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Pentagon prepares for potential sequestration

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    What will happen if a 'fiscal cliff' deal is not reached?

  • Duration 2:15
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Drill down a bit on the subject of defense cuts correspondent Doug Callaway has some of the specifics and they involve some very big number.

For the first time since the passage of the budget control act of -- eleven the Pentagon today announced in an off camera briefing that it's begun preparing for sequestration.

And the harm it would do to national security we -- very start of this process we don't have all the details firmed up.

The White House that the move should not be read as a change and commitment to reach an agreement that this is.

Just acting responses.

That in stark contrast to the Labor Department's memo to defense contractors in October in the midst of the presidential campaign.

To hold off on issuing a sixty day notice of potential layoffs to workers has required by law.

For us to have gone this long a period of time.

Without making any preparations for it I think is a gross disservice to the American people.

For months pentagon officials have been speaking generally but to -- actively about the potential impact of the -- Face the prospect of budget sequestration.

That would be devastating to national security.

A more detailed -- comes from economist Stephen Fuller George Mason University.

He finds that a 45 point one billion dollar reduction in the purchase of military equipment and in research and development alone.

Would quote.

Reduced GDP by 86 point five billion dollars.

And result in the loss of 1006000.

Direct indirect or induced jobs across all sectors of the US economy.

Impacting every state and represented a decline of personal income totaling 59 point four billion dollars.

But those numbers represent a small fraction of proposed defense cuts DOD would have -- 55 billion in cuts every year through 20/20 one.

Long held doctrine of maintaining a force capable of fighting two wars would be severely strained as -- the Obama administration's shift to Asia has a new focus of US up.

Require us at least temporarily to -- the strategy that we had to so carefully put in place over the past year that's something that we really want move forward.

The DOD promises that salaries of the department's three million civilian and military employees would be exempt from cuts.

But staffing levels would not -- rent.

-- thank you.

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