Obama accuses McCain of smear campaign

By Mark Egan

ASHEVILLE, N.C. (Reuters) - Democrat Barack Obama counterattacked on Sunday against a new Republican tactic by saying rival John McCain was more interested in a smear campaign than fixing the U.S. economy.

With McCain losing ground in opinion polls, a campaign strategist was quoted as saying the Republican presidential candidate needed to "turn the page" on the economic issue and make the election about Obama's experience and character.

That effort started on Saturday when Republican vice presidential candidate Sarah Palin accused Obama of "palling around with terrorists" in reference to his acquaintance with Bill Ayers, a former member of the Vietnam War-era militant Weather Underground.

Obama came back at the Republicans at a rally in Asheville, North Carolina, a swing state where the Democratic presidential candidate was preparing for his second debate with McCain on Tuesday.

"Senator McCain and his operatives are gambling that he can distract you with smears rather than talk to you about substance," Obama said in prepared remarks. "They'd rather try to tear our campaign down than lift this country up."

"It's what you do when you're out of touch, out of ideas and running out of time," he said a month before the Nov. 4 election.

Obama's improvement in the polls was fueled by the public's perception that he can best handle the ailing economy. The Illinois senator tried to keep the focus on the economy and used the "turn the page" quote as a way of keeping the issue alive.

"We're facing the worst economic crisis since the Great Depression, and John McCain wants us to 'turn the page?'" he said in the Asheville remarks.