1. FISCAL CLIFF

    Pentagon Prepping for Furloughs

    This picture taken 26 December 2011 shows the Pentagon building in Washington, DC.  The Pentagon, which is the headquarters of the United States Department of Defense (DOD), is the world's largest office building by floor area, with about 6,500,000 sq ft (600,000 m2), of which 3,700,000 sq ft (340,000 m2) are used as offices.  Approximately 23,000 military and civilian employees and about 3,000 non-defense support personnel work in the Pentagon. AFP PHOTO (Photo credit should read STAFF/AFP/Getty Images)

    AFP-Getty Images

    It seems like we’ve been talking about what will happen if the president and Congress don’t agree on a deal to avoid automatic spending cuts, but the actual effects of tumbling over the dreaded fiscal cliff are finally starting to set in. The Pentagon, which will be forced to cut its budget by 10 percent in the first nine months of 2013—that’s around $55 billion in spending—is preparing to tell 800,000 civilian employees to prepare to take mandatory leave without pay if no deal is reached. The Pentagon isn’t the only government agency that will be impacted if the cuts go into effect. Some companies that do business with the government—as well as other agencies—will have to lay off some workers.

    Read it at The Wall Street Journal