Sequestration, or how I lost faith in the Beltway and our Elected Leaders
Today, the US Federal Government will recognize an $85B decrease in spending, spread across Defense ($42.7B), Discretionary Spending ($28.7B), Medicare ($9.9B), and “Other” ($4.0B). This is known as the Sequester, and you can read more about it here. I suggest that you do.
In other news, the CBO estimates the US spent $220B in interest payments on our federal debt in 2012. We will have cut $85B in spending while paying $220B in interest on the federal debt. The 2013 budget for the federal government is expected to be $3.8 trillion.
$85B/3.8T = around 2.5% in total planned spending. The CBO expects $2.9T in revenue for 2013, leading to a $900B deficit.
As you were. Nothing to see here.