The automatic spending cuts known as The Sequester will take into effect starting in March. The Obama Adminstration and the media is spread fear about all sorts catastrophic effects of The Sequestor. As usually in Washington, politics trumps logic. The Sequester is nothing more than fly on an elephant. We are talking about roughly the impact of a decreasing in government spending of roughly $85 billion per year (the highest will be over $100 billion) on an ecomony that produces a GDP of over $16 trillion.
If you believe the crap the Obama Administration and the media you are a court jester. There is a CBO studying claiming the GDP impact is negative 25 basis points. Even though GPD growth is 1.5% which is a 16% impact. I say this is nonsense because GDP is so huge relative to The Sequester. The stock marketing is rally which is indicating that The Sequester is a non event. In addition, the Federal Reserve is pumping in $85 billion into the economy via QE 3 (Quantitative Easing 3). Isn't it suspecious that the Fed printing is nearly equal to the automatic spending cuts? Things that make you go hmmmm? In any case, The Sequester is a bunch of crap due to a small cut in the budge relative to the huge GDP and Federal Reserve money printing.
Source: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/02/20/the-sequester-absolutely-everything-you-could-possibly-need-to-know-in-one-faq/
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