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McCain Disowns, Obama Jumps on Gramm Quotes — GOP Ex-Senator Says Recession All ‘Mental’

July 11, 2008
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By Charles Babington; Liz Sidoti

BELLEVILLE, Mich. – John McCain sharply broke from an economic adviser who dubbed the United States “a nation of whiners” in a “mental recession” as the Republican presidential candidate sought to counter criticism that he’s weak on the economy.

Sensing an opening, Democrat Barack Obama turned the remarks against his rival.

“I strongly disagree” with Phil Gramm’s remarks, McCain told reporters in what amounted to nothing short of a smackdown against one of his top surrogates and longtime friends. “Phil Gramm does not speak for me. I speak for me.”

The Republican presidential hopeful said a person who just lost a job or a mother struggling to pay for a child’s education “isn’t suffering from a mental recession.”

“America is in great difficulty. And we are experiencing enormous economic challenges as well as others,” McCain said, seeking to stem the fallout from Gramm’s comments.

Gramm, a former Texas senator who is a vice chairman of the Swiss bank UBS and has a doctorate in economics, made the remarks in an interview with The Washington Times. Friends and colleagues for years, McCain served as a top surrogate when Gramm ran for president in 1996 and the Texan has returned the favor this year, campaigning frequently on McCain’s behalf.

Campaigning in Fairfax, Va., Obama seized on Gramm’s comments as he tried to paint McCain as out of touch: “America already has one Dr. Phil. We don’t need another one when it comes to the economy.”

He drew cheers and laughter with that comment referencing TV psychologist “Dr. Phil” McGraw – and boos and hisses when he read Gramm’s quotes to his audience. He contrasted them with rising gas and food prices, home foreclosures and job layoffs.

“It’s not just a figment of your imagination,” Obama said at a town-hall event . “Let’s be clear. This economic downturn is not in your head.”

Later asked if Gramm would have a role in a McCain administration, McCain raised the possibility of what could be seen as a less-than-desirable job. “I think Senator Gramm would be in serious consideration for ambassador to Belarus although I’m not sure the citizens of Minsk would welcome that.”

Originally published by Charles Babington and Liz Sidoti Associated Press .

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