Cuts in place, Obama and GOP brace for next fight

Various sectors hit with spending cuts
Associated Press
Mar 3, 2013

 

Severe spending cuts now the law of the land, President Barack Obama and congressional Republicans refused Saturday to concede any culpability for failing to stave off what both parties acknowledged was a foolhardy way to slash $85 billion in federal spending.

The still-fragile economy braced itself for the gradual but potentially grave impact of the across-the-board cuts, which took effect Friday night at the stroke of Obama's pen. Hours earlier, he and congressional leaders emerged from a White House meeting no closer to an agreement.

Even as they pledged a renewed effort to retroactively undo the spending cuts, both parties said the blame rests squarely on the other for any damage the cuts might inflict. There were no indications that either side was wavering from entrenched positions that for weeks had prevented progress on a deal to find a way out: Republicans refusing any deal with more tax revenue and Democrats snubbing any deal without it.

"None of this is necessary," Obama said in his weekly radio and Internet address Saturday. "It's happening because Republicans in Congress chose this outcome over closing a single wasteful tax loophole that helps reduce the deficit."

The president said the cuts would cause "a ripple effect across the economy" that would worsen the longer they stay in place, eventually costing more than 750,000 jobs and disrupting the lives of middle-class families.

In the Republican-controlled House, GOP lawmakers washed their hands of the mess, arguing that bills they passed in the last Congress to avert the cuts absolved them of any responsibility. Those bills passed with little to no Democratic support and were never taken up by the Senate.

"We've done the work and shown that these choices can be made in a responsible, thoughtful way," said Rep. Cathy McMorris Rodgers of Washington in the GOP address.

Obama was holding out hope that as Americans start feeling the effects of the sequester — the term used for the automatic spending cuts — public pressure will force lawmakers back to the table. Ever wary that such fiscal fiascos could jeopardize the rest of his second-term agenda, Obama vowed in his weekly address to keep pushing reforms on immigration, preschool, gun violence and transportation.

But attention was already turning to the next major budget hurdles, with less than a month to negotiate a plan to fund the government beyond March 27 and a debt-ceiling clash coming in May.

Hopes that a measure to undo the spending cuts could be wrapped into a March deal to keep the government running dimmed Friday when both Obama and House Speaker John Boehner said they'd prefer to keep the two issues separate.

"I'm hopeful that we won't have to deal with the threat of a government shutdown while we're dealing with the sequester at the same time," Boehner said.

 

Comments

Really are you ...

.

reese

Contango,

Thanks again for another great link! I like the way this guy thinks.

John Harville

Did you read the rest of the story... 57% of that is Republican

reese

Yes!

goofus

Huh? Where did that number come from??

goofus

Long live the Muslim Brotherhood in Egypt and their huge check written by Obozo!

The Big Dog's back

Muslims will be more than one-quarter of the Earth's population by 2030, according to a study released today.
The number of U.S. Muslims will more than double, so you are as likely to know a Muslim here in 20 years as you are to know someone Jewish or Episcopalian today.
Those are among key findings in " The Future of the Global Muslim Population," the first comprehensive examination of Muslims, whose numbers have been growing at a faster rate than all other groups combined.

Get use to it goof.

Contango

So are ya planning on converting Pumpkin?

Salam.

goofus

Moderators have removed this comment because it contained Remarks that discriminate based on age, race, religion, disability, etc..

Really, guess you can't repeat what you hear on the lamestream media

goofus

Allah Akhbar

arnmcrmn

One Big Axx Mistake America.

whocares

Congress and the President need to go back on vacation. The more time they spend out of Washington, the less they screw up.

Contango

"According to a new book by a senior former State Department adviser," Pres. BHO is a "dithering" control freak:

http://www.telegraph.co.uk/news/...

Surprising huh?

-----------------

@ John Harville:

For one, the reduced deficit is due to an accounting trick of adding back in the repaid TARP funds.

If the deficit is falling, why is it on schedule to increase to $17T in 2013?

The Fed Reserve is buying almost 77% of U.S Treasuries and is helping to prop up this regime and the economy. The Fed’s balance sheet is growing by almost $1T annually.

What do you think is driving the Dow higher, Pres. Obama’s policies? lol

goofus

President Harrison J Bounell isn't worried about sequester look at what he is up to
http://weaselzippers.us/2013/03/...
http://cnsnews.com/news/article/...
http://www.thegatewaypundit.com/...

goofus

The left's agenda exposed
http://www.realclearpolitics.com...

arnmcrmn

US bringing in a record 2.7 Trillion in tax receipts this year and we can't even get this administration to admit we have a spending problem. Spending is expected to hit 3.55 Trillion in 2013 alone. The president got a 650 billion tax hike on January 1st.

The only way out of this mess is taxing everyone, not just the rich. There aren't enough rich people out there to make a dent. Time for a NATIONAL TAX where everyone pitches into the jar.

OSUBuckeye59

Our government works like a well-oiled farm goat, eating up everything in sight and leaving, at best, fertilizer.

Although the federal deficit is the amount each year by which federal outlays in the federal budget exceed federal receipts, the gross federal debt increases each year by substantially more than the amount of the deficit each year. That is because a substantial amount of federal borrowing is not counted in the budget: http://american.com/archive/2011....

While it is true the federal deficit has been decreasing since Obama's first official budget with FY 2010, when you add in agency and treasuries debt, the true and extremely ugly graph (see above URL) causes me to gasp for air.

And concerning the sequester, the painful truth is that the sequester was put in place by Congress with the president’s approval and encouragement in 2011. The idea of automatic sequestration came out of the same obsession with deficit-cutting mania coupled with austerity measures that has put much of Europe into recession and prevented the US economic recovery from fulfilling its potential. In fact, let's look at Britain, a country now probably entering its third recession since 2009. Two years ago, with the British economy just coming out of recession, David Cameron, Britain’s Conservative Prime Minister, and George Osborne, his chancellor of the Exchequer, raised taxes and cut social spending in order to reduce the British deficit and, they claimed, enable newly confident businesses to use all that savings to invest and re-charge the economy. None of that has come close to happening. Tax revenue is dismal, and the country’s deficit, excluding interest payments, remains the highest, by percentage of GDP, of any European nation. And what of all that promised investment that was predicted? Not only did a chunk of new savings fail to materialize, capital injections in the economy have been weak. They contributed only 0.4% to economic growth in 2012, half of the government’s forecast. As for exports, which the government also insisted would rise as the value of the pound fell, the nation’s current account deficit, the excess of its imports (plus investment income) over exports, is now no better than in 2009.

Congress is indeed a goat farm, and Obama the goat herder.

Mr Bean

Anyone who feels that this president is not guilty of treason---has been riding too many "rollercoasters", and no amount of "Real talk" will convince me otherwise. You know who you are----you have voted this guy in twice---now watch your country go down the drain. Of course, you will want to blame George Bush----but it WILL be gone. None more to blame than YOU!

The Big Dog's back

I feel so much more enlightened now.

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