Former Obama OMB Director: Obama Is Going To Have To Negotiate Debt Limit With Less Leverage

Former Obama OMB Director Peter Orszag Said That Obama Is Going To Have To Negotiate Over The Debt Limit. CNBC’s ANDREW ROSS SORKIN: “But you know the president. The president said that he will not negotiate for example on the debt ceiling. This is a nonstarter. Is that a nonstarter or is that the beginning of a negotiation?” FORMER OBAMA OMB DIRECTOR PETER ORSZAG: “Well I don’t know that that statement actually frankly matters that much. Because they’re going to have to negotiate over replacing the – you know the sequester was only delayed by two months. So you’re going to have to negotiate over that. You’re going to have to negotiate over the appropriations bill for the funding the daily operations of the government. So if you’re negotiating over those things, and the debt limit’s kind of thrown in, you can say you’re not negotiating over the debt limit but there will be negotiations in February and March.” (CNBC’s “Squawk Box,” 1/3/13)

Orszag Said That By Not Including The Debt Limit In The Fiscal Cliff Package, The White House May “Win The Week And Lose The Quarter.” SORKIN: “Who’s got the leverage in all this? I mean when you look back at what just happened over the past three days do you say the Democrats won? Do you say the Republicans won?” ORSZAG: “I think — my own perspective at least is I think the White House in this second best world won that round, but they, by not insisting that the debt limit be tied that to the package, it’s entirely possible they’re going to win the week and lose the quarter. And we’ll see, you can’t – you don’t know yet until you see how February and March plays out, and I think there’s no doubt that they have somewhat less leverage than they did in the round just completed.” (CNBC’s “Squawk Box,” 1/3/13)