If we go over the fiscal cliff that will cut a whopping $120 billion a year out of the deficit for the next ten years which is currently $1.2 trillion. This would mean our debt would increase by $10.8 trillion over the next decade instead of $12 trillion.

As for the Simpson Bowles plan, it's set to cut $4 trillion in deficits over the next ten years. Instead of running a deficit of $1.2 trillion a year, our deficits would be reduced to $800 billion a year. This assumes that business don't go under and tax revenue doesn't falter. The plan is also reliant on interest rates staying at near 0%, same as the automatic spending cuts/tax increases from the fiscal cliff.

Also, currently, every 1% increase in interest on the national debt adds $165 billion in expenditures to the current fiscal year. Our national debt is $16.5 trillion currently and $122 trillion in unfunded liabilities.

The dollar won't strengthen, interest rates will soar, inflation will soar (meaning a higher cost of living) and the price of everything will drop in terms of real money (gold and silver). Normally higher interest rates stave off inflation as higher interest rates encourage saving, lower demand and reduce the velocity of currency. But everyone, in due time, including Americans, will lose confidence in the fiat USD and we'll suffer a hyperinflationary depression.