Here’s my take: Obama wants Republicans to not raise the debt. He can then blame them for all the economic failures of this administration.
There is no way back from here.
Any cuts big enough to have any chance will cause a revolt in the streets. We are presently borrying 41% of the budget just to stay at this economic level. Any cuts will cause further economic slow-downs and result in less taxes collected and requiring more borrying.
The only solution is to inflate the debt away by printing more 'funny money' till it's worthless. This will also cause a revolt in the streets.
There's no (peaceful/bloodless) way back from here.
Prepare now.