Obama Backs Deal Based on 1967 Lines  —  WASHINGTON — Seeking to harness the seismic political change still unfolding in the Arab world, President Obama for the first time on Thursday publicly called for a settlement of the Israeli-Palestinian conflict that would create a non-militarized Palestinian state …

Senate GOP filibusters Goodwin Liu  —  Senate Republicans staged the first successful filibuster of a judicial nominee since 2005 on Thursday, dealing a blow to the Obama administration on the long-stalled nomination of Goodwin Liu to the Ninth Circuit Court of Appeals.

A Favorite Emerges for Helm of I.M.F.  —  PARIS — The French finance minister, Christine Lagarde, was on a panel at the World Economic Forum in Davos this January when her usual smile turned into a frown.  Next to her, Robert E. Diamond Jr., chief executive of Barclays and one of the most powerful bankers …

Nancy Pelosi: 'We have a plan.  It's called Medicare.'  —  “It is a flag we've planted that we will protect and defend.  We have a plan.  It's called Medicare.”  —  That's from Nancy Pelosi, who called me from Wisconsin, where she's holding events today defending Medicare in Paul Ryan's back yard.

Stephen Colbert's Free Speech Problem  —  The comedian runs up against campaign-finance law in an attempt to lampoon the Supreme Court.  —  Comedy Central funnyman Stephen Colbert, like most of his friends and allies on the left, thinks that last year's Supreme Court ruling in Citizens United v. FEC is, literally, ridiculous.

Romney, Daniels feel ‘death hug’ on their healthcare records  —  President Obama and his liberal allies tried to kill some of the Republicans' top presidential candidates with kindness on Thursday.  —  The president had fun at former Massachusetts Gov. Mitt Romney's (R) …

The Lawfulness of the U.S. Operation Against Osama bin Laden  —  [Harold Hongju Koh is the Legal Adviser, U.S. Department of State.]  —  I write in response to those who have raised questions regarding the lawfulness of the recent United States operation against Al Qaeda leader Osama bin Laden.

Giffords undergoes successful surgery  —  Doctors overseeing the recovery of Rep. Gabrielle Giffords (D-Ariz.) said Thursday that an operation to replace part of her skull “went very well.”  —  Dr. Dong Kim, the director of Neuroscience at TIRR Memorial Hermann Hospital …

Willie Nelson Changes His Tune  —  The Teapot Party began two days after Willie Nelson was arrested for marijuana possession in Texas on Nov. 28.  He sent me an email suggesting the need for an alternative to the Tea Party - the “Teapot” Party.  I started the Facebook page and and within 48 hours …

Trump's For-Profit School Said to Be Under Investigation  —  The New York attorney general's office is investigating whether a for-profit school founded by Donald J. Trump, which charges students up to $35,000 a course, has engaged in illegal business practices, according to people briefed on the inquiry.

Maria Shriver Hires a Divorce Attorney  —  Maria Shriver, who has split from husband Arnold Schwarzenegger amid a love-child scandal, has hired a divorce lawyer, sources tell PEOPLE.  —  Prominent Los Angeles family law attorney Laura Wasser is now representing California's former first lady, according to sources close to Shriver.

Plouffe, second from left, is looking for new ways to pierce the media clutter  —  DOUG MILLS / NEW YORK TIMES / REDUX  —  When Barack Obama traveled to Texas this month to talk immigration, David Plouffe, his top message guru, decided to stay home and watch Twitter instead.

The Debt Ceiling Fiasco  —  Fights over the budget are normal and proper in a democracy.  But threatening to default could have dire consequences for the dollar, interest rates and the economy.  —  The debt ceiling “crisis” started on Monday when the U.S. government reached the legal limit …

Botox Mom: I MADE IT ALL UP FOR MONEY!  —  The woman who went on “Good Morning America,” claiming she injected her 8-year-old daughter with Botox, now swears under oath ... she made the entire story up for a few hundred bucks.  —  TMZ has obtained a sworn declaration written by Sheena Upton …