Obama Budget Director Peter Orszag Is Out, Becomes First Economic Adviser To Bail

Tyler Durden's picture

The man singlehandedly responsible for the smallest, "biggest inconsistency" in US budgetary history (that whole $6.3 billion in GSE's left off the US balance sheet, for the full post read "Obama's budget has one small, missing piece... For $6.3 trillion"), Peter Orzsag, currently head of Obama' budget office and previously head of the Congressional Budget Office, and also responsible for the most ridiculous budget in US history (what is the most recent 2020 projected deficit: $100 trillion? $100 quadrillion? does anyone even care?) is out. Bloomberg reports: "White House Budget Director Peter Orszag plans to leave President
Barack Obama’s Cabinet in July, before the White House begins preparing
its next budget, administration officials said." This is arguably the biggest slap in the face of the administration's failed budgetary efforts: the rats are now openly jumping ship, knowing full well that the US will soon be ($20 billion in debt) underwater.

Orszag, 41, considered leaving his post as director of the Office of Management and Budget in April and stayed on after an appeal from the president, the officials, who spoke on condition of anonymity, said. Orszag’s decision to leave this summer will accelerate the process of picking a successor.

Orszag’s spokesman declined to comment directly on his plans. “Peter’s focused on his work, not on Washington speculation,” said Kenneth Baer, the budget office’s communications director.

The departure comes as Obama is putting his focus on slicing the federal deficit, forecast to reach a record $1.6 trillion this year. The president appointed a bipartisan panel to recommend ways to cut the shortfall, and its report is due in December.

Upon leaving the administration, Orszag will likely join a think tank, said one of the administration officials.

Yup. Think Tank Sachs.

Here are the potential replacements:

Among the potential replacements under consideration are Laura Tyson, a
former director of the National Economic Council under President Bill
Clinton, and Rob Nabors, who served as OMB deputy director under Orszag
before moving to the White House to work under Chief of Staff Rahm
Emanuel, said one of the officials.

On the other hand, could Peter's departure have been mandatorily "voluntary"?

Earlier this month, Orszag announced a plan to force some federal agencies to reduce their fiscal 2012 budget requests by 5 percent to help cut the deficit.

“As stewards of the American people’s tax dollars, we cannot afford to waste money on programs that do not work, that are outdated or that are duplicative of one another,” he said in a speech on June 8 at the Center for American Progress.

In other words dissent will not be tolerated comes to throwing away tens of billions. The penalty for fiscal prudence is testing the helicopter's eject seat mechanism.

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Muir's picture

 Stop right where you are! You know the score, pal. If you're not cop, you're little people.

dnarby's picture

Great sub-reference.

Muir's picture

 Stop right where you are! You know the score, pal. If you're not cop, you're little people.

Problem Is's picture

Stop right where you are! You know the score, pal.

If you're a cop... You are little people too...

Cops can't reach the 1%
Only Geithner Class and above are untouchable by the law.... Think Cassano...

Mr Lennon Hendrix's picture

Wow....see???  It is happening now!!!  Get ready America!!!  Get your pitchforks ready America!  They stabbed your currentsea in the back, long long ago, and now they are fleeing the carcuss; they ate it all.

Who's next, LawRench?  and then???

Look, it is really simple.  Taxes are not adding up because there is no growth.  As a simple metric use NAFTA + Peak Oil.  Now look at the budget, with Fannie and Freddie (thank you Orzog, you fascist fool!) and know there is no way to raise interest rates due to, yes, the said massive debt.  America has been in a nose dive for years, and we went into a death spiral when they told everybody (they told you!!!) that the economy was doomed in '08.

The people running the country are idiots!  Listen to them speak!!!  You know why they are idiots?  You know how it is obvious?  BECAUSE THEY LACK FORESIGHT!  AND FORESIGHT IS THE SHAMAN'S JOB!  Oh, and they lie.  They lie with every damn word.

l1xx3r's picture

I don't think they are idiots, they are simply looking out for number 1... what else can they care about. If that is the case, they are doing good running away with a lot of money.

Assetman's picture

Yeah... this is pretty much along the lines of Sheila Bair's and Alan Greenspan's "come to Jesus" moments.

People that know are covering their tracks.  If Orszag is smart, he would be buying a private spread in Paraguay.  A Goldman assignment would be tantamount to suicide.

merehuman's picture

are these the same folks missing their foreskin?

dnarby's picture

Yes, you made one earlier.

Problem Is's picture

"Oh, and they lie.  They lie with every damn word."

The Dodd Syndrome
They lie because they are busy lining their pockets... every day... every way.

If the Amerikan Sheeple
Vote in the same idiots, same as always in Nov. 2010... Or worse...

Patry R screwed me so I will vote for party D.
Patry D screwed me so I will vote for party R.

Then the Amerikan sheeple get the giant shit sandwich they deserve...

The giant shit sandwich Wall Street, Freddie, Fannie and Obummer are making for them as we speak...

Geoff-UK's picture

Currentsea?  You're bringing down the IQ of ZH...

Cleanclog's picture

Laura Tyson is a reasonable, experienced and intelligent person.  But no one can fix this mess now.  No one!

Mitchman's picture

Look at the boards of directors she sits on!  Talk about thieves.

Arius's picture

"Laura Tyson is a reasonable, experienced and intelligent person.  But no one can fix this mess now.  No one!"


not even Laura?  you kidding....well in that case, for the good of the country i might consider it...feel free to pass my name!


wait i got a better idea...how about calling old bernie maddoff - i am sure he would like to do some public service

TuesdayBen's picture

Prison is a better gig than the Obama Administration.

Augustus's picture

Laura Tyson is an economic idiot with a very attractive smile.

Votewithabullet's picture

 Tyson was sufferable when she was hot but the last 11 years kicked her ass almost as bad as john McCain's ole lady. Damn hell time is a mother fuck.

taraxias's picture

Orszag in July

Emmanuel in December

What says thou Timmy???

Problem Is's picture

"What says thou Timmy???"

Timmay G:
"My dad gave your mom a job at the Ford Foundation when she needed to feed your pie hole, Barry."

"I am staying at Treasury so go shoot some hoops... boooooooooy (Foghorn Leghorn style)."

Apostate's picture

Rahmbo is also leaving.


Obama is apparently too "idealistic" for him.

President Biden shortly after the November elections. He's just unpopular and buffoonish enough to take the fall for the end.

Someone very stupid in 2012. Palin? Huckabee? Carrot Top?

Or Petraeus in an Abrams?

Mr Lennon Hendrix's picture

The rats are done eating, now.

homersimpson's picture

Rip on Palin all you want, but she isn't dumb enough to piss away $2 trillion on government-based pet projects like the Harvard graduate Barack did. Since when did book smarts > common sense?

Apostate's picture

Dude. Alaska is one gigantic welfare state.

brushfire's picture

word. if the rest of america was as resource rich as alaska, we'd be a long way towards solving some big budget problems. palin couldnt even handle being the governor of alaska, let alone the infinitely more fucked up world of federal and international govt policy. obama blew it, no doubt, but palin is not the answer, at least not in the way most people think.

The Merchant of Venice's picture

Newsflash: The rest of the United States IS resource rich.  The Interior and the EPA just won't let private owners develop it.  Then the National Parks Service is protecting all that land the Rockefellers "donated" to the Feds.

Geoff-UK's picture

double word...Sarah Palin will bail on conservatives once she's elected.  And her unmarried daughter will marry the best friend of Chelsea Clinton's beau at Goldman Sachs.  Palin already endorsed Meg Whitman, who (now that she won the GOP primary) is backpedalling on immigration in CA so fast she's practically moonwalking. 

Ron Paul is the only one who might could save us, and he can't win.  We R Screwed.

Augustus's picture

You may have a bit of a point on the source of the benefits.  However, a bigger point is that whatever the resources, are the entire population gets the money.

Suppose everyone in the US got a check from GOM oil development or minerals in New Mexico?  would there be a different evaluation of the developments?

Apostate's picture

Then you would get bullshit that you have in Iran. If the profits from exploration are socialized, the equipment breaks down, you under-invest in exploration, and so on.

On land, companies DO provide huge checks to lease and buy land from existing inhabitants. The gulf is socialized, so BP just has to bribe the government to get what they want. 

Mr Creosote's picture

Common things are common except common sense.

dogbreath's picture

why isn't it called uncommon sense.  I have asked this question for a long time.

MayIMommaDogFace2theBananaPatch's picture

You're really still discussing this in terms of the Political Pagaent?  The RIGHT-LEFT thingy?

tictawk's picture

Obama book smart????  NOT!!!  Reading and comprehension are two different things.  He does read the teleprompter well

Red Neck Repugnicant's picture

Right on, HomerSimpson!  I completely agree with you.   

Palin for president!

God. Guns. Guts and Trucks (and camaros!) 


dnarby's picture

I have a Camaro.  It's bitchin'.

Red Neck Repugnicant's picture

Fuck n' A!

You probably don't have racing strips on yours, though.  I do. They are red.  They were painted by a top-ranked painter in Nashville.  Took him 9 days.  

If Palin gets elected in 2012, I'm gonna offer to drive her around Washington in my '95 Z28 droptop.  She can sit on the back trunk like my prom queen. 

Return America to its rightful owners!