That’s CIA.
The one thing FR generally misses about the Sequester is it is 1/2 DoD and 1/2 Domestic Discretionary. The domestic programs are hit just as hard.
These are significant numbers. 1.2T over 10 years divided among the two. That’s 600B from each or about 60B/year.
That’s “fiscal drag” on GDP to the tune of about 0.8% PER YEAR for the next ten years.
And this is not the ball game. The Continuing Resolution will result in additional spending cuts and yes, maybe tax increases, and BOTH are drags on GDP. So the headwinds on GDP this year (with Q4 2012 GDP slated tomorrow to come in well south of 2%) almost guarantee recession.
But no one really is noticing it.