One of the problems complicating this recession is that the US and UK ran a huge current account deficit, even before the recession. Current account deficit is roughly the difference between export and import, adjusted to foreign aid, interest payment, dividend payment, etc. So as the country starts spending more money to recover out of the recession, it will get into a fiscal deficit.
The empirical relationship between current account deficit and fiscal deficit is negative for countries that have accumulated huge debt, like the US, under Barro-Ricardo equivalence. So as the fiscal spending increases, it is normal to expect the US to reduce their current account deficit (53% deficit). But then, it would come in terms of reduction in import as more products are made in domestic rather than through export, unless of course as Krugman says the US finds a completely different planet to export its goods to.
I tried to search if there were any country in the past with such a huge current account deficit, accumulated debt, and in recession. It was Germany after the first world war. That is due to the war indemnities imposed on Germany.
So I tried to see how Germany does today (see the graph, above. Courtesy: Robbins Lecture 2009 PDF). WOW!!! More than $250 billion dollars of current account surplus, which is surprising when compared with the others in European union. Germany's surplus is more than 9% of their GDP. Only other country with a similar figure is China. In contrast, the US has a current account deficit that is 53% of their GDP. If some tout China to become epicenter of the world economy at the end of the recession, watch out. Even Germany has a chance. And personally I trust the figures reported by the Federal Republic of Germany over those reported by the People Republic of China.
But for all these Germany has to come out of the recession. German government was smart enough to maintain a good surplus balance of payment. But they don't seem to be doing a good job handle the recession.