**UPDATED**
Poll Finds Wariness About Cutting Entitlements is the headline. Does anyone believe Pres. Obama or Rep. Paul Ryan will support it through policy?
The austerity play is a wrap, the opposition player now cast. It remains to be seen who will speak for the American people.
Pres. Obama didn’t do it on health care and he didn’t do it when he extended the Bush tax cuts to the wealthiest 1%. It won’t surprise me if Obama suggests changing Social Security, though my realist center believes he’ll need a second term to go that far, but I’m in the minority on this one and well could be wrong. He didn’t conjure up the deficit commission on a lark.
From the New York Times/CBS poll:
Yet their preference for spending cuts, even in programs that benefit them, dissolves when they are presented with specific options related to Medicare and Social Security, the programs that directly touch the most people and also are the biggest drivers of the government’s projected long-term debt.
Nearly two-thirds of Americans choose higher payroll taxes for Medicare and Social Security over reduced benefits in either program. And asked to choose among cuts to Medicare, Social Security or the nation’s third-largest spending program — the military — a majority by a large margin said cut the Pentagon.

larger & more graphics here
All of this money talk comes at the end of a week where Pres. Obama hosted Pres. Hu Jintao.
Dylan Ratigan has an important post that expands the conversation to the Fed. (Also see Matt Stoller’s post, former senior adviser to Alan Grayson, who points here for you econ wonks.) From Dylan:
A recent article in the Wall Street Journal showed that most of the people who lost jobs in this most recent recession found new ones at lower pay. Over a third of these people had to take pay cuts of at least 20%. Pay cuts. We haven’t real sustained pay cuts across a large swath of Americans since the 1930s.
But this isn’t just a tragedy; it is in fact a conspiracy. The people in charge aren’t just failing to prevent this from happening. They want it to happen. You see, pay cuts for workers mean that prices as a whole in the economy don’t rise. There’s less inflation, which means that banks and creditors make more money.
[...] Officially, of course, we have a Congress, and a President, but to really know what’s going on, you have to read the transcripts from (Federal Open Market Committee) meetings. The Fed releases them on a five-year lag, so we can only know what they were saying as of 2005. That’s better than it used to be; the Fed used to release nothing at all, and shred the transcripts of its meetings.
Regardless, the lack of attention to what these people say and think is key to the dominance of our lives by the big banks. The Fed – the adults in charge – are often working on behalf of Chinese interests, and on behalf of our own oil dependency (for a similar reason, oil imports create financial flows that then recycle back through American banks). They may not know it. Or they just may not distinguish between Chinese interests and the interests of JP Morgan, etc.
I truly wish I could tell you that Obama’s SOTU would be a defense of Democratic principles and would target the big banks and our China challenge, including that they can’t survive without our consumption, but I can’t. With the pick of GE’s CEO Jeffrey Immelt to Obama’s economic team all we’re going to get is Obama’s show, the 2012 version, which will give whatever he has to in order to grease the skids for his reelection.
Bill O’Reilly is going to come unglued over Immelt, which will no doubt lend itself to more priceless Bill-O head exploding moments.

At the end of a week where Pres. Ju Jintao was given the red carpet treatment, it’s important to remember that differences matter and that while doing business, human rights shouldn’t be negotiable. However, in today’s reality they are.
UPDATE: Great column from David Sirota, “Is America too corrupt to keep up (with China)?:
As Bloomberg News reported during the stimulus negotiations, the U.S. Chamber of Commerce fiercely lobbied against the “Buy America” provisions when Congress debated them, just as the group lobbies against similar proposals today. That may seem strange coming from an organization whose name pays homage to this country. But don’t be fooled: The chamber is a front group for huge multinational firms whose first priority is not this nation’s economy, but a profit-maximizing business model based on exporting jobs and production facilities to low-wage countries abroad. Those firms, of course, make massive campaign contributions to both parties and such donations come with the expectation of legislative favors – like, say, killing initiatives to strengthen “Buy America” laws.
UPDATE: From transcript of Air Force One press gaggle:
MR. GIBBS: What’s going on?
Q Can you confirm this story the President warned Hu Jintao that if China didn’t step up its pressure on North Korea the U.S. would have to redeploy its forces in Asia?
MR. GIBBS: Well, I’ll say this. Look, I think we have, through the President, through the Secretary of Defense, through the Secretary of State, have worked to bring — to express our concern about the aggressive activities of North Korea and to work to bring the Chinese effectively into helping us deal with some of those problems.
We were pleased out of the summit — or, I’m sorry, out of the trip that, as I said yesterday, that the Chinese acknowledging for the first time in the statements that we put out the enrichment program that the North Koreans had and the steps that needed to be taken to deal with it. And we’re pleased that the South Koreans and the North Koreans are beginning talks.























