The deficit is shrinking.

The deficit is shrinking at a really fast pace.  In the last three years the deficit has gone from 10% of GDP to 7%.  Here are the various charts that are floating around. (Continued below).

This is good news, certainly.  But it doesn't mean that all our problems are solved.  As Slate's Matthew Yglesias points out, the deficit reduction is not a matter of successful economic policy by the Obama administration, but is, at least in part, "the flipside of the huge increases in the deficit that were associated with the recession."  And Mother Jones points out that a deficit that is too small can be just as dangerous as a deficit which is too big.  So, the upshot is that the conversation about the fiscal cliff need not include the question of the size of the deficit.