The only way to escalate now is to riot.
I think this is what will happen next:
-A wag-the-dog bombing of an aspirin factory in Libya to try and generate a “rally around the CIC” effect is all but assured.
-Obama is going to make a major speech on a university campus, proposing that we forgive all outstanding student loan balances (in the name of “jump starting the economy”)
-He will openly embrace the use of Eminent Domain and enforced cramdowns to get people out of underwater mortgages.
-Eric Holder is going to formally indict some Wall Street bankers for something to throw some red meat to the crowd.
-Romney’s tax returns, by hook, crook or otherwise, are going to mysteriously turn up in the New York Times.
-Obama will, as a very last resort and under sheer duress and panic, finally make some steps towards triangulation.
This may involve making racially conciliatory remarks, backing down from his birth control confrontation with the Catholic Church, or similar.
I expect a total lie to be dropped on the public in a couple of weeks. An unnamed source will be quoted about some off the wall accusation of something Romney did while in France. It will be absurd, totally indefensible and totally untrue. But Romney will have to address it and it will probably cost him votes, i.e. the drunk driving report on W in 2000.
They haven’t gone hard on the Mormon angle. A bit here and there, but no frontal assault. I expect that to come.