Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

US braced for savage budget cuts on doomsday Friday  Join our daily free Newsletter

MENAFN - AFP - 01/03/2013

No. of Ratings : 0
Digg This Article: http%3a%2f%2fwww.menafn.com%2fmenafn%2fqn_news_story_s.aspx%3fstoryid%3d1093614205%26title%3dUS-braced-for-savage-budget-cuts-on-doomsday-Friday%26src%3dRSS Share This Article: http%3a%2f%2fwww.menafn.com%2fmenafn%2fqn_news_story_s.aspx%3fstoryid%3d1093614205%26title%3dUS-braced-for-savage-budget-cuts-on-doomsday-Friday%26src%3dRSS Add to Delicious Seed this article Buzz this article Add to Reddit Add to furl Add to stumbleupon Add to Mixx!


 


(MENAFN - AFP) The United States was braced for 85 billion in budget cuts due to hit Friday in a self-inflicted wound brought on by deep ideological antipathy between President Barack Obama and Republicans.The cuts, which could cost a million jobs, will slice public services and threaten an economy that is already barely growing, and arrive with both sides agreeing on only one thing -- that the other is to blame.The hit to military and domestic spending, known as the sequester, was never supposed to happen, but was rather a doomsday device seen as so punishing that rival lawmakers would be forced to find a better compromise to cut the deficit.But such is the dysfunction in gridlocked Washington that neither side tried very hard to get a deal, with Obama calling for tax revenue hikes on the wealthy and corporations -- a demand Republicans flatly refused."Instead of closing a single tax loophole that benefits the well-off and well-connected, (Republicans) chose to cut vital services for children, seniors, our men and women in uniform and their families," Obama said."They voted to let the entire burden of deficit reduction fall squarely on the middle class," said the president, who has mounted a campaign-style blitz to leverage public opinion against Republicans on the issue. Obama is required by law to order the budget sequester by 11.59 pm on Friday night, and the cuts are all due to be made by the end of the year unless a political deal can be reached.He has called top Republican and Democratic leaders to the White House for a last-ditch effort to bridge the gaps on Friday, but few people in Washington believe the meeting is much more than a photo-op.Republicans, who lost a showdown on raising tax rates on the rich late last year, have refused to accept any revenue raises -- part of the "balanced" solution, also involving targeted spending cuts, that the president wants."We've laid our cards on the table," Republican House speaker John Boehner said, explaining why his chamber would take no further action until the Democrat-controlled Senate does.John Cornyn, the number two Senate Republican, said Obama and Democrats had overstated "apocalyptic predictions" of the impact of the sequester."They are predicting a disaster that will not occur," Cornyn said.The White House on Thursday admitted it would take time for the full impact of the sequester to be felt, as government workers get furlough notices and services, like education for special needs kids, are put at risk."You cannot responsibly cut 85 billion out of the budget in seven months without having ... dramatic effects on the defense industry and civilian workers, on our national security readiness, on teachers," White House spokesman Jay Carney said. Going through the motions Thursday, senators failed to advance two bills -- one Democratic, one Republican -- to avert the sequester.The best hope for a deal now lies in the parallel negotiations on a new bill to cover funding for government operations for fiscal year 2013 that must be completed by the end of March.That bill may be the top focus of talks between Obama, Boehner, Republican Senate Minority Leader Mitch McConnell and the top Senate and House Democrats Harry Reid and Nancy Pelosi in the Oval Office on Friday.The White House has warned that the indiscriminate cuts are written into law in such a way that their impact cannot be alleviated.It warns that 800,000 civilian employees of the Defense Department will go on a mandatory furlough one day a week and the navy will trim voyages. The deployment of a second aircraft carrier to the Gulf has been canceled.About 70,000 children less than five years old will be cut from the Head Start preschool program, resulting in the elimination of 14,000 teaching positions. Services for special needs kids will also take a hit.Authorities warn that average wait times for passengers at US immigration will increase by 30-50 percent and may exceed four hours during peak times.Security lines will also grow longer as the Transportation Security Administration enacts a hiring freeze, eliminates overtime and furloughs 50,000 employees.The National Institutes of Health and other federally-funded scientists will have to delay or halt research and the Food and Drug Administration will conduct 2,100 fewer inspections, escalating the risk of food-borne illnesses.The Bipartisan Policy Center in Washington estimates that one million jobs could be lost, and the Congressional Budget Office predicts growth could slip 0.7 percent.

 






  MENA News Headlines
May 25 2013Jet Airways' shareholders Okay 24%-stake sale to Etihad ,MENAFN
(MENAFN) Jet Airways announced that its shareholders okayed the 24-percent stake sale to Etihad Airways, reported Arabian Business. Last month, the Abu Dhabi-based carrier announced that it will ...

May 25 2013Muscat hotels report 15% jump in Jan-Apr RevPAR ,MENAFN
(MENAFN) STR Global announced that during the January-April period, hotels in the Omani capital posted a growth of over 15 percent in revenue per available room (RevPAR), reported Arabian ...

May 25 2013Marriott's ME, Africa Q1 RevPAR rises 11% ,MENAFN
(MENAFN) Marriott International, Middle East and Africa, president and managing director, Alex Kyriakidis, stated that the hotel operator's revenue per available room (RevPAR) during the first ...

May 25 2013Artists seek global audience at Hong Kong's Art Basel ,AFP
(MENAFN - AFP) Having taken five Volkswagen Beetles and compressed them into spheres, artist Ichwan Noor was always going to grab attention at the inaugural Hong Kong Art Basel. Noor is known in ...

May 25 2013Fitch expects Qatar's 2013 GDP to reach 7% ,MENAFN
(MENAFN) Fitch Ratings stated that in 2013, Qatar's gross domestic product (GDP) is projected to stand at 7 percent, reported Arabian Business. The agency said that during the period, Qatari banks ...

May 25 2013World Bank Grants US $55 Million For Palestinian Development ,Qatar News Agency
(MENAFN - Qatar News Agency) The World Bank Board of Executive Directors has advised its Board of Governors to authorize the US $55 million replenishment of the West Bank and Gaza Trust Fund. This ...

May 25 2013Giant leaps for GCC within economic integration -- experts ,Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The GCC achieved giant leaps within the economic integration domain, leading to the increase of capital and commercial exchange, said a number of Bahraini ...

May 25 2013Education key to Arab youth empowerment - report ,Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The high ambitions and aspirations of Arab youth, who make up the majority of Arab populations, require access to a high quality education to be materialized, a ...

May 25 2013USD 224 million SMEs Fund to be established for MENA ,Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) A fund with a capital base of USD 224 million for financing small and medium enterprises (SMEs) in the Middle East and North Africa (MENA) will soon be ...

May 25 2013Design experts discuss new trends at Index seminars ,Khaleej Times
(MENAFN - Khaleej Times) The Index International Design Exhibition and The Office Exhibition, which close today, have provided the regional interior design and architecture community with an ...

more...


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help