which candidate has the bigger problem in the polls -- Obama (who seems to have hit a ceiling in the high 40s) or the better-known McCain (who's stuck in the low 40s in many national or state polls)? It's a problem for both, but the fact that McCain can't get past 45% in so many polls could be the bigger problem. 

*** The big hint? Speaking of veepstakes, did Obama during his Meet the Press interview give a hint whom he WOULDN'T pick? Check out this line: "I'm going to want somebody with integrity; I'm going to want somebody with independence, who's willing to tell me where he thinks or she thinks I'm wrong; and I'm, I'm going to want somebody who shares a vision of the country where we need to go, that we've got to fundamentally change not only our policies, but how our politics works, how business is done in Washington." Did he just rule out that he would pick a sitting Democratic US senator? Try and use that description Obama gave with Bayh, Biden, Clinton, or Reed? Now, try using it with Kaine, Sebelius, Nunn, or Hagel? Just sayin'… If Obama picks someone from the first group, he's going to have a tough time making the case that this person has shown a history of changing the way business is done in Washington. Frankly, it's tough naming any Washington player using that standard. As for McCain, it's amazing how convinced so many are in the media and in the GOP chattering class that the candidate has whittled his list down to two: Romney and Pawlenty.

VIDEO: Announcing a meeting on Monday between himself and his "core economic advisors," with the intention of examining fiscal policies they've put forward, Democratic presidential candidate Barack Obama discusses the state of the economy and his economic policies with NBC's Tom Brokaw of "Meet the Press."

*** Pivoting to the economy: Barack Obama, you've returned from a successful trip overseas. What are you going to do next? I'm going to talk about the economy… Today, in DC, Obama will meet with some of his top economic advisers -- including investor Warren Buffett, former Fed chairman Paul Volcker, former Treasury Secretary Robert Rubin, AFL-CIO President John Sweeney, SEIU Secretary-Treasurer Anna Burger, and Google chairman and CEO Eric Schmidt. There will be a photo spray of the meeting.

*** You've gotta believe: McCain's latest TV ad hit on Obama blasts the Illinois senator for canceling a visit to meet with wounded US troops at the Landstuhl military base. Like other McCain attack ads on the air, it's a bit over the top; it asks the voter to believe something that seems hard to believe -- that Obama doesn't care about US troops. (In fact, in the advertisement, the McCain campaign contradicts its message by using footage of Obama actually playing basketball with US troops in Kuwait.) This McCain ad follows another one blaming Obama for high gas prices -- once again, an attack that doesn't seem believable. (Will voters actually believe Obama's to blame for high gas prices?) A negative ad is always more effective when the attack is believable, when it speaks to a question the voter has already pondered in his own head. And just asking: If the McCain campaign is airing TV ads that voters don't find believable, what does that do to McCain's straight-talk image? McCain seems off message. The good news for some conservatives is that McCain is disproving the prediction that he wouldn't be personally tough on Obama. But how long will McCain be comfortable in this role? Can't you picture McCain deciding he doesn't want to be the attacker anymore and suddenly decides he wants to go a different route? 

*** Is it personal? One more thought about the Landstuhl TV ad: Obama cancelling his meeting with US troops really seems to have bothered McCain and his campaign -- personally. Do read this quote in the Washington Post from a GOP strategist: "'They couldn't help themselves,' the strategist said, adding that the ad over the hospital visit is 'churlish and unlike McCain, and hardly will resonate with the swing voters who are going to decide this election.' The strategist continued: 'They're doing it because the candidate, and the campaign, is not happy with where they are and they're lashing out.'" Also, is this the beginning of wave of blind GOP quotes we're going to start to see from Republicans complaining about McCain's campaign… again?

VIDEO: NBC Political Director Chuck Todd talks about Sen. Barack Obama's trip abroad, Sen. John McCain's reaction to it, and how soon we can expect to see vice president picks.

*** A little sensitive, are we? By the way, seeing the Obama campaign's cancellation of the troop turn into a controversy is a reminder of just how sensitive Democrats are regarding the troops. They made the decision that they'd get more criticism for politicizing a visit with wounded troops than not going at all. Our question: Why not dare your opponents for criticizing you for visiting troops if you really thought that? It seems like a decision made due to lack of sleep… For what it's worth -- and this will be the thing the McCain campaign takes away from this weekend back-and-forth -- McCain does seem to have gotten some traction on this attack, even if the facts aren't clearly on his side. But in order to win this back-and-forth, the campaign had to put up an attack ad doing and use the candidate to attack Obama personally as well. Was it worth the news cycle win?

*** On the trail: McCain is in Bakersfield, CA, where he raises money. Obama is in DC, where he meets with members of his economic team and later heads to a fundraiser in Arlington, VA. And Michelle Obama is in Chicago, where she hosts a "Women for Obama" luncheon.
 
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Bloomberg's Al Hunt looks at this tweener period between the primaries and the general, and notes that Obama appears to be winning this middle period. Hunt also previews Obama's August a bit. "Obama's eight-day trip to the Middle East war zones and Europe was almost perfect. The Democratic candidate looked and sounded presidential and reassuring, while avoiding missteps. The contrasts, often unfairly, with McCain at home were stunning. One looking vigorous in a helicopter over Iraq, the other in a golf cart with former President George H. W. Bush -- 155 years of age between them."

VIDEO: NBC Political Director Chuck Todd discusses the importance of Barack Obama's speech in Berlin and the new NBC/Wall Street Journal poll, which has Obama leading John McCain by six points.

Hunt also previews Obama's August a bit, too. "The Obama camp anticipates a good next month. He's planning a 'Biography Tour' aimed at filling in the blanks -- and alleviating concerns -- about his life and values. They have the skill and resources to do this well. The Denver convention plans are different, too. For the final speech, instead of speaking to a hall full of delegates as candidates of both parties have done for seven decades, Obama, 46, will deliver his acceptance speech outdoors before 75,000 people at Invesco Field. The symbolism is clear. (If Obama's luck holds, it will be a clear night, as they calculated it rarely rains in Denver in August.)"

"The convention's first three days will also be different. They want to downplay the parade of candidates trying to get television exposure, with evenings built around central figures. If it works, there will be simultaneous town meetings and forums around the country interactively linked to the site of the convention."

The cover of the NY Daily News: "Obama's poll vault." The paper cites Obama's nine-point (49%-40%) lead in the Gallup Daily tracking poll.

"With 100 days remaining in the race for the White House, Democratic presidential contender Barack Obama says he has succeeded in expanding the electoral map in his race against John McCain, principally in southern and southwestern states but also in Montana and North Dakota. 'It doesn't mean we're going to win all those states but at least we're making it a contest and giving voters something to choose from,' he said in an interview aboard his campaign jet on the way back from an overseas trip. 'Virginia, North Carolina and Georgia are all states where we are competitive," he said, adding he is going 'toe to toe' with his rival in New Mexico, Colorado and Nevada."

MICHIGAN: The Chicago Tribune's Jill Zuckman notes that this could be a challenge for Obama in the fall. "This normally reliable state for Democrats may not be so reliable this year as issues of race and class cloud the election and voters say they still know little about the Democratic nominee because of a botched primary that kept him away." 

OHIO: RNC Chairman Mike Duncan says that, although the map is rife with new battlegrounds, the old favorites are still king, "From a practical standpoint, Ohio is going to be ground zero again," he said during his visit there last week.

PENNSYLVANIA: A very good piece by the McClatchy folks taking a look at how economically depressed white voters in the northeast part of the state aren't yet on the Obama bandwagon.

On Meet the Press yesterday, Obama said this about selecting his VP: "I'm going to want somebody with integrity; I'm going to want somebody with independence, who's willing to tell me where he thinks or she thinks I'm wrong; and I'm, I'm going to want somebody who shares a vision of the country where we need to go, that we've got to fundamentally change not only our policies, but how our politics works, how business is done in Washington. 

VIDEO: Democratic presidential candidate Barack Obama discusses what he's looking for in a running mate with NBC's Tom Brokaw of "Meet the Press."

More: "I think the most important thing from my perspective is somebody who can help me govern.  I want somebody who I'm compatible with, who I can work with, who has a shared vision, who certainly complements me in the sense that they provide a knowledge base or an area of, of expertise that can be useful. Because we're going to have a lot of problems and a lot of work to do, and I'm not interested in a vice president who I just send off to go to funerals. I want somebody who's going to be able to roll up their sleeves and really do some work."

On Hillary Clinton, he repeated this line: I think Hillary Clinton would be on anybody's short list.  She, she is one of the most effective, intelligent, courageous leaders that we have in the Democratic Party."

But the New York Sun doesn't miss these very intriguing comments Obama made about his VP -- and how they may have eliminated Clinton from contention.

Go back and read Obama's words carefully. Did he also eliminate Bayh and Biden, too?

Would Dems really tolerate a Bush cabinet member as Obama's running mate? Ann Veneman is reportedly being floated.

The Boston Globe has a front-page story on Pawlenty. "The rapport between the two men, evident throughout long days on the campaign trail, now is being cited as one of the main reasons that Pawlenty has risen in speculation as McCain's possible running mate. ... If McCain is looking for a close friend whose loyalty is beyond question, Pawlenty could be his vice presidential pick, political observers said. Pawlenty might also help McCain win Minnesota, where a recent poll showed the race is statistically tied." 
 
The Boston Globe reports on the Kaine buzz.

More from NBC/NJ's Mike Memoli…
The Wall Street Journal says both candidates have narrowed their choices, and Obama reviewed information on prospects before leaving for overseas. No surprise names on either list.

REPUBLICANS: McCain said on This Week that his goal for the vice presidential selection is "the best team we can provide the United States of America in very difficult times." He said they are "still in the process."   
 
Speculation that McCain could announce his choice Monday, after meeting with his inner circle this weekend in Sedona. And Pawlenty cleared his schedule for the weekend.
 
American Spectator's Philip Klein calls Romney "political suicide."  
 
John Thune also said he hasn't turned over personal information. He said on "Fox News Sunday" "you don't rule anything out in this profession. But it's certainly not anything I aspire to."

DEMOCRATS: Chuck Hagel on "Face the Nation": "I am not interested. I fully expect to be a private citizen next year and get a real job. I fully expect that Barack Obama will choose somebody in his own party." Hagel called McCain's most recent ad "completely distorted" on "Face the Nation." Hagel said Obama made the right call to not to visit U.S. troops at a military hospital in Germany after the congressional delegation ended, adding it would have been "using our wounded men and women as props for his campaign."   
 
The hometown paper looks at the pluses and minuses of Evan Bayh. "Despite his resume, Bayh hasn't built a substantial public policy legacy. Opponents could paint Obama and Bayh as a ticket that looks and sounds great but hasn't done much." 
 
Despite his denials, the Providence Journal finds many who think Jack Reed is an attractive VP candidate.

The New York Times writes about the state of the race and notes: "McCain's annoyance with the international coverage of Mr. Obama mounted steadily last week. He accused the news media of showing favoritism toward Mr. Obama. Over the last two days, his campaign has strongly implied that Mr. Obama declined to meet with wounded American troops at Landstuhl Regional Medical Center in Germany after he learned that he could not bring television cameras along. 'I know of no Pentagon regulation that would have prevented him from going there, without the media and the press and all of the associated people,' Mr. McCain said in the ABC interview."

"Mr. Obama, who visited wounded troops in Iraq without notifying the news media, and has visited injured soldiers in the United States, said he was not traveling with an official delegation and did not want to politicize the visit." 

VIDEO: Barack Obama's overseas trip was a success, causing the McCain camp to charge the media of bias. Democratic strategist Chris Kofinis talks with Keith Olbermann about John McCain's relationship with the media.

NBC's Andrea Mitchell reports that there was never a plan for Obama to take the press to Landstuhl, despite the claim by McCain folks and others. The plan was to go with his military aide, retired General Scott Gration. The Pentagon said Gration was off-limits because he had joined the campaign -- violating rules that it not be a political stop.

Obama had gone to see wounded troops in Iraq earlier in the week, without even confirming he'd been there. No press, no pictures. He has done the same when he goes to Walter Reed -- never any press.

The Washington Post also notes the ratcheted up rhetoric over Obama's decision to skip visiting troops in Germany, as well as on the issue of Iraq. "McCain's comments came days after he said in New Hampshire, 'It seems to me that Obama would rather lose a war in order to win a political campaign.' They appear to reflect the campaign's belief that it can make inroads with voters by keeping the focus on foreign policy issues after Obama's return from a week-long trip to Afghanistan, Iraq, the Middle East and Western Europe. The moves puzzled some GOP strategists, who said McCain would be better off touting a more positive message, and the senator from Arizona drew a strong rebuke from a longtime ally, Sen. Chuck Hagel (R-Neb.), who traveled with Obama last week to Afghanistan and Iraq as part of a congressional delegation."

More: "One GOP strategist with close ties to McCain's campaign said the new line of attack reflected the operation's 'schizophrenic' nature. He said that tendency was also on display last week, as McCain spoke at length about media coverage of Obama rather than sticking with his plan to focus on the economy. 'They couldn't help themselves,' the strategist said, adding that the ad over the hospital visit is 'churlish and unlike McCain, and hardly will resonate with the swing voters who are going to decide this election.' The strategist continued: 'They're doing it because the candidate, and the campaign, is not happy with where they are and they're lashing out.'"

NBC's Sandy Luong reports… On ABC's This Week, McCain said of the surge: "He was wrong; I was right. That was the crucial point. [Obama] says that the surge has not worked. He said it couldn't work…When the decision had to be made whether to adopt the strategy of the surge, he said it wouldn't work, it would increase sectarian violence. He said all those things that made it acceptable to the left of his party." More: "If we had done what Sen. Obama wanted to do, which, by the way, initially would have been the troops out last March, we would've had greater Iranian influence, we would have had an increase in sectarian violence, we would have seen possibly a wider war in the region, which would have drawn us back."
 
Obama responded to his 2007 statement in which he said of the surge, "I am not persuaded that 20,000 additional troops in Iraq is going to solve the sectarian violence there; in fact, I think it'll do the reverse."  On NBC's Meet the Press, Obama told Tom Brokaw, "There were also statements made during the course of this debate in which I said there's no doubt that additional U.S. troops could temporarily quell the violence. But unless we saw an underlying change in the politics of the country, unless Sunni, Shia, Kurd made different decisions, then we were going to have a civil war and we could not stop a civil war simply with more troops." Obama turned the question back to McCain's judgment for authorizing the Iraq war.

Did McCain reverse himself on affirmative action? The AP: "McCain said yesterday that he supports a proposed ballot initiative in his home state that would prohibit affirmative action policies in state and local governments. A decade ago, he called a similar effort 'divisive.' Over the years, McCain has consistently voiced his opposition to hiring quotas based on race. He has supported affirmative action in limited cases. For example, he voted to maintain a program that encourages the awarding of 10 percent of spending on highway construction to women and minorities."

NBC/NJ's Carrie Dann notes that the Arizona ballot measure in question is the project of Ward Connerly, an African-American conservative activist who calls affirmative action a manifestation of racism. Democrats have anticipated that this ballot initiative could cause problems for McCain; earlier, McCain had called a similar measure divisive."

But it's worth noting that some experts wonder if the presence of the affirmative action measure could be just as sticky for Obama as it is for McCain. "It can put Obama in a tough position," says the University of Florida's Daniel Smith, one of the nation's top scholars on ballot initiatives. "Especially in a downturn of the economy, white voters may be looking for someone to blame for job losses or their poor financial situation." 

Here's a story that will get some on the left fired up. On Saturday, the New York Times noted how Bush's foreign policy this year has gotten more pragmatic -- at least compared with McCain's foreign policy. "Essentially, as the administration has taken a more pragmatic approach to foreign policy, the decision of Mr. McCain to adhere to his more hawkish positions illustrates the continuing influence of neoconservatives on his thinking even as they are losing clout within the administration. Whether the perception of Mr. McCain as being at odds with the administration is politically advantageous for him is a matter of debate among his supporters, but many of his more conservative advisers do not think it is a bad thing."

"'There's no doubt, particularly as Bush has adopted policies in the direction of Obama, that that gives Obama bragging rights,' said John R. Bolton, the Bush administration's former ambassador to the United Nations, who has sharply criticized the administration's talks with Iran and North Korea. 'But if you believe as I do that this administration is in the midst of an intellectual collapse, it doesn't hurt McCain. Occasionally in politics it helps to be right.'"

"But other Republicans -- the so-called foreign policy pragmatists, many of whom have come to view the Iraq war as a mistake -- say the administration's policy shifts highlight the more confrontational nature of Mr. McCain's foreign policy, particularly in his approach toward Russia and his embrace on Friday of the Dalai Lama, whom the Chinese regard as the fomenter of a rebellion in Tibet. They say the meeting will only antagonize China before the Summer Olympics, and at a moment when the United States is seeking its cooperation on economic issues and negotiations with North Korea."

Conservative analyst Jennifer Rubin notes that conservatives who feared McCain would hesitate to personally go after Obama should now feel assuaged. "Both the [Friday] speech and [Friday] interview are must-reads, both because of the force of the arguments and the fact that this is John McCain, who conservatives thought could never say a harsh word about a 'Democratic friend,' dismembering his opponent limb-by-limb. If there were any doubt that this is where the election will be won -- on disproving Obama's character, judgment and readiness to lead -- this should dispel those doubts. And if there is a better argument for McCain to make that can rally the conservative base and appeal to independents no one has yet found it. (Well, domestic energy production is a close second.)"

The New York Times front-pages McCain's leadership of an international democracy organization he's been in charge of for the last decade-plus, and how lobbyists have been the funders of it. "Over the years, Mr. McCain has nurtured a reputation for bucking the Republican establishment and criticizing the influence of special interests in politics. But an examination of his leadership of the Republican institute -- one of the least-chronicled aspects of his political life -- reveals an organization in many ways at odds with the political outsider image that has become a touchstone of the McCain campaign for president." 

The Los Angeles Times makes a good point about how last week was about Obama defining his 2008 opponent as Bush -- which may explain why McCain had such a hard time inserting himself into the story. The natural opponent for Obama last week was Bush, not McCain. "Though his language was muted, it was still clear that he was offering himself as the un-Bush, promising a less ideological American partner who would join forces on climate change, "reject torture and stand for the rule of law," and work jointly for nuclear disarmament. "The walls between old allies on either side of the Atlantic cannot stand," he said."

The Washington Post looks at Obama's attempts to increase black turnout. "If 95 percent of black voters support Obama in November, in line with a recent Washington Post-ABC News national poll, he can win Florida if he increases black turnout by 23 percent over 2004, assuming he performs at the same levels that Democratic candidate John F. Kerry did with other voters that year. Obama can win Nevada if he increases black turnout by 8 percent. Ohio was so close in 2004 that if Obama wins 95 percent of the black vote, more than Kerry did, he will win the state without a single extra voter. But an increase in overall black turnout could help offset a poorer performance among other voters."

"The push has also raised Democrats' hopes of reclaiming Southern states with large black populations, such as Georgia and North Carolina, where low turnout among voters of all races has left much more untapped potential than in traditionally competitive states such as Ohio. Obama, who himself led a huge voter-registration drive in Chicago in 1992, has said he could compete in states such as Mississippi by increasing black turnout by 30 percent."

Obama visited an orthopedic doctor for a sore hip from playing basketball, the campaign said.

Per NBC's Louis Burgdorf and Abigail Williams… As the hands of Big Ben struck noon in London on Saturday Obama sat with Great Britain's opposition leader, David Cameron, advocating something groundbreaking: thinking.  After a whirlwind tour of Europe and the Middle East visiting as many as eight countries in nine days, Cameron asked Obama, "Have you had a break at all?"  Obama admitted he hoped to take a week in August, but emphasized the importance of refreshing yourself.
 
"Should you be successful," Obama said, referencing advice handed down to him from a veteran of the Clinton Administration, "the most important thing to do is to have big chunks of time during the day where all you're doing is thinking."

The two also discussed the inherent difficulties in having time to process a constant stream of information when your schedule is often splintered into fifteen minute increments.  "You have a bunch of smart people out there that know ten times more than we do about the specifics of the topic and if what you're trying to do is micromanage and solve everything, you end up being a dilettante," Obama said, as he also pinpointed the risks: "You start making mistakes or you lose the big picture."

Compiled by NBC/NJ's Matthew E. Berger…
REPUBLICANS: Nine GOP senators up for re-election this year are skipping the Republican convention or have said they haven't yet decided if they will attend. Among those not attending: Susan Collins of Maine, who is close to McCain. Aides said they have a difficult landscape and only a limited time to campaign.
 
Ticket sales for Ron Paul's Rally for the Republic did well on Friday, when they went on sale. The Campaign for Liberty reports more than 5,000 tickets were purchased in the first two hours. (press release)
 
DEMOCRATS: Drafts of the Invesco Field speech plans has Obama accepting the Democratic nomination at the 50-yard line. He will walk from the main stage along the sidelines to a carpeted podium 6 ½ feet off the ground. The rest of the field will be filled by delegates.  
 
The Wisconsin DNC delegate who says she's supporting McCain has been ousted. The Wisconsin Democratic Party voted Friday to strip Debra Bartoshevich of her delegate status. She was elected as a pledged delegate for Hillary Clinton and said in June she won't support Obama. She asked the party to attend the convention as a Clinton delegate and said she hasn't made up her mind who to support in November. 
 
Financial difficulties have forced Denver to shelve more than two dozen convention parties. Local business leaders say money they would have donated is being diverted to union-led ballot initiatives they are fighting. 

From NBC/NJ's Athena Jones

CHICAGO -- There was no rest for the weary as Obama attended a meeting of minority journalists today, just hours after returning from a whirlwind eight-day trip abroad that he deemed a success.

Obama said he was puzzled by the criticism by some of his trip abroad as "audacious" or somehow inappropriate, arguing as he did in a press conference yesterday that McCain had also traveled to these countries -- as well as to Mexico, Canada ,and Colombia after winning his party's nomination.

"Nobody suggested that that was 'audacious.' I think people assumed that what he was doing was talk to world leaders who we may have deal with should we become president. That's part of the job that I'm applying for," he said. "Now, I admit we did it really well. But that shouldn't be a strike against me. You know, if I was bumbling and fumbling through this thing, I would have been criticized for that."

VIDEO: Barack Obama spent the week overseas, but can the Democratic candidate's globetrotting really sway voters in the United States? A Race for the White House panel discusses.

The senator said he felt he had been able to assure world leaders that he would have to work with if he becomes president. "I do think that, in terms of me governing, being an effective president, that this trip was helpful, because I think I've established relationships and a certain bond of trust with key leaders around the world who have taken measure of my positions and how I operate and I think can come away with some confidence that this is somebody I can deal with."

As he did in London, Obama said he was unsure what kind of effect his trip would have on poll numbers since he had left the country at a time when people were most worried about pocketbook issues, saying "that's what we will be talking about for the duration." He said he was pleased the housing bill was passed, that President Bush planned to sign it, and that he would be bringing together his top economic advisors Monday -- including former Federal Reserve Chief Paul Voelcker; billionaire investor Warren Buffett, and former Treasury Secretary Robert Rubin -- to talk about short-term and long-term strategies for strengthening the economy.

Throughout the 40-minute discussion, Obama repeated talking points he had used throughout his trip, saying he had learned that troop morale was high; that he had seen that situation in Iraq had improved, but that a timetable for a phased troop withdrawal was still needed; and that more troops were needed in Afghanistan and more cooperation with Pakistan. He also touched on the need for the United States to be deeply engaged in the Middle East peace process and the importance of transatlantic cooperation to meet today's challenges.

In questions posed by minority journalists, Obama spoke about comprehensive immigration reform and said affirmative action programs should take into account not just race but also economic status. He said the best kind of reparations for slavery, the treatment of native Americans or other groups was good schools and affordable health care for all Americans, while suggesting he would be open to some sort of official apology to Native Americans.

"I personally would want to see our tragic history or the tragic elements of our history acknowledged, and I think that there's no doubt that, when it comes to our treatment of Native Americans, as well as other persons of color in this country, that we've got some -- some very sad and difficult things to account for," he said. "What an official apology would look like, how it would be shaped, that's something that I would want to consult with Native American tribes and councils to talk about, and -- because, obviously, as sovereign nations, they also have a whole host of other issues that they're concerned about and that they've prioritized."

On affirmative action, he criticized McCain for endorsing a Ward Connerly-sponsored Arizona ballot initiative that would end preferences based on race and gender in that state. "I am disappointed, though, that John McCain flipped and changed his position," he said. "I think in the past he had been opposed to these kinds of Ward Connerly referenda or initiatives as divisive. And I think he's right. You know, the truth of the matter is, these are not designed to solve a big problem, but they're all too often designed to drive a wedge between people."

From NBC's Mark Murray
After McCain on Friday seemed to agree with Obama that 16 months is a "good timetable" for withdrawing from Iraq (as long as it's based on conditions on the ground), the McCain campaign is now arguing that Obama is adopting McCain's position that troop levels in Iraq will be "entirely conditions-based."

"Today, Barack Obama finally abandoned his dangerous insistence on an unconditional withdrawal of U.S. combat troops from Iraq by making clear that for the foreseeable future, troop levels in Iraq will be 'entirely conditions based,'" McCain foreign policy adviser Randy Scheunemann said in a statement. "We welcome this latest shift in Sen. Obama's position, but it is obvious that it was only a lack of experience and judgment that kept him from arriving at this position sooner."

But the remark the McCain campaign is jumping on -- from Obama's interview with Newsweek's Richard Wolffe -- pertains to residual forces, not withdrawal from Iraq. From the interview...

Obama: I also think that Maliki recognizes that they're going to need our help for some time to come, as our commanders insist, but that the help is of the sort that is consistent with the kind of phased withdrawal that I have promoted. We're going to have to provide them with logistical support, intelligence support. We're going to have to have a very capable counterterrorism strike force. We're going to have to continue to train their Army and police to make them more effective.

Wolffe: You've been talking about those limited missions for a long time. Having gone there and talked to both diplomatic and military folks, do you have a clearer idea of how big a force you'd need to leave behind to fulfill all those functions?

Obama: I do think that's entirely conditions-based. It's hard to anticipate where we may be six months from now, or a year from now, or a year and a half from now.

Keeping residual forces in and around Iraq is something that Obama has consistently talked about. As Obama told the late Tim Russert at the MSNBC debate in September 2007: "The only troops that would remain [in Iraq] would be those that have to protect U.S. bases and U.S. civilians, as well as to engage in counterterrorism activities in Iraq."

From NBC's Mark Murray and Louis Burgdorf
The McCain campaign yesterday unveiled its latest TV ad, which hits Obama for -- among other things -- cancelling a visit to meet with wounded US soldiers at Landstuhl. "He made time to go to the gym, but cancelled a visit with wounded troops," the ad goes. "Seems the Pentagon wouldn't allow him to bring cameras. John McCain is always there for our troops

(While Obama didn't visit with those US soldiers at Landstuhl, he did talk to some of them by phone.)

[Youtube:49hC9TpP_rY]

Politico wrote that the ad ran on Saturday Night Live in Denver, CO last night. And today, it will run in the DC market, as well as in Harrisburg, PA.

In response to the TV ad, the Obama campaign released a statement from Sen. Jack Reed (D), who accompanied Obama on his swing through Afghanistan and Iraq. "I was with Sen. Obama last week as we met privately with troops in Iraq and Afghanistan. Sen. Obama listened to their concerns and expressed his gratitude for their service without press or fanfare. He cares for our troops deeply and has worked hard to give them not only the resources they need, but also honor their service with a clearly defined mission and by providing them with the support they have earned when they come home."

Chuck Hagel (R), who also was on the overseas trip, said on CBS this morning that the McCain ad "was inappropriate." He said, "I think it would be totally inappropriate for [Obama], on a campaign trip, to go to a military hospital and use those soldiers as props... We saw troops everywhere we went on the congressional delegation. We went out of our way to see those troops. We wanted to see those troops."

And as one Obama aide points out to First Read, the footage the McCain TV ad uses when saying Obama went "to the gym but cancelled a visit with wounded troops" is when Obama was playing basketball with US troops in Kuwait. "It undermines the credibility of the ad" and proves that the ad is "nothing more than a political attack," the aide says.

From NBC/NJ's Athena Jones

LONDON -- During a 15-minute press conference outside of 10 Downing Street here today, Obama responded to McCain's criticism of his five-country swing through Europe and the Middle East, as well as his Republican rival's comments on a timetable for withdrawing troops from Iraq.

"It's hard for me to understand Sen. McCain's argument. He was telling me I was supposed to take this trip. He suggested it, thought it was a good idea," the senator told reporters, some of whom were seated on the ground in front of him and or standing on the sidewalk across. 

"John McCain has visited every one of these countries post-primary that I have. He has given speeches in Canada, in Colombia, Mexico," he continued. "So it doesn't strike me that we've done anything different than the McCain campaign has done, which is to recognize that part of the job of the next president and commander-in-chief is to forge effective relationships with our allies."

VIDEO: Speaking in London, Barack Obama defended his travels to Europe and the Middle East, arguing that America faces global issues that cannot be solved independently. NBC's Andrea Mitchell reports.

McCain's comment that a 16-month timetable for withdrawing from Iraq could be good -- adding that it would have to be based on conditions on the ground -- was a sign that "there has been some convergence around proposals that we've been making for a year and a half" on this and issues like increasing troop levels in Afghanistan and negotiating directly with Iran, Obama said.
 
"The fact that John McCain now thinks that it's possible for us to execute a phased withdrawal -- I think that's a positive thing," he said. "And if the Administration believes that as well, then I will, I will be fully supportive."

Obama held the press conference after meeting with British Prime Minister Gordon Brown and told reporters they had discussed the importance of cooperation between the United States and its European allies on a wide range of issues, including the Middle East peace process, climate change, international terrorism, and issues surrounding financial markets. Obama also said he thanked Brown for his country's help in Afghanistan and Iraq.

Obama talks about Landstuhl decision
In addition, Obama talked with reporters for the first time about his decision to cancel a planned visit to Landstuhl in Germany. "We had scheduled to go. We had no problem at all in leaving press -- we always leave press and staff out, that's why we left it off the schedule," he said, explaining that the campaign had planned to treat the trip the same way they treated a recent visit to Walter Reed, which the senator made without press.

Obama added, "I was going to be accompanied by one of my advisers, a former military officer. And we got notice that he would be treated as a campaign person and it would therefore be perceived as political, because he had endorsed my candidacy but he wasn't on the Senate staff," Obama said, referring to Gen. Scott Gration, who had worked to organize the trip. 

"That triggered then a concern that maybe our visit was going to be perceived as political, and the last thing that I want to do is have injured soldiers and the staff at these wonderful institutions having to sort through whether this is political or not or get caught in the crossfire between campaigns. So rather than go forward and potentially get caught up in what might have been seen as a political controversy of some sort, what we decided was that we would not make a visit and instead I would call some of the troops who were there. So that's essentially the extent of the story."

The press conference marked the last public event of a whirlwind tour that was aimed at burnishing the first-term senator's foreign policy credentials. 

When asked to evaluate the potential political benefits of the trip, Obama suggested he might be punished for spending a week abroad rather than focusing on bread and butter issues at home.

"I'm not sure that there is gonna be some immediate political impact," he said. "I wouldn't even be surprised if that in some polls that you saw a little bit of a dip as a consequence. We've been out of the country for a week. People are worried about gas prices, they're worried about home foreclosures."

There was one interesting moment when Obama was asked what he would ask Britain and France to contribute to the effort in Afghanistan, if elected. His response suggested he was already commander-in-chief, with the ability to send more troops.

"I have already committed an increase in American troops in Afghanistan," he said. "Obviously we'd like some of that burden shared. I think it's going to be necessary in order for us to complete the job that needs to be done."