Obama ultimately traded away about a quarter of the revenue he would have gotten in the no-deal scenario in return for extending unemployment benefits and some temporary tax extensions. A bad deal, but not an awful one — like Jeffrey’s offer of giving the nihilists the four dollars in his wallet. The nihilists curse at Walter (“fuck you!”
in basically the same way John Boehner curses at Reid (“go fuck yourself.”
. They angrily rage at the unfairness of the circumstances — nihilists: “We thought we would get a million dollars! It’s not fair!” — in much the same way the most deranged House Republicans thrashed about trying to set the tax threshold at a million dollars a year, making impossible demands, and otherwise refusing to accept the basics of the negotiating dynamic. (Luke Russert quoted, via Twitter, a Republican member on yesterday's meeting: "Felt like I was living in another world, guys asking for stuff there's no way Ds wld give on.") Say what you will about the tenets of supply-side economics, dude — at least it’s an ethos.
The problem here is not the $200 billion in revenue Obama traded away. It’s the fact that he allowed Republicans to use the nihilism of their own members as a bargaining chip. Unlike the expiration of the Bush tax cuts, the debt ceiling is a real hostage. Failing to lift it would have real and immediate effects. And Obama’s political club against Republicans is far weaker — rather than demanding they do the popular thing of extending middle class tax cuts, he’ll be demanding that they take an unpopular vote to lift the debt ceiling.