Fiscal cliff, America's debts etc.

[hetz]

Ok, so what exactly is this fiscal cliff?
What is the American government and the ruling elite going to do with the huge debt the country has?
What happens if the two parties don't reach an agreement before 2013?
Thanks.

[Danielle Ni Dhighe]

The Budget Control Act of 2011 states that if Congress does not pass a new deficit reduction plan, then certain automatic spending cuts and tax increases would go into effect on January 2, 2013, which is the fiscal cliff.

http://en.wikipedia.org/wiki/United_States_fiscal_cliff