From NBC's Ali Weinberg
Both sides of the blogosphere have plenty to say about Sen. Harry Reid's racial comments, and come to a similar conclusion: his comments, and the reaction to them, are a commentary on the state of race in American politics, not a reflection of Reid's personal racism. (Which is not to say they won't affect Reid's re-election chances). Plus, a new conservative blog features Republicans talking about how Republicans might not enjoy a midterm windfall.

Conservative blogger Dan McLaughlin at Red State argues against the Harry Reid/Trent Lott analogy, likening Reid's comments to another nomenclature-challenged politician: "The better analogy is to George Allen, Jimmy the Greek, Al Campanis, James Watt, and others who lost their jobs due to comments that were not so much racist per se, but rather racially insensitive," Erickson writes. That's what Reid's comments were - he was basically giving Obama a stamp of approval for not being one of those black people, with their "Negro dialect" and black skin - and even if he meant it more as an insult aimed at the tolerance of white voters, it's still not something you or I would be crass enough to say in a forum where it could ever be repeated to African-American friends. (Perhaps more damning to [President] Obama is Reid's implication that Obama would put on a "Negro dialect" when it suited his purposes).

John Cole at Balloon Juice says that Republican claims of Reid's racism only demonstrate their inability to differentiate between impolitic and actually racist comments: "The whole thing is just silly, and I honestly wonder what Republicans think they are accomplishing. The African-American community is able to tell the difference between someone using a dated term and someone pining for the days of segregation, so they will not be convinced that the GOP is all of a sudden the place for them. The only thing this is doing is building another wing in the cocoon, further insulating the GOP from the rest of the country. The only people they are going to convince that the Democrats are the "real racists" are themselves."

Tucker Carlson's new blog The Daily Caller features a post by Republican strategists Ford O'Connell and Steve Pearson, founders of ProjectVirginia, a political action committee using social media to rally supporters for Virginia Republicans. O'Connell and Pearson insist that "2010 is 2010," warning against comparisons between Republicans' vast 1994 gains and their chances in this year's midterms.

One reason: No similar "Contact With America" cohesive party strategy. "Without such a plan, or any other device to similarly shift the momentum, Republicans will be hard-pressed to match their success of 1994–when they picked up 54 seats in the U.S. House of Representatives and eight in the U.S. Senate," O'Connell and Pearson write.

They also cite Democrats' full awareness that they will lose a significant amount of seats (and their strong fundraising efforts to stanch that bloodletting); their likely ability to get big legislation like health care out of the way early in the Obama administration; and the Republican infighting among mainstream and grassroots conservatives.         

MASSACHUSETTS: Despite recent rallying around Republican Senate candidate Scott Brown that have many conservatives crowing about their chances, the Daily Kos' Laura Clawson decides that the latest UNH poll for the Boston Globe, showing Democratic Attorney General Martha Coakley up 53% to 36% "shows is something we already knew: Coakley has major advantages and should be able to win, given the composition of the Massachusetts electorate." Her final conclusion, however, suggests the margin between Coakley and Brown in the solid-blue race is contingent on voter enthusiasm on both sides: "It's all about the mobilization."   

Jim Geraghty, who writes the NRO blog "The Campaign Spot," mentions the "good things" he's heard about Charlie Baker (R), a challenger to Democratic Gov. Deval Patrick, who Geraghty says "appears to be on a tear when it comes to fundraising." Geraghty cites a Boston Globe editorial saying Baker has won the money race so far, with three times more cash on hand than Patrick. The Globe calls the disparity a "fairly serious wake up call for an incumbent Democrat who is best friends with the president." Geraghty compares Patrick to President Obama, suggesting that, like Obama, Patrick has disappointed the public with "a sense that the team around the executive was more interested in the appearance of competence than actual competence."

ILLINOIS: Red State's Erick Erickson weighs in on another example of the Republican-vs-Republican aggression playing across the country: the Illinois Senate primary battle between establishment-endorsed Rep. Mark Kirk—whose votes in favor of cap-and-trade earned him the ire of the state's GOP—and the "upstart" Patrick Hughes: "The race right now comes down to name ID. Kirk has it. Patrick Hughes doesn't. But polling shows when Republican voters know Patrick Hughes and Kirk, they go with Patrick Hughes overwhelmingly. In fact, polling also shows 60% of primary voters are undecided — something that suggests a one month blitz by Patrick Hughes could dramatically improve his numbers."

From NBC's Andrea Mitchell and Doug Adams
At an energy event in Nevada, Sen. Harry Reid spoke for the first time on camera since the revelations of his comments about Barack Obama being "light skinned" and not speaking with a "negro dialect."

"I'm very proud that I'm one of the first people to suggest that Barack Obama run for president," Reid said. "I'm very proud of that."

He added, "My heart has been warmed as to the response that I've gotten around the country; whether it's Julian Bond, whether it's as a call I got coming into the facility today -- the attorney general of the United States, Eric Holder. In effect, he said, 'I've known you for a long time; anyone I can talk to -- I'd be happy to do that.'"

He went on to say, "I'm proud of the fact, I can still remember the meeting in my office with Barack Obama, telling him he could be elected president. I think he was surprised, the Democratic leader telling him he could be elected presdent."

He cited calls from House whip Jim Clyburn and Ken Salazar praising him for his civil rights record and support for diversity.

He said he helped desegregate the gaming industry in Nevada.

"I really appreciate people writing nice things about me," Reid added. "There's a wonderful editorial in the L.A. times today; couple of nice things in the Huffington Post, nice things there. ... I feel good about people reaching out to me."

More: "I've apologized to the president. I've apologized to everyone within the sound of my voice, that I could have used better choice of words. And I'll continue to do my work for the African-American community."

From NBC's Mark Murray
In an interview with National Journal's Ron Brownstein, senior adviser David Axelrod lays out the White House's upcoming strategy for the midterms -- and what has to happen to produce the best outcome for Democrats.

One is an improving labor market. "If we see steady months of jobs growth between now and next November, I think the picture will be different than if we don't. I think Ronald Reagan learned that lesson in 1982. We're not immune to the physics of all of this. But I'm guardedly optimistic that we are going to see that progress."

Two, "finish this health care bill successfully." And after that? "Then we have to go out and sell it," he said. "I think we can run on this. I think there is so much in here that has value to every American, and mostly to people who have insurance."

Three, emphasize the GOP alternative. "They want to stand with the insurance industry on health care and protect the status quo, then let them defend that in an election," Axelrod said. "If they want to stand with the banks and the financial industries, and protect the status quo, then let them explain that in an election. If the party that over eight years turned a... surplus into the most significant growth in national debt by far in the history of the country and left this president with a $1.3 trillion deficit when he walked in the door and an economic crisis, let them campaign on fiscal integrity. You know... we're certainly willing to have that discussion. The difference is that we'll have that discussion in the context of a campaign, and we haven't, in the midst of a crisis, tried to campaign every day in the halls of Congress."

From NBC's Mark Murray and Domenico Montanaro
NBC News confirms that North Dakota Gov. John Hoeven (R) will run for Byron Dorgan's (D) Senate seat, according to a Republican source with knowledge of the decision. 

Dorgan announced last week that he would not be running for another term.

Hoeven will be the overwhelming favorite to win this seat in the fall, giving Republicans an excellent pick-up opportunity.

*** UPDATE *** Hoeven will officially announce his candidacy tonight when he speaks before Bismarck Republicans, according to the source.

From NBC's Mark Murray
In a speech he's giving this afternoon at the National Press Club, AFL-CIO president Richard Trumka is expected to challenge the Obama administration and the Democratic Congress to crack down on Wall Street, especially after it was reported this weekend that Wall Street is expected to issue six-, seven-, and even eight-figure bonuses to executives and employees.

While Trumka praises Obama throughout the speech, he says this, according to his prepared remarks:

"But no matter what I say or do, the reality is that when unemployment is 10 percent and rising, working people will not stand for tokenism. We will not vote for politicians who think they can push a few crumbs our way and then continue the failed economic policies of the last 30 years," Trumka says.

"Let me be even blunter. In 1992, workers voted for Democrats who promised action on jobs, who talked about reining in corporate greed and who promised health care reform. Instead, we got NAFTA, an emboldened Wall Street - and not much more. We swallowed our disappointment and worked to preserve a Democratic majority in 1994 because we knew what the alternative was. But there was no way to persuade enough working Americans to go to the polls when they couldn't tell the difference between the two parties. Politicians who think that working people have it too good - too much health care, too much Social Security and Medicare, too much power on the job - are inviting a repeat of 1994."

Trumka also objects to the Senate health-care bill's excise tax on expensive health plans. "This is a policy designed to benefit elites-in this case, insurers, hospitals, pharmaceutical companies and irresponsible employers, at the expense of the broader public. It's the same tragic pattern that got us where we are today, and I can assure you the labor movement is fighting with everything we've got to win health care reform that is worthy of the support of working men and women," he says.

Trumka and other labor leaders meet at the White House with Obama at 4:30 pm ET. 

From NBC's Mark Murray
If you're a candidate that wants to break through, but you're running in a crowded primary, with limited resources, and have little name ID, what do you do?

You run a TV ad like the one Robert Schillerstrom is airing in his upcoming GOP gubernatorial primary in Illinois. 

[Youtube:_z1HKyjIO2s]

An adviser says the ad is airing in Chicago and Springfield on broadcast and cable.

From NBC's Kelly O'Donnell
Senior aides to Majority Leader Harry Reid are pushing back and quietly passing around their talking points to blunt the fallout from the quoted remarks that put Reid on the defensive.

Here's a sample:

THE EFFORT TO SAY MOVE ON:
-- Senator Reid has apologized for his comments and is deeply embarrassed. He knows that his words were inappropriate and he deeply regrets using them

-- He has apologized to the President and the President accepted without question because as the President said, "He has 'known him [Reid] for years and has seen the passionate leadership he's shown on issues of social justice and I know what's in his heart.'"

-- Senator Reid was a proud and enthusiastic supporter of Barack Obama during the campaign and has worked hard to advance President Obama's legislative agenda.

REID'S RECORD:
"Senator Reid's record on issues that are important to this community speaks for itself. He helped integrate the Las Vegas strip and the gaming industry, led the fight for the Voting Rights and Hate Crimes legislation and continue to promote diversity in the Senate."

"Sen. Reid has a long record of addressing issues that are important to the African-American community. His Republican critics who are looking to politicize the issue can't say the same. Sen. Reid will continue working today, tomorrow, and the days ahead, to move our nation forward with policies that create jobs, make health care affordable and help struggling families in Nevada and across the country."

ON CALLS FOR HIS RESIGNATION:
"Unlike others who advocate moving our nation backwards, and viewing this moment for political gain, he's working, today, tomorrow and the next day to move our country forward."

"Mr. Steele and Sen. Cornyn want Reid out because they know they can't beat Reid in November."

"He has no intention of stepping down as Majority Leader."

From NBC's Mark Murray
On the brand-new "Daily Rundown" on MSNBC hosted by NBC's Chuck Todd and Savannah Guthrie, White House Chief of Staff Rahm Emanuel responded to yesterday's New York Times story, which noted that Wall Street is set to issue some very big bonuses to its executives and employees.

Emanuel, who made a great deal of money in the financial industry before running for Congress, had some tough words for Wall Street, saying that it had brought the financial system to its knees and was propped up by the federal government.

The goal of having Wall Street stand up again, Emanuel said, wasn't to dole out large bonuses to its employees -- but instead to help the economy grow by making loans to Main Street.

Emanuel said President Obama would talk about this later in the week.

From NBC's Mark Murray
First Read has confirmed that the Democratic National Committee is dispatching one of its senior communications aides, Hari Sevugan, to Boston to help Martha Coakley (D) in next week's special election to permanently fill Ted Kennedy's Senate seat.

This move comes after considerable buzz that Coakley's race against Scott Brown (R) is narrowing. But a Boston Globe poll over the weekend showed Coakley up by double digits.

Said a DNC official about Sevugan's move to Massachusetts: "The Globe poll shows the campaign is well positioned. This should be read as sign that despite that strong poll we aren't taking anything for granted." 

Don't forget about the economy… Reid's vulnerabilities -- in Nevada and in Washington… Michael Steele in the first person… Arnold Schwarzenegger vs. Ben Nelson… Harold Ford sounds like he's running… And Chuck Todd's and Savannah Guthrie's "The Daily Rundown" starts today at 9:00 am ET.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** It's the economy…: As mesmerizing as the Harry Reid, Michael Steele, and Gillibrand-vs.-Ford stories might be (and we touch on them below), the economy will be front and center in the news later this week. First, the New York Times reported yesterday that the Wall Street bonus season is upon us, and that the financial industry -- which helped fuel the Great Recession and then got bailed out by the federal government afterward -- will issue rewards in the six, seven, and eight figures. "Industry executives acknowledge that the numbers being tossed around … will probably stun the many Americans still hurting from the financial collapse and ensuing Great Recession." Second, the Financial Crisis Inquiry Commission, which was set up to investigate the causes of the financial collapse, will hold its first hearing on Wednesday. Goldman Sachs' Lloyd Blankfein, JP Morgan Chase's Jamie Dimon, and Morgan Stanley's John Mack are expected to testify. The public's anger at Wall Street is a powerful political force, and it will be interesting to see how the White House and GOP try to deal with it.

*** A few questions: We've heard the argument from Wall Street types, who say the bonus structure gets a bad rap; it's really all part of a person's salary, etc. Our question then is: How is it Wall Street could be SO tone deaf as to not change their compensation structure. Well, it looks like Washington might change it for them. Is that what Wall Street wanted? Are they that politically out of touch? 

*** Reid's vulnerability -- in Nevada: The revelation that Harry Reid called Obama a "light-skinned" African American with "no Negro dialect" in 2008 actually overshadowed what seems to be even more significant news about Reid: his dreadful poll numbers. A new Las Vegas Review-Journal poll found him with a fav/unfav of 33%-52% and him trailing all three GOP opponents, including one with very little name ID. In short, after Dodd's retirement, Reid is the cycle's most vulnerable incumbent, and his remarks about Obama certainly don't help things. Yet unlike in Connecticut (where Democrats turned to Richard Blumenthal) or in Colorado (where it seems that popular Denver Mayor John Hickenlooper is going to run in Bill Ritter's place), there isn't a natural Democratic replacement in Nevada sitting on the bench. "You have very few candidates on the bench who look that great," Nevada political guru Jon Ralston told one of us. Worse still for Democrats, there's a wild card in Nevada that they fear: Las Vegas Mayor Oscar Goodman, who just switched parties (he was a Dem, not an indie). Goodman could create all sorts of electoral chaos in the wake of a Reid vacuum.

*** Reid's vulnerability -- in Washington: On Saturday, the National Republican Senatorial Committee tried to compare Reid's controversial comments to Trent Lott's in 2002, which forced the Republican to step down as the GOP's Senate leader. And yesterday, a host of national Republicans (Michael Steele, Jon Kyl, John Cornyn) called for Reid to step down over this. But the Reid-Lott comparisons aren't close, in our opinion. One, Reid immediately apologized; Lott didn't after praising Strom Thurmond's segregationist presidential run. Two, Obama quickly accepted Reid's apology; by contrast, the Bush White House -- which had never really trusted Lott -- didn't leap to Lott's defense, sending the not-so-subtle signal that they saw an opportunity to change majority leaders (swapping Lott for Bill Frist, you'll recall). And third, Reid's remark was something he appeared to say privately in 2008; the controversy surrounding Lott was over a statement he made publicly at the time, and it was on tape so it could be showed over and over and over. The more appropriate comparison here is Joe Biden's "clean"/"articulate" remarks. Still, this news is embarrassing for Reid, makes him seem out of touch (who uses those words anymore?) and it has now turned into a three-day story -- at a time when he was already in tough political shape back at home. Nevermind that he's the guy in charge of keeping the 60-vote Democratic caucus together for health care.

*** Race as political tripwire: As PBS' Gwen Ifill mentioned on "TODAY" this morning, race remains a tripwire in American politics, even one year after Barack Obama's presidential victory. You have Reid's controversial comments. Then you have a weekend Politico story with quotes from Republican officials saying that RNC Chairman Michael Steele can't lose his job -- despite all of his missteps -- because he is black. "You're not going to dump the first African-American chairman. That's the only reason. Otherwise, he'd be gone." And now comes a comment from indicted Rod Blagojevich, who tells Esquire that he's "blacker than Barack Obama." "I shined shoes. I grew up in a five-room apartment. My father had a little laundromat in a black community not far from where we lived. I saw it all growing up." 

*** There's no 'I' in 'Team,' but there is an 'I' in 'Chairman': The Reid story over the weekend turned out to be a blessing for RNC Chairman Michael Steele, because it (for the time being) supplanted what had been a VERY bad week for Steele. Indeed, the first question Steele received on "Meet the Press" yesterday was about Reid, not about the criticism he has received, which NBC's David Gregory got to later. That said, Steele's "Meet" performance certainly raised plenty of eyebrows when he continually talked about the party's achievements in the first person. "I raised $80 million this year," he told Gregory. "I won two gubernatorial races." (Really?) He also referred to defeating Harry Reid this way -- "when I retire him in November." Has any party chairman, Democrat or Republican, every referred to his work this way? In fact, Steele's first-persons hit at the essence at what people in his own party see as his biggest flaw: that he's more busy promoting himself than the Republican Party. Steele did very little to earn the confidence of the Republican establishment. Watch the fundraising totals coming out next week, and don't be surprised if other Republican committees like the NRSC and RGA outperform or overperform the RNC in some key areas. As it turns out, the DNC has a Web video hitting Steele entitled "Loose Cannon."

*** Governator vs. The Benator: Another fascinating story on "Meet" turned out to be California Gov. Arnold Schwarzenegger's very tough comments directed at Sen. Ben Nelson (D). "If you think about that, the Senate just voted for a health-care bill that is saying basically that California should pay for Nebraska so that Nebraska never has to pay any extra [Medicaid] money." More: "As I said in my State of the State, that's the biggest rip-off.  I mean, that is against the law to buy a vote," he said referring to Nelson. Yesterday afternoon, Nelson responded with this statement: "I accepted the Nebraska provision not for my vote but to fix the unfunded Medicaid mandate for all states in the final health reform bill. I am aggressively seeking an opt-out or full funding for all states. I agree with Gov. Schwarzenegger that all states should be relieved of this unfunded mandate. But relief from an unfunded mandate that kicks in 7 years from now isn't going to solve the $20 billion deficit California has today." Governator vs. the Benator -- does it get any better than this when it comes to a Medicaid showdown?

*** Sure sounds like Ford is running: Today's New York Times previews the emerging Kirsten Gillibrand-vs.-Harold Ford Senate primary race. And on "TODAY" this morning, Ford sure sounded like someone who is running for office -- and in a Democratic primary in New York. Asked by NBC's Matt Lauer about his recent conversion to supporting same-sax marriages, Ford noted that Bill Clinton and Chuck Schumer had also changed their minds. Ford also said that the difference between civil unions (which Ford has supported in the past) and gay marriage is a "fiction." It appears Ford was saying that, in Tennessee, there's a distinction between marriage and civil unions that residents there care about. In New York, Ford trying to say that there really isn't a difference? These are among the various subtle shifts Ford has to make to be viable in a Dem primary in NY.

*** Coakley vs. Brown: Yesterday, a new Boston Globe poll showed Democrat Martha Coakley leading Republican Scott Brown by a much more comfortable margin than two other robo-polls, as well as growing C.W., have indicated. The Globe poll found Coakley up by 15 points over Brown (50%-35%) and up 17 points (53%-36%) when leaners were added. What explains the difference between this poll and the robo ones? Well, robo-polls tend to over-sample the more excited, more knowledgeable voter. And in this case, Republicans are the excited ones. Of course, this Coakley-Brown race isn't your normal contest given that it's a special election taking place in January. We'll find out whose model prevails eight days from now. Either way, it's clear this isn't a slam dunk for Coakley. Already, we're hearing complaints from Democrats who wonder, "Why did she employ the Rose Garden strategy" in this climate? This could be a lesson for any Dem anywhere who thinks they are safe for now: No one is safe in this toxic political environment… 

*** Other Midterm news: Consumer Reports is up in arms over a Alexi Giannoulias TV ad… New Hampshire Republican Senate candidate Bill Binnie is up with a TV ad… And Texas Monthly sees Texas Gov. Rick Perry's quest for re-election as a possible precursor to a presidential bid. "If Perry defeats Hutchison in the March 2 Republican primary and goes on to win a third full term in November, he will immediately join the crowd of potential presidential aspirants in 2012 -- if he hasn't done so already.  

*** The Daily Rundown: Finally, beginning at 9:00 am ET, is the debut of the new MSNBC show hosted by NBC's Chuck Todd and Savannah Guthrie, "The Daily Rundown." Today, they interview White House Chief of Staff Rahm Emanuel.

Countdown to MA Special Election: 8 days
Countdown to IL primary: 22 days
Countdown to TX primary: 50 days
Countdown to Election Day 2010: 295 days

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OBAMA AGENDA: Obama and big labor
"The presidents of about a dozen labor unions will meet with President Barack Obama on Monday to push him to limit the scope of a proposed tax on high-cost insurance plans," The Hill writes. "Labor sources acknowledge they will not succeed in completely eliminating the tax, but they hope to raise its threshold so that fewer labor households feel the impact."

The "Hillary Effect": "There are 25 female ambassadors posted in Washington -- the highest number ever, according to the State Department," the Washington Post reports. 'This is breaking precedent,' said Selma 'Lucky' Roosevelt, a former U.S. chief of protocol. Women remain a distinct minority -- there are 182 accredited ambassadors in Washington -- but their rise from a cadre of five in the late 1990s to five times that is opening up what had been an elite's men club for more than a century. A key reason is the increase in the number of top U.S. diplomats who are women, what some call the 'Hillary effect.'"

Speaking of Clinton… "Secretary Clinton heads to Western Pacific countries for a 10-day trip, focused on "terrorism and the Obama administration's push to improve international cooperation to thwart the threat in Asia and the Pacific, as well as the greater Middle East… Clinton was to depart Monday on a 10-day trip scheduled to take her to Australia, New Zealand and Papua New Guinea, with a stop in Hawaii for a policy speech and a one-on-one meeting with her Japanese counterpart."

Rod Blagojevich to Esquire: "It's such a cynical business, and most of the people in the business are full of s--- and phonies, but I was real, man -- and am real. This guy [Barack Obama], he was catapulted in on hope and change, what we hope the guy is. What the f---? Everything he's saying's on the teleprompter. I'm blacker than Barack Obama. I shined shoes. I grew up in a five-room apartment. My father had a little laundromat in a black community not far from where we lived. I saw it all growing up." And there's lots more where that came from. 

Who does the IRS' taxes? "IRS Commissioner Douglas Shulman does not file his own taxes in part because he believes the tax code is complex." He said on a C-SPAN interview: "I've used one for years. I find it convenient. I find the tax code complex so I use a preparer."

"Republicans moved Sunday to draw attention to Senate Majority Leader Harry M. Reid's racially tinged remarks about Barack Obama during the 2008 presidential race, with leading officials calling for him to step down and Democrats standing behind him," the Washington Post says. "The Republican National Committee's chairman, Michael Steele, said Reid (D-Nev.) should vacate his office after acknowledging that he had described then-Sen. Obama as 'light-skinned' and possessing 'no Negro dialect' in a private conversation with two reporters. The reporters recounted the remarks in their book, to be released Tuesday." 

The New York Times: Republicans on Sunday sought to portray racially insensitive remarks attributed to Harry Reid, the Senate majority leader, in a new book as similar to comments made in 2002 by Trent Lott, the Republican leader who was forced to step down. Democrats rejected that comparison and continued to close ranks behind Mr. Reid." 

"In a statement, Reid spokesman Jim Manley on Sunday rejected Republican demands that Reid step down and fired back at his boss's critics, accusing them of having a poor track record on issues important to the black community," Roll Call writes.

In addition to health care, "In the wake of the failed terrorist attack on a Northwest Airlines flight that has put President Barack Obama on the defensive, the GOP has widened its net to include a focus on homeland and national security -- issues on which Republicans are looking to reassert themselves," Roll Call writes.
 
The Hill looks at liberals having to defend the health-care legislation.

The Hill says Michael Steele changed his "tune" on whether or not Republicans would take back the House. "Oh, we will," Steele said on Fox News Sunday. "But the question is, "Can they [Democrats] keep it?" Can they keep it? And right now, all signs are they can't."  
 
Roll Call calls it an "about-face." "When asked on NBC's 'Meet the Press' if he now believes the GOP will reclaim the majority this fall, Steele said, 'Absolutely, absolutely, absolutely. At the rate we're going now we're going to take back Congress … and Democrats won't have a 60-seat majority' in the Senate. The firm predictions come in stark contrast to his comments less than a week ago." 
 
But he didn't stop there... On the Christian Broadcasting Network, Steele said, "A lot of people think that this is about me. It is not about me. When this job is over, I will go back to doing something else. But God, I really believe, has placed me here for a reason, because who else and why else would you do this unless there's something inside of you that says right now you need to be here to do this?"

Politico: "Among top GOP operatives in Washington, there is overwhelming majority sentiment that the Republican National Committee blundered a year ago when it tapped Michael Steele as its chairman. There is equally strong sentiment among members of the RNC about what Republicans can do it about it now: nothing."

"Steele's status as a high-profile African-American at a time when Republicans are facing serious headwind because of their weakness among nonwhite voters was a big part of his appeal a year ago. And it is a part of the reason many GOP strategists lament that he is untouchable even though they think the party would be better off to make a change from someone they regard as an unfocused and gaffe-prone leader." 

Meanwhile, Tim Pawlenty's Freedom First PAC has a new Web site, and he pens a column at the new Daily Caller. 

And some Palin news: "Sarah Palin believed that Sen. John McCain chose her to be his running mate in the 2008 presidential race because of "God's plan," according to a top political strategist in the Arizona Republican's campaign. In an interview with the CBS news magazine '60 Minutes,' Steve Schmidt described Palin as 'very calm -- nonplussed' after McCain met with her at his Arizona ranch just before putting her on the Republican ticket. McCain had planned to name Sen. Joseph I. Lieberman (I-Conn.) as his choice until word leaked, sparking what Schmidt called political blowback over selecting the 2000 Democratic vice presidential nominee."

ILLINOIS: Consumer Reports is criticizing a new ad by state Treasurer and Democratic Senate candidate Alexi Giannoulias for using their logo. "He's misusing our brand," a group representative said. The ad touts a college savings program he founded, which opponents criticize him for losing money through shoddy investments. 

MASSACHUSETTS: Martha Coakley leads Republican state Sen. Scott Brown in a Boston Globe poll released over the weekend, 50%-35%. But Brown voters show more enthusiasm, as more say they have definitely decided on their candidate than Coakley voters.

But Deval Patrick may be in some trouble. His approval rating is a net-negative, 41%-52%, according to a new Boston Globe poll. In a three-way matchup, which is pretty close considering Massachusetts' Democratic leaning, he leads 30%-23%-19% over former Democratic state Treasurer Tim Cahill and Charles Baker, a Republican.

NEVADA: The Las Vegas Review-Journal reports that in a three-candidate gubernatorial match-up, Republican Brian Sandoval, a former federal judge, takes 35% of the general vote, while independent Las Vegas Mayor Oscar Goodman, who is still considering a run, gets 33% and Democrat Rory Reid (Senator Harry Reid's son) gets 20%.

NEW YORK: The New York Times front-pages the emerging primary battle between Kirsten Gillibrand and Harold Ford Jr. 

The New York Post's Fred Dicker says Republicans want to take aim at Kirsten Gillbrand instead of Andrew Cuomo, urging Rick Lazio to re-run for Senate and drop his bid for governor.

From NBC's Domenico Montanaro
On MSNBC this morning, anchor Alex Witt and I discuss the political fallout from the new book, "Game Change," for Sen. Harry Reid (after the revelation of his "negro" remarks), for the Clintons and the Edwardses.

Brief clips are below. The full discussions are HERE and HERE.

Clinton/Reid:

Visit msnbc.com for breaking news, world news, and news about the economy

Edwards:

Visit msnbc.com for breaking news, world news, and news about the economy

A look at the Week Ahead in politics.

VIDEO: The White House makes hard shift to jobs after dealing with national security since Christmas Day bombing attempt ... Congress is back. Let's play ping pong.

Here is the full video.

A brief clip is below:

Visit msnbc.com for breaking news, world news, and news about the economy

 

From NBC's Mark Murray
A statement from Vice President Biden:

My mother, Catherine Eugenia "Jean" Finnegan Biden, passed away peacefully today at our home in Wilmington, Delaware, surrounded by her children, her grandchildren, her great-grandchildren and many loved ones. At 92, she was the center of our family and taught all of her children that family is to be treasured, loyalty is paramount and faith will guide you through the tough times. She believed in us, and because of that, we believed in ourselves. Together with my father, her husband of 61 years who passed away in 2002, we learned the dignity of hard work and that you are defined by your sense of honor. Her strength, which was immeasurable, will live on in all of us.

From NBC's Mark Murray
Another day, another reported gaffe by Michael Steele. In a radio interview yesterday, per Think Progress, Steele said he didn't "seek" the job as RNC chair. In fact, he RAN for the position in a multi-candidate field.

MILLER: And I think, I hope this is not where you — listen, I know you're going to say it's a great gig. But I, you know you've got a lot more in you, man. I hope you're one of our leaders again soon.

STEELE: No, I, look this, I feel this is part of a calling for me. I mean, I didn't ask for, I didn't seek this job, I didn't ask for it. It wasn't part of my, you know, charted course in life to wind up as chairman of the RNC. You know, there was a convergence of moments here.

As Hotline writes today, the week began with the news of those Democratic retirements; now it ends with the gaffes and problems surrounding Steele.

From NBC's Mark Murray and Domenico Montanaro
Former Alaska Gov. Sarah Palin is now scheduled to make three relatively high-profile appearances in the next three months. In February, she'll keynote the Tea Party national convention in Nashville; in March, she'll speak to the Ohio Right to Life in Columbus (hat tip: Ben Smith); and in April, she'll make an appearance at the Southern Republican Leadership Conference GOP cattle call.

These three events all create the impression she's running for president; we're still not convinced that does.

All three events continue her practice of only speaking to the conservative base. At some point, if she's really interested in becoming president, she has to broaden her appeal beyond the Tea Party movement and pro-life groups, right?

Then again, that base might be enough to win the GOP nomination...

From NBC's Mark Murray
As is the case each Friday morning that the monthly jobs data is released, the Obama White House and the Republicans are trying to spin the numbers -- 85,000 jobs lost in December, with the unemployment rate remaining unchanged at 10.0% -- to their advantage.

On the White House's blog, economic adviser Christina Romer writes, "Today's employment report, though a setback from November, is consistent with the gradual labor market stabilization we have been seeing over the last several months. Payroll employment declined 85,000 in December. To put this number in perspective, employment declined 139,000 in September and 127,000 in October.  So, in a broad sense the trend toward moderating job loss is continuing."

Romer adds, "As the president has said for a year, the road to recovery will not be a straight line. The monthly employment and unemployment numbers are volatile and subject to substantial revision. Therefore, it is important not to read too much into any one monthly report, positive or negative.  It is essential that we continue our efforts to move in the right direction and replace job losses with robust job gains."

On the other hand, Republicans are holding the administration responsible for the job losses. House Minority Leader John Boehner released this statement: "Today's disappointing report paints a picture of an economy in which employers and workers are stuck in the muck of higher taxes, job-killing policies and wasteful Washington spending. Republicans have repeatedly presented President Obama with better solutions to help small businesses create jobs, only to be rebuffed in favor of more of the same 'stimulus' programs that just grow government and pile debt on our kids and grandkids."

And here's House Minority Whip Eric Cantor: "It's not fair to blame any one person or political party for all job losses, but there is no doubt that President Obama, Speaker Pelosi and the Democrat controlled Congress have made a bad environment worse for entrepreneurs trying to create jobs. Democrat controlled Washington's ideological pursuits – like card check, cap and trade, and the push for government health care – are far outside of the mainstream for most Americans and have created such great uncertainty that hiring is simply not a reality for businesses and entrepreneurs."

Obama turns to the economy as new jobs report shows that it shed 85,000 jobs in December but gained 4,000 in November… Reviews on yesterday's review… Republicans worried about the Steele-led RNC… Dem committees have a 2-to-1 cash advantage over GOP committees (although the gap closes when you add the gubernatorial committees)… Gates to stay on for another year… And Palin to attend Southern Republican Leadership Conference.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** The economic shift: After spending much of the last two weeks focused exclusively on national security in wake of the failed Christmas Day terrorist plot, President Obama begins turning to the economy today and next week. At 2:40 pm ET, he makes a statement on the economy, announcing new stimulus funding for clean-technology manufacturing jobs. And he'll also discuss the new jobs report, which shows that the unemployment rate remains unchanged at 10.0% but also shows that 85,000 jobs were lost in December, which was more than some economists had been predicting. That said, you can probably expect Obama to touch on this news: "Revisions to the previous two months' data showed the economy actually generated 4,000 jobs in November, the first gain in nearly two years, while it lost 16,000 more than previously estimated in October," the AP writes. 

*** Review fallout: The speed at which the Obama administration released its report on the failed attack is unprecedented -- and something that's probably not being appreciated right now (considering how short-term the public's and press' memory is these days). Of course, the government should be able to conduct a major review of a botched terrorist attack in 13 days, right? Then again, the other reason John Brennan was able to put together this report so quickly is that the government had a LOT of intelligence on this issue, which of course is the great failing of this entire incident. Two huge conclusions that this report drew. One, the government underestimated al Qaeda in Arabian Peninsula in just about every facet of the group's capabilities. Two, the government didn't have the resources to focus as closely on these al Qaeda affiliates. While the president announced quite a few reforms that all of the agencies involved in this incident need to undertake, it all stems from those two fundamental facts. The scary thing for the average American about this incident is that the very issue many criticized the intelligence community for in 2001 -- a failure of imagination -- seems to have returned.

*** The U.S. and the Muslim world: While the president has made remarks about this Christmas terror incident a half dozen times now, yesterday was the first time he spoke about his view of what this war is about -- and what it means for America's relationship with the Muslim world. "We've sought new beginnings with Muslim communities around the world, one in which we engage on the basis of mutual interest and mutual respect, and work together to fulfill the aspirations that all people share -- to get an education, to work with dignity, to live in peace and security. That's what America believes in. That's the vision that is far more powerful than the hatred of these violent extremists." But a potential problem is the fact that both the Christmas Day bomber and Fort Hood shooter were, well, first-timers, meaning they're preying on a certain kind of new recruit: loners, weak-minded, however you want to describe them. But it's almost cult-like in their ability to identify new recruits now. It presents a whole new challenge on the "hearts and minds" front in this war.

*** Will someone be held accountable? One of the more under-reported parts of the president's remarks was his specific shout-out to Director of National Intelligence Dennis Blair. Since the terror incident and the criticism by the president and others of a failure to connect the doubts, there have been whispers that if anyone's head rolls, it might be Blair's. A number of reasons have led to the speculation, including his perceived lack of a support constituency on Capitol Hill or with many in the Obama administration. But as we've learned in previous Obama statements on this incident, a shout-out by name is a subtle signal to the chattering class that this person's job is safe -- for now. Obama took pains to say there was no ONE error or ONE person to pin the blame on; it was system-wide. That said, keep an eye on a couple of things for the next few weeks: 1) the release of the Ft. Hood report and the various intel breakdowns cited in there, and 2) the congressional hearings scheduled for later this month. A poor review/performance by Blair or any of the key folks involved in both incidents -- including the FBI, CIA, NCTC and Homeland Security -- could spell trouble.

*** Steele the one? Political reporters who've closely followed the last couple of election cycles know how important a role the Republican National Committee has played. Despite the poor national environment for the GOP in '06 and '08, the RNC raised and spent TONS of money to help the party. In fact, without the RNC money and independent TV expenditures to supplement a McCain campaign that accepted general-election matching funds, the presidential contest probably would have ended in early October. That's precisely why some Republicans are very worried about what's going on at the RNC under Michael Steele's leadership. As we mentioned yesterday, the RNC has just $8.7 million in the bank as of Nov. 30 (versus the nearly $23 million it had at the start of his tenure, and the $13.2 million the DNC has now). And as the Washington Times reported, some heavy-hitter donors are refusing to give the RNC money due to their unhappiness with Steele, and are instead giving it to the NRSC, NRCC, and RGA. "You are leaving races on the table for what should be a historic cycle," complains one Republican about the RNC's diminished cash on hand. "He is going to cost us seats."

*** The Dems' 2-to-1 money advantage: Indeed, this year's money race -- as the GOP looks to make major Senate and House gains in the fall -- is one of the most underreported stories as we head into the midterms. As of Nov. 30, the DNC, DSCC, and DCCC had a combined $40 million in the bank. By comparison, the RNC, NRSC, and NRCC have a combined $20 million cash on hand. Folks, that's a 2-to-1 Democratic advantage. To be fair, Republicans are adjusting to a fundraising world in which Bush and Cheney are no longer in the White House. Also, Haley Barbour's Republican Governors Association is having no problems raising and (saving) money, with $25 million in bank as of the end of 2009; the Democratic Governors Association has a healthy $17.5 million. But, despite all their enthusiasm about the upcoming midterms, Republicans have to be somewhat concerned that enthusiasm isn't flowing into their coffers -- yet.

*** Steele and the RNC fire back: Steele yesterday responded to his critics this way, which probably gave them more ammunition: "If you don't want me in the job, fire me. But until then, shut up, get with the program, or get out of the way." Last night, RNC Chief of Staff Ken McKay fired off a memo defending its fundraising and spending. "Last year, the RNC not only exceeded fundraising goals; we broke records. After setting a revised 2009 goal of $68,785,724, we raised $81,255,000 million. Even more impressive, we set off-year fundraising records in August, September, October and November." McKay added that the party made significant investments in the NJ and VA gubernatorial contests. "All told, these were nearly $20 million in critical investments in 2009. And yet, we ended the year with $8.5 million cash-on-hand, almost three times as much as we originally anticipated. By comparison, at the end of 2005, the DNC … had just over $5 million cash-on-hand. They went on to take control of both the House and Senate in 2006, and eventually the White House in 2008." What McKay doesn't mention: Chuck Schumer's DSCC and Rahm Emanuel's DCCC made up for any DNC shortcoming in 2006. As of now, though, the same can't be said of the NRSC and NRCC.

*** Gates to stay another year: Defense Secretary Robert Gates has agreed to remain on the job at the Pentagon for another year, NBC's Jim Miklaszewski reports. Gates had expressed his desire to retire at end of the Bush administration, but agreed then to remain on the job as Defense Secretary at the request of then-President-elect Obama. "Secretary Gates met with the President just before Christmas and gave him a commitment to stay on the job for AT LEAST another year," Pentagon spokesman Geoff Morrell said. "They agreed to revisit this issue again later this year, but for all intents and purposes their original agreement still stands: he serves at the pleasure of the President indefinitely and he is honored to do so, though he certainly looks forward to one day retiring to his family home in the Pacific Northwest."

*** Reid urges Bloomberg not to back Ford: The New York Post says that Senate Majority Leader Harry Reid yesterday urged New York City Mayor Michael Bloomberg not to get behind Harold Ford Jr. if he decides to make a primary challenge against incumbent (and appointed) Sen. Kirsten Gillibrand. "The conversation came the same day that Bloomberg's 2009 campaign manager Bradley Tusk and his pollster, Doug Schoen, had lunch with Ford, sources said… The sources said Bloomberg indicated he likely won't support Ford - and may not even get involved at all - but also made clear he has problems with Gillibrand, with whom he's tangled over health care reform in recent weeks." The Times says that Schumer also met with Ford in an effort to dissuade him from running.

*** 2012 watch: Another round of Palin-palooza? The big GOP presidential cattle call of 2010 -- the Southern Republican Leadership Conference, which will take place in New Orleans in April -- has announced that Sarah Palin will be attending the confab, raising the speculation (true or not) that she's eyeing a White House bid. "I'm looking forward to addressing conservative activists from across the south at the 2010 Southern Republican Leadership Conference," Palin said in a release. "This is a great opportunity to listen and speak to those who are helping to set the direction of our party."

Countdown to MA Special Election: 11 days
Countdown to IL primary: 25 days
Countdown to TX primary: 53 days
Countdown to Election Day 2010: 298 days

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The New York Times: "President Obama on Thursday ordered intelligence agencies to take a series of steps to streamline how terrorism threats are pursued and analyzed, saying the government had to respond aggressively to the failures that allowed a Nigerian man to ignite an explosive mixture on a commercial jetliner on Christmas Day. The president also directed the Homeland Security Department to speed the installation of $1 billion in advanced-technology equipment for the screening of passengers, including body scanners at American airports and to work with international airports to see that they upgrade their own equipment to protect passengers on flights headed to the United States."

"Assigning responsibility to top intelligence and homeland security officials for establishing accountability within their agencies," the Washington Post writes, "Obama said he is 'less interested in passing out blame than I am in learning from and correcting these mistakes 'Ultimately,' he said, 'the buck stops with me . . . and when the system fails, it is my responsibility.'"

More: But the six-page report released by the White House … singled out the National Counterterrorism Center and the CIA. Although each had the responsibility and ability to do so, the report said, each failed to apply to Yemen-based al-Qaeda in the Arabian Peninsula (AQAP) 'the full range of analytic tools and expertise that [they use] in tracking other plots aimed at the U.S. homeland.'"

The AP outlines the key findings of the White House review of intelligence gathering prior to the Christmas Day bombing.

In the latest issue of National Journal, Kirk Victor writes that there is little more President Obama can do to improve his political standing -- other than wait. "After a big celebration at the White House whenever Democrats pass massive health care legislation -- a step that eluded seven other presidents—there is little else on the horizon to give reason for cheer. Even after Obama signs the measure, questions abound about how big a political boost it will provide to Democrats. Many of its benefits will not be felt immediately."

"'There is not much more he can do after having made his domestic and foreign-policy decisions, with the economic stimulus first, and then his decisions on Iraq and Afghanistan,' said Gary Jacobson, a political scientist at the University of California (San Diego). "He has to be patient and hope that [his initiatives] work. There is never any guarantee that they will.'"

The New York Times notes that President Obama is re-nominating his controversial pick, Dawn Johnsen to lead the Justice Department's Office of Legal Counsel. "Once obscure, the office became controversial in the Bush administration when it secretly signed off on interrogation and surveillance policies that bypassed statutory and treaty restraints, citing sweeping theories of presidential power. Ms. Johnsen was an outspoken critic of those claims."

"While Senator Richard G. Lugar, Republican of Indiana, backs her nomination, other conservatives have opposed her as too liberal, pointing to her work for an abortion rights group two decades ago. At least two Democrats -- Ben Nelson of Nebraska and Arlen Specter of Pennsylvania -- have also said they oppose her, and the Senate majority leader, Harry Reid of Nevada, did not give her a floor vote." http://bit.ly/80TVYE

Defense Secretary Bob Gates told the president he'd stay on for at least another year.

Taking criticism for the so-called "Cornhusker Kickback" deal he struck with Harry Reid to get 60 votes on health care, Ben Nelson proposed expanded funding for ALL the states.  
 
President Obama "will huddle with Democrats at their 'issues conference' either next Wednesday or Thursday, said Rep. John Larson (Conn.), chairman of the House Democratic Caucus," The Hill writes.

"Republican National Committee Chairman Michael S. Steele, under fire this week for a string of controversial statements he has made while promoting his new book, has so angered the party's congressional leaders that their aides said they told Steele's handlers to 'get him to stop,'" the Washington Post says. "Believing that Steele's off-the-cuff remarks threaten to damage the party's brand -- at the very time when Republicans are trying to capitalize on a national political environment that may hurt Democrats -- senior aides to top Republican leaders confronted Steele's staff on a conference call Wednesday."

"'You really just have to get him to stop. It's too much,' a top congressional aide said on the call, according to others on the call, adding that Steele was hurting morale among Republican members of Congress and candidates."

Roll Call: "One Republican Senate aide familiar with Wednesday's conference call said Steele's latest remark couldn't have come at a worse time, saying, 'Democrats were having a bad week. They had retirements out of the blue, the poll numbers were in our favor and now all of sudden the news is that Republicans are somehow at fault.' According to multiple sources, Republican Congressional aides bristled at Steele's decision to use his book tour to question Republicans' political chances. They pressed RNC staff to keep Steele quiet and cancel any more media appearances."

2008 election redux: Sen. John McCain has two spots up "selling himself to Arizona voters as the man 'leading the fight against President Obama' in the first ads of his re-election campaign," Roll Call also writes. He "goes out of his way to bash his 2008 presidential foe and uses stark terms to frame his differences with the current president's agenda. In the first, an announcer says McCain is in a 'battle to save America,' with McCain himself claiming Obama 'is leading an extreme, left wing crusade to bankrupt America.' 'I stand in his way every day,' McCain adds." McCain is facing a primary from the right in his reelection bid. (By the way, the announcer sounds like the same guy from those ultra-dramatic McCain '08 campaign ads.)

Are retiring Democratic Sens. Chris Dodd (CT) and Byron Dorgan (ND) heading to K Street? Roll Call examines some of their post-Senate options in the wake of Dorgan's comments that he "would like to work on energy policy in the private sector."

ILLINOIS: Republican real estate developer Patrick Hughes is up with his first campaign ad, which will air on the FOX News channel, CQ Politics reports. The presumed frontrunner in the primary is Rep. Mark Kirk (R), but Hughes -- challenging Kirk from the right -- has already pumped his campaign with $500,000 of his own money.

Kirk responded yesterday to an ad released by Senate hopeful and "perennial candidate" Andy Martin that questioned Kirk's sexuality, calling the ads "completely outrageous and untrue, local radio station WBBM 780 reports."

KENTUCKY: Senatorial candidate Rand Paul (R) picked up an endorsement from financial expert and "conservative icon" Steve Forbes," the West Kentucky Star reports.

MASSACHUSETTS: The New York Times dives into the Jan. 19 special election in Massachusetts, where the perception is the race COULD be closer than many think it might be. "Martha M. Coakley, the Democrat running for Senator Edward M. Kennedy's seat in Massachusetts, had seemed so certain of winning the special election … that she barely campaigned last month. But the dynamic has changed in recent days. The news that two senior Democratic senators will retire this year in the face of bleak re-election prospects has created anxiety and, even in this bluest of states, a sense that the balance of power has shifted dramatically from just a year ago."

In the article, Boston College political science professor Dennis Hale sums up the race this way: "If I had to bet a week's salary, I'd still bet it on Coakley. But this is going to be like in the military, where the bullet misses you, but it still scares you to death."

NEW HAMPSHIRE: The Hill has some fourth-quarter campaign numbers, including from the Granite State: "Businessman Bill Binnie (R) raised $255,000 and self-funded another $1.26 million for his Senate primary against former state Attorney General Kelly Ayotte. Binnie has emerged as the moneyed challenger to the establishment favorite Ayotte, and he's promised to spend even more of his funds. If businessman Ovide Lamontagne (R) turns in a weak quarter, attention may shift to Binnie as Ayotte's main roadblock."

NEW MEXICO: Per The Hill, Pete Domenici Jr., (R) the son of former Sen. Pete Domenici, tells the Albuquerque Journal that he is "looking very seriously" at a gubernatorial bid, as term-limited Gov. Bill Richardson exits. The Journal writes, "He would have some catching up to do," as four primary hopefuls have already been campaigning for up to six months.

TEXAS: Per Tagean Goddard, Stephen Moore writes in the Wall Street Journal op-ed section that Republican Senatorial Committee Chairman Sen. John Cornyn "is trying to persuade [Sen. Kay Bailey] Hutchison to drop out of the governor's race to run for re-election to the Senate. That would stop the costly internecine warfare in the state and likely end any chance of Democrats picking up her Senate seat." (*** UPDATE *** : The NRSC says Moore's assertion is inaccurate. "Cornyn has, and will, remain completely neutral -- his focus is on picking up Senate seats in 2010 -- KBH's seat isn't even up this cycle," NRSC spokesman Brian Walsh said in an e-mail to First Read.)