The failure of the U.S. Congressional Joint Committee on Deficit Reduction to reach agreement on budget cuts now sets the stage for $1.2 trillion in automatic reductions to begin in January 2013.

Should these cuts go into effect, the U.S. Defense Department, which already must implement $450 billion in reductions over 10 years, will take half the hit.

Pushback has already begun, with Secretary of Defense Leon Panetta arguing that further reductions will impose ¡°substantial risk¡± to America¡¯s national security.