Disclaimer: I'm on a laptop and subject to balky WiFi so no links or spell checking. Sorry
I was watching Fox New Sunday yesterday and the panelists were discussing how last Friday's lousy unemployment report mean both sides are digging in. Maybe Obama has decided that the unmeployment report means he should now adopt a higher risk strategy to reelection. It minght look something like this:
It is unlikely that he will be able, by November 2012, to convince the majority of the public that he is doing a GOOD job on the economy,but he could win a aganist a divided and/or discredited Republican Party. So he could hold out for a either a deal on his terms or let some kind of partial government shutdown occur until the Republicans capitulate due to public pressure. His terms could well some combination of phony cuts (of the kind Ross Douthat described on his blog) and distant cuts that would never be implemented in the event of an Obama reelection and hundreds of billions of tax increases implemented up front. The purpose of a deal on such terms would be to split and demoralize the Republican Party by fomenting a war between the Washington leadership and those who identify as Tea Party supporters. If Republicans don't take the deal, Obama can take his chances that the Republicans will take the blame when Social Security checks and veterans benefits are reduced(for however long the standoff lasts) when the government runs short of money and tries to avoid a sovereign default.