WH Tries to Blame Sequester Cuts Devised by Administration on GOP

On Wednesday, the White House suggested the threat of sequester during the fiscal cliff negotiations was responsible for the dismal GDP report that showed the economy contracted during the fourth quarter. 

White House press secretary Jay Carney tried to pin the blame squarely on Republicans, even though the sequestration proposal, as Bob Woodward reported, originated in the White House in 2011. 

Carney faulted "Republicans in Congress" for the poor numbers because, he said, the GOP talked "about letting" automatic defense and spending cuts take effect "as though that were an acceptable thing." 

The White House, though, devised the sequestration plan as a political ploy to try and get concessions from Republicans during the budget and debt ceiling negotiations in 2011. 

A spokesman for House Speaker John Boehner, Brendan Buck, said "these arbitrary, automatic cuts were a creation and demand of the White House in 2011."

"Twice the House has passed legislation to replace them with common sense cuts and reforms," he added. "If there was any uncertainty late last year about the sequester, it was because the Democratic-controlled Senate, per usual, never lifted a finger to pass a plan to replace it."


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The past several months have seen the price of gold slump even as the Fed and other central banks have accelerated their massive expansion of paper money. Gold is off about 20% so far this year with silver down almost 30%. The old adage--“don’t fight the Fed”--particularly comes to mind now because the US equity markets have been setting new highs during this same period. All of these gains are nominal, you understand, but for terrified American policy makers and investors, nominal is just fine.

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