This should be very interesting to see how Hillary Clinton fares as Secretary of State in the Obama administration. Clinton has proven herself to be a very able politician. Despite any clashes during the primaries, she and Obama have never been far apart on their policies and goals for gorvernment so I don’t see any unmanageable friction. Aside from any ideological differences I have with Clinton, my major worry with her candidacy was her status as a lightning rod within the political community. I would not expect that to be as big an issue with the position of Secretary of State, but it looks like we’re going to find out.
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The Clintons have had a significant political machine that has held much sway in the Democratic Party for many years now. That machine’s power has waned with the ascendancy of Obama. Obama is trying to mend fences to a degree (so that the Clinton machine can still be useful) with this appointment, rather than appointing a competent diplomat.
I didn’t call her a diplomat. I agree with your assessment about why Obama is making this appointment.