1.   But smaller deficits brought on either by spending cuts or higher taxes reduce purchasing power.

2.   With the economy growing so quickly, there is a case for a smaller deficit or for a surplus.

3.   Because it means a smaller federal deficit, trimming the rate of growth in the CPI would be welcome on Wall Street.

4.   Bond traders are not usually optimistic about deficit reduction, and the lower interest rates that smaller deficits encourage.

5.   A smaller deficit means the government will have to sell fewer bonds, making Treasury securities scarcer and more valuable.

6.   A smaller deficit is good for bonds because it means the government will borrow less, making existing securities more attractive to investors.

7.   A smaller deficit could decrease borrowing costs at home and boost profits.

8.   A smaller deficit leaves foreign exporters with fewer dollars to sell.

9.   A smaller deficit shores up confidence in American assets and lures global investors to the dollars they need to buy them.

10.   A smaller deficit shores up confidence in American assets, and lures global investors to the dollars they need to buy them.