Almost all the government spending cuts would be made in 2014 or beyond. The approach heeds a warning by Federal Reserve Chairman Ben Bernanke and many private economists: Cutting too much too soon could harm the weak economic recovery.
The US government spending and federal debt is on an "explosive path" if fiscal policy is not adopted fast to raise revenues and cut Medicare spending, according to a new report by the Congressional Budget Office.
The question is where is the money coming from?
US government spending is set to break records after the Federal Reserve launched an unorthodox new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling U.S. economy.
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