On Saturday, January 24th, President Obama’s fourth day in office, it emerged that his administration is planning wide-ranging changes to the nation’s financial regulatory system. The New York Times reports:

Officials say they will make wide-ranging changes, including stricter federal rules for hedge funds, credit rating agencies and mortgage brokers, and greater oversight of the complex financial instruments that contributed to the economic crisis…

…A theme of that report, that many major companies and financial instruments now mostly unsupervised must be swept back under a larger regulatory umbrella, has been embraced as a guiding principle by the administration, officials said.

The AP, in an analysis piece, concluded that Obama’s various moves regarding the State Department and signals from his Secretary Of State Hillary Clinton meant diplomacy had returned to the forefront of U.S. foreign policy:

Diplomacy now trumps defense as the main instrument of American foreign policy.

At least that is the intent that President Barack Obama and his change-minded secretary of state, Hillary Rodham Clinton, spelled out on their first days. They made clear that the military will be a prominent _ but no longer dominant _ tool for achieving U.S. goals abroad.

The message was reflected clearly in Obama’s decision, on his second full day in the White House, to close the military-run prison for suspected terrorists at Guantanamo Bay, Cuba, and to include the State Department in a broad government study of how to proceed with terrorist detentions in the future.

In a subtler but equally telling way, the commander in chief’s decision to visit the State Department before stepping foot in the Pentagon indicated his intention to elevate the role of diplomacy.

Setting the stage for what amounted to Obama’s first foreign policy address since his inauguration, Vice President Joe Biden told State Department employees on Thursday that Clinton’s charter is to “put diplomacy back in the forefront of America’s foreign policy,” and to do so immediately.

“For too long, we’ve put the bulk of the burden, in my view, on our military,” Biden said.

Obama put it this way: “A new era of American leadership is at hand, and the hard work has just begun. You are going to be at the front lines of engaging in that important work.”

Obama used his first weekly address as President to unveil more details about his stimulus package before meeting with his team of economic advisers. From the AP:

The two-hour session in the Roosevelt Room focused the proposed $825 billion economic stimulus package that Congress is considering. The group also discussed the upcoming federal budget, Obama’s first chance to shape the country’s spending amid a recession that lost 2.6 million jobs last year, the most in a single year since World War II.

“Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. And we could lose a generation of potential, as more young Americans are forced to forgo college dreams or the chance to train for the jobs of the future,” Obama said in a five-minute address released Saturday morning by radio and the Internet.

“In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse.”

On Friday, his third day in office, Obama signed an executive order lifting what is known as the abortion ‘gag rule’. From the AP:

President Barack Obama on Friday struck down the Bush administration’s ban on giving federal money to international groups that perform abortions or provide abortion information–an inflammatory policy that has bounced in and out of law for the past quarter-century.[...]

The Bush policy had banned U.S. taxpayer money, usually in the form of Agency for International Development funds, from going to international family planning groups that either offer abortions or provide information, counseling or referrals about abortion as a family planning method.

Critics have long held that the rule unfairly discriminates against the world’s poor by denying U.S. aid to groups that may be involved in abortion but also work on other aspects of reproductive health care and HIV/AIDS, leading to the closure of free and low-cost rural clinics.

Suspected US missiles killed 18 people on the Pakistan side of the Afghan border on Friday, the AP reported. These missile attacks were the first launched by Obama since becoming President, according to ABC News.

Pakistan’s leaders had expressed hope Obama might halt the strikes, but few observers expected he would end a tactic that U.S. officials say has killed several top al-Qaida operatives and is denying the terrorist network a long-held safe haven.

Obama also met with House and Senate leaders from both parties in the morning to discuss his new stimulus package. While Obama has stressed his desire for the stimulus package to be crafted in a spirit of bipartisanship, that outreach will only go so far, HuffPost’s Sam Stein reported:

Barack Obama and his team of advisers have framed the process of crafting a stimulus package as one that will be inclusive and bipartisan in nature.

But in private and increasingly in public, Democrats are scoffing at some of the demands of their Republican brethren. Elections have consequences, the refrain goes. The GOP can expect consultation and input, but anything beyond that is gravy.[...]

An emerging attitude among Democrats [is] that Obama should not deviate much, if any, from his recovery plan proposal in order to accommodate the opposition. The president himself, in a meeting with House and Senate GOP and Democratic officials Friday morning, defended his position by noting, succinctly: “I won.”

Obama upset a number of Democrats and government watchdogs on Friday by nominating William Lynn as Deputy Secretary of Defense. HuffPost’s Sam Stein explains:

Having lobbied the government on behalf of the defense industry giant Raytheon, Lynn’s appointment violates the newly-instituted ethics guidelines that the president applied to his staff shortly after taking office. Questioned about the transgression, the White House said Lynn was being granted a waiver.

But there is a second layer to the Lynn issue that also is leaving a bad taste in the mouths of Democrats, good government groups and Republicans eager to cry hypocrisy. Raytheon is no mom-and-pop defense contractor shop. It is the type of industry behemoth that protesters of the Iraq invasion bemoaned for profiting off of the war and encouraging militarization. And as the man who led “the company’s strategic planning and [oversaw] the government relations activity,” Lynn was intimately involved.

In response to Lynn’s nomination, John McCain issued his first criticism of Obama since the election, saying he was “disappointed” that Obama had hired a defense lobbyist.

Breaking forcefully with Bush anti-terror policies, President Barack Obama ordered major changes Thursday that he said would halt the torture of suspects, close down the Guantanamo detention center, ban secret CIA prisons overseas and fight terrorism “in a manner that is consistent with our values and our ideals.”

“We intend to win this fight. We’re going to win it on our terms,” Obama declared, turning U.S. policy abruptly on just his second full day in office. He also put a fresh emphasis on diplomacy, naming veteran troubleshooters for Middle East hotspots.

The policies and practices that Obama said he was reversing have been widely reviled overseas, by U.S. allies as well as in less-friendly Arab countries. President George W. Bush said the policies were necessary to protect the nation after the Sept. 11, 2001, terror attacks _ though he, too, had said he wanted Guantanamo closed at some point.

“A new era of American leadership is at hand,” Obama said.

Executive orders signed by the new president would order the prison camp at Guantanamo Bay, Cuba, shut within a year, require the closure of any remaining secret CIA “black site” prisons abroad and bar CIA interrogators of detainees from using harsh techniques already banned for military questioners.

That includes physical abuse such as waterboarding, a technique that creates the sensation of drowning and has been termed torture by critics at home and abroad.

For the signing ceremony, Obama was flanked in the Oval Office by retired senior U.S. military leaders who had pressed for the changes.

Underscoring the new administration’s point, the admirals and generals said in a statement: “President Obama’s actions today will restore the moral authority and strengthen the national security of the United States.”

Not everyone felt that way.

Criticism surfaced immediately from Republicans and others who said Obama’s policy changes would jeopardize U.S. ability to get intelligence about terrorist plans or to prevent attacks.

House Minority Leader John Boehner was among a group of GOP lawmakers who quickly introduced legislation seeking to bar federal courts from ordering Guantanamo detainees to be released into the United States.

Boehner, R-Ohio, said it “would be irresponsible to close this terrorist detainee facility” before answering such important questions as where the detainees would be sent.

Obama said he was certain that the nation’s security is strengthened _ not weakened _ when the U.S. adheres to “core standards of conduct.”

“We think that it is precisely our ideals that give us the strength and the moral high ground to be able to effectively deal with the unthinking violence that we see emanating from terrorist organizations around the world,” he said.

“We don’t torture,” Obama said, but Bush had said the same. The question has always been defining the word.

Later in the day, Obama visited the State Department to welcome newly confirmed Secretary of State Hillary Rodham Clinton, emphasizing the importance his administration intends to give diplomacy in his foreign policy. He told Foreign Service officers and other department employees they “are going to be critical to our success.”

The president and Clinton jointly announced the appointment of former Senate Majority Leader George Mitchell, who helped broker peace in Northern Ireland, as special envoy to the Middle East. Former U.N. Ambassador Richard Holbrooke, who helped write the peace deal that ended Bosnia’s 1992-95 war, was named special envoy for Pakistan and Afghanistan.

But for all the talk of a new era, it remained unclear how much of a shift Obama plans for the Middle East.

Though he named high-profile envoys to regions where critics say American attention lagged under Bush, the Mideast policy Obama outlined was no different.

He said he would aggressively seek a lasting peace between Israel and the Palestinians while also defending Israel’s “right to defend itself.” He called on Israel and Hamas to take steps to ensure the cease-fire that is in place in Gaza will endure. And he called on Arab states to show more support for the beleaguered Palestinian government of President Mahmoud Abbas.

On the surface, those views mirror the Bush administration’s.

As for the treatment of terror suspects, Obama’s policy overhaul was an implicit though not directly stated criticism of what he, other Democrats, nations around the globe and human rights groups have called Bush’s overreach in the battle against terrorism.

In his presidential campaign, Obama had pledged to close Guantanamo, where many suspects have been detained for years without trial or charge.

Bush, too, had said he wanted to shut down Guantanamo. It never happened on his watch, amid the questions that must be answered to do so: Can other countries be persuaded to take some of the 245 men still be held there? Under what authority should remaining detainees be prosecuted? And, most difficult, what happens to the handful of detainees who are considered both too dangerous to be released to other nations and for whom evidence is deemed either too tainted or insufficient for a trial?

Obama has to answer those same questions.

As to that tough, third category of detainees, a senior administration official said “everything’s on the table” as a possibility, including the use of military tribunals that were much criticized by Obama. The official would brief reporters only on condition of anonymity, contending that was necessary in order to speak candidly about details.

The administration already has suspended trials for terrorist suspects at Guantanamo for 120 days pending a review of the military tribunals.

A task force must report in 30 days on where the Guantanamo detainees should go, as well as a destination for future terror suspects.

The national commander of the Veterans of Foreign Wars of the U.S. criticized Obama’s action.

“The detention facility is a valuable tool in the fight against terrorism because it provides useful intelligence information and it keeps our enemies off the battlefield,” said Glen Gardner.

Said Obama’s GOP rival for the White House, Sen. John McCain: “Numerous difficult issues remain.”

Recent polls show the nation essentially split on the topic. An Associated Press-GfK poll last week found about half wanted the prison shut on a priority basis, and 42 percent did not.

On interrogations, another review panel will have 180 days to study whether interrogation techniques allowed under the U.S. Army Field Manual would be acceptably effective in extracting lifesaving intelligence from hardened terrorists.

But the order opens the door to divergences from the Army manual, as it allows the panel to recommend “additional or different guidance” for use by intelligence agencies. That would not, however, allow “enhanced interrogation techniques” to be reintroduced, the official said.

Obama left room for the practice of “extraordinary renditions” of detainees to other nations to continue, though the White House said none would be sent to countries where they might be tortured.

The executive orders also throw out every opinion or memo that the Bush administration used to justify its interrogation programs. And the Obama administration said all terrorism suspects will be covered by standards set by the Geneva Conventions, something the Bush administration opposed.

Obama also ordered the Justice Department to review the case of Qatar native Ali al-Marri, who is the only enemy combatant currently being held in the U.S.

Though the full U.S. Senate approved six of President Barack Obama’s cabinet secretaries after his swearing in on Tuesday, Senator Hillary Rodham Clinton’s confirmation as secretary of state was postponed until Wednesday over the objection of a single Republican Senator.

According to Fox News Senator John Cornyn of Texas objected to including Mrs. Clinton’s name in the unanimous consent vote for Obama Cabinet nominees, citing ethical questions surrounding donors to former President Bill Clinton’s charitable foundation, which has in the past accepted donations from foreign governments.

“This is not an effort to scuttle or block the nomination, but a legitimate policy difference. Senator Cornyn’s goal is to create transparency on all levels of government,” the Texas politician said through spokesman Kevin McLaughlin.

Bloomberg reports that Hillary Clinton rejected a request from the committee for broader limits on contributions, saying disclosure terms worked out with Obama’s transition team were adequate and went beyond legal requirements. Moreover, prior to Hillary Clinton accepting the nomination, the Clintons agreed to split off the Clinton Global Initiative from the Clinton Foundation upon Hillary Clinton’s confirmation and said it wouldn’t accept contributions from foreign governments while simultaneously agreeing on a list of steps with the Obama transition team such as publishing a list of past contributors.

Despite Tuesday’s setback Senate majority leader Harry Reid plans to hold a roll-call vote on Sen. Clinton’s nomination on Wednesday, which is expected to go off smoothly irrespective of Cronyn’s objection.

“It only takes one person to object to a vote,” said Reid spokesperson Jim Manley. “She’ll be confirmed tomorrow with an overwhelming bipartisan support,” he added.

Sen. Clinton, who bid an informal farewell to her constituents at a reception hosted by New York Governor David Paterson on Monday night, did not comment on the decision, however she will not formally resign her Senate seat until she is confirmed.

On Obama’s first day in office, Republicans expressed resistance to the Democratic stimulus plan, reports the AP:

Facing Republican resistance to a massive economic stimulus plan, the Obama administration on Wednesday said $3 of every $4 in the package should be spent within 18 months to have maximum impact on jobs and taxpayers…

Indeed Republicans, who said they were receptive to Obama’s call for a “unity of purpose,” promptly tested the day-old administration. They criticized the Democratic plan and requested a meeting with the president to air their tax-cutting plans.

The New York Times reports that Obama is expected to sign executive orders closing the CIA’s network of secret prisons and the closing of Guantanamo on Thursday:

President Obama is expected to sign executive orders Thursday directing the Central Intelligence Agency to shut what remains of its network of secret prisons and ordering the closing of the Guantanamo detention camp within a year, government officials said…

And the orders would bring to an end a Central Intelligence Agency program that kept terrorism suspects in secret custody for months or years, a practice that has brought fierce criticism from foreign governments and human rights activists. They will also prohibit the C.I.A. from using coercive interrogation methods, requiring the agency to follow the same rules used by the military in interrogating terrorism suspects, government officials said.

In addition, the Obama administration declared their willingness to talk to Iran “without preconditions,” as reported by The Guardian.

The Obama foreign policy agenda that appeared on the White House website declared: “Barack Obama supports tough and direct diplomacy with Iran without preconditions.” The Bush administration made direct talks between the US and Iran conditional on Iranian suspension of its uranium enrichment programme. The only exception was some discussion in Baghdad on the future of Iraq.

The Obama initiative represents a distinct break from that policy, as part of a fundamental shift in diplomatic approach. The Obama agenda said the new administration would “talk to our foes and friends” and not set preconditions.

From AP: President Barack Obama’s first public act in office Wednesday was to institute new limits on lobbyists in his White House and to freeze the salaries of high-paid aides, in a nod to the country’s economic turmoil.

Announcing the moves while attending a ceremony in the Eisenhower Executive Office Building to swear in his staff, Obama said the steps “represent a clean break from business as usual.”

In addition to staff and ethics orders, President Obama’s schedule was filled with meetings about the war in Iraq, the recession, phone calls with world leaders among other initiatives. His administration also kept an eye on various cabinet nominations moving through the Senate, including Hillary Clinton’s recently confirmed position as Secretary of State.

More on Obamas’ First Day

In a first-day whirlwind, President Barack Obama showcased efforts to revive the economy on Wednesday, summoned top military officials to the White House to chart a new course in Iraq and eased into the daunting thicket of Middle East diplomacy.

“What an opportunity we have to change this country,” said the 47-year-old chief executive, who also issued new ethics rules for his administration, hosted a reception at the presidential mansion for 200 inauguration volunteers and guests selected by an Internet lottery and even took the oath of office again after it was flubbed Tuesday.

After dancing at inaugural balls with first lady Michelle Obama past midnight, Obama entered the Oval Office for the first time as president in early morning. He read a good luck note left behind by President George W. Bush, then began breaking cleanly with his predecessor’s policies.

Aides circulated a draft of an executive order that would close the detention facility at Guantanamo Bay, Cuba, within a year and halt all war crimes trials in the meantime.

Closing the site “would further the national security and foreign policy interests of the United States and the interests of justice,” read the draft prepared for the new president’s signature. A copy was obtained by The Associated Press, and an aide said privately that Obama would sign a formal order on Thursday.

Some of the 245 detainees currently held at Guantanamo would be released, while others would be transferred elsewhere and later put on trial under terms to be determined.

Obama’s Cabinet was moving closer to completion.

At the Capitol, the Senate confirmed Hillary Rodham Clinton as secretary of state after a one-day delay forced by Republicans. The vote was 94-2, and spectators seated in the galleries erupted in applause when it was announced.

Treasury-designate Timothy Geithner emerged unscathed from his confirmation hearing, apologizing for having failed to pay $34,000 in taxes earlier in the decade.

To the evident anger of Sen. Patrick Leahy, D-Vt., chairman of the Senate Judiciary Committee, Republicans on the panel invoked long-standing rules to postpone a vote on Eric Holder’s appointment as attorney general.

Counting Clinton, seven Cabinet members have been confirmed so far, as have the two top officials at the Office of Management and Budget.

Obama’s schedule for the day included separate sessions on the economy and the wars in Iraq and Afghanistan.

The new president has pledged to take bold steps to revive the economy, which is struggling through the worst recession since the Great Depression. Last week, he won approval to use $350 billion in leftover financial industry bailout funds.

He presided over the White House meeting on the economy as the House Appropriations Committee moved toward approval of $358 billion in new spending, part of the economic stimulus package making its way to his desk.

The new commander in chief held his first meeting in the Situation Room, where he, Vice President Joe Biden and senior military and foreign policy officials discussed war in Iraq and Afghanistan. Obama campaigned on a pledge to withdraw U.S. combat forces from Iraq within 16 months, and to beef up the commitment in Afghanistan. Obama asked the Pentagon to do whatever additional planning necessary to “execute a responsible military drawdown from Iraq.”

The new White House press secretary, Robert Gibbs, said Obama’s phone calls to leaders in the Middle East were meant to convey his “commitment to active engagement in pursuit of Arab-Israeli peace from the beginning of his term.”

Gibbs also that in conversations with Israeli, Palestinian, Egyptian and Jordanian leaders, the president emphasized he would work to consolidate the cease-fire between Israel and Hamas in Gaza.

Obama intends to name former Senate Majority leader George Mitchell as a special envoy to the region.

Not everything was new at the White House.

In the Oval Office, Obama worked at a desk built from the timbers of a British naval vessel, the HMS Resolute, and used off-and-on by presidents since the 1870s, including Bush. It also appeared that the carpet that Bush used in his second term, a yellow sunbeam design, was still in place.

If some of the furnishings remained in place, there was no doubt that the new president meant to fulfill his campaign promise of change.

“As of today, lobbyists will be subject to stricter limits than under any … other administration in history,” Obama told reporters as he signed the new rules. The restrictions included a ban on gifts by lobbyists to anyone serving in the administration.

He also imposed a pay freeze for about 100 White House aides who earn $100,000 or more. Its implementation was unclear, since none of them was on the payroll before Tuesday’s noontime inauguration.

On Tuesday, within hours of Obama’s inauguration, his administration froze last-minute Bush administration regulations before they could take effect.

Among them was an Interior Department proposal to remove gray wolves from Endangered Species protections in much of the northern Rocky Mountains, and a Labor Department recommendation that would allow companies that manage employee retirement plans to market investment products to plan participants.

On Wednesday night, Chief Justice John Roberts administered the oath to Obama at the White House _ a rare do-over. The surprise moment came in response to Tuesday’s stumble, when Roberts got the words of the oath a little off, which prompted Obama to do so, too.

The White House reassured that Obama has still been president since noon on Inauguration Day. But Obama and Roberts went through the drill again out of what White House counsel Greg Craig called “an abundance of caution.”

Obama also dropped by a party for his staff at a packed DC Armory, telling his supporters that they deserve credit for his historic election victory, in part because they didn’t know any better. He said they simply didn’t know that a guy like him shouldn’t win, that their fundraising model wasn’t typical and that the odds were stacked against them.

Obama and his wife began their day at a prayer service that is traditional for the first business day of a new administration. They were joined in front-pew seats by Biden and his wife, Jill, as well as former President Bill Clinton and his wife, hours away from confirmation as the nation’s top diplomat.

“Grant to Barack Obama, president of the United States, and to all in authority your grace and good will. Bless them with your heavenly gifts, give them wisdom and strength to know and to do your will,” prayed the Rev. Andy Stanley, one of numerous clerics from several religions to speak.

Obama and his wife also played host and hostess for a select 200 at an open house.

“Enjoy yourself, roam around,” a smiling Obama told one guest.

“Don’t break anything.”