As long as the dollar is the world's currency of choice, we will have large deficits.
This is because other countries need dollars. Oil is traded in dollars, and countries want dollars for savings. So they export to us, without importing as much, so that they can hold on to dollars. This insures that we will run a trade deficit.
And since we are bleeding money abroad, the government must deficit spend to create more money domestically, or else the economy would dry up.
So a trade deficit almost always insures a budget deficit. But there is an exception:
During the late 90's we had a trade deficit, but a budget surplus. A budget surplus is a drain on the economy, because it means we are destroying more dollars through taxation than we are creating through spending. And the trade deficit is also a drain on domestic demand.
So what made up for all this anti-stimulus? Private credit.
The credit boom of the late 90's had the private sector moving heavily into debt and subsidizing the trade deficit and budget surplus of the US.
But that wasn't enough to last. The economy still went into recession at the turn of the century, partially because of the drain of the budget surplus.
So as long as the world wants dollars, trade and budget deficits are pretty much guaranteed.