In a new report, the Obama Administration details what will happen if Congress can't find a budget compromise before January 2013.

Last August, to end the debt ceiling crisis that led to a downgraded U.S. credit rating and a deeper decline in Americans' esteem for their leaders, President Obama signed into law the Budget Control Act of 2011. The legislation -- a stopgap measure meant to allow the country to raise its debt limit in the short term while reducing its deficit in the long -- included a significant stipulation: If Congress failed to produce a more permanent deficit reduction bill by early January 2013, then an automatic cut would take effect. Known as the "sequester" -- but perhaps better known as the "ticking timebomb" or "the doomsday scenario" or the "that's what we get, you guys" -- the cut would trim federal spending by roughly $1.2 trillion over the next 10 years.

The cut would do that, however ... by trimming roughly $1.2 trillion over the next 10 years. Specifically, by cutting sharply and deeply into the budgets of some 1,200 federal programs. The sequestration would cut into Medicare. It would cut into the military. It would cut into embassy security.

On the one hand, of course, those cuts are -- for now -- only speculative. "The sequestration itself was never intended to be implemented," the White House notes. It was intended not as an act, itself, of fiscal responsibility, but as a disincentive against inaction: It was meant to be so bluntly punishing to the federal budget that any compromise would seem preferable by comparison. (Leon Panetta, for his part, is "so appalled" by the idea of sequestration that he has ordered the Pentagon not to begin planning for it.) Sequestration's automated slashes were intended as a failsafe -- a budgetary bomb that would go off only if Congress failed to act to defuse it.