Cuts in government spending sent the economy into reverse following a 3.1% annualised increase in GDP in the third quarter. Government spending fell by 15%, dragged down by a 22% cut in defence spending, the biggest fall since 1972 and the end of the Vietnam war.Is more austerity.
[there is] increasing resignation among both Democrats and Republicans that the across-the-board cuts will soon take effect. The cuts were an element of the so-called fiscal cliff that was partially averted this month with the extension of Bush-era tax cuts.Goodness knows we cannot avert such crisis by not cutting spending -- those poor oppressed wealthy are already so heavily taxed at all levels.
Oh yeah, about that.
[cross-posted at Firedoglake]