Not so fast, my friends. Although the CBO's revisions cut this year’s deficit by 1.3 percent of GDP, they only shrink the next 10 years’ projected deficits by 0.3 percent of GDP. The deficit is declining toward sustainable levels in the medium term, while demographic and health-care cost challenges will cause it to grow too large in the long term if we do not make "adjustments".

Of course, one *could* make the argument that we'd have had this thing under control 4 years ago if the Obama administration had not blown the TARP repayments and used that excessive level of spending from the wars as a new base-line for deficits of $1Trillion a year over trend. This and likely without spooking the labor markets and our nation's creditors, too.