Kevin Zeese and Margaret Flowers: America's Fiscal Crisis:

Sequester Facts on US Policy Manipulations you should know: Right now, the American people are like frogs in warm sequester water. For some, inundated with all the corporate media talk about out of control spending, the cuts to the deficit feel good right now. But as the sequester takes hold, and federal spending is pulled from the economy, those views are likely to change. US elected officials seem to be focused primarily on making sure the other party is to blame, when in fact both are to blame, and on measuring the political fallout. In many ways, this is part of the battle to determine which arm of the corporate duopoly will have a majority in Congress after the 2014 year elections. But for the rest of us, a large spending cutback by government in the midst of a job crisis, and shrinking GDP is exactly the wrong policy for the economy. The US economy is likely to find itself in a recession, shedding more jobs in 2013 with an increased deficit to GDP level in part because of the sequester, but also because the federal government was already in austerity, shrinking at a very fast rate, despite what the corporate media, pundits and politicians say. Thus the road to a double dip recession has sped up due to the sequestration. Here are some facts you should know: In fact, Zero Hedge published a disconcerting list of twelve recent events that show the next economic collapse may almost be upon us. And, they point out that the sequester will make things worse. Less money in the economy, when big business is not spending, is a sure sign of economic disaster, potentially even deflation, which could lead to worse than a recession. Federal Government Spending Percentage Change: The sequester will cut $85 billion in government spending from March 1 to September 30. It is a 5% cut for most federal spending, but because the fiscal year began on October 1, 2012, five months have already passed, and thus the one year cut is jammed into 7 months. Some agencies, like those providing unemployment benefits, have been unable to prepare, so there are likely to be 10% or so cuts in checks to the unemployed. Other agencies have been able to prepare, so there are likely to be 10% or so cuts in checks to the unemployed. Other agencies have been able to prepare, so there are likely to be 10% or so cuts in checks to the unemployed. Other agencies have been able to prepare somewhat, by not filling vacancies and taking other budgetary actions since last October. And others, which give out grants for research, will be giving out fewer funds in grants. How the sequester will impact agencies, will vary from program to program.