JOSÉ DÍAZ BALART: MR. PRESIDENT, THANK YOU.

PRESIDENT OBAMA: IT’S GREAT TO SEE YOU.

JOSÉ DÍAZ BALART: PLEASURE SEEING YOU.

PRESIDENT OBAMA: THANK YOU SO MUCH.

JOSÉ DÍAZ BALART: LET’S START WITH NORTH KOREA. THEY LAUNCHED A MISSILE YESTERDAY. SOME SAY IT COULD BE THAT THEY’RE PRACTICING TO GET A NUCLEAR WARHEAD ON AN INTERCONTINENTAL MISSILE. WHAT’S YOUR ADMINISTRATION’S REACTION TO WHAT HAPPENED?

PRESIDENT OBAMA: WELL FIRST OF ALL, I THINK IT’S IMPORTANT TO KNOW THAT THEY’VE BEEN TRYING TO LAUNCH MISSILES LIKE THIS FOR OVER A DECADE NOW AND THEY DON’T SEEM TO BE REAL GOOD AT IT. BUT OBVIOUSLY THIS IS AN AREA OF DEEP CONCERN. IT’S A CLEAR VIOLATION OF U.N. SECURITY COUNCIL RESOLUTIONS AND WHAT THIS HAS DONE IS FURTHER ISOLATE THEM AND MADE IT MORE DIFFICULT FOR THEM TO FOCUS ON WHAT THEY SHOULD BE FOCUSING ON WHICH IS FEEDING THEIR OWN PEOPLE. THEY MAKE ALL THESE INVESTMENTS, TENS OF MILLIONS OF DOLLARS, IN ROCKETS THAT DON’T WORK AT A TIME WHEN THEIR PEOPLE ARE STARVING, LITERALLY. AND SO WHAT WE INTEND TO DO IS TO WORK WITH THE INTERNATIONAL COMMUNITY TO FURTHER ISOLATE NORTH KOREA. OBVIOUSLY ANY OPPORTUNITY FOR US TO PROVIDE THEM FOOD AID WAS CONTINGENT ON THEM ABIDING BY INTERNATIONAL RULES AND INTERNATIONAL NORMS. SO WE WILL CONTINUE TO KEEP THE PRESSURE ON THEM AND THEY’LL CONTINUE TO ISOLATE THEMSELVES UNTIL THEY TAKE A DIFFERENT PATH.

JOSÉ DÍAZ BALART: LET’S TALK A LITTLE ABOUT THE U.S. DEMOCRATIC STRATEGIST HILARY ROSEN SET OFF A FIRESTORM BY SAYING ON TELEVISION THAT ANN ROMNEY HAS ‘NEVER WORKED A DAY IN HER LIFE.’ WERE YOU SURPRISED AT THE INTENSITY OF REACTION AND DISCUSSION WE’VE SEEN SINCE THOSE COMMENTS?

PRESIDENT OBAMA: YOU KNOW I’M NEVER SURPRISED BY WHAT HAPPENS DURING THE POLITICAL SEASON, BUT AS I’VE SAID, THERE’S NO JOB THAT’S TOUGHER THAN BEING A MOM. I SAW THAT WITH MY OWN MOM, A SINGLE MOM TRYING TO PUT HERSELF THROUGH SCHOOL. I SEE IT WITH MICHELLE AND THE INCREDIBLE ENERGY THAT SHE BRINGS TO RAISING HER KIDS. AND AS I SAID LAST NIGHT, I DON’T KNOW MRS. ROMNEY WELL BUT SHE SEEMS LIKE A WONDERFUL WOMAN, AND OBVIOUSLY CARES DEEPLY ABOUT HER FAMILY. AND AS I ALSO SAID, AND THIS IS SOMETHING THAT I’VE ALWAYS BELIEVED IN, YOU JUST DON’T TALK ABOUT SPOUSES IN POLITICAL CAMPAIGNS BECAUSE IT’S A BIG SACRIFICE FOR A SPOUSE TO SUPPORT THEIR HUSBAND OR WIFE IN THIS KIND OF SITUATION, AND THEY’RE CIVILIANS. THEY SHOULD GENERALY BE OFF THE FIELD. BUT MS. ROSEN APOLOGIZED, AND THAT WAS APPROPRIATE. NOW I THINK WE NEED TO REMIND OURSELVES THAT WE’VE GOT SOME BIG ISSUES TO DEBATE IN THIS COUNTRY ABOUT TAX POLICY, ABOUT HOW WE’RE GOING TO GROW THE ECONOMY, HOW WE’RE GOING TO MAKE SURE EVERYBODY IN AMERICA GETS A FAIR SHOT. THERE ARE MORE THAN ENOUGH DIFFERENCES BETWEEN ME AND MR. ROMNEY THAT THAT SHOULD BE OUR FOCUS.

JOSÉ DÍAZ BALART: LET’S TALK ABOUT THE ECONOMY AND GENDER ISSUES BECAUSE ROMNEY RECENTLY HAS BEEN SPEAKING MORE AND MORE ABOUT HOW HE SAYS WOMEN HAVE BEEN DISPROPORTIONATELY AFFECTED. 92% OF THE PEOPLE THAT LOST THEIR JOBS UNDER YOUR ADMINISTRATION HE SAYS ARE WOMEN. WHAT DO YOU HAVE TO SAY ABOUT THAT?

PRESIDENT OBAMA: EVERYBODY WHO’S LOOKED AT THIS CLAIM KNOWS IT’S BOGUS. WHAT HE DOESN’T MENTION OBVIOUSLY IS THAT ALL THESE JOB LOSSES, BOTH MEN AND WOMEN, TOOK PLACE AS A CONSEQUENCE OF THE WORST FINANCIAL CRISIS AND THE WORST ECONOMIC CRISIS THAT WE’VE SEEN SINCE THE GREAT DEPRESSION. AND THE VAST BULK OF THEM HAPPENED BEFORE I WAS EVEN SWORN INTO OFFICE OR A FEW MONTHS SHORTLY AFTER I WAS SWORN INTO OFFICE. THEY’RE A DIRECT RESULT OF THE POLICIES HE WANTS TO GO BACK TO, AND I THINK THE AMERICAN PEOPLE UNDERSTAND THAT. THEY UNDERSTAND THAT CUTTING TAXES FOR THE WEALTHIEST AMERICANS HELP TO DRIVE UP THIS DEFICIT; THAT AN ECONOMY THAT’S BASED ON TRICKLE DOWN INSTEAD OF FROM THE BOTTOM UP AND FROM THE MIDDLE OUT, BROADENING OPPORTUNITY FOR EVERYBODY, IS A BAD DECISION. THEY UNDERSTAND THAT IF WE’RE GOING TO CLOSE OUR DEFICIT THEN EVERYBODY’S GOT TO DO THEIR FAIR SHARE, WHICH IS WHY WE’VE BEEN TALKING ABOUT THE BUFFET RULE, A VERY SIMPLE EXAMPLE IN WHICH YOU HAVE MILLIONAIRES AND BILLIONAIRES WHO PAY LOWER TAX RATES THAN THEIR SECRETARIES, TEACHERS, OR PLUMBERS. THAT’S NOT GOING TO BE A RECIPE FOR GROWING THE ECONOMY. THE BUDGET THAT THEY PUT FORWARD IS A BUDGET THAT WOULD SLASH SPENDING ON EDUCATION, COLLEGE SCHOLARSHIPS, INFRASTRUCTURE LIKE THIS PORT THAT HAS PUT THOUSANDS OF PEOPLE BACK TO WORK. AND THE AMERICAN PEOPLE, WHAT THEY WANT IS A VISION MOVING FORWARD THAT’S NOT JUST THE USUAL WARMED-OVER ECONOMIC THEORIES. THEY WANT INVESTMENTS IN THE AMERICAN PEOPLE, AMERICAN ENERGY, ALL THOSE THINGS THAT HELPED TO MAKE US AN ECONOMIC SUPERPOWER, AND THAT’S WHAT WE’RE PURSUING.

JOSÉ DÍAZ BALART: TALK ABOUT INVESTMENTS AND ENERGY, GASOLINE PRICES ARE SOMETHING THAT AFFECTS THE AVERAGE HOUSEHOLD AND IT’S CLEARLY BECOMING A POLITICAL ISSUE BY SOME IN THE REPUBLICAN PARTY. IN 2008 WHEN YOU WERE A SENATOR YOU BLAMED PRESIDENT BUSH FOR THE GAS PRICES AT THE TIME. YOU SAID, ‘WE COULD HAVE HEADED OFF $4 A GALLON GAS… BUT THE LAWS THAT HAVE COME OUT OF WASHINGTON HAVE HELPED OIL COMPANIES AND NOT CONSUMERS. TODAY, COULDN’T THAT BE SAID ABOUT YOUR POLICIES WHICH HAVE GIVEN BILLIONS TO ALTERNATIVE ENERGY COMPANIES?

PRESIDENT OBAMA: NO, NO. ABSOLUTELY NOT. WHAT I SAID IN 2008 IS THE SAME THING I’M SAYING NOW, WHICH IS THIS IS A PROBLEM THAT HAS BUILT UP FOR DECADES. THE REASON THAT WE CONSTANTLY HAVE THIS CYCLE WHERE WHEN THE ECONOMY’S GROWING SUDDENLY YOU HAVE HIGH GAS PRICES WHICH THEN IN TURN LEADS CONSUMERS TO PULL BACK, AND WEAKENS THE ECONOMY IS BECAUSE WE HAVEN’T INVESTED IN ALTERNATIVE ENERGY SO WE’RE ALWAYS SUBJECT TO THE WORLD OIL MARKET. WE USE 20% OF THE WORLD’S OIL, WE PRODUCE 2% OF THE WORLD’S OIL, WHICH MEANS THERE’S THAT 18% GAP THAT WE’RE ALWAYS IMPORTING. WHAT WE’VE DONE OVER THE LAST THREE YEARS UNDER MY ADMINISTRATION IS PROGRESSIVELY REDUCE OUR DEPENDENCE ON FOREIGN OIL PRECISELY BECAUSE WE’VE BEEN INVESTING IN ALTERNATIVE ENERGY, MAKING OUR CARS MORE FUEL EFFICIENT BY DOUBLING FUEL EFFICIENCY STANDARDS. THE LESS DEPENDENT WE ARE ON OIL AS PART OF OUR ECONOMY, THE LESS SUBJECT WE’RE GOING TO BE TO THESE CONSTANT GAS SPIKES. BUT WHAT WE CAN’T DO IS EITHER JUST DRILL OUR WAY OUT OF THE PROBLEM… OUR PRODUCTION IS HIGHER NOW THAN IT’S BEEN IN EIGHT YEARS, BUT THAT ALONE IS NOT GOING TO SOLVE THE PROBLEM. WHAT WE CAN ALSO DO IS, EVEN AS WE’RE INCREASING PRODUCTION, IS INVEST IN SOLAR, WIND, BIOFUELS, ALL THOSE THINGS THAT CAN HELP US DIVERSIFY OUR ENERGY NEEDS. THAT’S WHAT’S GOING TO ULTIMATELY PROVIDE RELIEF TO CONSUMERS.

JOSÉ DÍAZ BALART: THE INCREASE IN NATIONAL PRODUCTION, HAS THAT NOT BEEN ON PRIVATE LANDS VERSUS FEDERAL LANDS?

PRESIDENT OBAMA: WELL, WE’VE ACTUALLY OPENED UP FEDERAL LANDS. WE’RE PUTTING LEASES AND PROVIDING PERMITS ON FEDERAL LANDS IN THE GULF OF MEXICO. WE’RE OPENING UP AREAS THAT HAVE NOT BEEN OPENED BEFORE. BUT THE POINT IS THAT NO MATTER HOW MUCH WE DRILL, NO MATTER HOW MUCH WE INCREASE PRODUCTION, WE’RE NOT GOING TO CLOSE THAT GAP BETWEEN 20 AND 2 PERCENT. THIS IS A WORLD OIL MARKET. A LOT OF THE PRODUCTION THAT TAKES PLACE HERE IS STILL PRICED BASED ON WHAT HAPPENS INTERNATIONALLY. SO THE WAY FOR US TO HAVE CONTROL OVER OUR ECONOMY IS YES, TO PRODUCE AS MUCH ENERGY AS WE CAN HERE IN THE UNITED STATES, BUT ALSO TO MAKE SURE THAT WE ARE DESIGNING AN ECONOMY THAT IS BASED ON A WIDE RANGE OF DIFFERENT ENERGY SOURCES. THAT REQUIRES INVESTMENT, AND WHEN WE FOR EXAMPLE GIVE A FOUR-BILLION-DOLLAR TAX BREAK EVERY YEAR TO THE OIL COMPANIES AT A TIME WHEN THEY’RE EXPERIENCING RECORD PROFITS, THE AMERICAN PEOPLE UNDERSTAND THAT’S PROBABLY NOT A GOOD DEAL FOR AMERICAN CONSUMERS.

JOSÉ DÍAZ BALART: MR. PRESIDENT, SENATOR MARCO RUBIO IS SAID TO BE WORKING ON A PROPOSAL THAT WOULD INCORPORATE MOST OF THE YOUNG PEOPLE THAT WOULD’VE BEEN HELPED BY THE DREAM ACT, GIVING THEM WORK PERMITS, STUDY PERMITS, AND EVENTUALLY RESIDENCY. AS YOU KNOW, HE’S BEING TALKED ABOUT AS A POSSIBLE SHORTLIST OF THE VP CANDIDATES. WHAT WOULD YOU SAY TO THE LATINO COMMUNITY IF YOU ARE REELECTED? WHAT DO YOU BRING TO THE TABLE FOR ISSUES LIKE THE DREAM ACT AND IMMIGRATION REFORM?

PRESIDENT OBAMA: FIRST OF ALL, I THINK IT’S IMPORTANT TO SAY THAT THE LATINO COMMUNITY CARES ABOUT A WHOLE RANGE OF ISSUES.

JOSÉ DÍAZ BALART: ABSOLUTELY.

PRESIDENT OBAMA: SO THE WORK WE’VE DONE IN TERMS OF KEEPING LATINOS WORKING, OUT OF POVERTY, MAKING SURE THAT WE’RE OPENING UP ACCESS FOR SMALL LATINO BUSINESSES, EXPANDING MARKETS IN LATIN AMERICA, MAKING THAT SURE WE’RE INVESTING IN EDUCATION LIKE NEVER BEFORE, SO THAT WE’RE SEEING NOW SOME OF THE HIGHEST COLLEGE RATES AMONG LATINOS THAT WE’VE EVER SEEN BEFORE, PARTLY BECAUSE WE EXPANDED THINGS LIKE PELL GRANTS. ALL THOSE THINGS ARE IMPORTANT.

JOSÉ DÍAZ BALART: IMMIGRATION REFORM, AS YOU KNOW.

PRESIDENT OBAMA: WHEN WE TALK ABOUT IMMIGRATION REFORM, EVERYBODY KNOWS THAT I AM FOUR SQUARE BEHIND COMPREHENSIVE IMMIGRATION REFORM. AND THE ONLY REASON WE DO NOT HAVE A LAW RIGHT NOW THAT HAS PROVIDED A PATHWAY TO CITIZENSHIP NOT JUST FOR DREAM ACT KIDS BUT FOR FOLKS WHO ARE HERE, ARE LAW-ABIDING CITIZENS, IS BECAUSE THE REPUBLICANS HAVE CONSISTENTLY DEMOGOGUED THIS ISSUE AND HAVE BLOCKED ACTION IN CONGRESS. SO YOU TAKE THE EXAMPLE OF THE DREAM ACT… THE FACT OF THE MATTER IS THAT THE OVERWHELMING MAJORITY OF DEMOCRATS ARE [sic] PREPARED TO VOTE FOR THAT BILL AND I’M PREPARED TO SIGN IT TOMORROW. THE REASON WE HAVEN’T BEEN ABLE TO GET IT DONE IS BECAUSE WE CAN’T GET REPUBLICAN SUPPORT IN EITHER THE HOUSE OR THE SENATE.

JOSÉ DÍAZ BALART: SO IS THIS A POSITIVE STEP?

PRESIDENT OBAMA: I THINK THAT IF IN FACT REPUBLICANS RECOGNIZE THAT WE HAVE A CHANCE TO BE A NATION OF LAWS AND A NATION OF IMMIGRANTS, AND IF THEY WANT TO START WITH THE DREAM ACT AND SAY, “LET’S GIVE THESE KIDS, WHO HAVE BEEN RAISED AS AMERICAN KIDS, WHO HAVE ENORMOUS TALENTS TO CONTRIBUTE, WHO WANT TO SERVE IN OUR MILITARY, WHO WANT TO STUDY IN OUR SCHOOLS AND THEN WORK IN OUR LABS AND CREATE BUSINESSES, LET’S GIVE THEM A PATHWAY TO CITIZENSHIP”… THAT’S WHAT MAKES SENSE. AND IF I HEAR ANYBODY SAYING, “WELL, YOU KNOW WHAT? THE DEMOCRATS ARE SOMEHOW THE IMPEDIMENT TO MAKING THIS HAPPEN,” ALL I HAVE TO SAY IS LET’S LOOK AT THE VOTES ON THE LAST DREAM ACT WHEN IT CAME UP IN THE SENATE. THIS NOTION THAT SOMEHOW REPUBLICANS WANT TO HAVE IT BOTH WAYS, THEY WANT TO VOTE AGAINST THESE LAWS AND APPEAL TO ANTI-IMMIGRANT SENTIMENT WHEN WE HAVE A NOMINEE WHO SAID THAT ARIZONA LAWS, WHICH ALLOW THOSE SAME KIDS WITH LATINO SURNAMES TO POTENTIALLY BE PICKED UP [AND] ASKED FOR THEIR PAPERS, AND THEN THEY COME AND SAY, “BUT WE REALLY CARE ABOUT THESE KIDS AND WE WANT TO DO SOMETHING ABOUT IT.” THAT LOOKS LIKE HYPOCRISY TO ME. WHAT I WANT TO SEE IS FOLKS TO BE SERIOUS ABOUT GETTING THIS ISSUE RESOLVED ONCE AND FOR ALL. I’M PREPARED TO DO IT. I’M GOING TO FIGHT FOR IT, I’M GOING TO PUSH FOR IT, AND I THINK THE VAST MAJORITY OF DEMOCRATS ARE GOING TO DO SO AS WELL.

JOSÉ DÍAZ BALART: LAST QUESTION. SOME TIME AGO YOU CAUSED QUITE A STIR WHEN YOU SANG A LITTLE BIT OF AL GREEN AT THE APOLLO. THE FIRST LADY SAYS YOU DO THAT QUITE OFTEN IN THE PRIVATE QUARTERS AT THE WHITE HOUSE. ANY SONGS THAT YOU SING TO HER IN THE PRIVACY THAT OUR FOLKS WOULD KNOW?

PRESIDENT OBAMA: YOU KNOW I HAVE TO SAY SHE’S VERY JEALOUS. SHE ONLY LIKES ME SINGING TO HER. WHEN I SANG AL GREEN PUBLICLY SHE WAS A LITTLE CONCERNED ABOUT THAT. BUT I’VE GOT A PRETTY…

JOSÉ DÍAZ BALART: LIKE WHO? WHO DO YOU…? NOT SING ME A FEW BARS, BUT YOU GOT ANY THOUGHTS ON ARTISTS THAT YOU LIKE?

PRESIDENT OBAMA: I’LL TELL YOU WHAT. JUANES IS SOMEBODY I LIKE VERY MUCH. HE’S ON MY IPOD. WE’RE HEADING DOWN TO HIS NECK OF THE WOODS. I’VE GOT A FEW SONGS IN SPANISH UP MY SLEEVES AS WELL, BUT I’M PROBABLY NOT GOING TO BREAK THEM OUT TODAY.

JOSÉ DÍAZ BALART: YOU’RE EXCITED ABOUT THE SUMMIT?

PRESIDENT OBAMA: I THINK THE SUMMIT’S GOING TO BE OUTSTANDING BECAUSE PEOPLE NEED TO UNDERSTAND THIS IS OUR BIGGEST EXPORT MARKET. WHEN WE OPEN UP TRADE AND COMMERCE BETWEEN OURSELVES AND THE REST OF THE HEMISPHERE, THAT CREATES JOBS RIGHT HERE IN THE UNITED STATES. AND IT ALSO OBVIOUSLY GIVES OPPORTUNITY TO PEOPLE LIVING IN THOSE COUNTRIES AS WELL. SO THIS IS A GOOD OPPORTUNITY FOR ME TO INTERACT WITH THOSE LEADERS AND FIND WAYS THAT WE CAN WORK TOGETHER ON COMMON ISSUES.

JOSÉ DÍAZ BALART: SEÑOR PRESIDENTE, MUCHAS GRACIAS. (THANK YOU, MR. PRESIDENT.)

PRESIDENT OBAMA: MUCHAS GRACIAS. (THANK YOU.)

JOSÉ DÍAZ BALART: IT’S ALWAYS A PLEASURE TO SEE YOU, SIR.

PRESIDENT OBAMA: GOOD TO SEE YOU.

JOSÉ DÍAZ BALART: THANK YOU.

PRESIDENT OBAMA: THANK YOU.

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