[FateHostera]

In 2007 the federal government spent $2.7 trillion, and ran a deficit of $160 billion.

In 2008, the federal government spent $2.98 trillion, and ran a deficit of $458 billion.

Then in 2009, the government spent $3.99 trillion, with a deficit of $1.8 trillion! But, of course, that was because of the stimulus being added in, right?
A one-time thing?

2010 - $3.5 trillion / $1.25 trillion

2011 - $3.6 trillion / $929 billion

2012 - $3.6 trillion / $557 billion

And projections show $500 billion deficits to continue for the foreseeable future. How did this become the new normal?!?

It looks like you're undercutting the 2012 budget deficit by half. According to the CBO:

An Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022

The federal budget deficit for fiscal year 2012 will total $1.1 trillion, CBO estimates. Federal debt held by the public will reach its highest level since 1950 by the end of this fiscal year. http://www.cbo.gov/

Where did your numbers come from? I'm curious to see why there is such a big difference. OMB?