  In cold dark matter cosmological models, structures form and grow by merging
of smaller units. Numerical simulations have shown that such merging is
incomplete; the inner cores of halos survive and orbit as "subhalos" within
their hosts. Here we report a simulation that resolves such substructure even
in the very inner regions of the Galactic halo. We find hundreds of very
concentrated dark matter clumps surviving near the solar circle, as well as
numerous cold streams. The simulation reveals the fractal nature of dark matter
clustering: Isolated halos and subhalos contain the same relative amount of
substructure and both have cuspy inner density profiles. The inner mass and
phase-space densities of subhalos match those of recently discovered faint,
dark matter-dominated dwarf satellite galaxies and the overall amount of
substructure can explain the anomalous flux ratios seen in strong gravitational
lenses. Subhalos boost gamma-ray production from dark matter annihilation, by
factors of 4-15, relative to smooth galactic models. Local cosmic ray
production is also enhanced, typically by a factor 1.4, but by more than a
factor of ten in one percent of locations lying sufficiently close to a large
subhalo. These estimates assume that gravitational effects of baryons on dark
matter substructure are small.
