Krugman: Deficits saved the world!

All those (in the US, Western Europe, and in Poland) who argue that budget deficits have made the recession even worse should read this post on Krugman's blog. He quotes Jan Hatzius' (GS) report arguing that the recent increse in private savings in the US was larger than even during the Global Depression and that without offseting increases in budget deficits we would have ended up really badly.