during the tough days in the spring of 2009 when the markets were jittery, the president said to peter orszag, his top budget official, what happens if he have a bond option, treasury bonds and no one shows up? orszag said one thing you could do that would settle the bond markets is a financial transaction tax, it will raise revenue, it will tamp down wildly speculative trading and behavior. that's actually something that restores confidence in a system that deep down is broken. mind you, rachel, we have a situation here where even wall street knows deep down it needs medicine. may be strong medicine. it's like a patient that's sick. and main even radical surgery in terms of restructuring. this is something deep down they know and actually it's something that now people because they have this book, "confidence men" they're saying my goodness, the president wanted to do this on many instances and his wall street adoring adviser says, no way, we're not going to let him do it. it didn't happen. many of the advisers, lawrence summers and others, are gone. where does tim geithner stand on the fina

that all western leaders should be heeding because here in the united states you have people like peter orszag saying there should be less democracy when it comes to some decisions you have bailouts that were enacted without a vote without any kind of real democracy going on they were decisions made by treasury secretary by federal reserve chairman does is this a bigger warning for say u.s. politicians yeah i mean it's across the board like i said there's a deficit of democracy in a representational constitutional republic like united states or constitutional republic agrees but the leaders are supposed to listen to the people must both think about what's best for the country and then enact that in greece you have completely in the political establishment in the us because they've still been able to feed their social state if they've been able to print money they've been able to mass some of the problems they haven't had the kind of unrest but i certainly expect that you would see that here because again like you said there's bailouts for the banks the basically pick because remember the banks

peter orszag thinks we should. the fiscal committee raised taxes more.s sort of a remarkable thing. only in washington could they decide, just make up a new base and say they're going to raise taxes when they're agreeing to cut them massively. >> as you write in your column, it's what they agree on that is most frightening, not what they disagree on. thank you so much. great perspective. i hope we can talk about this soon. >> probably will to be honest. >> president obama is in bali participating in the east asia summit that will not only focus on a stronger role in the region, but also concerns over china's growing strength. this follows his visit to australia he spoke at the royal air force base. >> we'll write the next proud chapter in our lives. as the prime minister and i announced yesterday, some of our marines will begin rotating through these parts to train and exercise with you and to work as partners across the region for the security we all want. w, when i got him on e-trade he was all like "oh no, i cannot do investing." that's actually a per

on friday former white house budget director peter orszag will be joining us, to talk about the strugglingwashington's failure and budget gridlock. >>> newt gingrich says he is not a lobbyist, but according to num "new york times" and former clients, he made millions offering advice. for instance -- he could direct us to the right places in washington and elsewhere. mark halperin is senior political analyst for "time" and msnbc. mark, it's a distinction without a difference. it sounds like it depends on what the definite acquisition of "is" is. if people of the tea party saw chapter and verse what he did in terms of what he got paid for, in terms of the limousine travel he took, they wouldn't like it one bit, but as chris cillizza said earlier, it may not be in the next 30 days there's any messenger out there in the media, "new york times," among the other republican candidates, who can break that message through as long as gingrich stays disciplined talking about what he wants to talk about. >> so it sounds like romney has gotten the focus that gingrich is his main challenger. >> certainl

greenspan, foer fed chief, michael bloomberg, now the independent mayor of new yk, and democrats like peter orszag who ran the budget office for this president said let them all expire for everybody. for the rich, for the middle class, if you really wnt to get serious about the deficit, let the bush tax cuts expire for everybody. >> if you really want to get seriousbout the deficit, our country has to grow economically. we have to put people backto work. thas what creates wealth that can be taxed. we're not going to tax our way outf is. we need to grow. and you can't grow if you raise taxes in the middle of a recession. that's what president obama said when unemployment was at 9% a few months ago. he said dn't raise taxes in a recession. and he's right. that impairs job creation by taking me money from the very people, primarily small business folks, who will create most of the jobs cming out of the recession. >> let me ask you this, is there any potential deal that's still possible, an if it's smaller? >> ell, as i said, after wringing out the larger deals that tried to focus on entitlement refor

in september, peter orszag made a case saying we need less democracy.f you leave the tough decisions to the congress alone, it will be a mess. he argues for handing over more decisions to panels of experts who can make technical decisions. sometime the creation of standing panels of experts. for the healthcare law, we see decisions on how to cut health- care costs. these are handed over to people who are supposed to be experts in accounting and they will make the judgments. that is the epitome -- they should be addressed by technical experts and after the democratic system. we see people on the left making arguments that are very populist. the mass of the public should make governing decisions as directly as possible. the mass of the public is being denied its rights or desires by some kind of minority. sometime that is the minority of the wealthy. you see the president saying the wealthiest americans have to much power. we to get the mass of the public back in charge. this is an argument that is at the center of the occupy wall street movement. host: a

for instance in september budget director peter orszag made a case literally saying we need less democracy and his point is if you believe there are tough decisions to the congress alone is going to be messed. they are not going to deal get done what they need to be be done to the argues for handing over more of the decisions to panels of experts, technical experts. >> host: is that the federal agencies and the regulatory agencies? >> guest: sometimes the creation of a standing panels of experts. the health health care passed i9 we see the decisions about how to cut medicare costs are handed over to a panel of 15 experts and they are supposed to be people or expert in health care financing and accounting and health care itself and they will make the judgment and congress can vote up or down on that judgment. that is the epitome of the technocratic solution to a problem is to save these governing problems or technical problems and they should be addressed by technical left birds. >> host: so the populace then. >> guest: the same time we see people on the left at this point making arguments

. >> you had a meeting with peter orszag about policy issues. the day before your meeting, they center agency analyst of information. it did you discuss solyndra? >> we were discussing much higher policy issues that a particular. >> he did not ask you for any critical information about solyndra? >> my recollection at the time was that we were discussing loans, for example about if you could get the loan plus 16 no 3 + other state subsidies and whether they might be getting a policy issue. >> were you aware that if dow does not stay on top, it risks ?ecoming embarrassing t he said it was promising. we have other agencies saying this was not going to work out. were you able to draw this conclusion? >> i'm in the loan was the head of the line. people in the loan program were from the previous administration were there. >> i did not ask you where they were. i asked you if there were problems you were aware of. >> after the assign credit subsidies, what that means a effectively is that there is a low probability at the time of the omb is information