Ryan says Treasury borrowing needs unprecedented:

The potential for deterioration in economic conditions, given the contraction in credit, may also affect budget conditions this year - Ryan

They are now seeking private investment:

We all benefit from a deep, liquid Treasury market, and SIFMA and the Treasury Markets Practices Group have the opportunity to take a leadership role in devising and implementing private-sector solutions to current challenges

AP says the Treasury might revive the 3 yr. note:

Treasury was considering reviving the three-year note starting in November to help raise the money that will be needed to fund the rising deficits. He pledged Treasury would keep the markets informed of other financing changes that will be undertaken

Bloomberg is reporting the budget deficit might hit $1 trillion this year.

The Treasury needs to sell debt to raise money for the new initiatives and also cope with a weaker economy, two factors analysts say may push the country's budget deficit to more than $1 trillion for the current fiscal year

Meanwhile the deflation o inflation argument is still rages on with Seeking Alpha saying the US must have inflation due to the ballooning deficit and trashing of the U.S. dollar. They claim a deflationary period can only be temporary.