Obama's Administration says it will "reduce" the deficit (from $1.3-1.5 trillion!) to "only" $533 billion by 2013.

By 2013? 

Where have we heard this before?

Oh, I remember!  It was when George W. Bush took office!  Why he was going to "reduce the deficit" by 2/3rds by the time he left office too, wasn't he?

Did he do it?  Noooooo!

And while he can claim that war got in the way, what also got in the way was massive fraud and games in the financial system, which, due to how he handled them (that is, bailing people out instead of forcing the imprudent and fraudulent to go broke) led to the $1.3 trillion dollar deficit we have now.

President Obama intends to "address" this issue by raising taxes on hedge funds managers, putting their incomes at ordinary income rates instead of capital gains, along with expiring the Bush tax cuts.

The latter were expected.  The former is arguably just, but it will certainly stoke plenty of debate (and bribes, er, lobbying and "contributions") in Congress.

Oh, how much tax do you pay on losses?  That would be zero, right?  And how have these so-called "hedge funds" done in the last year?  With few exceptions they have lost massive amounts of money!

One thing is certain - Obama's so-called "fiscal responsibility summit" on February 23d won't eliminate even one cabinet office, one government department, and it will not actually result in a meaningful reduction in government spending anywhere.

Neither Democrat or Republican has actually shrunk the size of government in fifty years; there is no reason to believe that President Obama will do so either, and as a consequence, his claims of "budget deficit reduction" should be considered as honest as were George W. Bush's.