What does Obama mean, "there's not much further we can cut"?

1) So he’s not reluctantly agreeing to Medicare” adjustments” (e.g., raising the eligibility age from 65 to 67) that Republicans are insisting on. He’s affirmatively promoting Medicare cuts himself. Democratic candidates planning to run against Rep. Paul Ryan’s Medicare plan will be excited to hear this new message.

2) “Not much further we can cut” seems like a hanging curve ball, an open invitation for ongoing ridicule–the sort of naive assertion that might come easily to someone who had never worked in the federal government, who only realized after promoting his half-trillion-dollar public works-based stimulus plan that there was “no such thing as shovel-ready projects.” Or someone who doesn’t want to know. Or who wants to act as if he doesn’t know.

Here is the official list of federal job openings. They are still hiring.