US President Barack Obama has signed into effect a wave of steep spending cuts which he has warned could damage the US economy.
The cuts – known as the sequester and drawn up two years ago – will take $85bn (£56bn) from the US federal budget this year.
Last-ditch talks at the White House to avert the reductions before Friday’s deadline broke up without agreement.
White House scare tactics aside what this really means is that the federal budget will increase less than was wanted. Nothing was cut, budget increases were merely reduced. The sun will rise tomorrow, business in the United States will continue as usual, and the government will maintain it’s currently quality of service (which is to say they won’t provide any quality service).