Obama says across-the board cuts are not inevitable

WASHINGTON Fri Feb 22, 2013 2:10pm EST

U.S. President Barack Obama talks against automatic budget cuts scheduled to take effect next week, while in the South Court Auditorium in the Eisenhower Executive Office Building in the White House complex in Washington February 19, 2013. REUTERS/Larry Downing

U.S. President Barack Obama talks against automatic budget cuts scheduled to take effect next week, while in the South Court Auditorium in the Eisenhower Executive Office Building in the White House complex in Washington February 19, 2013.

Credit: Reuters/Larry Downing

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WASHINGTON (Reuters) - President Barack Obama said on Friday he does not believe it is inevitable that Congress will let deep automatic spending cuts go into effect March 1.

Obama and congressional Republicans are at loggerheads over government spending and taxes, and do not appear to be on track to prevent the cuts, known as sequestration, from going into effect as scheduled.

Obama said that if allowed to take place, the reductions would slow the U.S. economy, with a ripple effect on growth around the world. However, the spending cuts are not likely to cause a shock to the world's financial system, he said during a meeting with Japanese Prime Minister Shinzo Abe.

(Reporting By Jeff Mason, Roberta Rampton and Mark Felsenthal; Editing by Vicki Allen)

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Comments (25)
PhilBickel wrote:
The Defense Department said last week that they were unable to deploy an aircraft carrier to the Mideast because of budget cuts.

Less than two months ago our First Family vacationed in Hawaii at a cost of 3.5 million, and this week they took, not one, but two vacations to Palm Beach, and Vale at a cost of almost two million dollars.

85 billion dollars in sequestration cuts are a 2.37% cut in the budgeted spending, and actually they cuts in the increase only. We are destroying the future of our nation under crushing debt, and the news media is a willing accomplice.

Feb 22, 2013 2:23pm EST  --  Report as abuse
COindependent wrote:
I will bet $500 that if I took CFO’s from five of the Dow Industrial 30 companies–segregated by political affiliation (two Dems, two Conservatives and one Independent) and we offer them $100,000 each to identify 5% in real cost “reductions” from the federal budget–they could hit that mark within 30 days–(a) without cutting one federal employee or (b) diminishing the effectiveness (a relative term) of the federal government.

I would even venture $500,000 per person should they identify a 10% reduction in spending under the same terms. The $2.5 million would be money well spent.

They can then spend my $500 on aspirin to relieve the headaches they endured from shaking their heads so frequently at the gross inefficiencies and waste they identified.

Feb 22, 2013 2:42pm EST  --  Report as abuse
xyz2055 wrote:
PhilBickel..did you know that each and every Congressman gets more than $1M a year to run their office in Washington. With 535 Congressman it’s more than $535,000,000 a year. Several years ago John Kyle (R, Az) bought a Winnebago with his take so he could visit his constituents.

Feb 22, 2013 2:58pm EST  --  Report as abuse
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