PRESIDENT OBAMA AND MITT ROMNEY DEBATE; THE FULL TRANSCRIPTS HERE ON YEMIOLAKITANS

                                 Mitt Romney and President Barack Obama 

culled from CNN

President Barack Obama and Republican presidential nominee Mitt Romney met in Boca Raton, Florida Monday evening for the third and final presidential debate with a focus on foreign policy and national security.

Below is a transcript of their remarks.

SCHIEFFER: Good evening from the campus of Lynn University here in Boca Raton, Florida. This is the fourth and last debate of the 2012 campaign, brought to you by the Commission on Presidential

Debates. This one's on foreign policy. I'm Bob Schieffer of CBS News. The questions are mine, and I have not shared them with the candidates or their aides. The audience has taken a vow of silence - no applause, no reaction of any kind, except right now when we welcome President Barack Obama and Governor Mitt Romney.

Gentlemen, your campaigns have agreed to certain rules and they are simple. They've asked me to divide the evening into segments. I'll pose a question at the beginning of each segment. You will each have two minutes to respond and then we will have a general discussion until we move to the next segment.

Tonight's debate, as both of you know, comes on the 50th anniversary of the night that President Kennedy told the world that the Soviet Union had installed nuclear missiles in Cuba, perhaps the closest we've ever come to nuclear war. And it is a sobering reminder that every president faces at some point an unexpected threat to our national security from abroad.

So let's begin.

SCHIEFFER: The first segment is the challenge of a changing Middle East and the new face of terrorism. I'm going to put this into two segments so you'll have two topic questions within this one segment on the subject. The first question, and it concerns Libya. The controversy over what happened there continues. Four Americans are dead, including an American ambassador. Questions remain. What happened? What caused it? Was it spontaneous? Was it an intelligence failure? Was it a policy failure? Was there an attempt to mislead people about what really happened?

Governor Romney, you said this was an example of an American policy in the Middle East that is unraveling before our very eyes. I'd like to hear each of you give your thoughts on that. Governor Romney, you won the toss. You go first.

ROMNEY: Thank you, Bob. And thank you for agreeing to moderate this debate this evening. Thank you to Lynn University for welcoming us here. And Mr. President, it's good to be with you again. We were together at a humorous event a little earlier, and it's nice to maybe funny this time, not on purpose. We'll see what happens.

This is obviously an area of great concern to the entire world, and to America in particular, which is to see a - a complete change in the - the structure and the - the environment in the Middle East.

With the Arab Spring, came a great deal of hope that there would be a change towards more moderation, and opportunity for greater participation on the part of women in public life, and in economic life in the Middle East. But instead, we've seen in nation after nation, a number of disturbing events. Of course we see in Syria, 30,000 civilians having been killed by the military there. We see in - in Libya, an attack apparently by, I think we know now, by terrorists of some kind against - against our people there, four people dead.

Our hearts and - and minds go out to them. Mali has been taken over, the northern part of Mali by al-Qaeda type individuals. We have in - in Egypt, a Muslim Brotherhood president. And so what we're seeing is a pretty dramatic reversal in the kind of hopes we had for that region. Of course the greatest threat of all is Iran, four years closer to a nuclear weapon. And - and we're going to have to recognize that we have to do as the president has done. I congratulate him on - on taking out Osama bin Laden and going after the leadership in al-Qaeda.

But we can't kill our way out of this mess. We're going to have to put in place a very comprehensive and robust strategy to help the - the world of Islam and other parts of the world, reject this radical violent extremism, which is - it's certainly not on the run.

ROMNEY: It's certainly not hiding. This is a group that is now involved in 10 or 12 countries, and it presents an enormous threat to our friends, to the world, to America, long term, and we must have a comprehensive strategy to help reject this kind of extremism.

SCHIEFFER: Mr. President?

OBAMA: Well, my first job as commander in chief, Bob, is to keep the American people safe. And that's what we've done over the last four years.

We ended the war in Iraq, refocused our attention on those who actually killed us on 9/11. And as a consequence, Al Qaeda's core leadership has been decimated.

In addition, we're now able to transition out of Afghanistan in a responsible way, making sure that Afghans take responsibility for their own security. And that allows us also to rebuild alliances and make friends around the world to combat future threats. Now with respect to Libya, as I indicated in the last debate, when we received that phone call, I immediately made sure that, number one, that we did everything we could to secure those Americans who were still in harm's way; number two, that we would investigate exactly what happened, and number three, most importantly, that we would go after those who killed Americans and we would bring them to justice. And that's exactly what we're going to do.

But I think it's important to step back and think about what happened in Libya. Keep in mind that I and Americans took leadership in organizing an international coalition that made sure that we were able to, without putting troops on the ground at the cost of less than what we spent in two weeks in Iraq, liberate a country that had been under the yoke of dictatorship for 40 years. Got rid of a despot who had killed Americans and as a consequence, despite this tragedy, you had tens of thousands of Libyans after the events in Benghazi marching and saying America is our friend. We stand with them.

OBAMA: Now that represents the opportunity we have to take advantage of. And, you know, Governor Romney, I'm glad that you agree that we have been successful in going after Al Qaida, but I have to tell you that, you know, your strategy previously has been one that has been all over the map and is not designed to keep Americans safe or to build on the opportunities that exist in the Middle East.

ROMNEY: Well, my strategy is pretty straightforward, which is to go after the bad guys, to make sure we do our very best to interrupt them, to - to kill them, to take them out of the picture.

But my strategy is broader than that. That's - that's important, of course. But the key that we're going to have to pursue is a - is a pathway to get the Muslim world to be able to reject extremism on its own.

We don't want another Iraq, we don't want another Afghanistan. That's not the right course for us. The right course for us is to make sure that we go after the - the people who are leaders of these various anti-American groups and these - these jihadists, but also help the Muslim world.

And how do we do that? A group of Arab scholars came together, organized by the U.N., to look at how we can help the - the world reject these - these terrorists. And the answer they came up with was this:

One, more economic development. We should key our foreign aid, our direct foreign investment, and that of our friends, we should coordinate it to make sure that we - we push back and give them more economic development.

Number two, better education.

Number three, gender equality.

Number four, the rule of law. We have to help these nations create civil societies.

But what's been happening over the last couple of years is, as we've watched this tumult in the Middle East, this rising tide of chaos occur, you see Al Qaida rushing in, you see other jihadist groups rushing in. And - and they're throughout many nations in the Middle East.

ROMNEY: It's wonderful that Libya seems to be making some progress, despite this terrible tragedy.

But next door, of course, we have Egypt. Libya's 6 million population; Egypt, 80 million population. We want - we want to make sure that we're seeing progress throughout the Middle East. With Mali now having North Mali taken over by Al Qaida; with Syria having Assad continuing to - to kill, to murder his own people, this is a region in tumult.

And, of course, Iran on the path to a nuclear weapon, we've got real (inaudible).

SCHIEFFER: We'll get to that, but let's give the president a chance.

OBAMA: Governor Romney, I'm glad that you recognize that Al Qaida is a threat, because a few months ago when you were asked what's the biggest geopolitical threat facing America, you said Russia, not Al Qaida; you said Russia, in the 1980s, they're now calling to ask for their foreign policy back because, you know, the Cold War's been over for 20 years.

But Governor, when it comes to our foreign policy, you seem to want to import the foreign policies of the 1980s, just like the social policies of the 1950s and the economic policies of the 1920s.

You say that you're not interested in duplicating what happened in Iraq. But just a few weeks ago, you said you think we should have more troops in Iraq right now. And the - the challenge we have - I know you haven't been in a position to actually execute foreign policy - but every time you've offered an opinion, you've been wrong. You said we should have gone into Iraq, despite that fact that there were no weapons of mass destruction.

You said that we should still have troops in Iraq to this day. You indicated that we shouldn't be passing nuclear treaties with Russia despite the fact that 71 senators, Democrats and Republicans, voted for it. You said that, first, we should not have a timeline in Afghanistan. Then you said we should. Now you say maybe or it depends, which means not only were you wrong, but you were also confusing in sending mixed messages both to our troops and our allies.

OBAMA: So, what - what we need to do with respect to the Middle East is strong, steady leadership, not wrong and reckless leadership that is all over the map. And unfortunately, that's the kind of opinions that you've offered throughout this campaign, and it is not a recipe for American strength, or keeping America safe over the long haul.

SCHIEFFER: I'm going to add a couple of minutes here to give you a chance to respond.

ROMNEY: Well, of course I don't concur with what the president said about my own record and the things that I've said. They don't happen to be accurate. But - but I can say this, that we're talking about the Middle East and how to help the Middle East reject the kind of terrorism we're seeing, and the rising tide of tumult and - and confusion. And - and attacking me is not an agenda. Attacking me is not talking about how we're going to deal with the challenges that exist in the Middle East, and take advantage of the opportunity there, and stem the tide of this violence.

But I'll respond to a couple of things that you mentioned. First of all, Russia I indicated is a geopolitical foe. Not...

(CROSSTALK)

ROMNEY: Excuse me. It's a geopolitical foe, and I said in the same - in the same paragraph I said, and Iran is the greatest national security threat we face. Russia does continue to battle us in the U.N. time and time again. I have clear eyes on this. I'm not going to wear rose-colored glasses when it comes to Russia, or Mr. Putin. And I'm certainly not going to say to him, I'll give you more flexibility after the election. After the election, he'll get more backbone. Number two, with regards to Iraq, you and I agreed I believe that there should be a status of forces agreement.

(CROSSTALK)

ROMNEY: Oh you didn't? You didn't want a status of...

OBAMA: What I would not have had done was left 10,000 troops in Iraq that would tie us down. And that certainly would not help us in the Middle East.

ROMNEY: I'm sorry, you actually - there was a - there was an effort on the part of the president to have a status of forces agreement, and I concurred in that, and said that we should have some number of troops that stayed on. That was something I concurred with...

(CROSSTALK)

OBAMA: Governor...

(CROSSTALK)

ROMNEY: ...that your posture. That was my posture as well. You thought it should have been 5,000 troops...

(CROSSTALK)

OBAMA: Governor?

ROMNEY: ... I thought there should have been more troops, but you know what? The answer was we got...

(CROSSTALK)

ROMNEY: ... no troops through whatsoever.

OBAMA: This was just a few weeks ago that you indicated that we should still have troops in Iraq.

ROMNEY: No, I...

(CROSSTALK)

ROMNEY: ...I'm sorry that's a...

(CROSSTALK)

OBAMA: You - you...

ROMNEY: ...that's a - I indicated...

(CROSSTALK)

OBAMA: ...major speech.

(CROSSTALK)

ROMNEY: ...I indicated that you failed to put in place a status...

(CROSSTALK)

OBAMA: Governor?

(CROSSTALK)

ROMNEY: ...of forces agreement at the end of the conflict that existed.

OBAMA: Governor - here - here's - here's one thing...

(CROSSTALK)

OBAMA: ...here's one thing I've learned as commander in chief.

(CROSSTALK)

SCHIEFFER: Let him answer...

OBAMA: You've got to be clear, both to our allies and our enemies, about where you stand and what you mean. You just gave a speech a few weeks ago in which you said we should still have troops in Iraq. That is not a recipe for making sure that we are taking advantage of the opportunities and meeting the challenges of the Middle East.

Now, it is absolutely true that we cannot just meet these challenges militarily. And so what I've done throughout my presidency and will continue to do is, number one, make sure that these countries are supporting our counterterrorism efforts.

Number two, make sure that they are standing by our interests in Israel's security, because it is a true friend and our greatest ally in the region.

Number three, we do have to make sure that we're protecting religious minorities and women because these countries can't develop unless all the population, not just half of it, is developing.

Number four, we do have to develop their economic - their economic capabilities.

But number five, the other thing that we have to do is recognize that we can't continue to do nation building in these regions. Part of American leadership is making sure that we're doing nation building here at home. That will help us maintain the kind of American leadership that we need.

SCHIEFFER: Let me interject the second topic question in this segment about the Middle East and so on, and that is, you both mentioned - alluded to this, and that is Syria.

The war in Syria has now spilled over into Lebanon. We have, what, more than 100 people that were killed there in a bomb. There were demonstrations there, eight people dead.

Mr. President, it's been more than a year since you saw - you told Assad he had to go. Since then, 30,000 Syrians have died. We've had 300,000 refugees.

The war goes on. He's still there. Should we reassess our policy and see if we can find a better way to influence events there? Or is that even possible?

And you go first, sir.

OBAMA: What we've done is organize the international community, saying Assad has to go. We've mobilized sanctions against that government. We have made sure that they are isolated. We have provided humanitarian assistance and we are helping the opposition organize, and we're particularly interested in making sure that we're mobilizing the moderate forces inside of Syria.

But ultimately, Syrians are going to have to determine their own future. And so everything we're doing, we're doing in consultation with our partners in the region, including Israel which obviously has a huge interest in seeing what happens in Syria; coordinating with Turkey and other countries in the region that have a great interest in this.

This - what we're seeing taking place in Syria is heartbreaking, and that's why we are going to do everything we can to make sure that we are helping the opposition. But we also have to recognize that, you know, for us to get more entangled militarily in Syria is a serious step, and we have to do so making absolutely certain that we know who we are helping; that we're not putting arms in the hands of folks who eventually could turn them against us or allies in the region.

And I am confident that Assad's days are numbered. But what we can't do is to simply suggest that, as Governor Romney at times has suggested, that giving heavy weapons, for example, to the Syrian opposition is a simple proposition that would lead us to be safer over the long term. SCHIEFFER: Governor?

ROMNEY: Well, let's step back and talk about what's happening in Syria and how important it is. First of all, 30,000 people being killed by their government is a humanitarian disaster. Secondly, Syria is an opportunity for us because Syria plays an important role in the Middle East, particularly right now.

ROMNEY: Syria is Iran's only ally in the Arab world. It's their route to the sea. It's the route for them to arm Hezbollah in Lebanon, which threatens, of course, our ally, Israel. And so seeing Syria remove Assad is a very high priority for us. Number two, seeing a - a replacement government being responsible people is critical for us. And finally, we don't want to have military involvement there. We don't want to get drawn into a military conflict.

And so the right course for us, is working through our partners and with our own resources, to identify responsible parties within Syria, organize them, bring them together in a - in a form of - if not government, a form of - of - of council that can take the lead in Syria. And then make sure they have the arms necessary to defend themselves. We do need to make sure that they don't have arms that get into the - the wrong hands. Those arms could be used to hurt us down the road. We need to make sure as well that we coordinate this effort with our allies, and particularly with - with Israel.

But the Saudi's and the Qatari, and - and the Turks are all very concerned about this. They're willing to work with us. We need to have a very effective leadership effort in Syria, making sure that the - the insurgent there are armed and that the insurgents that become armed, are people who will be the responsible parties. Recognize - I believe that Assad must go. I believe he will go. But I believe - we want to make sure that we have the relationships of friendship with the people that take his place, steps that in the years to come we see Syria as a - as a friend, and Syria as a responsible party in the Middle East.

This - this is a critical opportunity for America. And what I'm afraid of is we've watched over the past year or so, first the president saying, well we'll let the U.N. deal with it. And Assad - excuse me, Kofi Annan came in and said we're going to try to have a ceasefire. That didn't work. Then it went to the Russians and said, let's see if you can do something. We should be playing the leadership role there, not on the ground with military.

SCHIEFFER: All right.

ROMNEY: ...by the leadership role.

OBAMA: We are playing the leadership role. We organized the Friends of Syria. We are mobilizing humanitarian support, and support for the opposition. And we are making sure that those we help are those who will be friends of ours in the long term and friends of our allies in the region over the long term. But going back to Libya - because this is an example of how we make choices. When we went in to Libya, and we were able to immediately stop the massacre there, because of the unique circumstances and the coalition that we had helped to organize. We also had to make sure that Moammar Gadhafi didn't stay there.

And to the governor's credit, you supported us going into Libya and the coalition that we organized. But when it came time to making sure that Gadhafi did not stay in power, that he was captured, Governor, your suggestion was that this was mission creep, that this was mission muddle.

Imagine if we had pulled out at that point. You know, Moammar Gadhafi had more American blood on his hands than any individual other than Osama bin Laden. And so we were going to make sure that we finished the job. That's part of the reason why the Libyans stand with us.

But we did so in a careful, thoughtful way, making certain that we knew who we were dealing with, that those forces of moderation on the ground were ones that we could work with, and we have to take the same kind of steady, thoughtful leadership when it comes to Syria. That's exactly what we're doing.

SCHIEFFER: Governor, can I just ask you, would you go beyond what the administration would do, like for example, would you put in no-fly zones over Syria?

ROMNEY: I don't want to have our military involved in Syria. I don't think there is a necessity to put our military in Syria at this stage. I don't anticipate that in the future.

As I indicated, our objectives are to replace Assad and to have in place a new government which is friendly to us, a responsible government, if possible. And I want to make sure they get armed and they have the arms necessary to defend themselves, but also to remove - to remove Assad.

But I do not want to see a military involvement on the part of our - of our troops.

SCHIEFFER: Well –

ROMNEY: And this isn't - this isn't going to be necessary.

We - we have, with our partners in the region, we have sufficient resources to support those groups. But look, this has been going on for a year. This is a time - this should have been a time for American leadership. We should have taken a leading role, not militarily, but a leading role organizationally, governmentally to bring together the parties; to find responsible parties.

As you hear from intelligence sources even today, the - the insurgents are highly disparate. They haven't come together. They haven't formed a unity group, a council of some kind. That needs to happen. America can help that happen. And we need to make sure they have the arms they need to carry out the very important role which is getting rid of Assad.

SCHIEFFER: Can we get a quick response, Mr. President, because I want to...

(CROSSTALK)

OBAMA: Well, I'll - I'll be very quick. What you just heard Governor Romney said is he doesn't have different ideas. And that's because we're doing exactly what we should be doing to try to promote a moderate Syrian leadership and a - an effective transition so that we get Assad out. That's the kind of leadership we've shown. That's the kind of leadership we'll continue to show.

SCHIEFFER: May I ask you, you know, during the Egyptian turmoil, there came a point when you said it was time for President Mubarak to go.

OBAMA: Right.

SCHIEFFER: Some in your administration thought perhaps we should have waited a while on that. Do you have any regrets about that?

OBAMA: No, I don't, because I think that America has to stand with democracy. The notion that we would have tanks run over those young people who were in Tahrir Square, that is not the kind of American leadership that John F. Kennedy talked about 50 years ago.

But what I've also said is that now that you have a democratically elected government in Egypt, that they have to make sure that they take responsibility for protecting religious minorities. And we have put significant pressure on them to make sure they're doing that; to recognize the rights of women, which is critical throughout the region. These countries can't develop if young women are not given the kind of education that they need.

They have to abide by their treaty with Israel. That is a red line for us, because not only is Israel's security at stake, but our security is at stake if that unravels.

They have to make sure that they're cooperating with us when it comes to counterterrorism.

And we will help them with respect to developing their own economy, because ultimately what's going to make the Egyptian revolution successful for the people of Egypt, but also for the world, is if those young people who gathered there are seeing opportunities.

Their aspirations are similar to young people's here. They want jobs, they want to be able to make sure their kids are going to a good school. They want to make sure that they have a roof over their heads and that they have the prospects of a better life in the future.

And so one of the things that we've been doing is, is, for example, organizing entrepreneurship conferences with these Egyptians to give them a sense of how they can start rebuilding their economy in a way that's noncorrupt, that's transparent. But what is also important for us to understand is, is that for America to be successful in this region there's some things that we're going to have to do here at home as well.

You know, one of the challenges over the last decade is we've done experiments in nation building in places like Iraq and Afghanistan and we've neglected, for example, developing our own economy, our own energy sectors, our own education system. And it's very hard for us to project leadership around the world when we're not doing what we need to do...

SCHIEFFER: Governor Romney, I want to hear your response to that, but I would just ask you, would you have stuck with Mubarak?

ROMNEY: No. I believe, as the president indicated, and said at the time that I supported his - his action there. I felt that - I wish we'd have had a better vision of the future.

I wish that, looking back at the beginning of the president's term and even further back than that, that we'd have recognized that there was a growing energy and passion for freedom in that part of the world, and that we would have worked more aggressively with our friend and with other friends in the region to have them make the transition towards a more representative form of government, such that it didn't explode in the way that it did.

But once it exploded, I felt the same as the president did, which is these freedom voices and the streets of Egypt, where the people who were speaking of our principles and the President Mubarak had done things which were unimaginable and the idea of him crushing his people was not something that we could possibly support.

Let me step back and talk about what I think our mission has to be in the Middle East and even more broadly, because our purpose is to make sure the world is more - is peaceful. We want a peaceful planet. We want people to be able to enjoy their lives and know they're going to have a bright and prosperous future, not be at war. That's our purpose.

And the mantle of leadership for the - promoting the principles of peace has fallen to America. We didn't ask for it. But it's an honor that we have it.

But for us to be able to promote those principles of peace requires us to be strong. And that begins with a strong economy here at home. Unfortunately, the economy is not stronger. When the - when the president of Iraq - excuse me, of Iran, Ahmadinejad, says that our debt makes us not a great country, that's a frightening thing.

Former chief of the - Joint Chiefs of Staff said that - Admiral Mullen said that our debt is the biggest national security threat we face. This - we have weakened our economy. We need a strong economy.

We need to have as well a strong military. Our military is second to none in the world. We're blessed with terrific soldiers, and extraordinary technology and intelligence. But the idea of a trillion dollar in cuts through sequestration and budget cuts to the military would change that. We need to have strong allies. Our association and connection with our allies is essential to America's strength. We're the great nation that has allies, 42 allies and friends around the world.

ROMNEY: And, finally, we have to stand by our principles. And if we're strong in each of those things, American influence will grow. But unfortunately, in nowhere in the world is America's influence will grow. But unfortunately, in - nowhere in the world is America's influence greater today than it was four years ago.

SCHIEFFER: All right.

ROMNEY: And that's because we've become weaker in each of those four...

(CROSSTALK)

SCHIEFFER: ...you're going to get a chance to respond to that, because that's a perfect segue into our next segment, and that is, what is America's role in the world? And that is the question. What do each of you see as our role in the world, and I believe, Governor Romney, it's your chance to go first.

ROMNEY: Well I - I absolutely believe that America has a - a responsibility, and the privilege of helping defend freedom and promote the principles that - that make the world more peaceful. And those principles include human rights, human dignity, free enterprise, freedom of expression, elections. Because when there are elections, people tend to vote for peace. They don't vote for war. So we want to promote those principles around the world. We recognize that there are places of conflict in the world.

We want to end those conflicts to the extent humanly possible. But in order to be able to fulfill our role in the world, America must be strong. America must lead. And for that to happen, we have to strengthen our economy here at home. You can't have 23 million people struggling to get a job. You can't have an economy that over the last three years keeps slowing down its growth rate. You can't have kids coming out of college, half of them can't find a job today, or a job that's commensurate with their college degree. We have to get our economy going.

And our military, we've got to strengthen our military long-term. We don't know what the world is going to throw at us down the road. We - we make decisions today in the military that - that will confront challenges we can't imagine. In the 2000 debates, there was no mention of terrorism, for instance. And a year later, 9/11 happened. So, we have to make decisions based upon uncertainty, and that means a strong military. I will not cut our military budget. We have to also stand by our allies. I - I think the tension that existed between Israel and the United States was very unfortunate.

I think also that pulling our missile defense program out of Poland in the way we did was also unfortunate in terms of, if you will, disrupting the relationship in some ways that existed between us.

And then, of course, with regards to standing for our principles, when - when the students took to the streets in Tehran and the people there protested, the Green Revolution occurred, for the president to be silent I thought was an enormous mistake. We have to stand for our principles, stand for our allies, stand for a strong military and stand for a stronger economy.

SCHIEFFER: Mr. President?

OBAMA: America remains the one indispensable nation. And the world needs a strong America, and it is stronger now than when I came into office.

Because we ended the war in Iraq, we were able to refocus our attention on not only the terrorist threat, but also beginning a transition process in Afghanistan.

It also allowed us to refocus on alliances and relationships that had been neglected for a decade.

And Governor Romney, our alliances have never been stronger, in Asia, in Europe, in Africa, with Israel, where we have unprecedented military and intelligence cooperation, including dealing with the Iranian threat.

But what we also have been able to do is position ourselves so we can start rebuilding America, and that's what my plan does. Making sure that we're bringing manufacturing back to our shores so that we're creating jobs here, as we've done with the auto industry, not rewarding companies that are shipping jobs overseas.

Making sure that we've got the best education system in the world, including retraining our workers for the jobs of tomorrow.

Doing everything we can to control our own energy. We've cut our oil imports to the lowest level in two decades because we've developed oil and natural gas. But we also have to develop clean energy technologies that will allow us to cut our exports in half by 2020. That's the kind of leadership that we need to show.

And we've got to make sure that we reduce our deficit. Unfortunately, Governor Romney's plan doesn't do it. We've got to do it in a responsible way by cutting out spending we don't need, but also asking the wealthiest to pay a little bit more. That way we can invest in the research and technology that's always kept us at the cutting edge.

Now, Governor Romney has taken a different approach throughout this campaign. Both at home and abroad, he has proposed wrong and reckless policies. He's praised George Bush as a good economic steward and Dick Cheney as somebody who's - who shows great wisdom and judgment. And taking us back to those kinds of strategies that got us into this mess are not the way that we are going to maintain leadership in the 21st century.

SCHIEFFER: Governor Romney, "wrong and reckless" policies?

ROMNEY: I've got a policy for the future and agenda for the future. And when it comes to our economy here at home, I know what it takes to create 12 million new jobs and rising take-home pay. And what we've seen over the last four years is something I don't want to see over the next four years.

The president said by now we'd be a 5.4 percent unemployment. We're 9 million jobs short of that. I will get America working again and see rising take-home pay again, and I'll do it with five simple steps. Number one, we are going to have North American energy independence. We're going to do it by taking full advantage of oil, coal, gas, nuclear and our renewables.

Number two, we're going to increase our trade. Trade grows about 12 percent year. It doubles about every - every five or so years. We can do better than that, particularly in Latin America. The opportunities for us in Latin America we have just not taken advantage of fully. As a matter of fact, Latin America's economy is almost as big as the economy of China. We're all focused on China. Latin America is a huge opportunity for us - time zone, language opportunities.

Number three, we're going to have to have training programs that work for our workers and schools that finally put the parents and the teachers and the kids first, and the teachers' unions going to have to go behind.

And then we're going to have to get to a balanced budget. We can't expect entrepreneurs and businesses large and small to take their life savings or their company's money and invest in America if they think we're headed to the road to Greece. And that's where we're going right now unless we finally get off this spending and borrowing binge. And I'll get us on track to a balanced budget.

And finally, number five, we've got to champion small business. Small business is where jobs come from. Two-thirds of our jobs come from small businesses. New business formation is down to the lowest level in 30 years under this administration. I want to bring it back and get back good jobs and rising take-home pay.

OBAMA: Well, let's talk about what we need to compete. First of all, Governor Romney talks about small businesses. But, Governor, when you were in Massachusetts, small businesses development ranked about 48th, I think out of 50 states in Massachusetts, because the policies that you are promoting actually don't help small businesses.

And the way you define small businesses includes folks at the very top. And they include you and me. That's not the kind of small business promotion we need. But let's take an example that we know is going to make a difference in the 21st century and that's our education policy. We didn't have a lot of chance to talk about this in the last debate.

You know, under my leadership, what we've done is reformed education, working with governors, 46 states. We've seen progress and gains in schools that were having a terrible time. And they're starting to finally make progress.

And what I now want to do is to hire more teachers, especially in math and science, because we know that we've fallen behind when it comes to math and science. And those teachers can make a difference.

Now, Governor Romney, when you were asked by teachers whether or not this would help the economy grow, you said this isn't going to help the economy grow.

OBAMA: When you were asked about reduced class sizes, you said class sizes don't make a difference.

But I tell you, if you talk to teachers, they will tell you it does make a difference. And if we've got math teachers who are able to provide the kind of support that they need for our kids, that's what's going to determine whether or not the new businesses are created here. Companies are going to locate here depending on whether we've got the most highly skilled workforce.

And the kinds of budget proposals that you've put forward, when we don't ask either you or me to pay a dime more in terms of reducing the deficit, but instead we slash support for education, that's undermining our long-term competitiveness. That is not good for America's position in the world, and the world notices.

SCHIEFFER: Let me get back to foreign policy.

(CROSSTALK)

SCHIEFFER: Can I just get back...

ROMNEY: Well - well, I need to speak a moment...

SCHIEFFER: OK.

ROMNEY: ... if you'll let me, Bob, just about education...

SCHIEFFER: OK.

ROMNEY: ... because I'm - I'm so proud of the state that I had the chance to be governor of.

We have every two years tests that look at how well our kids are doing. Fourth graders and eighth graders are tested in English and math. While I was governor, I was proud that our fourth graders came out number one of all 50 states in English, and then also in math. And our eighth graders number one in English and also in math. First time one state had been number one in all four measures.

How did we do that? Well, Republicans and Democrats came together on a bipartisan basis to put in place education principles that focused on having great teachers in the classroom.

OBAMA: Ten years earlier...

ROMNEY: And that was - that was - that was what allowed us to become the number one state in the nation.

OBAMA: But that was 10 years before you took office.

(CROSSTALK)

ROMNEY: And then you cut education spending when you came into office.

ROMNEY: The first - the first - the first - and we kept our schools number one in the nation. They're still number one today.

SCHIEFFER: All right.

ROMNEY: And the principles that we put in place, we also gave kids not just a graduation exam that determined whether they were up to the skills needed to - to be able compete, but also if they graduated the quarter of their class, they got a four-year tuition- free ride at any Massachusetts public institution of higher learning.

OBAMA: That happened before you came into office.

SCHIEFFER: Governor...

ROMNEY: That was actually mine, actually, Mr. President. You got that fact wrong.

(CROSSTALK)

SCHIEFFER: Let me get - I want to try to shift it, because we have heard some of this in the other debates.

Governor, you say you want a bigger military. You want a bigger Navy. You don't want to cut defense spending. What I want to ask you - we were talking about financial problems in this country. Where are you going to get the money?

ROMNEY: Well, let's come back and talk about the military, but all the way - all the way through. First of all, I'm going through from the very beginning - we're going to cut about 5 percent of the discretionary budget, excluding military. That's number one.

SCHIEFFER: But can you do this without driving deeper...

(CROSSTALK)

ROMNEHY: The good news is (inaudible). I'd be happy to have you take a look. Come on our website. You look at how we get to a balanced budget within eight to 10 years. We do it by getting - by reducing spending in a whole series of programs. By the way, number one I get rid of is Obamacare.

There are a number of things that sound good, but frankly, we just can't afford them. And that one doesn't sound good and it's not affordable. So I'd get rid of that one from day one. To the extent humanly possible, we get that out. We take program after program that we don't absolutely have to have, and we get rid of them.

Number two, we take some programs that we are doing to keep, like Medicaid, which is a program for the poor; we'll take that healthcare program for the poor and we give it to the states to run because states run these programs more efficiently.

As a governor, I thought please, give me this program. I can run this more efficiently than the federal government and states, by the way, are proving it. States like Arizona, Rhode Island have taken these - these Medicaid dollars; have shown they can run these programs more cost-effectively. I want to do those two things and get this - get this to a balanced budget with eight - eight to 10 years.

But the military - let's get back to the military, though.

(CROSSTALK) SCHIEFFER: That's what I'm trying...

(CROSSTALK)

OBAMA: He should have answered the first question.

OBAMA: Look, Governor Romney's called for $5 trillion of tax cuts that he says he's going to pay for by closing deductions. Now, the math doesn't work, but he continues to claim that he's going to do it. He then wants to spend another $2 trillion on military spending that our military is not asking for.

Now, keep in mind that our military spending has gone up every single year that I've been in office. We spend more on our military than the next 10 countries combined; China, Russia, France, the United Kingdom, you name it. The next 10. And what I did was work with our joint chiefs of staff to think about, what are we going to need in the future to make sure that we are safe?

And that's the budget that we've put forward. But, what you can't do is spend $2 trillion in additional military spending that the military is not asking for, $5 trillion on tax cuts. You say that you're going to pay for it by closing loopholes and deductions, without naming what those loopholes and deductions are. And then somehow you're also going to deal with the deficit that we've already got. The math simply doesn't work. But when it comes to our military, what we have to think about is not, you know just budgets, we've got to think about capabilities.

We need to be thinking about cyber security. We need to be talking about space. That's exactly what our budget does, but it's driven by strategy. It's not driven by politics. It's not driven by members of Congress, and what they would like to see. It's driven by, what are we going to need to keep the American people safe? That's exactly what our budget does, and it also then allows us to reduce our deficit, which is a significant national security concern. Because we've got to make sure that our economy is strong at home so that we can project military power overseas.

ROMNEY: I'm pleased that I've balanced budgets. I was on the world of business for 25 years. If you didn't balance your budget, you went out of business. I went into the Olympics that was out of balance, and we got it on balance, and made a success there. I had the chance to be governor of a state. Four years in a row, Democrats and Republicans came together to balance the budget. We cut taxes 19 times and balanced our budget. The president hasn't balanced a budget yet. I expect to have the opportunity to do so myself.

SCHIEFFER: All right.

ROMNEY: I'm going to be able to balance the budget.

Let's talk about military spending, and that's this.

(CROSSTALK)

SCHIEFFER: Thirty seconds.

ROMNEY: Our Navy is old - excuse me, our Navy is smaller now than at any time since 1917. The Navy said they needed 313 ships to carry out their mission. We're now at under 285. We're headed down to the low 200s if we go through a sequestration. That's unacceptable to me.

I want to make sure that we have the ships that are required by our Navy. Our Air Force is older and smaller than at any time since it was founded in 1947.

We've changed for the first time since FDR - since FDR we had the - we've always had the strategy of saying we could fight in two conflicts at once. Now we're changing to one conflict. Look, this, in my view, is the highest responsibility of the President of the United States, which is to maintain the safety of the American people.

And I will not cut our military budget by a trillion dollars, which is a combination of the budget cuts the president has, as well as the sequestration cuts. That, in my view, is making - is making our future less certain and less secure.

OBAMA: Bob, I just need to comment on this.

First of all, the sequester is not something that I've proposed. It is something that Congress has proposed. It will not happen.

The budget that we are talking about is not reducing our military spending. It is maintaining it.

But I think Governor Romney maybe hasn't spent enough time looking at how our military works.

You mentioned the Navy, for example, and that we have fewer ships than we did in 1916. Well, Governor, we also have fewer horses and bayonets, because the nature of our military's changed. We have these things called aircraft carriers, where planes land on them. We have these ships that go underwater, nuclear submarines.

OBAMA: And so the question is not a game of Battleship, where we're counting slips. It's what are our capabilities. And so when I sit down with the Secretary of the Navy and the Joint Chiefs of Staff, we determine how are we going to be best able to meet all of our defense needs in a way that also keeps faith with our troops, that also makes sure that our veterans have the kind of support that they need when they come home.

OBAMA: And that is not reflected in the kind of budget that you're putting forward because it just doesn't work.

SCHIEFFER: All right.

OBAMA: And, you know, we visited the website quite a bit and it still doesn't work.

SCHIEFFER: A lot to cover. I'd like - I'd like to move to the next segment: red lines, Israel and Iran.

Would either of you - and you'll have two minutes - and, President Obama, you have the first go at this one - would either of you be willing to declare that an attack on Israel is an attack on the United States, which, of course, is the same promise that we give to our close allies like Japan.

And if you made such a declaration, would not that deter Iran? It's certainly deterred the Soviet Union for a long, long time when we made that - we made - we made that promise to our allies.

Mr. President?

OBAMA: First of all, Israel is a true friend. It is our greatest ally in the region. And if Israel is attacked, America will stand with Israel. I've made that clear throughout my presidency. And...

SCHIEFFER: So you're - you're saying we've already made that declaration.

OBAMA: I will stand with Israel if they are attacked. And this is the reason why, working with Israel, we have created the strongest military and intelligence cooperation between our two countries in history.

In fact, this week we'll be carrying out the largest military exercise with Israel in history, this very week. But to the issue of Iran, as long as I'm president of the United States Iran will not get a nuclear weapon. I made that clear when I came into office.

OBAMA: We then organized the strongest coalition and the strongest sanctions against Iran in history, and it is crippling their economy. Their currency has dropped 80 percent. Their oil production has plunged to the lowest level since they were fighting a war with Iraq 20 years ago. So their economy is in a shambles.

And the reason we did this is because a nuclear Iran is a threat to our national security, and it is a threat to Israel's national security. We cannot afford to have a nuclear arms race in the most volatile region of the world.

Iran is a state sponsor of terrorism. And for them to be able to provide nuclear technology to non-state actors, that's unacceptable. And they have said that they want to see Israel wiped off the map.

So the work that we've done with respect to sanctions now offers Iran a choice. They can take the diplomatic route and end their nuclear program or they will have to face a united world and a United States president, me, who said we're not going to take any options off the table.

The disagreement I have with Governor Romney is that, during the course of this campaign, he's often talked as if we should take premature military action. I think that would be a mistake, because when I've sent young men and women into harm's way, I always understand that that is the last resort, not the first resort.

SCHIEFFER: Two minutes.

ROMNEY: Well, first of all, I want to underscore the same point the president mad,e which is that if I'm President of the United States, when I'm President of the United States, we will stand with Israel.

And if Israel is attacked, we have their back, not just diplomatically, not just culturally, but militarily. That's number one.

Number two, with regards to Iran and the threat of Iran, there's no question but that a nuclear Iran, a nuclear-capable Iran is unacceptable to America. It presents a threat not only to our friends but ultimately a threat to us to have Iran have nuclear material, nuclear weapons that could be used against us or used to be threatening to us.

ROMNEY: It is also essential for us to understand what our mission is in Iran, and that is to dissuade Iran from having a nuclear weapon through peaceful and diplomatic means. And crippling sanctions are something I called for five years ago, when I was in Israel, speaking at the Herzliya Conference. I laid out seven steps, crippling sanctions were number one. And they do work. You're seeing it right now in the economy. It's absolutely the right thing to do, to have crippling sanctions. I would have put them in place earlier. But it's good that we have them.

Number two, something I would add today is I would tighten those sanctions. I would say that ships that carry Iranian oil, can't come into our ports. I imagine the E.U. would agree with us as well. Not only ships couldn't, but I'd say companies that are moving their oil can't, people who are trading in their oil can't. I would tighten those sanctions further. Secondly, I'd take on diplomatic isolation efforts. I'd make sure that Ahmadinejad is indicted under the Genocide Convention. His words amount to genocide incitation. I would indict him for it. I would also make sure that their diplomats are treated like the pariah they are around the world. The same way we treated the apartheid diplomats of South Africa.

We need to increase pressure time, and time again on Iran because anything other than a - a - a solution to this, which says - which stops this - this nuclear folly of theirs, is unacceptable to America. And of course, a military action is the last resort. It is something one would only – only consider if all of the other avenues had been - had been tried to their full extent.

SCHIEFFER: Let me ask both of you, there - as you know, there are reports that Iran and the United States a part of an international group, have agreed in principle to talks about Iran's nuclear program. What is the deal, if there are such talks? What is the deal that you would accept, Mr. President?

OBAMA: Well, first of all those are reports in the newspaper. They are not true. But our goal is to get Iran to recognize it needs to give up its nuclear program and abide by the U.N. resolutions that have been in place. Because they have the opportunity to reenter the community of nations, and we would welcome that.

There - there are people in Iran who have the same aspirations as people all around the world for a better life. And we hope that their leadership takes the right decision, but the deal we'll accept is they end their nuclear program. It's very straightforward. And I'm glad that Governor Romney agrees with the steps that we're taking. You know, there have been times, Governor, frankly, during the course of this campaign, where it sounded like you thought that you'd do the same things we did, but you'd say them louder and somehow that - that would make a difference.

And it turns out that the work involved in setting up these crippling sanctions is painstaking. It's meticulous. We started from the day we got into office. And the reason is was so important - and this is a testament to how we've restored American credibility and strength around the world - is we had to make sure that all the countries participated, even countries like Russia and China. Because if it's just us that are imposing sanctions - we've had sanctions in place a long time. It's because we got everybody to agree that Iran is seeing so much pressure. And we've got to maintain that pressure.

There is a deal to be had, and that is that they abide by the rules that have already been established. They convince the international community they are not pursuing a nuclear program. There are inspections that are very intrusive. But over time, what they can do is regain credibility. In the meantime, though, we're not going to let up the pressure until we have clear evidence that that takes place.

And one last thing - just - just to make this point. The clock is ticking. We're not going to allow Iran to perpetually engage in negotiations that lead nowhere. And I've been very clear to them. You know, because of the intelligence coordination that we do with a range of countries, including Israel, we have a sense of when they would get breakout capacity, which means that we would not be able to intervene in time to stop their nuclear program.

And that clock is ticking. And we're going to make sure that if they do not meet the demands of the international community, then we are going to take all options necessary to make sure they don't have a nuclear weapon.

SCHIEFFER: Governor?

ROMNEY: I think from the very beginning, one of the challenges we've had with Iran is that they have looked at this administration, and felt that the administration was not as strong as it needed to be.

I think they saw weakness where they had expected to find American strength. And I say that because from the very beginning, the president in his campaign four years ago, said he would meet with all the world's worst actors in his first year, he'd sit down with Chavez and Kim Jong-il, with Castro and President Ahmadinejad of Iran.

And I think they looked and thought, well, that's an unusual honor to receive from the President of the United States. And then the president began what I have called an apology tour, of going to various nations in the Middle East and criticizing America. I think they looked at that and saw weakness.

Then when there were dissidents in the streets of Tehran, a Green Revolution, holding signs saying, is America with us, the president was silent. I think they noticed that as well.

And I think that when the president said he was going to create daylight between ourselves and Israel, that they noticed that as well.

All of these things suggested, I think, to the Iranian mullahs that, hey, you know, we can keep on pushing along here, we can keep talks going on, we're just going to keep on spinning centrifuges.

Now there are some 10,000 centrifuges spinning uranium, preparing to create a nuclear threat to the United States and to the world. That's unacceptable for us, and it's essential for a president to show strength from the very beginning, to make it very clear what is acceptable and not acceptable.

And an Iranian nuclear program is not acceptable to us. They must not develop nuclear capability. And the way to make sure they understand that is by having, from the very beginning, the tightest sanctions possible. They need to be tightened. Our diplomatic isolation needs to be tougher. We need to indict Ahmadinejad. We need to put the pressure on them as hard as we possibly can, because if we do that, we won't have to take the military action.

OBAMA: Bob, let me just respond.

Nothing Governor Romney just said is true, starting with this notion of me apologizing. This has been probably the biggest whopper that's been told during the course of this campaign. And every fact checker and every reporter who's looked at it, Governor, has said this is not true.

And when it comes to tightening sanctions, look, as I said before, we've put in the toughest, most crippling sanctions ever. And the fact is, while we were coordinating an international coalition to make sure these sanctions were effective, you were still invested in a Chinese state oil company that was doing business with the Iranian oil sector.

So I'll let the American people decide, judge, who's going to be more effective and more credible when it comes to imposing crippling sanctions.

And with respect to our attitude about the Iranian revolution, I was very clear about the murderous activities that had taken place and that was contrary to international law and everything that civilized people stand for.

And - and so the strength that we have shown in Iran is shown by the fact that we've been able to mobilize the world.

When I came into office, the world was divided. Iran was resurgent. Iran is at its weakest point, economically, strategically, militarily, then since - then in many years. And we are going to continue to keep the pressure on to make sure that they do not get a nuclear weapon. That's in America's national interest and that will be the case so long as I'm president.

ROMNEY: We're four years closer to a nuclear Iran. We're four years closer to a nuclear Iran. And - and - we should not have wasted these four years to the extent they - they continue to be able to spin these centrifuges and get that much closer. That's number one.

Number two, Mr. President, the reason I call it an apology tour is because you went to the Middle East and you flew to Egypt and to Saudi Arabia and to Turkey and Iraq. And by the way, you skipped Israel, our closest friend in the region, but you went to the other nations.

And by the way, they noticed that you skipped Israel. And then in those nations, and on Arabic TV, you said that America had been dismissive and derisive. You said that on occasion America had dictated to other nations.

Mr. President, America has not dictated to other nations. We have freed other nations from dictators.

OBAMA: Bob, let me - let me respond.

If we're going to talk about trips that we've taken - when I was a candidate for office, first trip I took was to visit our troops. And when I went to Israel as a candidate, I didn't take donors. I didn't attend fundraisers. I went to Yad Beshef (ph), the Holocaust museum there, to remind myself the nature of evil and why our bond with Israel will be unbreakable.

And then I went down to the border towns of Storok (ph), which had experienced missiles raining dowm from Hamas. And I saw families there who showed me there where missiles had come down near their children's bedrooms. And I was reminded of what that would mean if those were my kids. Which is why as president, we funded an Iron Dome program to stop those missiles.

OBAMA: So that's how I've used my travels, when I travel to Israel and when I travel to the region. And the - the central question at this point is going to be: Who is going to be credible to all parties involved? And they can look at my track record, whether it's Iran sanctions, whether it's dealing with counterterrorism, whether it's supporting democracy, whether it's supporting women's rights, whether it's supporting religious minorities.

And they can say that the President of the United States and the United States of America has stood on the right side of history. And that kind of credibility is precisely why we've been able to show leadership on a wide range of issues facing the world right now.

SCHIEFFER: What if - what if the prime minister of Israel called you on the phone and said, "Our bombers are on the way. We're going to bomb Iran."

What do you –

ROMNEY: Bob, let's not go into hypotheticals of that nature. Our relationship with Israel, my relationship with the prime minister of Israel is such that we would not get a call saying our bombers are on the way, or their fighters are on the way. This is the kind of thing that would have been discussed and thoroughly evaluated well before that kind of –

(CROSSTALK)

SCHIEFFER: So you'd say it just wouldn't happen?

That's –

SCHIEFFER: OK. Let's see what –

ROMNEY: But let me - let me come back - we can come back. Let's come back to what the president was speaking about, which is what's happening in the world and the president's statement that things are going so well.

Look, I look at what's happening around the world, and i see Iran four years closer to a bomb. I see the Middle East with a rising tide of violence, chaos, tumult. I see jihadists continuing to spread, whether they're rising or just about the same level, hard to precisely measure, but it's clear they're there. They're very strong.

I see Syria with 30,000 civilians dead, Assad still in power. I see our trade deficit with China, larger than it's - growing larger every year, as a matter of fact.

I look around the world and I don't feel that you see North Korea, continuing to export their nuclear technology, Russia said they're not going to follow Nunn-Lugar any more. They're back away from a nuclear proliferation treaty that we had with them.

ROMNEY: I look around the world, I don't see our influence growing around the world. I see our influence receding, in part because of the failure of the president to deal with our economic challenges at home; in part because of our withdrawal from our commitment to our military in the way I think it ought to be; in part because of the - the - the turmoil with Israel.

I mean, the president received a letter from 38 Democrat senators saying the tensions with Israel were a real problem. They asked him, please repair the tension - Democrat senators - please repair the tension...

SCHIEFFER: All right.

ROMNEY: ... the damage in his - in his own party.

OBAMA: Governor, the problem is, is that on a whole range of issues, whether it's the Middle East, whether it's Afghanistan, whether it's Iraq, whether it's now Iran, you've been all over the map.

I mean, I'm - I'm pleased that you now are endorsing our policy of applying diplomatic pressure and potentially having bilateral discussions with the Iranians to end their nuclear program. But just a few years ago you said that's something you'd never do.

In the same way that you initially opposed a timetable in Afghanistan, now you're for it, although it depends. In the same way that you say you would have ended the war in Iraq, but recently gave a speech saying that we should have 20,000 more folks in there. The same way that you said that it was mission creep to go after Gadhafi.

When it comes to going after Osama bin Laden, you said, well, any president would make that call. But when you were a candidate in 2008, as I was, and I said if I got bin Laden in our sights I would take that shot, you said we shouldn't move heaven and earth to get one man.

OBAMA: And you said we should ask Pakistan for permission. And if we had asked Pakistan permission, we would not have gotten him. And it was worth moving heaven and earth to get him.

You know, after we killed bin Laden I was at ground zero for a memorial and talked to a young women who was four years old when 9/11 happened. And the last conversation she had with her father was him calling from the twin towers, saying "Peyton (ph), I love you and I will always watch over you." And for the next decade, she was haunted by that conversation. And she said to me, "You know, by finally getting bin Laden, that brought some closure to me."

And when we do things like that - when we bring those who have harmed us to justice, that sends a message to the world and it tells Peyton (ph) that we did not forget her father. And I make that point because that's the kind of clarity of leadership, and those decisions are not always popular. Those decisions generally - generally are not poll-tested. And even some in my own party, including my current vice president, had the same critique as you did.

But what the American people understand is that I look at what we need to get done to keep the American people safe and to move our interests forward, and I make those decisions.

SCHIEFFER: All right, let's go. And that leads us - this takes us right to the next segment, Governor, America's longest war, Afghanistan and Pakistan...

ROMNEY: Bob...

SCHIEFFER: Governor, you get to go first.

ROMNEY: You can't - but you can't have the president just lay out a whole series of items without giving me a chance to respond.

SCHIEFFER: With respect, sir, you had laid out quite a program...

ROMNEY: Well, that's probably true.

SCHIEFFER: We'll give you - we'll catch up.

The United States is scheduled to turn over responsibility for security in Afghanistan to the Afghan government in 2014. At that point, we will withdraw our combat troops, leave a smaller force of Americans, if I understand our policy, in Afghanistan for training purposes. It seems to me the key question here is: What do you do if the deadline arrives and it is obvious the Afghans are unable to handle their security? Do we still leave?

And I believe, Governor Romney, you go first?

ROMNEY: Well, we're going to be finished by 2014, and when I'm president, we'll make sure we bring our troops out by the end of 2014. The commanders and the generals there are on track to do so.

We've seen progress over the past several years. The surge has been successful and the training program is proceeding apace. There are now a large number of Afghan Security Forces, 350,000 that are ready to step in to provide security and we're going to be able to make that transition by the end of 2014.

So our troops will come home at that point.

I can tell you at the same time, that we will make sure that we look at what's happening in Pakistan, and recognize that what's happening in Pakistan is going to have a major impact on the success in Afghanistan. And I say that because I know a lot of people that feel like we should just brush our hands and walk away.

And I don't mean you, Mr. President, but some people in the - in our nation feel that Pakistan is being nice to us, and that we should walk away fro mthem. But Pakistan is important to the region, to the world and to us, because Pakistan has 100 nuclear warheads and they're rushing to build a lot more. They'll have more than Great Britain sometime in the - in the relatively near future.

They also have the Haqqani Network and the Taliban existent within their country. And so a Pakistan that falls apart, becomes a failed state, would be of extraordinary danger to Afghanistan and to us.

And so we're going to have to remain helpful in encouraging Pakistan to move towards a more stable government and rebuild the relationship with us. And that means that our aid that we provide to Pakistan is going to have to be conditioned upon certain benchmarks being met.

ROMNEY: So for me, I look at this as both a need to help move Pakistan in the right direction, and also to get Afghanistan to be ready, and they will be ready by the end of 2014.

SCHIEFFER: Mr. President?

OBAMA: When I came into office, we were still bogged down in Iraq and Afghanistan had been drifting for a decade. We ended the war in Iraq, refocused our attention on Afghanistan, and we did deliver a surge of troops. That was facilitated in part because we had ended the war in Iraq.

And we are now in a position where we have met many of the objectives that got us there in the first place.

Part of what had happened is we'd forgotten why we had gone. We went because there were people who were responsible for 3,000 American deaths. And so we decimated Al Qaida's core leadership in the border regions between Afghanistan and Pakistan.

We then started to build up Afghan forces. And we're now in a position where we can transition out, because there's no reason why Americans should die when Afghans are perfectly capable of defending their own country.

Now, that transition has to take place in a responsible fashion. We've been there a long time, and we've got to make sure that we and our coalition partners are pulling out responsibly and giving Afghans the capabilities that they need.

But what I think the American people recognize is after a decade of war it's time to do some nation building here at home. And what we can now do is free up some resources, to, for example, put Americans back to work, especially our veterans, rebuilding our roads, our bridges, our schools, making sure that, you know, our veterans are getting the care that they need when it comes to post-traumatic stress disorder and traumatic brain injury, making sure that the certifications that they need for good jobs of the future are in place.

OBAMA: You know, I was having lunch with some - a veteran in Minnesota who had been a medic dealing with the most extreme circumstances. When he came home and he wanted to become a nurse, he had to start from scratch. And what we've said is let's change those certifications. The first lady has done great work with an organization called Joining Forces putting our veterans back to work. And as a consequence, veterans' unemployment is actually now lower than general population. It was higher when I came into office.

So those are the kinds of things that we can now do because we're making that transition in Afghanistan.

SCHIEFFER: All right. Let me go to Governor Romney because you talked about Pakistan and what needs to be done there.

General Allen, our commander in Afghanistan, says that Americans continue to die at the hands of groups who are supported by Pakistan. We know that Pakistan has arrested the doctor who helped us catch Obama (sic) bin Laden. It still provides safe haven for terrorists, yet we continue to give Pakistan billions of dollars.

Is it time for us to divorce Pakistan?

ROMNEY: No, it's not time to divorce a nation on Earth that has 100 nuclear weapons and is on the way to double that at some point, a nation that has serious threats from terrorist groups within its nation, as I indicated before, the Taliban, Haqqani Network.

It's a nation that's not like - like others and it does not have a civilian leadership that is calling the shots there. You have the ISI, their intelligence organization, is probably the most powerful of the - of three branches there. Then you have the military and then you have the civilian government.

This is a nation, which, if it falls apart, if it - if it becomes a failed state, there are nuclear weapons there and you've got - you've got terrorists there who could grab their - their hands onto those nuclear weapons.

ROMNEY: This is - this is an important part of the world for us. Pakistan is - is technically an ally, and they're not acting very much like an ally right now. But we have some work to do. And I - I don't blame the administration for the fact that the relationship with Pakistan is strained. We - we had to go into Pakistan. We had to go in there to get Osama bin Laden. That was the right thing to do. And - and that upset them, but obviously there was a great deal of anger even before that. But we're going to have to work with the - with the people in Pakistan to try and help them move to a more responsible course than the one that they're on. And it's important for them. It's important for the nuclear weapons.

It's important for the success of Afghanistan. Because inside Pakistan, you have a - a large group of Pashtun that are - that are Taliban. They're going to come rushing back in to Afghanistan when we go. And that's one of the reasons the Afghan Security Forces have so much work to do to be able to fight against that. But it's important for us to recognize that we can't just walk away from Pakistan. But we do need to make sure that as we - as we send support for them, that this is tied to them making progress on - on matters that would lead them to becoming a civil society.

SCHIEFFER: Let - let me ask you, Governor because we know President Obama's position on this, what is - what is your position on the use of drones?

ROMNEY: Well I believe we should use any and all means necessary to take out people who pose a threat to us and our friends around the world. And it's widely reported that drones are being used in drone strikes, and I support that and entirely, and feel the president was right to up the usage of that technology, and believe that we should continue to use it, to continue to go after the people that represent a threat to this nation and to our friends. But let me also note that as I said earlier, we're going to have to do more than just going after leaders and - and killing bad guys, important as that is.

ROMNEY: We're also going to have to have a farm more effective and comprehensive strategy to help move the world away from terror and Islamic extremism. We haven't done that yet. We talk a lot about these things, but you look at the - the record, you look at the record. You look at the record of the last four years and say is Iran closer to a bomb? Yes. Is the Middle East in tumult? Yes. Is - is al-Qaida on the run, on its heels? No. Is - are Israel and the Palestinians closer to reaching a peace agreement?

No, they haven't had talks in two years. We have not seen the progress we need to have, and I'm convinced that with strong leadership and an effort to build a strategy based upon helping these nations reject extremism, we can see the kind of peace and prosperity the world demands.

OBAMA: Well, keep in mind our strategy wasn't just going after bin Laden. We created partnerships throughout the region to deal with extremism in Somalia, in Yemen, in Pakistan.

And what we've also done is engaged these governments in the kind of reforms that are actually going to make a difference in people's lives day to day, to make sure that their governments aren't corrupt, to make sure that they're treating women with the kind of respect and dignity that every nation that succeeds has shown and to make sure that they've got a free market system that works.

So across the board, we are engaging them in building capacity in these countries. And we have stood on the side of democracy.

One thing I think Americans should be proud of, when Tunisians began to protest, this nation - me, my administration - stood with them earlier than just about any country.

In Egypt we stood on the side of democracy.

In Libya we stood on the side of the people.

And as a consequence, there's no doubt that attitudes about Americans have changed. But there are always going to be elements in these countries that potentially threaten the United States. And we want to shrink those groups and those networks and we can do that.

OBAMA: But we're always also going to have to maintain vigilance when it comes to terrorist activities. The truth, though, is that Al Qaeda is much weaker than it was when I came into office. And they don't have the same capacities to attack the U.S. homeland and our allies as they did four years ago.

SCHIEFFER: Let's - let's go to the next segment, because it's a very important one. It is the rise of China and future challenges for America. I want to just begin this by asking both of you, and Mr. President, you - you go first this time.

What do you believe is the greatest future threat to the national security of this country?

OBAMA: Well, I think it will continue to be terrorist networks. We have to remain vigilant, as I just said. But with respect to China, China is both an adversary, but also a potential partner in the international community if it's following the rules. So my attitude coming into office was that we are going to insist that China plays by the same rules as everybody else.

I know Americans had seen jobs being shipped overseas; businesses and workers not getting a level playing field when it came to trade. And that's the reason why I set up a trade task force to go after cheaters when it came to international trade. That's the reason why we have brought more cases against China for violating trade rules than the other - the previous administration had done in two terms. And we've won just about every case that we've filed, that has been decided.

OBAMA: In fact, just recently steelworkers in Ohio and throughout the Midwest - Pennsylvania - are in a position now to sell steel to China because we won that case. We had a tire case in which they were flooding us with cheap domestic tires - or - or cheap Chinese tires. And we put a stop to it and as a consequence saved jobs throughout America. I have to say that Governor Romney criticized me for being too tough in that tire case; said this wouldn't be good for American workers and that it would be protectionist.

But I tell you, those workers don't feel that way. They feel as if they had finally an administration who was going to take this issue seriously.

Over the long term, in order for us to compete with China, we've also got to make sure, though, that we're taking - taking care of business here at home. If we don't have the best education system in the world, if we don't continue to put money into research and technology that will allow us to create great businesses here in the United States, that's how we lose the competition. And, unfortunately, Governor Romney's budget and his proposals would not allow us to make those investments.

SCHIEFFER: All right.

Governor?

ROMNEY: Well, first of all, it's not government that makes business successful. It's not government investments that makes businesses grow and hire people.

Let me also note that the greatest threat that the world faces, the greatest national security threat is a nuclear Iran.

Let's talk about China. China has an interest that's very much like ours in one respect, and that is they want a stable world. They don't want war. They don't want to see protectionism. They don't want to see the world break out into - into various forms of chaos, because they have to - they have to manufacture goods and put people to work and they have about 20,000 - 20 million, rather, people coming out of the farms every year coming into the cities, needing jobs.

So they want the economy to work and the world to be free and open. And so we can be a partner with China. We don't have to be an adversary in any way, shape or form. We can work with them, we can collaborate with them, if they're willing to be responsible.

Now, they look at us and say, Is it a good idea to be with America? How strong are we going to be? How strong is our economy? They look at the fact that we owe 'em a trillion dollars and owe other people $16 trillion in total, including that.

ROMNEY: They look at our - our decision to - to cut back on our military capabilities. A trillion dollars. The secretary of defense called these trillion dollars of cuts to our military devastating. It's not my term, it's the president's own secretary of defense called these trillion dollars of cuts to our military devastating. It's not my term, it's the president's own Secretary of Defense, called them devastating.

They look at America's commitments around the world and they see what's happening, and they say, well, OK. Is America going to be strong? And the answer is, yes, if I'm president, America will be very strong.

We'll also make sure that we have trade relations with China that work for us. I've watched year in and year out as companies have shut down and people have lost their jobs because China has not played by the same rules, in part by holding down artificially the value of their currency. It holds down the prices of their goods. It means our goods aren't as competitive and we lose jobs. That's got to end.

They're making some progress; they need to make more. That's why on day one, i will label them a currency manipulator, which allows us to apply tariffs where they're taking jobs. They're stealing our intellectual property, our patents, our designs, our technology, hacking into our computers, counterfeiting our goods.

They have to understand we want to trade with them. We want a world that's stable. We like free enterprise, but you got to play by the rules.

SCHIEFFER: Well, Governor, let me just ask you. If you declare them a currency manipulator on day one, some people are - say you're just going to start a trade war with China on day one. Is that - isn't there a risk that that could happen?

ROMNEY: Well, they sell us about this much stuff every year, and we sell them about this much stuff every year. So it's pretty clear who doesn't want a trade war. And there's one going on right now, which we don't know about it. It's a silent one. And they're winning.

We have enormous trade imbalance with China, and it's worse this year than last year, and it's worse last year than the year before. And so we have to understand that we can't just surrender and lose jobs year in and year out. We have to say to our friend in China, look, you guys are playing aggressively. We understand it. But this can't keep on going. You can't keep on holding down the value of your currency, stealing our intellectual property, counterfeiting our products, selling them around the world, even to the United States.

I was with one company that makes valves and - and process industries and they said, look, we were - we were having some valves coming in that - that were broken and we had to repair them under warranty and we looked them and - and they had our serial number on them. And then we noticed that there was more than one with that same serial number. They were counterfeit products being made overseas with the same serial number as a U.S. company, the same packaging, these were being sold into our market and around the world as if they were made by the U.S. competitor. This can't go on.

I want a great relationship with China. China can be our partner, but - but that doesn't mean they can just roll all over us and steal our jobs on an unfair basis.

OBAMA: Well, Governor Romney's right, you are familiar with jobs being shipped overseas because you invested in companies that were shipping jobs overseas.

And, you know, that's - you're right. I mean that's how our free market works. But I've made a different bet on American workers.

If we had taken your advice Governor Romney about our auto industry, we'd be buying cars from China instead of selling cars to China.

If we take your advice with respect to how we change our tax codes so that companies that earn profits overseas don't pay U.S. taxes compared to companies here that are paying taxes. Now that's estimated to create 800,000 jobs, the problem is they won't be here, they'll be in places like China.

And if we're not making investments in education and basic research, which is not something that the private sector is doing at a sufficient pace right now and has never done, then we will lose the (inaudible) in things like clean energy technology.

Now with respect to what we've done with China already, U.S. exports have doubled since I came into office, to China and actually currencies are at their most advantageous point for U.S. exporters since 1993.

We absolutely have to make more progress and that's why we're going to keep on pressing.

And when it comes to our military and Chinese security, part of the reason that we were able to pivot to the Asia-Pacific region after having ended the war in Iraq and transitioning out of Afghanistan, is precisely because this is going to be a massive growth area in the future.

And we believe China can be a partner, but we're also sending a very clear signal that America is a Pacific power; that we are going to have a presence there. We are working with countries in the region to make sure, for example, that ships can pass through; that commerce continues. And we're organizing trade relations with countries other than China so that China starts feeling more pressure about meeting basic international standards.

That's the kind of leadership we've shown in the region. That's the kind of leadership that we'll continue to show.

ROMNEY: I just want to take one of those points, again, attacking me as not talking about an agenda for - for getting more trade and opening up more jobs in this country. But the president mentioned the auto industry and that somehow I would be in favor of jobs being elsewhere. Nothing could be further from the truth.

I'm a son of Detroit. I was born in Detroit. My dad was head of a car company. I like American cars. And I would do nothing to hurt the U.S. auto industry. My plan to get the industry on its feet when it was in real trouble was not to start writing checks. It was President Bush that wrote the first checks. I disagree with that. I said they need - these companies need to go through a managed bankruptcy. And in that process, they can get government help and government guarantees, but they need to go through bankruptcy to get rid of excess cost and the debt burden that they'd - they'd built up.

And fortunately...

(CROSSTALK)

OBAMA: Governor Romney, that's not what you said...

(CROSSTALK)

OBAMA: Governor Romney, you did not...

ROMNEY: You can take a look at the op-ed...

(CROSSTALK)

OBAMA: You did not say that you would provide government help.

ROMNEY: I said that we would provide guarantees, and - and that was what was able to allow these companies to go through bankruptcy, to come out of bankruptcy. Under no circumstances would I do anything other than to help this industry get on its feet. And the idea that has been suggested that I would liquidate the industry, of course not. Of course not.

(CROSSTALK)

OBAMA: Let's check the record.

(CROSSTALK)

ROMNEY: That's the height of silliness...

(CROSSTALK)

OBAMA: Let - let - let's...

(CROSSTALK)

ROMNEY: I have never said I would liquidate...

(CROSSTALK)

OBAM: ...at the record.

(CROSSTALK)

ROMNEY: ...I would liquidate the industry.

(CROSSTALK)

OBAMA: Governor, the people in Detroit don't forget.

(CROSSTALK)

ROMNEY: ...and - and that's why I have the kind of commitment to ensure that our industries in this country can compete and be successful. We in this country can - can compete successfully with anyone in the world, and we're going to. We're going to have to have a president, however, that doesn't think that somehow the government investing in - in car companies like Tesla and - and Fisker, making electric battery cars. This is not research, Mr President, these are the government investing in companies. Investing in Solyndra. This is a company, this isn't basic research. I - I want to invest in research. Research is great. Providing funding to universities and think tanks is great. But investing in companies? Absolutely not.

(CROSSTALK)

OBAMA: Governor?

ROMNEY: That's the wrong way to go.

(CROSSTALK)

OBAMA: The fact of the matter is...

(CROSSTALK)

ROMNEY: I'm still speaking. So I want to make sure that we make - we make America more competitive.

OBAMA: Yeah.

ROMNEY: And that we do those things that make America the most attractive place in the world for entrepreneurs, innovators, businesses to grow. But you're investing in companies doesn't do that. In fact it makes it less likely for them to come here...

OBAMA: Governor?

ROMNEY: ...because the private sector's not going to invest in a...

(CROSSTALK)

OBAMA: I'm - I'm - I'm happy.

(CROSSTALK)

ROMNEY: ...company...

(CROSSTALK)

OBAMA: ...to respond to you...

(CROSSTALK)

ROMNEY: ...if - if you're...

(CROSSTALK)

OBAMA: ...you've had the floor for a while.

(CROSSTALK)

ROMNEY: ...get someone else's. OBAMA: The - look, I think anybody out there can check the record. Governor Romney, you keep on trying to, you know airbrush history here. You were very clear that you would not provide, government assistance to the U.S. auto companies, even if they went through bankruptcy. You said that they could get it in the private marketplace. That wasn't true. They would have gone through a...

(CROSSTALK)

ROMNEY: You're wrong...

(CROSSTALK)

OBAMA: ...they would have gone through a...

(CROSSTALK)

ROMNEY: ...you're wrong.

(CROSSTALK)

OBAMA: No, I am not wrong. I am not wrong.

(CROSSTALK)

ROMNEY: People can look it up, you're right.

OBAMA: People will look it up.

ROMNEY: Good.

OBAMA: But more importantly it is true that in order for us to be competitive, we're going to have to make some smart choices right now.

Cutting our education budget, that's not a smart choice. That will not help us compete with China.

Cutting our investments in research and technology, that's not a smart choice. That will not help us compete with China.

Bringing down our deficit by adding $7 trillion of tax cuts and military spending that our military is not asking for, before we even get to the debt that we currently have, that is not going to make us more competitive.

Those are the kinds of choices that the American people face right now. Having a tax code that rewards companies that are shipping jobs overseas instead of companies that are investing here in the United States, that will not make us more competitive.

And the one thing that I'm absolutely clear about is that after a decade in which we saw drift, jobs being shipped overseas, nobody championing American workers and American businesses, we've now begun to make some real progress. What we can't do is go back to the same policies that got us into such difficulty in the first place. That's why we have to move forward and not go back.

ROMNEY: I couldn't agree more about going forward, but I certainly don't want to go back to the policies of the last four years. The policies of the last four years have seen incomes in America decline every year for middle income families, now down $4,300 during your term. Twenty-three million Americans still struggling to find a good job.

When you came to office 32 million people on food stamps. Today, 47 million people on food stamps.

When you came to office, just over $10 trillion in debt, now $16 trillion in debt. It hasn't worked.

You said by now we'd be at 5.4 percent unemployment. We're 9 million jobs short of that. I've met some of those people. I've met them in Appleton, Wisconsin. I met a young woman in - in Philadelphia who's coming out of - out of college, can't find work.

I've been - Ann was with someone just the other day that was just weeping about not being able to get work. It's just a tragedy in a nation so prosperous as ours, that the last four years have been so hard.

And that's why it's so critical, that we make America once again the most attractive place in the world to start businesses, to build jobs, to grow the economy. And that's not going to happen by just hiring teachers.

Look, I love to - I love teachers, and I'm happy to have states and communities that want to hire teachers do that. By the way, I don't like to have the federal government start pushing its weight deeper and deeper into our schools. Let the states and localities do that. I was a governor. The federal government didn't hire our teachers.

UNIDENTIFIED MALE: Governor?

ROMNEY: But I love teachers. But I want to get our private sector growing and I know how to do it.

SCHIEFFER: I think we all love teachers.

(LAUGHTER)

SCHIEFFER: Gentlemen, thank you so much for a very vigorous debate. We have come to the end. It is time for closing statements. I believe you're first, Mr. President.

OBAMA: Well, thank you very much, Bob, Governor Romney, and to Lynn University. You've now heard three debates, months of campaigning and way too many TV commercials. And now you've got a choice. Over the last four years we've made real progress digging our way out of policies that gave us two prolonged wars, record deficits and the worst economic crisis since the Great Depression.

And Governor Romney wants to take us back to those policies, a foreign policy that's wrong and reckless, economic policies that won't create jobs, won't reduce our deficit, but will make sure that folks at the very top don't have to play by the same rules that you do.

And I've got a different vision for America. I want to build on our strengths. And I've put forward a plan to make sure that we're bringing manufacturing jobs back to our shores by rewarding companies and small businesses that are investing here, not overseas.

I want to make sure we've got the best education system in the world. And we're retaining our workers for the jobs of tomorrow.

I want to control our own energy by developing oil and natural gas but also the energy sources of the future.

Yes, I want to reduce our deficit by cutting spending that we don't need but also by asking the wealthy to do a little bit more so that we can invest in things like research and technology that are the key to a 21st century economy.

As Commander in Chief, I will maintain the strongest military in the world, keep faith with our troops and go after those who would do us harm. but after a decade of war, I think we all recognize we've got to do some nation building here at home, rebuilding our roads, our bridges and especially caring for our Veterans who sacrificed so much for our freedom.

And we've been through tough times but we always bounce back because of our character, because we pull together and if I have the privilege of being your president for another four years, I promise you I will always listen to your voices. I will fight for your families and I will work every single day to make sure that America continues to be the greatest nation on earth.

Thank you.

SCHIEFFER: Governor?

ROMNEY: Thank you.

Bob, Mr. President, folks at Lynn University, good to be with you. I'm optimistic about the future. I'm excited about our prospects as a nation. I want to see peace. I want to see growing peace in this country. It's our objective.

We have an opportunity to have real leadership. America's going to have that kind of leadership and continue to promote principles of peace to make a world a safer place and make people in this country more confident that their future is secure. I also want to make sure that we get this economy going. And there are two very different paths the country can take. One is a path represented by the president, which at the end of four years would mean we'd have $20 trillion in debt heading towards Greece. I'll get us on track to a balanced budget.

The president's path will mean continuing declining in take-home pay. I want to make sure our take-home pay turns around and starts to grow.

The president's path will mean continuing declining in take-home pay. I want to make sure take-home pay turns around and starts to grow. The president's path means 20 million people out of work struggling for a good job. I'll get people back to work with 12 million new jobs.

I'm going to make sure that we get people off of food stamps, not by cutting the program, but by getting them good jobs.

America's going to come back, and for that to happen, we're going to have to have a president who can work across the aisle. I was in a state where my legislature was 87 percent Democrat. I learned how to get along on the other side of the aisle. We've got to do that in Washington. Washington is broken. I know what it takes to get this country back, and will work with good Democrats and good Republicans to do that.

This nation is the hope of the earth. We've been blessed by having a nation that's free and prosperous thanks to the contributions of the greatest generation. They've held a torch for the world to see - the torch of freedom and hope and opportunity. Now, it's our turn to take that torch. I'm convinced we'll do it.

We need strong leadership. I'd like to be that leader with your support. I'll work with you. I'll lead you in an open and honest way, and I ask for your vote. I'd like to be the next president of the United States to support and help this great nation and to make sure that we all together remain America as the hope of the earth.

Thank you so much.

SCHIEFFER: Gentlemen, thank you both so much. That brings an end to this year's debates and we want to thank Lynn University and its students for having us. As I always do at the end of these debates, I leave you with the words of my mom, who said: "Go vote; it'll make you feel big and strong."

Good night.

President Barack Obama ribs his own debating; Mitt Romney eyes speech

President Barack Obama ribs his own debating; Mitt Romney eyes speech

BY THE ASSOCIATED PRESS

LOS ANGELES (AP) -- On a last dash for cash in the celebrity scene of California, President Barack Obama on Sunday took a good-natured shot as his own underwhelming debate performance, marveling at how his friends in the entertainment business could turn in flawless showings every time.

"I can't always say the same," Obama told thousands of supporters, who got the joke right away. It was Obama's most direct acknowledgment that his Republican rival, Mitt Romney, thoroughly won their debate Wednesday as a tight race rolled into its last month.

As Romney readied for a major foreign policy speech, Obama spoke at the start of two-day fundraising swing through California, his final one out West, and one that was expected to raise several million dollars for advertising efforts to the finish.

He appeared on stage after comments by actor George Clooney and performances by Katy Perry, Stevie Wonder and Jon Bon Jovi -- and before a night-capping dinner where he told those who had paid $25,000 to see him that he intends to win. "I'm a big believer in closing the deal," Obama said in the dimly lit environs of Wolfgang Puck's WP24 restaurant.

The Republican presidential nominee, meanwhile, sought to build on the momentum from a debate performance last week that even Democrats conceded was "masterful." Campaigning in up-for-grabs Florida, Romney told a crowd of about 12,000 in Port St. Lucie that he had enjoyed himself, ticking off a list of Obama shortcomings he said he had exposed during the first debate.

"Now of course, days later, we're hearing his excuses," Romney said. "And next January we'll be watching him leave the White House for the last time."

As Romney finished speaking, someone in the crowd of supporters behind him held up a giant Israeli flag alongside smaller American flags, underscoring the amplified role that foreign affairs and the Middle East is playing as the presidential race draws to a close. Romney ended his day in Virginia, where on Monday he planned a major foreign policy address in which he will criticize Obama's handling of unrest in Libya and elsewhere.

Obama campaign spokeswoman Jennifer Psaki, dismissing what she called Romney's fourth or fifth attempt to explain his global intentions, said the bar is high for Romney to convince voters he's prepared to be commander in chief.

"We are not going to be lectured by someone who's been an unmitigated disaster on foreign policy every time he sticks his toe in the foreign policy waters," Psaki said aboard Air Force One as Obama made his way to California.

Even as Romney sought to reap further rewards from his debate performance, a string of good news for the president threatened to steal the former Massachusetts governor's spotlight.

A jobs report Friday showing unemployment at the lowest levels of Obama's presidency was quickly followed Saturday by a fundraising report showing Obama and Democrats had raised $181 million in September. It was their best fundraising month of the campaign, but fell short of their record $190 million raised in September 2008 as the president campaigned for his first term.

Romney's campaign has not released its report for the month, and Republicans sought to downplay Obama's financial advantage. The party's national chairman, Reince Priebus, said he had been counting all along on being outraised by Obama and Democrats.

"This isn't going to come down to money. This is going to come down to heart," Priebus said. "We'll beat them on the ground, and we'll have all the money we need to be competitive."

After trailing Romney in the money race for most of the summer, Obama is back on top and pulling out all the stops to keep it that way.

The president told about 6,000 supporters at the Nokia Theatre that he had bad days and made mistakes in the 2008 campaign, too, but nobody remembers that because he won.

"We goofed up. I goofed up," he said of 2008. "But the American people carried us forward."

He then moved onto the late-night soiree at the restaurant, an event expected to rake in $3.75 million. Here, for a second time, he knocked his own performance in the Wednesday debate, reminding donors that it fell on his 20th wedding anniversary and dryly noting there was speculation that had an "impact on my performance."

The president told a story of belatedly celebrating that anniversary with his wife, Michelle, over the weekend at a Washington restaurant. He said at the end, their waiter told him "you saved my mother's life" by signing into law a health care act that allowed her to get insurance coverage after suffering a stroke. Obama said such personal stories remind him what the race is about.

"That's what the next 30 days is about," he said. "And that's why I intend to win."

Former President Bill Clinton joined Obama earlier Sunday for a more intimate gathering with elite, longtime donors at the home of entertainment mogul Jeffrey Katzenberg.

At the same time, Ann Romney was working to soften her husband's image, a frequent refrain as Romney's campaign seeks to broaden his support among centrist voters in the race's final weeks. Introducing her husband on Sunday, Mrs. Romney called him "a good and decent person" who had helped others throughout his life.

"Now we're going to get a chance for him to really care for others, because we're going to have the chance to see him get people back to work again," she said.

Both campaigns were prepping their running mates for Thursday's vice presidential debate -- and working to keep expectations low lest their candidate underperform.

On Sunday Priebus called Vice President Joe Biden "a gifted orator," while former House Speaker Newt Gingrich, R-Ga., who challenged Romney in the GOP primary, suggested Paul Ryan would hold back on any hostility out of respect for Biden's status as a senior statesman.

Priebus spoke on CNN's "State of the Union." Axelrod spoke on CBS' "Face the Nation" and Gingrich on NBC's "Meet the Press."

------

Associated Press writer Josh Lederman contributed to this story from Washington. Peoples reported from Port St. Lucie, Fla.

Olaopa’s reminiscence with Mosaic Art By Yemi Olakitan

Olaopa’s reminiscence with Mosaic Art

By Yemi Olakitan

             Foremost Nigerian Arts promoter and curator, Oladele Olaopa has unveiled fresh ideas aimed at re-energizing Nigerian arts and interior decoration scene. Speaking at an interview, Mr. Olaopa who is well known for its yearly art show, tagged: Experience Nigeria said his organizations’ new focus is Mosaics which he said is very good on buildings as well as portraits. According to him it was necessary for the arts community to continually upgrade its originality in other to move forward to the next level.  He was convinced that Mosaics is the next step in creativity and advancement for his organization. He believed that Mosaic arts offer new paths in arts appreciation and enjoyment. Olaopa said, Mosaic is a highly versatile medium that has the potentials to transform various aspects of building from bathrooms to bedroom with endless colors and durable materials and variety.  ‘Mosaic is perfect for Mural Project, possibilities are only limited to the artist’s imagination. Whole buildings and their interior can be magically transformed and beautified using Mosaic and it is highly durable.’’ He said.

       ‘‘ My interest in Mosaic started in the early 80s while I was in Italy. Italy is home to some of the earliest and finest styles of Mosaic art. I fell in love with it and obtained the necessary training then. On getting back to Nigeria, I focused in contemporary Mosaic arts. Mosaic designs are the perfect complement for various types of buildings such as schools, hospitals, stadiums, theatres, hotels, churches and many more. Mosaic as an art of creating images with an assemblage of small pieces of colored glasses, stone or other materials is a technique of decorative art, an aspect of interior or exterior decoration and flooring that has cultural or spiritual significance. ‘’

     Olaopa said that apart from his work as promoter and curator, contemporary fine art Mosaics are his specialty. He said he was determined to make it available for public art or private commissions as the need may arise.  Speaking further, Olaopa said that Mosaic designs are the perfect complement for various types of buildings including schools, hospitals and others.

     ‘‘ I recently perfected a method of using this medium for portraits which are suitable for monuments, tombstones or wall hangings, whereby the work is fixed on 4ft by 4ft plywood and framed with aluminum. With the portrait one can produce fantastic images. As an artist, I create my custom Mosaic from high quality Italian glass ties witch are durable, resistant to fading, frost, water, and chemicals whether on walls, floors or portraits. The colors also remain vibrant and clear. One advantage of the Mosaic, apart from the aesthetic value, its variety and durability it can stand as long as the building is standing. ‘’

On the subject of exhibition of the works, Olaopa said that he will be unveiling different dates and venues for his exhibitions which will be held in various parts of the country. We want to engage all categories of people In Nigeria to take advantage of the numerous benefits of Mosaic Arts. 

Being handicapped has not stopped me from being an Artist—Wale Balogun

Being physically challenged has not hindered my Artistry—Wale Balogun

By Yemi Olakitan

·        Balogun Mufutau Adewale is a physically challenged and versatile, Nigerian artist. Born in 1972. He was educated in Yaba College of Technology, Lagos where he studied Visual Arts. He has participated in many exhibitions across the country. 

·     How did you discover your talents?

in the early days as a young man, my initial ambition was to become a Medical Doctor despite the fact that my talent, as an artist was noticeable at a very early age. I was very lucky in the sense that someone advised me to study visual arts instead of Medicine.  He said, God has given me a talent that fits my condition since i am physically challenged, if i am a Medical Doctor, how would i handle the demands of the job. it may even be very challenging to secure employment after school if i had studied Medicine.  It was God sent advice and i took it. Art is something that i have been able to practice without hindrance since i can even be self employed. 
One of whom was Dr. Davide.H.Dale  He developed his own style. Dale was highly influential in my envelopment as an artistes. I would say he contributed a lot. There are several other people who influenced and helped me in my career as an artist.

·     How did you come about your disability?

My condition started long ago when I was younger. According to my parents I was not born with any form of disability. A time came when I became ill and I had to be taken to the hospital for medical treatment. I was 3 yeas old at the time. A Nurse gave me an injection during the course of my treatment. The injection paralyzed my legs. By the time, my parents noticed the problem; it was too late because the Doctor scolds only save one of my legs. The other one could come back to normal. Only one was filly healed.

From the beginning, I knew that there were arts in me. I could draw. I drew my mother at the age of four. I used to draw for fun because I liked it a lot. I used to use my sisters’ lipsticks to paint whatever I drew. Those were my watercolors. It was natural for me to study Art.

·     Why do you choose to work with beads?

People love new things; new creativity and I want my work to stand out. I don’t want to do what everybody is doing. I choose to use beads in my painting because of its durability. If it gets dirty, you ca n cleans it easily. I want to inspire other artistes and make an impact in other peoples’ lives.  If for example, you want to encourage or advice and handicapped person it may not sink well but if you are in the same condition with him as I am and he sees that you are doing what he feels he cannot do, he will listen.  You see, a man may have a bad leg or a bad hand but the worst scenario is to have a bad head, which is terrible. You see in this life, there different types of handicapped and everyone has one or the other. You can be financially handicapped. You can be mentally handicapped. One can be spiritually handicapped. even the President Jonathan is facing its own handicap from Boko Haram.  I however defined my handicapped as handy and Cap.

The evidence that you are living is because of challenges. There are people who cannot feel hunger or pain because they are dead but you are alive. There is nobody without challenges, it may differ.  I have always found very creative ways to live normally and to do my work. My wife, came home, one day and discovered that I have hung al my art works on the wall and she was surprised tat I could do it myself.  She asked who helped me? Actually, I just sat down and think of the various ways by which I should hag the art works and I was able to do it.

·     How were you able to cope with the situation?

There are different types of handicapped people. There are those who were born with it and it affected their minds there those who were not born with it and the mind is not affected. There are those who are not born with it but their mind is still affected. I was not born with my disability nor am I affected mentally or physiologically. When I was younger my parents wanted to send me to school for the handicapped. I refused because my mind is not affected by my disability. There are many things that able-bodied people cannot do that I can do. By the grace of          God, It has not stopped anything-good thing in my life.  Sometimes, it could eve n be a plus, for example, I am public speaker, if stand before people to talk, before I say anything, my appearance alone will challenge them. There was a time, I was going somewhere on the road and someone approached me to give me alms. I have to educate him that I was not a beggar.

I am always working with my hands so I am always improving.  There was a time I went to computer school in order to learn how it could help my work.

When I was younger I never saw my self as handicapped. I played around like any normal kids and I had fun just like them. I crawled for the first six years of my life while playing with my younger ones. Why my younger brother was six, he enrolled in a Primary school and I was eight, at the time so I asked them what about me?  They wanted to send me to a school for the handicapped but I refused. I insisted that I had a normal life to live so I needed to attend a normal school just like any regular kid.

One day, someone organized a party in our streets and everyone was going so I said to myself that why should I be crawling when everyone is walking so I went to the backyard and got myself a burnt wood from the traditional stove (adogon) I used that as crutches stick and helped myself to the party.  When my parents saw that attempt, they decided to get me crutches.  The major challenge is that people never stop treating you as second class and some even go out of their way to put you down.

There are disable people who are not disturbed by their situation and other people try to refer them to it. If you have physical disability and you do not have mental disability, you are fine and you are better off because you can achieve whatever you set you mind to achieve if you work hard enough and with faith in God.

·     What are your words of advice to those in similar situation?

My advice is this: Challenges are an evidence to prove that you have a great future and you are going somewhere great. There is no gain without pain. Those who sow in tears shall reap in joy.  My dream in life is to be ahead of the so-called able bodied. I am grateful to God. He has been there for me.

·     You are happily married, you have a family and a thriving career

To the Glory of God, even my four-year-old kid adjusts to the situation. He will even go and bring my crutches for me. God has not allowed it to be a problm that we cannot surmount.

NIPR & Public Relations in Nigeria

            There is a purpose for the emergence of every profession in any given society and environment. So also is the public relations practice in Nigeria, which started before the country’s independence. According to Fassy Yusuf, (2000) public relations practice commenced in the country in the early 1940s as a result of World War II. The country, which was then under the British colony, participated in the execution of the war. Knowing the importance of information to Nigerians on happenings in the war front, the government created a Special Information Centre for that purpose. With this, there was better understanding between the colonialists and the colonised Nigerians, especially, when the citizenry realised the necessity of their independence. The centre later metamorphosed into the Public Relations Department in 1944, when Nigerians were employed to manage it for better and further information dissemination.

             In the private sector, the first company to establish a public relations department was the United African Company, popularly known as UAC. The unit was known in 1949 as Information Department. The Nigerian Railways Corporation, a government parastatal, also established its own unit in 1956 where Dr. Sam Opelle served as the first public relations officer. The Shell Petroleum Development Company, then BP, created its own outfit in 1969.

            It was the effort of people like Sam Opelle, Chief Olu Holloway, Alhaji Ade Thani, Adewale Fashanu and Mr. Malafa that the first umbrella organisation of public relations practitioners was established in1963, known as Public Relations Association of   Nigeria (PRAN). The association was renamed Nigerian Institute of Public Relations (NIPR) in 1969. It was later legally empowered by the Decree 16 of 1990. The decree made NIPR a chartered body and empowered to determine what standards of knowledge and skills are to be attained by all persons seeking to become registered members of the PR profession. The decree was signed through the efforts of past presidents of the institute, which  include Chief Alex Akinyele, Chief Bob Ogbuagu, Mr. Mike Okereke and Alhaji Sabo Mohammed.

CONSULTANCY AFFILIATE

The first known affiliate of Nigerian Institute of Public Relations is the Public Relations Consultancy Association (PRCAN), which according to Cajetan Otuekere-Ubani, was established and inaugurated in 1984 by Major General Tunde Idiagbon, the then Chief of Staff, Supreme Headquarters in General Buhari’s administration. Mr. Toye Ogunmorin was its first president with four consultancy firms as its pioneer members. They are Bloomel Public Relations Practitioners, Progan Promotions, Good Contact Public Relations Services and Philips, Johnson and Associates.

             Some of its aims and objectives are to raise and maintain standards in the practice of the profession; and to provide facilities for government, public bodies, professional associations, industrial concerns, financial institutions, social, cultural and religious organisations. It also aims to improve the relationship of public relations professionals with employers and clients, with government and its agencies, with communications media and their agencies.

             Some names have been mentioned of those personalities who are the doyens of public relations consultancy in Nigeria. Festus Akande confirmed that consultancy commenced in the late sixties and early seventies with the late Ebun Adesioye, Dr. Clarkson Majomi, Chief Dotun Okubajo, Mr. Olu Ademulegu, Otunba Kunle Ojora and Peter Hospdales as the doyens in the practice. He added that all these practitioners were practising their consultancy service individually with no merger between them.
  

FINANCE AFFILIATES                                                                                             

It is said that as the human society becomes more complex and diversified, the professions of man become more specialised. In most developed societies, there are alliances of people of specialised occupation and professions coming together to form associations for the protection of such concerns. Some emerge from already existing unions as affiliates.  For instance the Nigerian Union of Journalists (NUJ) is another compartmentalisation with other affiliates like Correspondents Chapel, Finance Correspondents Association of Nigeria (FICAN), Sports Writers Association of Nigeria (SWAN), National Association of Women Journalists (NAWOJ), etc. In fact, a further scrutiny reveals that the NUJ itself, according to some quarters, is just one of those organisations under the umbrella of Nigeria Press Organisation which includes the Nigerian Guild of Editors and Newspapers Proprietors Association of Nigeria. The same thing applies to advertising where the Advertising Practitioners Council of Nigeria (APCON) regulates the practice of the profession with bodies like Association of Advertising Practitioners of Nigeria (AAPN) and Outdoor Advertising Association of Nigeria (OAAN) carrying out their activities under the umbrella of APCON.

             The Nigerian Institute of Public Relations too witnessed the same situation where affiliates like the Public Relations Consultants Association of Nigeria (PRCAN), and Association of Corporate Affairs Managers in Banks (ACAMB), emerged in 1996 and as the case with the latter has the objective of evolving and implementing strategies to improve and sustain a good image for the nation’s banking industry.

             One notable researcher who has successfully identified the problems of financial public relations in reference to the distress in the banking sector is Abubakar Alhassan who states that the idea behind the emergence of ACAMB was first mooted by the corporate affairs managers at the 1992 Bank Directors Seminar organised by Financial Institute Training Center in Abuja. Subsequently, discussions were made informally among some of the Banks’ Public Relations managers in Lagos. He continued that the machinery for formal discussion of the idea was set in motion after a media management seminar held at Badagry also in Lagos in 1996 at which suggestion for the formation of the   body was extensively discussed. Subsequently, a series of meeting were held at Eko Hotel, Lagos, during which the PR managers of banks agreed to have an association. They set out the association’s aims and objectives and also laid conditions for membership.

             Membership of the association is open to all Heads of PR in the banking sub-sector. In addition, all members of the association must have been duly registered with the NIPR as required by decree 16 of 1990. A member who ceases to be a PR manager in the banking industry, has automatically relinquishes the right to membership but may be considered for Associate membership. There is also the Code of Conduct for membership, which states, among others, that erring members whose acts contravene any rule or regulation of the association will be reprimanded.

             The first Annual General Assembly of ACAMB was held in September 1996, during which elections were held into offices of the association’s Executive Committee. The Executives were sworn in during the Committee’s inauguration on 3rd December, 1996. Those sworn in were Kabir Dangogo,as President; Tunde Thomas, Vice President; Waheed Olagunju, Secretary General; Aduke Gomez (Ms), Financial Secretary; Steve Osuji, Publicity Secretary; and Emeka Adio,as Assistant Secretary General; and five EX-officio members are Abubakar Minjibir, Tony Ede, Toyin Abayomi-Banjo, Gbade A. Zanda and Ogie Eboigbe.

             Since every serious body must have a legal framework, which is to guide it in its operation, ACAMB has its constitution and Code of Conduct. As a non-profit making body established to foster interaction among PR managers of the banking sub-sector and advise the leadership of the sub-sector on the PR implications of policies and development, the association is registered under the Companies and Allied Matters Decree of 1990.

             Some of the objectives of the association include to evolve and implement strategies to improve and sustain a good image for the nation’s banking industry; educate the public on relevant banking laws and policies; represent the industry as a group on public relations matters; promote and protect the interest of the banking industry as well as carrying out public enlightenment campaigns on behalf of the industry. It is also intended to promote continuous public confidence and trust in the nation’s banking industry and to promote facilities for training the members of the association on banking practice and other related matters.
 

CODE OF ETHICS OF NIPR

Professionals in Nigeria belong not only to some international professional bodies optionally, they also belong compulsorily to the local professional body known as the Nigerian Institute of Public Relations (NIPR), one of the few in the world backed by a state statutory instrument in Decree 16 of 1990. The institute’s codes of practice has 12 articles which include the following:

Every member of the Nigerian Institute of Public Relations shall:

a. respect the moral principles of the “Universal Declaration of Human Rights” and the freedoms entrenched in the constitution of the Federal Republic of Nigeria in the performance of his/her own duties;

b. recognise that each person has the right to reach his own judgement by himself;

c. respect the right of parties in a dispute to explain their respective points of view;

d. encourage the free circulation of public information and preserve the integrity of channels of communication;

e. put trust and honesty of purpose before all other considerations;

f. safeguard the confidences of his present/previous employers or clients;

g. represent interests which are not in conflict;

h. refuse to enter into any agreement which requires the attainment of certain results before the payment of professional fees;

i. protect the professional reputation or practice of another member, but make it his duty to report unethical behaviour on the part of any member of the institute;

j. not seek to displace any other member with his employer or client, except with the mutual agreement of all the parties concerned;

k. Not operate any front organisation;

l. Co-operate with any other members in upholding and enforcing this code.

These articles are a superb adaptation of some international codes and the British codes of ethics to suit the Nigerian institution. The extra-ordinary general meeting of the institute held at the Bristol Hotel in Lagos on January 30, 1981 approved the Nigerian codes.

N5,000 Naira Notes causes controversy in Nigeria

N5,000 Naira Notes causes controversy in Nigeria

The new N5,000 note just approved by President Goodluck Jonathan will end the use of $100 notes now in vogue among looters, industrialist-businessman Atedo Peterside told journalists yesterday while supporting the introduction of the new currency.

The Central Bank's proposal to launch the new note has met with widespread criticism from the general public as many feared inflation and corruption as likely consequences. The president's approval announced yesterday by minister of national planning Shamsudeen Usman in Abuja at the end of a meeting of the Economic Management Team (EMT) put paid to the controversy.

Mr Peterside, a member of the team, rose in defence of the introduction of the new currency by giving it a bizarre twist.

"Money is a store of value. All these thieves, rogues and vagabonds running around various states and all over the country when they steal money will want to keep it outside the banking system, so they need higher denomination notes," he said.

"Right now they are using $100 notes all over Nigeria because they are the best store of value for them. If you give them a better store of value in Nigeria, they will move away from those dollars and move into our own currency as opposed to the use of $100 to hide their loot," the businessman added.

Mr Atedo Peterside said if he were the CBN governor he would have preferred to introduce a N10,000 note instead of N5,000 "Right now the country is losing by importing massive US dollars to finance the activities of all these rogues because the US dollars offer the higher store of value for them and also by squandering resources to print large volumes of worthless notes."

In another twist to the issue, however national planning minister Shamsudeen Usman, who claimed to know nothing about the link between the new note and corruption, declared: "I think people alleged that part of that corruption is being done in dollars but a $100 is N16,000 and N5,000 will be $30; so which one is bigger to carry if you are doing corruption?"

He argued that the new note will not necessarily increase the level of corruption as "those doing corruption will probably find it too small".

Business mogul Alhaji Aliko Dangote argued that the introduction of the N5000 note had nothing to do with inflation. He told State House correspondents after the Economic Management Team meeting, "I think it is even to protect the economy. The cost of printing is not anything different from the amount they are using in printing any other note. It is the same cost."

The only difference is the design and the figure printed on them. Sometimes, minting the coins can even help. If I have a product which I am selling for N5 and I want to raise the price to N6, I won't be able to do that. It is either I swallow the bullet and take it to N10 or I don't increase it at all. "A lot of companies have not been able to increase their prices even though they are losing money."

On the cost of printing the new note said to be at a cost of N40 billion, Dangote said last year the CBN spent N47billion to print currencies, it is not different at all," he said.

Managing director of Access Bank Mr. Aig-Imoukhuede Aigbojie, who also lent his support, said the reactions by Nigerians were rather unfortunate.

He said, "I have tried to analyse the cause for these reactions. Legal tender and restructuring of currency are normal parts of the Central Bank's functions. It is very rare for you to have a central bank that does not look at the issue of currency management and issue new notes from time to time based on the reality of the economy.

"In the case of Nigeria, our economy is such that a N5,000 note, which is in effect a $30 note, is not strange. The greatest argument I have heard about is causing of inflation; the other argument is that it will cost money to introduce the new note. There is no relationship between the issuance of higher legal tender and inflation. It is unfortunate that some have misled people into thinking that it will lead into higher inflation."

He also explained: You are introducing the N5000 note, you print less of N1000 and N500 notes. It is not going to add to the cost of printing. It is going to basically fall into your normal annual budget for printing. What you should also understand is that, with less notes in circulation, it is cheaper in the long run based on quantities ordered to print N5000 denomination than lower denominations."

Peterside continued: "Right now, the country is losing in two ways: one, we are importing massive US dollars to finance the activities of all these rogues, because the US dollars offered the higher store of value for them and, two, we squander our resources printing large volumes of worthless notes.

"There is no inflationary impact that is voodoo economics. Let me tell you one thing: if you know that printing N5000 notes will create more inflation, why don't you reduce the value of your notes and see whether you will not experience inflation in the process. This is simple logic."

National Planning, Dr. Usman disclosed to State House correspondents after a meeting of the Economic Management Team (EMT) that the endorsement of the N5000 note by the team followed approval by President Goodluck Jonathan.

"Obviously, the discussion today was basically to endorse. The president had already approved; that is the only requirement by law. The CBN is to propose and Mr. President is to approve. And since Mr. President has approved, really what is important is to just explain. I personally had some concerns about the coins but, since some discussions with the CBN governor, he has actually clarified that even the media didn't get it," the minister said.

Arguing that the N5,000 note, contrary to public perception was not going to lead to higher inflation, Shamsudeen hinted that CBN was going to explain to Nigerians that the coins will run concurrently with the naira notes they are replacing as a test-run for Nigerians to accept them first.

He said, "There is absolutely no link. I am an economist. I have been deputy governor, operations, of the Central Bank. In the last review of the introduction of N1000 note and the various coins I was deeply involved, it was my responsibility at the Central Bank. There is absolutely no link between inflation and the currency denomination.

On whether the N5000 note was at variance with the cashless policy, the minister explained: "It is not at variance. In most of the economies you look at, the Euro has the €500 note. If you go to the countries where Euro is in use, you will not get the €500 note in normal circulation. But it is used by the banks and a few other heavy cash users to store higher value. I have been in parts of the United States where you draw the $100 bill and give it to somebody and they start looking at it as if it is something strange. They probably have not seen it before." He said that higher denominations are there to create higher value and will not be in the widest of circulation.

A civil society organisation, the Anti-Corruption Network, yesterday stormed the CBN head office in Abuja, protesting the proposed restructuring exercise, particularly the introduction of the N5,000 notes, and asked the Federal Government and the regulatory banking institution to stop forthwith arrangements on the exercise in view of what it termed the likely negative socio-economic impact on ordinary Nigerians.

Organised private sector said the introduction of N5, 000 notes in the planned restructuring of the nation's currency, saying it will aid corruption. Director General, Lagos Chamber of Commerce and Industry, Muda Yusuf in his comment said although the idea of restructuring the currency is a welcome development, "there is a flip side to the policy."

The Nigeria Labour Congress (NLC) also described as unfortunate the fact the President Goodluck Jonathan would approve the proposed N5,000 note despite intervention by the House of Representatives to halt the process.

Mr. Bayo Babatunde, Managing Director, Avscon Nigeria Ltd said, " I think it is an improvised vessel for corruption and goes counter to the cashless policy of the Central Bank of Nigeria (CBN). It will facilitate easier exchange of bribes and reduce the quantity of Ghana must go bags required" he said.

On its part, the Director General of the National Association of Chambers of Commerce Industry, Mines and Agriculture (NACCIMA) Mr John Isemede, said he was more concerned about what the project would cost the Nigeria economy.

According to him "we want to know what the printing would cost the taxpayers." He also raised concerns on what benefit the currency restructuring would have for Nigerians stressing that there is a need to improve on the export capacity of the country.

He also noted that NACCIMA is watching the moves of the CBN as well as the stand of the lawmakers on the issue, stating that it is would be on the look-out for the process of the award of the contract.

Managing Director and Chief Executive of APT Securities and Funds Limited Mallam Garba Kurfi on the other hand said he is not as bothered about the introduction of the N5000 note as that of the conversion of the N20, N10 and N5 notes to coins.

In his reaction, Mr Lanre Ajayi, President of Association of Telecommunications Companies of Nigeria (ATCON) said "It doesn't look consistent with the cashless policy. My own understanding is that cashless policy is meant to reduce cash in circulation. I am not an economist but from the layman's perspective it doesn't augur well, while Mr Tim Akano, vice chairman, Wini Group, an IT security company said the introduction of the N5000 note will definitely have a negative impact on the economy. "The concept of cashless is to take cash away from people.

"Increasing currency to N5000 note is an indirect way of CBN telling people to dump cashless policy. To every discerning analyst, it is more political than economic. It is going to drive inflation up and support corruption. The money being used to print the N5000 notes could have been deployed to improve the standard of education", said Ajayi.

Leading about 300 hundred youths on the protest which was being closely monitored by the security agencies in the front of the CBN Headquarters, Abuja, a former Legislator and Executive Secretary of the Network, Otunba Dino Melaye, described the proposed measure which, he said, his group was prepared to mobilise millions of ordinary Nigerians to frustrate the plans as a proof of government's insensitivity to the plight of millions of poor Nigerians who, he said, were already over-burdened economically as a result of the partial withdrawal of fuel subsidy in January this year.

Also, President of the Chartered Insurance Institute of Nigeria (CIIN), Dr. Wole Adetimehin, said the introduction of N5, 000 note by the CBN would adversely affect insurance business in the country.

Melaye, who spoke with the media on why the protest was organised said it was to show to the CBN authorities and government that sovereignty resides with the people and that it was regrettable that despite the National Assembly's directive that the apex bank should suspend the plan, the Governor of the CBN, Mallam Sanusi Lamido Sanusi, was hell-bent at carrying out the plan in furtherance of his Islamisation agenda for the country.

According to him, the planned introduction of the N5,000 clearly contradicted the policy stance of the apex bank on cashless and electronic banking, pointing out that it would further devaluate the national currency with the attendant negative implications on efforts to make the economy's growth more inclusive and globally competitive.

He explained: "We want to say that the CBN Governor and indeed the Federal Government had proven that they are not a responsible and responsive government. This government is not equally sick but also suffering from what I call a dreadful continental abnormality. We suffered during the fuel subsidy and we are yet to recover form that pain. We have long discovered that N277 billion was budgeted for subsidy in 2011 budget and government went ahead to spend N2.3 trillion. "For now, I believe the idea should give room to other major issues that are paramount to our country's growth, " he said.

"Our points is, instead of the government to attack this key issue and fight, arrest and prosecute those who are stealing our commonwealth, they want to inflict further pains and injury on Nigerians that are already suffering from perilous and times of opprobrium. What I am saying in essence is that the Anti-Corruption Network is mobilising Nigerians to say No to this N5,000 haram. We are still praying to God to conquer Boko Haram but Sanusi Lamido Sanusi is introducing N5,000 haram. We will reject, we will renounce, we will rebuke, we will pray it out of order", Melaye said.

CBN deputy governor Mr Tunde Lemo, who received the protest letter from the group on behalf of CBN management, however reassured Nigerians that the currency restructuring exercise would not worsen the socio-economic hardship of ordinary Nigerians as being speculated by a broad section of the public.

Meanwhile, CIIN boss Adetimehin said yesterday in Lagos that the currency reform would cause huge claim costs to insurance companies.

He said the proposal had the prospects of raising the amount of money in circulation at a given time.

"The N5,000 note will aggravate the quantum of costs to be incurred by the industry on money insurance policy management.

"What this means is that people will indulge in carrying huge amount of money that may run into millions without anyone noticing.

"Meaning that any loss of a bundle of N5,000 notes will amount to huge claim costs and compensation on the insurance company in a given money insurance policy," he said.

The CIIN president advised that the proposal should be suspended by the apex bank for now.

While describing the restructuring agenda as satanic in intents and purposes, he advised Nigerians to join forces with the group in its ongoing war against the measure, querying that "we graduated from N20 to N50, from N50 to N100, from N100 to N200, from N200 to N500 and from N500 to N1,000. What has that done to inflation? What has that done to the economy? What has that done to unemployment? What has that done to the provision of pipe borne water? What has that done to the provision of electricity? Has that one given us good roads or good hospitals?

On the current procedures being adopted by government to recover money in the fuel subsidy payments from indicted marketers, he pointed out that the entire process was too secretive since government had failed to let Nigerians know who is making refunds and of what amount and denominations such refunds are being made, adding that his group is already warming up to lead another national protest to the National Assembly as soon as it reconvened with a view to demanding for publication of recoveries made so far on the fuel subsidy scam.