John Boehner has given up, for now, trying to negotiate a debt deal with Obama because Obama is insisting on a tax increase as part of any deal:

“In the end, we couldn’t connect. Not because of different personalities, but because of different visions for our country,” Boehner said in a letter to colleagues. He said Mr. Obama ” is emphatic that taxes have to be raised” and “adamant that we cannot make fundamental changes to our entitlement programs.”

TPM is reporting that Nancy Pelosi is moving towards a deal in which there would be significant cuts without tax increases, but no cuts to entitlements:

House Minority Leader Nancy Pelosi acknowledged Friday that Democrats may reluctantly accept a last-minute compromise to avoid a default that involves up to $2.5 trillion in spending cuts — without agreed-upon new tax revenues — if Medicare, Medicaid, and Social Security are protected from the debt limit brinksmanship.

Oddly enough, I think Pelosi may be onto something. Cuts — more than Democrats want but less than Republicans want — while putting aside the hot button issues of taxes and entitlements, may be the only middle ground that can work. Both sides would get a small victory, and the issue would be front and center for 2012.

Here are the dueling press conferences:

What do you think? Will there be a deal, or no deal? And will Pelosi, of all people, be the one to get it done?