Saturday, 2 March 2013

Obama signs $85bn budget cuts into effect


US President Barack Obama has signed into effect a wave of steep spending cuts which he has warned could damage the US economy.

The cuts - known as the sequester and drawn up two years ago - will take $85bn (£56bn) from the US federal budget this year.

Last-ditch talks at the White House to avert the reductions before Friday's deadline broke up without agreement.

This news is just baffling, these cuts were designed to be so severe that it would force the politicians in Washington to negotiate a better deal, and yet somehow they still haven’t managed to.

There problems could and should have been sorted out long before the midnight deadline and now, having shot themselves in the foot, the Republicans and Democrats could potentially have caused a setback for the recovery of global growth. 

All it would have taken was a little compromise, but what the hell. 

No comments:

Post a Comment