**President Obama
*AP: "As North Korea threatens nuclear war, President Barack Obama and South Korean President Lee Myung-bak will be eager to show the North the unity of their alliance and a determination not to back down" when they meet today. "The presidents probably will express their refusal to accept the North as a nuclear weapons state and condemn recent missile and nuclear tests."

*Time confirms the report Dennis Ross, the Obama administration's special adviser on Iran, "will be leaving his post at the State Department to become a senior adviser at the National Security Council (NSC) with an expanded portfolio. The new White House position puts him closer to the center of foreign policy power, placing him in the top ranks of Obama's in-house aides, said an Administration official."

*This week, the administration "will propose the most significant new regulation of the financial industry since the Great Depression, including a new watchdog agency to look out for consumers' interests," the L.A. Times reports. "Under the plan, expected to be released Wednesday, the government would have new powers to seize key companies -- such as insurance giant American International Group Inc. -- whose failure jeopardizes the financial system. Currently, the government's authority to seize companies is mostly limited to banks."

*Politico reports that Sonia Sotomayor "defended her membership in an elite women's only group, arguing that it's not discriminatory because men might be able to join the Belizean Grove, too, if they applied." It's important because "the American Bar Association's judicial codes state that it is inappropriate for judges to belong to groups that 'invidiously' discriminate on the basis of race, sex, religion or national origin."

*Interesting scoop from the New York Daily News: The Obama administration offered Rep. Kete King (R-N.Y.) the post of Ireland ambassador, which eventually went to Steelers owner Dan Rooney. That would have further cut down the number of New York Republicans. King: "I talk to Rahm about about a lot of things, but I keep those conversations private."

*Politics Daily: "The Iranian elections may have been a farce, but this much is certain: Millions of Iranians believe last week's election was stolen by the regime headed by fanatical hard-liner Mahmoud Ahmadinejad. ... And whether they know it or not inside the White House, President Obama now faces his first official foreign policy crisis. The immediate question is what he and his administration should say and do about it? What can they do?"

**Health Care
*The New York Times on Obama's AMA speech: "Opening a week in which health care will dominate attention in Congress, the president's speech on Monday was the latest example of an oft-used ploy to press his case: appearing before skeptical audiences, confident of his powers of persuasion but willing as well to say what his listeners do not want to hear."

*The Washington Post notes the White House strategy "to present each major stakeholder with an enticement in return for a bit of sacrifice. To insurers, Obama offered a concession and a warning. In a shift from his position during the presidential campaign, he is willing to support a requirement that every American have health insurance, which could translate into more than 40 million new customers for the industry."

*The CBO scored Sen. Ted Kennedy's (D-Mass.) health care plan, putting its cost at $1 trillion. The Hill reports "that figure looked only at a portion of the bill." "The analysis falls just within the most expensive cost scenario sketched out by Democratic leaders in recent days, but does not include an estimate for a highly contentious government-run insurance plan that would compete with private insurers."

**Congress
*The Hill: "House Republicans are preparing to vote en bloc against the $106 billion war-spending bill, a position once unthinkable for the party that characterized the money as support for the troops. For years, Republicans portrayed the bills funding the wars in Iraq and Afghanistan as matters of national security and accused Democrats who voted against them of voting against the troops."

*Sen. Tom Coburn (R-Okla.) is publishing a report highlighting 100 stimulus projects he considers "questionable federal stimulus spending." AP: "Coburn's list is partially a collection of news stories that questioned local projects to be funded under President Barack Obama's economic recovery program. The White House has promoted the program by selecting favorable newspaper stories."

**Campaign Stuff
*VA Gov: Obama sent out a fundraising e-mail to hundreds of thousands of supporters in Virginia on behalf of Democratic gubernatorial nominee Creigh Deeds. "Creigh has been a dedicated public servant his entire life. As a county prosecutor and state legislator, he's been a strong advocate for economic development, high-quality education, and affordable health care -- and he's gone to great lengths to protect the environment and institute smart public transportation. Now he needs your help to make sure Democrats retain the Virginia governorship. Please visit his website and get involved today."

*As we noted yesterday, Florida Senate candidate Marco Rubio is in Washington today and appearing with Sen. Jim DeMint. DeMint writes today that Rubio is the "Conservative We're Looking For." "He is exactly the kind of Senator Florida needs, and exactly the kind of leader our party is looking for: a conservative's conservative with a record of success in a swing state, a self-made first generation American, a dynamic Republican spokesman in two languages, a young husband and father himself dealing with the same problems middle class families like his face every day."

*Former Missouri Treasurer Sarah Steelman tells Cillizza that she's still considering a Senate bid, "pushing back against" a story in The Hill that said she would back out.

The Hill had said Steelman "appears increasingly less likely to run against" Rep. Roy Blunt, "and she acknowledged Monday that she is looking at a possible campaign for Blunt's open House seat as an alternative."

*Rep. Kendrick Meek (D-Fla.) picked up the endorsements of fellow Reps. Ron Klein and Debbie Wasserman Schultz. In response, Rep. Corrine Brown (D-Fla.), who is also considering a run, "reaffirmed her exploratory committee" and "discounted the endorsements of party insiders."

*CNN's Hamby: "The Tea Party movement appears to have produced its first official candidate for national office. Tom Cox, the founder and chairman of the Arkansas Tea Party organization, announced at a rally on Monday that he will seek the U.S. Senate seat held by Democrat Blanche Lincoln."

*Ken Rudin rounds up "what if" speculation about Sen. Robert Byrd's (D-W.V.) seat, with speculation that former Gov. Gaston Caperton (D) might be a placeholder in the event of a vacancy. Also of note: progressives seem cool to the idea of Gov. Jim Manchin (D) taking the seat.

*Shocker: the New York Times reports that even post-impeachment, there's been few if any reforms to Illinois government. "With the legislative session over, some of the biggest backers of change say a historic opportunity has been lost, that too little is being cleaned up in a state that has become a national example of political corruption at its extreme."

--Mike Memoli and Kyle Trygstad