Sequestration was Obama's idea, but the Reps signed on to it. IMO neither party wants to make real spending cuts. They keep coming up with ideas to kick the can down the road. Both parties are holding DOD hostage, which was always the objective.
What I see coming out of this are some accounting gimmicks to forestall any real cuts and an agreement by the Reps playing the good cop to increase revenue by "closing loopholes" to protect DOD cuts. It will be portrayed as a matter of national security so that the Reps get a pass on agreeing to more taxes.
The sequestration bill excluded the entitlement programs and means tested welfare programs from any cuts meaning that any cuts to non-DOD discretionary funding would fall on all the agencies of government. Just as the military has done, we will have the Dems painting a doom and gloom picture of the impact of such cuts on children, the poor, health, etc. And the MSM is already awash with stories of how the implementation of sequestration will plunge us back into a recession.
So the spending will go on, taxes will continue to be increased whether thru tax rates, closing loopholes, the implementation of Obamacare etc. and so will the deficits. Projections are that we will raise more revenue in 2013--$2.7 trillion--than in any time in our history. And we will still run a $900 billion deficit.
Americans want all the benefits of the welfare state, but they don't want to pay for it. Eventually taxes will be raised on everyone in order to fund the welfare state. The Dems are setting the stage for it and after they regain the House in 2014, it will be a much different ball game. When Willie Sutton, the famed bank robber was asked why he robbed banks, he responded, "That's where the money is." Well, the middle class is the biggest bank of all and the Dems will tap it to keep the welfare state treading water. It will eventually fail, but not before defense is eviscerated (Guns versus Butter) and the government seizes most of the economy.
Not necessarily, what if they just keep buying our own debt until a dollar won't buy a banana.