For Obama, nothing looks easy

WASHINGTON (Reuters) - Nobody said this was going to be easy. From his suite at the historic Hay-Adams Hotel, U.S. President-elect Barack Obama is watching problems pile up as he prepares to take power in 15 days.

A plan to spend up to $1 trillion to stimulate the sagging U.S. economy will not be ready for Obama to sign as soon as he takes office on January 20. Instead, negotiations could stretch into mid-February.

Israel's invasion of Gaza to quell Hamas rocket fire on its cities has pushed the Middle East higher on Obama's already long list of foreign challenges that includes Iraq, Afghanistan and Russia. Obama's silence on the Israeli action has led to some sniping abroad.

And his relatively smooth transition to power took a hit when his choice for Commerce secretary, New Mexico Gov. Bill Richardson, withdrew because of a federal investigation into a state government contractor who contributed to Richardson's political committees.

While Obama's inauguration is much-anticipated and could draw more than 1 million Americans to Washington, he takes office at a time of great national anxiety.

Developing a stimulus plan to jolt the U.S. economy back to life and get Americans back to work remains top priority. The package could quickly become the subject of partisan bickering in Congress -- a fate that Obama wants to avoid.

Aides said Obama is expected to make his case for a stimulus this week in a major speech. He made the rounds on Capitol Hill on Monday to stress that he believes the plan should not "get bogged down in a lot of old-style politics on either side."

"There's not going to be a lot of finger-pointing or posturing. The American people need action now," he said.

Conservative Republicans who oppose bigger government are interpreting Obama's statement that he would like to create 3 million new jobs, 80 percent of them in the private sector, to mean he would like to create 600,000 new government jobs.

BUILD INFRASTRUCTURE

The Obama team says these workers would rebuild bridges and roads, a plan reminiscent of President Franklin Roosevelt's public works programs of the 1930s.

"I'm no math genius," wrote Daniel Mitchell of the libertarian CATO Institute in a Web posting. "But 20 percent of 3 million works out to be 600,000 new bureaucrats to harass the American people. This is hope and change?"

Obama defended his silence on the Gaza war on Monday, telling reporters that when it comes to foreign policy, he would adhere to the principle of "one president at a time."

"You can't have two voices coming out of the United States when you have so much at stake," Obama said.

And an Obama transition aide added: "During this transition period, we are not engaging in any action that could send confusing signals to the world about who speaks on behalf of the United States."

Some critics say Obama missed a chance to break from President George W. Bush's pro-Israel stance, others that he missed a moment to stand with Israel.

"Obama's silence during these 10 deadly days in Israel has been deafening and heard all over the world," said Republican strategist Scott Reed. "I think it's caution in that there's one president at a time but the lack of even supporting the president's position has been shocking to all Americans."

But Shibley Telhami, of the Saban Center for Middle East Policy, said Obama was correct to keep quiet.

"It's very wise for him to say nothing," Telhami said. "You don't want to be defined by the immediate crisis when you can't do much anyway to influence what is going on the ground." (Editing by Alan Elsner; steve.holland@reuters.com)