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Economics

Tightwad Orszag Finds New Role

CS - Peter Orszag
Susan Walsh / AP Photo

Peter Orszag, the White House's budget chief, has spent his career fighting widening budget deficits. Now, the man perhaps better known for his racy love life is learning how to accommodate his values to the Great Recession, where thrift may not be the wisest course for the government. Both President Obama's chief of staff and one of his chief economic advisers believe narrowing the deficit must fall down the administration's priority list. On Monday, Orszag will unveil the 2011 federal budget—one which, according to The Wall Street Journal, will take note of the escalating deficit but does little to conquer it. Republicans say Obama should follow Orszag's instincts but Orszag's fellow economists say focusing on debts now could impede the economy's potential growth.

Posted at 7:29 AM, Jan 31, 2010
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Comments ()

Rakiba

I think it is very open minded of Obama that he allows people from other parties in his cabinet a few Republicans and even a Whig.

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9:32 am, Jan 31, 2010

Plantagenet

Ever since Obama was repudiated by the people of Massachusetts, he has been pretending to be cutting the deficit. However, Obama's new budget will once again explode the deficit, and Obama once again will be shown to be a liar.

Once again, what Obama does will be in direct conflict with what Obama says.

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12:26 pm, Jan 31, 2010

charo111

Obama should take an item from the playbook of the Roosevelt administration coming out of the great recession......jobs, jobs, jobs by 1944 there was no unemployment and the economy was booming. BTW, Roosevelt didn't rescue the banks coming out of the great depression.....

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1:26 pm, Jan 31, 2010

ktchase85

What got us out of the great depression was WWII which was essentially a massive spending spree on military equipment and personnel.

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10:28 pm, Jan 31, 2010

reasonable

Oooh, I want to have his baby!!
I'll fight any of you bi****es for the chance to get near this geeky love machine!!

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10:23 am, Jan 31, 2010

reneeiris

Put away funds for nosework and transplants for the kid.

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11:15 am, Jan 31, 2010

iamone3

don`t forget gender reassignment & tummy tucks

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1:10 pm, Jan 31, 2010

Johnnyappleseed

Do these people really understand a simple business practice called debt service?
How long can these jokers spend, until they realize at some point it's got to be paid back?
You know the old you borrowed the money to upgrade, facilities, equipment, tooling these kind of things, the bank charges you interest on the loan, you then increase the cash flow and pay it back.
The people in this administration are now going to pay out billions for SOME states because they aren't doing well, down size the banks and put packages under eveyones christmas tree? we have a bunch of fiscally irresponsible people, in the white house and congress.
What the hell are the rest of us that are not working, are unable to pay our mortgages, keep the lights on suppose to do, move to Haiti for help?

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10:30 am, Jan 31, 2010

eurydice9276

Oh, but we're going to increase our exports by 10 zillion percent in the next 5 years. I'm sure that will take care of things.

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12:52 pm, Jan 31, 2010

iamone3

I heard 10 gazillion

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1:11 pm, Jan 31, 2010

eurydice9276

I stand corrected. ;-)

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1:18 pm, Jan 31, 2010

iamone3

with inflation that will increase soon

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1:21 pm, Jan 31, 2010

SensiStar

Who knows Johnny. Maybe if we didn't vote for the drunk preacher we wouldn't be in this position.

A French Revelation, or The Burning Bush
JAMES A. HAUGHT

Incredibly, President George W. Bush told French President Jacques Chirac in early 2003 that Iraq must be invaded to thwart Gog and Magog, the Bible's satanic agents of the Apocalypse.

Honest. This isn't a joke. The president of the United States, in a top-secret phone call to a major European ally, asked for French troops to join American soldiers in attacking Iraq as a mission from God.

Now out of office, Chirac recounts that the American leader appealed to their "common faith" (Christianity) and told him: "Gog and Magog are at work in the Middle East.... The biblical prophecies are being fulfilled.... This confrontation is willed by God, who wants to use this conflict to erase his people's enemies before a New Age begins."

This bizarre episode occurred while the White House was assembling its "coalition of the willing" to unleash the Iraq invasion. Chirac says he was boggled by Bush's call and "wondered how someone could be so superficial and fanatical in their beliefs."

After the 2003 call, the puzzled French leader didn't comply with Bush's request. Instead, his staff asked Thomas Romer, a theologian at the University of Lausanne, to analyze the weird appeal. Dr. Romer explained that the Old Testament book of Ezekiel contains two chapters (38 and 39) in which God rages against Gog and Magog, sinister and mysterious forces menacing Israel. Jehovah vows to smite them savagely, to "turn thee back, and put hooks into thy jaws," and slaughter them ruthlessly. In the New Testament, the mystical book of Revelation envisions Gog and Magog gathering nations for battle, "and fire came down from God out of heaven, and devoured them."

In 2007, Dr. Romer recounted Bush's strange behavior in Lausanne University's review, Allez Savoir. A French-language Swiss newspaper, Le Matin Dimanche, printed a sarcastic account titled: "When President George W. Bush Saw the Prophesies of the Bible Coming to Pass." France's La Liberte likewise spoofed it under the headline "A Small Scoop on Bush, Chirac, God, Gog and Magog." But other news media missed the amazing report.

Subsequently, ex-President Chirac confirmed the nutty event in a long interview with French journalist Jean-Claude Maurice, who tells the tale in his new book, Si Vous le Répétez, Je Démentirai (If You Repeat it, I Will Deny), released in March by the publisher Plon.

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11:11 am, Jan 31, 2010

reneeiris

He was Grahamatrized.

And you thought Scientologists wete nutz. (NutZ = way past nutS)

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11:46 am, Jan 31, 2010

reneeiris

Is he showing us the size of his weenie in that photo?

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11:16 am, Jan 31, 2010

iamone3

:=D

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12:53 pm, Jan 31, 2010

iamone3

I have a picture of obama doing the same thing , his is bigger

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1:23 pm, Jan 31, 2010

prettyscary1

hee hee!

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8:21 pm, Jan 31, 2010

makeclear

There are a lot of spending that can be cut in a short time:
1. Stop the wars
2. abolish part D medicare..until some one figures out how to pay for it.
3. Reduce the wages of all Federal employees, including the President's by 20 %.
4. Remove people from the dole who are not US citizens or legal residents.
5. Close military bases in rich countries such as Japan, Germany, England etc.
6. Reduce Government pay roll..too many people perhaps doing duplicate jobs.
7. Government employees, and congressmen should pay into social security and medicare.
8. Quit tying up the Federal courts with frivalous lawsuits, and spending money to imprison kids for a little marijuana possession or use.
8. Cut out fraud and fund mis-management.
9. Close secret prisons such as GITMO.
10, Spend on meaningful projects, that benefit people.

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11:21 am, Jan 31, 2010

iamone3

make #3 50%
keep #9 gitmo open

Now you have my vote

OH and good luck stopping the #1 wars, tell that to the other side.

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12:56 pm, Jan 31, 2010

winston1

Don't get too excited with Orszag, he does not hold true with his own responsibilities like child support.

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12:08 pm, Jan 31, 2010

hammer

In 2002 Joseph Stiglitz and Peter Orszag (and brother) wrote a landmark paper arguing for the viability and soundness of Fannie Mae and Freddie Mac. Their so-called hard analysis method was to put the companies through "millions of potential future scenarios," and then to judge the likelihood of default. The assumptions in the test were said to be "severe." Even so, the probability of a default was found to be "so small that it is difficult to detect." Some $111 billion in taxpayer-funded bailouts later, with perhaps up to $400 billion to go, the risks have been detected and the results are disasterous.

This is to highlight the falliability of economists. Whether it be conservative economists like Martin Feldstein to liberal ones Paul Krugman, these people only have an average ability to predict future results. The cover story on Orzag's concern about the deficit only shows he is following orders from his boss. Economics is not a predictive science because there are too many variables that come into play. Economics can only provide boundaries for likelihood of occurence. But the boundaries are wide and definitely should not be taken as the concrete gospel. All economists put their politcal and social bias into their results and then end up with the press believing it as the spoken truth. Orzag and fellow economist Christine Romer were big proponents of the $825 billion stimulus (it grew becasue of further increases in mandatory entitlements) on the belief that it would stimulate growth through a mysterious academic multiplier effect theory. It would limit unemployment at 8% and help us grow out of recession. We now know it is all wrong. There were too many transfer payments, too many pork projects and not enough permanent gowth ideas. It didn't take much to figure this was going to happen. If stimulus was good at $825 billion, then why not spend twice as much because with the multiplier you would get at least twice as much. Instead the $825 billion spent today will end up costing Americans closer to $1.5 trillion after all the debt is paid pay.

Orzag is the same clown who says and believes the health care program will save taxpayers money???? How do you at 30-40 million people and around $7,000 per person and save money? Duh!!

Now he is telling the to worry about the deficit. He also was aboard with the $8 billion throw away for high speed rail. Wit the cost of things you couldn't build 100 miles of track in the US for that. Instead it will all be wasted on studies, research and proposals. Sorry that does lower the deficit or create long-term jobs.

Government needs to:

1) shrink entitlements
2) reduce defined benefit pensions with cost of living increases
3) raise the retirement rate
4) demand pay of government assistance if the person eventually has the means
5) tax internet transactions
6) raise the gasoline tax
7) constitutional spending limit
8) term limits to eliminate pork barrel scammers like John Murtha

Of course nothing will be done because slimy and greasy Washington will pass some nonsense resolution and say the problem is solved. Spending has doubled in the past dozen years and taxes have risen almost as much except the past few years.People should demand accountability and demand a balanced budget ammendment.

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1:06 pm, Jan 31, 2010

iamone3

keep those sticky fingers off my #5

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1:15 pm, Jan 31, 2010

Johnnyappleseed

Are these the same people who put the Global Warming figures together to get a carbon tax?
Here'a and idea, take in carbon tax money and instead of sending it to third world countries, cut the budget , apply that money to the deficit, and make our dollar stable.

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1:56 am, Feb 1, 2010

superdad

World War II got use out! Roosevelt's policies perpetuated the depression. Peter GAGA is a meat whistle, and is showing his IQ!

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11:58 pm, Jan 31, 2010
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