The Republicans hoped to tie some spending cuts or even entitlement revision to the debt limit increase. It isn't working, Obama said no deal. In fact he is asking for tax hikes.
If the Republicans hang tough, let the money run out and shut the US government down, will it help them win in 2012? With the ever helpful main stream media blaming the republicans full time? Something like this happened back in Gingrich/Clinton time and it didn't work out for the GOP. That's why Gingrich is no longer Republican Speaker of the House, or even a Congressman.
Or, the Republicans can say, "Here is a $2.5 trillion hike to the national credit limit." Humiliating, but perhaps better than losing the blame game. And then spend the time to election refusing to pass porky spending bills. McConnell in the Senate is proposing just that policy.
What comes next? Film at 11.