Anybody as freaked out by current government borrowing as you describe is simply being hysterical. Sure the deficit at a historical high in absolute terms, but its nowhere near a historical high as percent of GDP.
While that's true, it's highly misleading. The only time the deficit was higher than it is now was during World War 2 and its immediate aftermath. The current deficit as a percentage of GDP is now even higher than it was during the Great Depression: http://en.wikipedia.org/wiki/File:Publicly_Held_Federal_Debt_1790-2009.png
Remember that government debt is actually money that is borrowed by the government from the private sector and spent on government expenses, which means that, aside from that which is borrowed from the federal reserve system, it is money that could otherwise be invested in private business ventures. In the case of World War 2, there was good reason for such a high deficit: we were fighting a war of global proportions and diverting the majority of the country's resources towards it. There is no such excuse today. The deficit we have today exists solely because the government is too large and is overspending (on the wrong things, no less -- it would be one thing if it were spending most of that on infrastructure improvements that would benefit the country in the future, but instead it is squandering it on things that yield no significant return on the investment).