Whatever happens, it is already popping. Defense spending has already started to decline and it will be reduced tremendously in March.
Never happen. Both parties don't want to cut spending. There will be a deal on sequestration "postponing" cuts to out years and increasing revenue thru cutting loopholes. We are just watching another kubuki dance.
"Of course, as Brad Plumer notes in the Washington Post's Wonkblog today, defense spending always trails off in the fourth quarter, because the department, like other federal agencies, tends to squeeze a lot of spending into the third quarter because it's when the fiscal year ends. But a drop that breaks a 40-year record is another thing entirely.
And it's worth remembering that these cuts took place before Defense agencies recently went public with the news that they are slowing procurement spending, cutting contract workers and preparing for civilian employee furloughs in anticipation that a sequester will kick in at the end of February."