Deficit projected to fall below $1 trillion for the first time under Obama

The CBO is projecting that the deficit for 2012 will fall below $1 trillion in 2012. That would be the first time during the Obama presidency that it was under a trillion.

So the spending cuts are working for now, but it's bad news for the economy. It's also something that this blog has been predicting.

A declining deficit will reduce aggregate demand and slow output from its already anemic pace. The prospects of a "double dip" recession are now growing.

Yearly deficit falls below $1 trillion for the first time under Obama.