As diaried here, John Boehner has laid down his cards - cards that anyone paying attention should have predicted. The diarist writes that "I'm actually not sure what this means." I'm afraid I think I do. These negotiations need to be put in the context of the deal struck last December extending the Bush tax cuts. When the President gave the GOP what it wanted on extending the Bush tax cuts without getting agreement on the budget and the debt ceiling, the conclusion of these particular round of negotiations was inevitable- the GOP will always be willing to engage in Madman Political Bargaining and Democrats will always blink.
At every point of negotiations, the GOP will demand more. Next up is of course next year's budget. Expect even more cuts and no new taxes.
What this means is 2 trillion in cuts now. A few trillion more for next year's budget.
It means anti-stimulus and more economic hardship. It means, in the best of circumstances, a continuation of our Lost Decade. In the worst, it means our own 1938, and a second recession.