The CBO has issued a new report on what all of those automatic budget cuts are gonna do in 2013. They will cause a recession.

Growth in real (inflation-adjusted) GDP in calendar year 2013 will be just 0.5 percent, CBO expects—with the economy projected to contract at an annual rate of 1.3 percent in the first half of the year and expand at an annual rate of 2.3 percent in the second half. Given the pattern of past recessions as identified by the National Bureau of Economic Research, such a contraction in output in the first half of 2013 would probably be judged to be a recession.

What the CBO is referring to is the fiscal cliff. Remember when the budget crisis happened, resulting in the United States losing it's AAA credit rating? Then, Congress and this administration just punted, didn't compromise, or better yet, base recommendations on actual economic theory, and allowed automatic spending cuts of $1.2 trillion across the board, to take place instead. These budget cuts will be dramatic and happen in 2012 and 2013.

It seems President Obama knows how to crash a party as well as a server. The House of Representatives website is crashed after Obama went on prime time television asking Americans to contact their representatives. In visiting John Boehner's website 15 minutes ago this error message was displayed.

Bad Request (Invalid Hostname)

About sums up the insane budget crisis doesn't it?

When Obama told Americans to contact their representatives to show support for his debt-ceiling plan, the response was so strong it overwhelmed some House telephone lines and websites.

On Tuesday morning, House officials said calls to telephone circuits there are hitting near capacity, with many callers getting busy signals. An alert advised members' offices to provide important contacts with alternative numbers, adding that outbound calls are unaffected.

In addition, Monday night and Tuesday morning checks of the websites of House Speaker John Boehner, R-Ohio and Rep. Michele Bachmann, R-Minn., showed a "Server is too busy" response on an otherwise blank screen, as did the House Ways and Means Committee website on Tuesday morning.

This author is more horrified at our government in general and believes every representative should be required to pass an economics class before being sworn into office. Kind of like requiring bad driving school for repeat traffic offenders. With that, what are others saying?

The below video interviews Yves Smith pointing to the entire debt ceiling crisis being manufactured.

Honestly I didn't think I read this right, but....I did.

Obama said:

he would delay rescinding President Bush's tax cuts on wealthy Americans if he becomes the next president and the economy is in a recession, suggesting such an increase would further hurt the economy.