Warren Mosler — What Happened to Fiscal Drag?

Goldman Sachs sees lagging Q2, with the brunt of sequestration only hitting in Q3.

Soft Currency Economics
What Happened to Fiscal Drag?
Warren Mosler

David Ruccio — US is suffering from government-imposed austerity before the effects of sequestration hit. (2 graphs)

...the United States is suffering from government-imposed austerity, even before the effects of sequestration hit.

Real-World Economics Review Blog
US is suffering from government-imposed austerity before the effects of sequestration hit. (2 graphs)
David Ruccio |Professor of Economics, University of Notre Dame

AFP — International Monetary Fund: ‘Sequester’ cuts will slow global economic growth

The broad US “sequester” spending cuts that take effect beginning Friday will slow growth in the world’s biggest economy and hit the global economy, the International Monetary Fund said Thursday.

“There will be an impact on global growth,” IMF spokesman Bill Murray said. “We’ll have to reevaluate our growth forecast for the United States and also our other forecasts.”

The Raw Story
International Monetary Fund: ‘Sequester’ cuts will slow global economic growth
Agence France-Presse

John T. Harvey — Suicide by Sequestration

The comedy of errors being played out in Washington would be funny were it not for the fact that the real victims will be well outside the Belt Line. Estimates of the job loss from sequestration range from 750,000 to 1 million. Not a single one of those will be from the individuals responsible for this debacle.

Forbes — Pragmatic Economist
Suicide by Sequestration
John T. Harvey | Professor of Economics, Texas Christian University

Bonnie Kavoussi — Americans To Washington: Delay The 'Steep' Sequestration Cuts

Politicians have said they may have no choice but to let automatic spending cuts kick in next Friday. But the American people say they better find a way out of it.

The government has scheduled $1.2 trillion in spending cuts, nicknamed the "sequestration," to take place starting on Mar. 1. But 54 percent of Americans support a plan to "delay steep cuts to give the economy a chance to continue recovering which would help reduce the deficit," according to a new Bloomberg poll....

Americans support delaying the sequestration even though 62 percent of Americans believe the budget deficit is growing, the poll found. In fact, the deficit is shrinking, according to the Congressional Budget Office.

The Huffington Post
Americans To Washington: Delay The 'Steep' Sequestration Cuts
Bonnie Kavoussi

Arthur Delaney — Tom Coburn: Obama Administration Exaggerating Sequestration Impact

A top Senate Republican said Sunday that the Obama administration is exaggerating the impact of looming cuts to federal spending.

The cuts, known as "sequestration," will shave $85 billion from the federal budget this year unless Congress strikes an unlikely deal to replace the cuts with something milder. The Obama administration has said many bad things will happen as a result of the cuts, including increased airport delays.

Sen. Tom Coburn (R-Okla.) told "Fox News Sunday" host Chris Wallace that the Obama administration is "absolutely" exaggerating the impact of the cuts.

"It is a terrible way to cut spending, but not to cut 2.5 percent over the total budget over a year when it is twice the size it was 10 years ago? Give me a break," Coburn said. "We see all these claims about what a tragedy it's going to be."

The Huffington Post
Tom Coburn: Obama Administration Exaggerating Sequestration Impact
Arthur Delaney

GOP shrugging of consequences of sequestration?