We both know that sequestration will never happen. The politicians created the “crisis” and will now be credited for solving it. Neither side wants to cut spending, especially on their special interests. There will be a deal and it will effectively kick the can down the road. Much greater pain to follow.
I think they will keep kicking the can down the road until the whole system breaks down. I think the tipping point will be the first failed Fed auction where the world stops buying our exponentially increasing amount of debt.
The US is borrowing money just to make interest payments. When the amount we have to pay in interest starts going up because our debt is becoming riskier and riskier, the SHTF.