Are Republicans really going to blow up the economy in the debt-limit fight? All signs point to yes. On Sunday, Republican Congressman Matt Salmon called on his colleagues to shut down the government unless President Obama agrees to significant spending cuts to Social Security and Medicare Insurance.

In the House, John Boehner was narrowly elected to his second term as Speaker – surviving a revolt by a handful of Tea Party Republicans. But the action is in the Senate, where the battle for filibuster reform is heating up.

The United States is set to jump into an austerity economic death spiral this year. Already – thanks to Republican hostage scenarios forcing deep spending cuts, the United States is set to swallow $348 billion in austerity measures in 2013. That includes $200 billion in spending cuts and an additional $125 billion from the expiration of the payroll tax cut.

The House of Representatives needed overtime – but late Tuesday night, they agreed with the Senate and passed legislation to avert half of the so-called “fiscal cliff.” And despite President Obama and some Democrats declaring victory after Republicans were forced to sign on to a small tax increase for the wealthiest Americans, this fiscal cliff deal is actually a dream come true for billionaires and banksters.