the deficit IS going down faster than expected.. this year, that is.. there are some one-time events impacting cash inflows, namely larger than expected tax revenues from the wealthy, and re-payments of bailout funds (Fannie), that are not expected to be repeated next year.. The deficit will fall YOY this year, but rise again next year. The rise YOY next year could potentially be greater than expected if the sequestration cuts are not made permanent.. we will have an interesting few months ahead of us.. particularly as the debt ceiling talks heat up and the impacts of sequestration are fully felt. The choice for Bernanke, and his gang, at that point, will not be when to taper.. it will be how much to step up. And Gold and the Dollar will trade places.