O’Neill said he tried to warn Vice President Dick Cheney that growing budget deficits-expected to top $500 billion this fiscal year alone-posed a threat to the economy. Cheney cut him off. “You know, Paul, Reagan proved deficits don’t matter,” he said, according to excerpts. Cheney continued: “We won the midterms (congressional elections). This is our due.” A month later, Cheney told the Treasury secretary he was fired.

Of course with the Democrats in power deficits once again matter.  Please note the deficit increase under Lord Ronnie of Reagan.  Even with four more years Obama is going to have a hell of a time catching up  with Reagan and Bush the Second.

Chart via David Atkins at Digby’s place.

Cross posted at Newshoggers