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Austerity has hit the United States as President Barack Obama signed into law a directive ushering in significant cuts to federal agencies' budgets and triggering the sequester that has been debated in Washington during the last several weeks. Automatic cuts will slash Washington's military and domestic spending by 85 billion dollars in 2013. RT's Gayane Chichakyan takes a look at why this could prove a headache in the US and beyond. RT LIVE http://rt.com/on-air Subscribe to RT! http://www.youtube.com/subscription_center?add_user=RussiaToday Like us on Facebook http://www.facebook.com/RTnews Follow us on Twitter http://twitter.com/RT_com Follow us on Google+ http://plus.google.com/+RT RT (Russia Today) is a global news network broadcasting from Moscow and Washington studios. RT is the first news channel to break the 500 million YouTube views benchmark.