President Obama and lawmakers are facing several important fiscal deadlines. One is to avoid the $1.2 trillion in spending cuts included in sequestration and another is raising the country’s debt ceiling. Here is a look at some of the issues involved in these two fiscal challenges.
Sequester If Congress and Obama can’t reach a deal to avoid sequestration, then the country would see budget cuts of $1.2 trillion through 2021. Defense Secretary Leon Panetta has said that the defense cuts would be a “disaster.” But if you look at this graph, the blow isn't as bad as the military has faced in the past. Even if the sequestration was implemented, the drop in spending would be less than the military experienced after the Korean, Vietnam or Cold wars. The Center for Strategic and International Studies Buy Photo