Despite sequestration calling for $110 billion in annual cuts, the full impact will not be felt until after 2015. Outlays will be reduced by $44 billion in FY 2013, by $89 billion in 2014, and $102 billion in 2015. Full year 2013 GDP will fall by about 0.7%, with q2 GDP falling by about 1.25%! The good news, the weak GDP and employment numbers will keep QE3 in place longer.