It appears all but certain that the Congressional Super Committee charged with finding an additional $1.2 trillion in deficit spending cuts will fail. With the deadline less than 48 hours away, no one has said anything positive about the ability of the Super Committee to actually come to any sort of agreement.
What does this mean? Theoretically, sequestration will kick in, per the agreement to raise the deficit ceiling of this summer. This means that automatic cuts will occur to defense and non-defense spending, $600 billion each, exempting Social Security and Medicaid.
But, here's the kicker: the cuts don't go into place until 2013. Despite being ratified by Congressional passage last year, it appears almost certain that Congress will try to find a way around these cuts. Congressional Republicans, for example, are already looking to try and block the automatic defense cuts.
All that's left, for now, is for the Super Committee to formally announce that it has failed, and we'll be waiting that announcement.