There is no way that budget is going to pass as it is and Obama knows it. Since he didn't touch the big entitlements (Medicare & SS) he wants the Republicans to make the first move to suggest cuts to those. Then in 2012 he can try to paint the Republicans as the party that cut the big entitlements that everyone receiving those benefits will find fault.
We'll have a second great depression either way. Think about it and what you are implying. If we continue trillion dollar deficits, the bond market explodes and funding all this spending becomes impossible. If we introduce austerity and, gasp, cut off all the crony capitalism, we'll see alot of the same from 2008. Either way, we're painted into a corner, at some point it's going to be an issue of how we deal with the future of this country...you know, the long term future, not 6 months to a year from now which is what all levels of the government seem to be focussed on for the past few years.
...and your point is? There is nothing that can be done about the stupidity of the wealthiest economy on Earth borrowing money.. why borrow in the first place? Forget the country, it's been messed up permanently by people that want it permanently messed up I suppose... I'd get trading skills and fight my way up the ladder to get some tangibles that would serve me and my family... oh wait, that's what I am doing already, never mind...