In an interview with the Wall Street journal,  Google’s Chief Executive Eric Schmidt said Monday that Google is “is not completely immune” to the U.S. economic downturn.

However Schmidt said the shift in advertising towards cheaper, online methods like Google’s search business should intensify during hard times.

“If you want to cut costs to make your quarter, you need to advertise online with players like Google,”

Last week, Google reported a 26% increase in third-quarter earnings that beat expectations on Wall Street.

Among the topics discussed during the 90-minute meeting with the Journal were Google’s lack of interest in content companies, the possibility of returning some of Google’s cash to shareholders, Schmidt’s personal support for Obama and the criticism that Google is involved with too many different ventures.

“Google is focused on too many things,” Schmidt said, adding that his greatest challenge in managing the company is keeping the proper level of focus on the company’s core business.

Schmidt said he supports an overhaul of the nation’s energy infrastructure, a broadband deployment strategy to bring the U.S. up to par with competing countries for high-speed Internet access, and a commitment to net neutrality standards.

Schmidt said Google has kept its rich cash supply in cash and Triple-A rated municipal bonds, and that the company has no material exposure to the mortgage related debt investments that are plaguing Wall Street.

As of Sept. 30, Google had more than $14 billion in cash and marketable securities.

Google’s acquisition of YouTube, the popular Internet video site, has been a success, according to Schmidt, despite the company’s difficulties in monetizing the site’s massive audience.

“If we had not bought them and invested in it, YouTube would have keeled over under the sheer size of its audience”.

Schmidt also reiterated the company’s longstanding unwillingness to get into the business of creating content, saying Google had no plans to acquire a traditional media company like CBS Corp. or General Electic Co.’s NBC Universal.

“We’re not very good at content,” Schmidt said. “It’s not our thing.”