1) he cannot say the Republicans are obstructing the deal because he controls the spending
2) he has to submit cuts to get the spending approved
3) he totally owns when and the amount that the debt limit gets increased
4) there is no discussion of tax increases
5) if Obama refuses it, the responsibility is his if default happens
Likely zerO will be very irritated at being put in the situation of having to ask, repeatedly, for money. Besides the box you outline above, his ego is getting poked.
Irritated opponents make mistakes.
I agree that this political jujitsu.
Your step 2 is stated incorrectly.
His cuts can be anything and if totaled correctly cannot be stopped without a 2/3rds vote of both houses.
In other words Congress abrogates all financial control because the TV people may talk bad about them.