* With House Republicans now rejecting a deficit deal with no tax increases, Obama will address the nation at 9 p.m. tonight in perhaps his final effort to use the bully pulpit to break the impasse (or shift blame for impending default to the GOP).

* Obama will reportedly warn tonight that the nation is facing the “imminent threat of default.”

* Nancy Pelosi startles the left by endorsing Harry Reid’s deficit compromise proposal, even though it contains deep spending cuts and no revenue increases, with language that supports the right’s “austerity” frame. From Pelosi’s statement:

“It is clear we must enter an era of austerity; to reduce the deficit through shared sacrifice...Senator Reid has put forward a responsible plan to reduce the deficit that protects the middle class, and Medicare, Social Security and Medicare beneficiaries...”

* Which prompts Atrios to observe that the contrast between the parties has now become: “the austerity party vs. the austerity party.”

* Dave Weigel, on Pelosi’s statement: “That’s the sound of the Democratic Party’s leader in the House caving on the argument that motivated Democrats for the past three years.”

* Get this: House Dem John Larson is still holding on to the illusion that the defict should be tackled with cuts and revenues, and as a result he won’t support Harry Reid’s latest plan.

The poor deluded fellow is still holding out for a compromise proposal that involves both sides giving up something!

* Relatedly, Steve Benen attempts (yet again) to explain to conservatives what the word “compromise” means. Time to try Dick-and-Jane speak, Steve.

* Wow: Conservatives waste no time bashing John Boehner’s proposal to raise the debt ceiling in stages, and in exchange for only spending cuts, raising doubts as to whether even this plan can pass the House.

* Relatedly, an ice-cold statement from Republican Study Committee Jim Jordan dismissing Boehner’s proposal as not being a “real solution.”

* Bold pronouncement of the day: The Center for Budget and Policy Priorities’ Robert Greenstein absolutely blisters Boehner’s proposal:

If enacted, it could well produce the greatest increase in poverty and hardship produced by any law in modern U.S. history.

* Okay, so the markets haven’t yet rendered a harsh verdict on the debt ceiling implosion, but you’re kidding yourselves if you think the very worst isn’t yet to come.

* The International Monetary Fund warns that it’s “critical” that we raise the debt ceiling for the sake of the global economy.

* And some sorely needed Monday comic relief: Erick Erickson, who apparently thinks he wields tremendous power over the House GOP caucus, declares that he will never grant his “absolution” (his word) to any Republican who doesn’t do exactly what he wants in the debt limit fight.

What else is going on?

UPDATE: I forgot to mention that Jed Lewison made a very good point here: If we do the debt ceiling in stages and revisit this battle again in a few months, it will further delay efforts at job creation.