From the New York Times:
President Obama’s drive for a supersize budget deal was further complicated on Friday by the release of unexpectedly weak employment figures, which Republicans seized on to bolster their arguments against possible tax increases and Democrats said were reason to limit painful spending cuts…
If this does create an impasse then that will probably be for the best – no tax hikes can be contemplated, and massive spending cuts must be done. This is the requirement of common sense in this – we’re bankrupt and we must not spend as much as we have been; meanwhile, our economy is teetering on the edge of a new recession and so we don’t dare put even the lightest additional burden on it. If Democrats can’t see their way to clear to merely roll back spending to 2008 levels – all that would be required – then there is nothing to discuss.
We’ll see how this comes out, but it does appear that the Congressional GOP has discovered a back bone (or had one implanted by the TEA Party) and at the very least any deal which does come out will be defensible on conservative/libertarian grounds.