NEW YORK (TheStreet -- Debra Borchardt: Well the sequester cometh; in fact, it's headed our way March 1. So Jim, we've got so much nonsense going on in Washington. We have half of the politicians talking about how horrible this is going to be immediately. Friday we're going to wait for 10 hours in line at the airport and our meat is going to be horsemeat the next day and things like that. But are they overplaying this?

Jim Cramer: I think so.

Debra Borchardt: I mean, clearly there's going to be some changes, but not day one.

Jim Cramer: What's so annoying is, it is scare tactics. I was on Meet the Press yesterday with Peggy Noonan who is talking about the government by scare tactic and by freak-out and that's been Obama. He's suddenly putting a lot of people out. Secretary LaHood (he's transportation) was on and he is the guy who is saying ... that the lines (at the airport) will be big.

They seem to try to figure out what is essential that the government produces and go after that. (There is) the idea that the Navy won't be able to deploy the U.S.S. Truman, which I had the good fortune to be on for several days -- it projects a tremendous amount of power. They're saying that it can't go to the Gulf because of the sequester. I mean, clearly there's 250 golf courses that the military has. There's whole defense project programs that are probably unnecessary and they come up with the most necessary thing that the Navy does. So it's kind of shameless. I hate to see it.

That said, Larrry Kudlow had a fabulous piece on CNBC.com on Friday, talking about how it's really only $44 billion and not the $80-plus billion, and that it's actually good to show that there can be some cuts. Obviously we want entitlement cuts if we want to be long-term focused. The military does seem fat. You would like to say to the military, "Guys, if you don't get it together and kill some programs, we're going to do 'this.'"

Debra Borchardt: Well it's interesting because we're hearing that the Republican side in an article in The New York Times today...is starting to say, "You know what? We'll take those defense cuts."

Jim Cramer: I know. That wasn't supposed to happen.

Debra Borchardt: Now the Democrats are going, "Well, wait a minute. You're not playing by the rule book. You're supposed to not be for that." So now that the Republicans are saying, "You know what? Cut the military," it's kind of started to change the dialogue.

Jim Cramer: Maybe that's what happens ... when I lived in Florida, I covered the legislature there and they had sunshine provisions. They were always trying to figure out ... after 10 years when you sat with the legislators, they would say: "Look. We don't know whether this thing ... turns out to be really good; when it sunsets, if the people want it, we'll bring it back." ...I believe there will be a deal. But maybe what will have to happen here is the following, which is, "OK, look. That turned out to be a bad idea. Now Congress get back in session and fix the national parks."

But the idea that there's nothing in the government that can be cut, after working in the private sector for 33 years and watching people being laid off, after lay offs, after lay offs...there's things you can cut. So I think that this is one of those where the Republicans have more of the upper hand than anybody realized because no one thought that they would ever be willing to go with defense cuts.

Debra Borchardt: Do you think that that's actually going to be a positive for the stock market? It could be that they're seeing some real action.

Jim Cramer: Kudlow says, "Yes." The reason I focused on him ... Larry was my partner at Kudlow & Cramer for years, but Larry worked on budget for Reagan, OK? And I don't know anyone who does more, better, rigorous budget work than Larry. So I'm just urging people to go to CNBC.com and read that piece.

Debra Borchardt: And Larry was the economist at Bear Stearns when I was there. Six degrees of Larry Kudlow. ...

Jim Cramer: Larry's a very serious ... budget aficionado. Larry Kudlow.

Debra Borchardt: So, sequestration could help the stock market this week.

Jim Cramer: Yes.

-- Written by Debra Borchardt in New York.

>To contact the writer of this article, click here: Debra Borchardt.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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