You're not ignorant at all, most Americans are confused as well and I've had to help explain it to many friends.
Our sequestration is a package of automatic spending cuts thats part of the Budget Control Act (BCA) of 2011, which was passed in August 2011. The White House, with the help of Jack Lew (the Budget Director) proposed the idea back in 2011, (Mr. Lew has been nominated to be our next Treasury Secretary), and congressional leaders ultimately agreed to the BCA.
The cuts, which are projected to total $1.2 trillion, are scheduled to begin Friday and end in 2021. Yes, they last 9 years, which most don't realize. The cuts are evenly split between our defense spending with spending on wars exempt and
discretionary domestic spending, which exempts most spending on (non-discretionary) entitlements like Social Security and Medicaid, which Linda and Sheila asked about yesterday. The total cuts for 2013 will be around $109 billion, give or take. This is a minuscule forced 2% spending cut.
Under the BCA, the cuts were triggered to take effect beginning 2 JAN if the supercommittee didnt agree to a $1.2 trillion deficit-reduction package by NOV 2011. The group failed to reach a deal, so the sequester was triggered. During the election, the President said that the sequester wouldn't take effect, but in fact, it's law, and unless he issues an Executive Order, it must take effect.
The sequester can be avoided, but only if our Congress passes another budget deal that would achieve at least $1.2 trillion in deficit reduction. The political obstacles are basically the same as during the supercommittee negotiations that failed: Republicans dont want to raise taxes, while Democrats are reluctant to make dramatic changes to entitlement programs to achieve savings.
So there you have it, oh, and we are still under a Continuing Resolution (CR) which funds our government because the Senate hasn't passed a budget since the Bush Administration (2009). The current CR will expire in the end of March. My DH is a retired military officer so he'll still receive his pension, but he's a current federal employee with our Department of Defense and is therefore subject to a one day a week furlough for 22 weeks starting in April. What happens the next 9 years, who knows

. DH is actually looking forward to the prospect of being forced to stay home an extra day