FactCheck.org : Context Included: Obama on Iran: "McCain’s new ad, released on Day 3 of the Democratic National Convention, quotes Obama saying that Iran is a "tiny" country that "doesn’t pose a serious threat." It implies that he fails to see Iran’s threat to Israel.
The picture changes dramatically when Obama’s full quotes are considered:
Obama actually said of Iran, Cuba and Venezuela: "These countries are tiny compared to the Soviet Union" (emphasis ours).
Likewise, he said those countries don’t pose a serious threat to the United States "the way the Soviet Union posed a threat to us.""
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