The Obama campaign is in damage-control mode because of the fallout from his “you didn’t build that” remark.

On Tuesday, Obama released a new ad with him addressing the issue, a sign that the Obama campaign recognizes that Obama’s remarks are not going to vanish from public discourse. In the ad, Obama smirks:

Those ads taking my words about small business out of context — they’re flat-out wrong.  Of course Americans build their own businesses. Every day, hardworking people sacrifice to meet a payroll, create jobs and make our economy run. And what I said was that we need to stand behind them, as America always has.

Except he’s lying. Obama said what he said. Does Obama really think that Americans can’t see that his remarks were consistent with his philosophic gestalt? Everyone knows how dearly Obama wants the federal government to intrude on all aspects of American business.

Then on Wednesday, the Democratic National Committee circulated a memo outlining how its minions could counter the Republicans’ use of Obama’s revelation.

Meanwhile Republicans saw a golden opportunity to pull the veil away from Obama and reveal his true feelings about business owners. Republican strategist Ford O’Connell said:

Obama did for Romney what Romney couldn’t do for himself, which is to create a clear contrast and unlock emotions on the key issue of the campaign. It helps Romney with independents, with GOPers and with white, working-class Democrats who needed an economic message that they could rally around. This is something that can keep the base fired up at least until the convention, and maybe longer.

Republican National Committee communications director Sean Spicer said, “I think there’s definitely a little bit of panic in Chicago right now because they realize this comment has clearly struck a chord with the American people.”

On Wednesday, the Romney campaign held 24 rallies covering battleground states where a multitude of “I built that” signs were prominently displayed as small business owners turned out to vent their anger over Obama’s economic philosophy. 

The echo the Obama campaign is hearing is the sound of Obama’s words coming back to haunt him.