Neat summary of what's required to dig us out of our economic hole.
1. Take the hit from writing down unpayable household and sovereign debts.
2. Borrow at today's historically low interest rates to fund infrastructure projects (and therefore jobs) which will return multiple times their investment.
3. Target real GDP to allow for a readjustment in labour (e.g. downward adjustment in prices and wages).
[Update] The Staggers has a very similar argument regarding the UK in specific, although I don't think its assumption that Britain can continue to get richer regardless is necessarily true.
http://www.newstatesman.com/politics/politics/2012/07/britain-not-bust-it-rich-and-could-get-even-richer-heres-how
Macroeconomic analysis from Dan Alpert of Westwood Capital.