Below is an excerpt from an excellent piece by Mike Miller, a deficit hawk turned Keynesian. Basically, he says that we need the deficit spending, citing a great quote from the master himself, John Maynard Keynes,

“When the facts change, I change my mind,” John Maynard Keynes once growled when grilled about an inconsistency. “What do you do, sir?”

How to love your trillion-dollar deficit – Nov. 20, 2008

In ways that 9/11 didn't, today's economic meltdown really does change everything, at least for a few years. Every day brings fresh proof that the credit crunch and the exhaustion of debt-fueled consumer spending threatens to dangerously collapse aggregate demand. There's simply no way to avoid a major recession without the federal government stepping in to bolster demand until we work through the subprime hangover.

There's absolutely no doubt in my mind that we'll be seeing HUGE, unforseen 8 years ago deficits.

All thanks to mindless wars, politicians run amok, and banks gone wild.