Today the treasurer’s office released its cash-flow analysis for the month of June. It sure looks as though the fiscal situation is improving rapidly, which tends to confirm what Director Bolton from OMB reported earlier when he released the latest deficit projections. A projection from the White House may be greeted with skepticism, but the cash-flow reports are hard to deny. In addition, since the GDP has been growing so rapidly, deficit as a percentage of GDP (which is the deficit number that really matters) is dropping like a stone. In other words, the supply-side tax cuts have worked.