so how do they spin this?
That was my first thought!
By quoting one of Obama's spokespeople of course:
"The Iranians have an internal dynamic that they have to manage and the relationship with the United States is clearly quite different than the relationship that Iran has with other Western nations..."
As in this Politico story. http://www.politico.com/story/2013/09/obama-hassan-rouhani-meeting-97278.html
Of course the story mentions NOTHING of the monumental embarrasment that the Iranian turndown represents. Nor does it mention the utter shambles that our State Department has to be in to recommend an invitation without having a clue that it would be turned down.
The brave and ever omnipotent Obama offered an olive branch to Rouhani and was severely insulted by this rejection.
I had the same question - here's how the MSM is spinning the story to ensure that there is no embarrassing fallout for Obama:
"(AP) Senior U.S. officials say President Barack Obama and Iranian President Hasan Rouhani will not meet while both leaders are at the United Nations. The officials say a meeting proved to be too complicated for the Iranians. But they say work is under way at the staff level to resolve an impasse over Iran's nuclear program."
There you have it - not a hint that the Iranians rebuffed Obama. Once again, the MSM is covering for Obama...