President Obama and Republicans are engaging in dangerous brinksmanship. Putting off a political solution to the looming "fiscal cliff" until after the election risks a second Great Depression.

Without a compromise by January, $400 billion in mandatory spending cuts and more than $100 billion in tax increases will immediately go into effect. With our economy only growing by only  $300 billion annually, such a shock would thrust it into a prolonged contraction.

The failure the Obama $767 billion stimulus package to adequately jump start growth makes a second such initiative unlikely. Interest rates are at already at record lows. These leave policymakers too few tools once things start unraveling. However, President Obama has given Republicans hardly any political choices but to roll the dice.

Facing reelection, he promises to veto any extension of Bush-era tax cuts for middle- income Americans if Congress does not raise rates on upper-income families. He won't entertain meaningful cuts in entitlement spending or health care.