Unlike chaining our first born to the mounting and unsustainable debt that will cripple their lives for generations.
The sequester is here to stay — at least for a while.
Lawmakers and aides say they do not expect Congress to turn off budget sequestration before April and that negotiations to freeze the automatic spending cuts could drag into May or beyond.
Over the last few weeks, there has been increased speculation that the sequester would go into effect Friday but be addressed in a March deal to keep the government funded.
Don’t bet on it.
Sen. Richard Burr (R-N.C.), a member of the Finance Committee, predicted sequestration would last through the end of the year.
“Are we going to roll back the size of the cuts? No. I can promise you that,” said Burr.
President Obama has invited congressional leaders to meet at the White House on Friday, the same day $85 billion in automatic cuts are due to begin. However, congressional sources do not anticipate a deal at that gathering or any time soon.
“It’s going to be one last attempt at trying to convince Republicans of the need for a balanced approach to sequester before the deadline,” said a senior Senate Democratic aide.
Now where this is going to go south is when the Republicans cave. And there is a good chance they will which is too bad. If they let the cuts settle in and people realize more money is going to be spent than last year, just a little less, they win the argument. That scares the crap of the democrats. And while the politicians attempt to sound relevant, the real problem is here.
WASHINGTON (MarketWatch) – The U.S. economy grew in the fourth quarter – but just barely – instead of contracting for the first time in three and a half years, the Commerce Department said Thursday. The U.S. expanded at a 0.1% annual rate in the last three months of 2012, better than the initially reported 0.1% drop but well below the third quarter’s 3.1% pace. Stronger residential construction and an improvement in net exports pushed growth into positive territory. They offset a bigger decline in government spending than previously suggested as well as a sharper deceleration in the buildup of business inventories. Construction spending on new homes was revised up to a 17.5% increase from 15.3%. Exports fell a revised 3.9% instead of 5.7%, while imports dropped a sharper 4.5% vs. an initially reported 3.2% decline. Consumer spending was revised down a tick to 2.1%, while government spending dropped 6.9% instead of 6.6% as originally reported. Business inventories, meanwhile, grew a scant $12 billion in the fourth quarter after previous advances of $60.3 billion in the third quarter and $41.4 billion in the second. The slower pace of inventory growth subtracted 1.6 percentage points from fourth-quarter GDP. Lower government spending chopped 1.4 percentage points off GDP. Also, the government trimmed the increase in personal income in the fourth quarter to a 6.2% gain from 6.8% previously. Inflation as measured by the PCE index rose at a subdued 1.5% rate, or by 0.9% excluding food and energy. The government revises the original GDP report twice to incorporate fresh data not available for the preliminary reading. A third and final reading will come out next month.
This is probably the best visual of just how small the sequester is