Ben Smith (who’s obviously in the tank for Obama) credits the candidate with successfully dismissing the question, and links a Reason piece by David Weigel, wittily titled Everything’s Gonna Be All White, which pooh pooh’s it.

Sen. Barack Obama on Thursday batted down rumors circulating on the Internet and mentioned on some cable news shows of the existence of a video of his wife using a derogatory term for white people, and criticized a reporter for asking him about the rumor, which has not a shred of evidence to support it.

“We have seen this before. There is dirt and lies that are circulated in e-mails and they pump them out long enough until finally you, a mainstream reporter, asks me about it,” Obama said to the McClatchy reporter during a press conference aboard his campaign plane. “That gives legs to the story. If somebody has evidence that myself or Michelle or anybody has said something inappropriate, let them do it.”

Asked whether he knew it not to be true, Obama said he had answered the question.

But the rumor’s chief source, leftwing retired-Spook and Plamegame team member Larry Johnson retorts:

When a politician tap dances on nuance–Baby it is true. My sources have not backed off. They maintain they have a tape and will drop it on the Dems in the fall. Now if Barack said, “No, and hell no” I would be wondering about my sources. But he punted. He went for the weasel word. The non-denial denial.

Time will tell.

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