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Despite the White House making wild doomsday prediction if the automatic spending cuts at -- -- is here and it turns out the sequester is.
Sounds a bit of this news or.
The house in the senate aren't even in session today.
With more on this Grover Norquist president of Americans for Tax Reform.
Doug Holtz -- the president of American action forum and a former CBO director and Steve Forbes chairman and editor in chief of Forbes media.
I will start with you -- I.
Surprise that we're all still here that western civilization is -- Annually as we now it.
Oh absolutely and I think they've got all this apocalyptic talk because they knew he could do a small cut -- would say we live with that why now why don't we do more.
And so -- we saw on New Jersey we have a budget today with this governor Governor Christie.
Far lower than was five years ago the sun still comes up in the morning in new New Jersey.
-- get an occasional storm that we supply.
-- you know look at it that we got this payroll tax increase were so many Americans working Americans at the beginning of the year.
Isn't it only fair that the federal government goes on a bit of a diet tail.
Well one of the challenges of course is the federal government spent on a binge.
And just beginning to bring it back Obama thinks -- make the world collapse.
We could absorb.
A lot more budget restraint if it was done through reforming government.
The Republican budget the Ryan plan.
Save six trillion over the next decade this is only one point two tried not.
Down a little awkward late but the Republicans have a plan to do six times more in savings by reforming government.
Obama wants to cut it with a meat cleaver.
But -- does come want.
This isn't planned reform this isn't.
Thought out reform this is a mistake and we're all gonna live with that and it's -- -- be fine but at the end of the day it's just not that much money it's about 2%.
What do you make of it.
It's much ado about nothing I mean it really is just 2%.
You're hearing talks of a recession not -- and I've done the arithmetic.
If this is going to cause a recession then that stimulus bill should have traded almost six trillion well how we haven't seen that so I'm pretty sure we're safe from recession.
And the reality is.
We can absorb these kinds of cuts in the federal budget they're gonna be some some rough edges but.
By and large we're still going to have more spending than we had last year were still want to have more money than.
New president himself why budgeted take a look at this chart -- and it is CBO numbers -- spending continues to rise even these cuts.
Keep in mind this is not a cut in spending when people talk about right the sequester being spending cuts it's not spending cut.
It's a reduction in the growth of federal spending.
I just love this story.
Because I think -- the end of the day people are so confused about this and they don't know what to make of it.
Now fiction SMP are saying this is not gonna change our ratings here even they -- not cost yes.
And I think give the president the White House beginning to realize they overplayed their hands on this they thought the Republicans -- indicate -- they've done in the past.
And when they didn't they were -- prepared for it.
Now there's grammys six total be a long process you know -- the world ends -- a hundred years and because of that sequester.
Right exactly we're supposed to yet.
News -- the president's signing this it by seven.
PM hour that's the expectation now the new news this hour.
And I want to tell you in the devil's in the details right guys the market tick up -- of Capitol Hill.
The Architect of the Capitol -- to job title is saying there will be no furloughs.
So if you were worried that somebody out there was gonna get laid off.
You know and made somebody cleaning the toilets it's not gonna happen that is the good news Herbert -- -- You know is it meeting today with the president and the leadership last about 47 minutes the last was lasted about seven minutes.
Will there ever be any coming together of those of these two sides.
Well the Republicans would like to see a smaller.
Expenditure by the government and lower taxes president Obama's made it clear in his four years she wants higher taxes and more spending.
If somebody wants to go west and somebody wants to go east.
It's a little hard to talk about what they can agree on.
How we got to be working through regular order of the house in the senate with the president signing.
Bills that that option party here is the Democrat controlled senate now.
Everything we hear about -- the Republicans in the house passing legislation.
And that president liking it or not liking it.
But they're twenty Democrats up for reelection in the senate 2014.
They haven't -- a budget -- almost four years ago and we really out of China light over there and find out what that -- -- we're doing with their spare.
That's your big.
Amid legal obligation to come up with a budget is set on your hands in the -- I don't understand it.