If the Democratic party weren't a bunch of lily-livered corporate-kowtowing rat-soup-eating low-down insecure honky-tonk Motherfuckers, they could have a check mate in two moves in the current budget 'fight'.
Move One: Agree that the deficit needs to be solved, then point out that half of federal dollars are spent on military costs. Argue that an immediate end to the (3? 4?) wars, modernization of the military (ie: folding the Air Force into the navy, getting rid of beauracratic doubling) and reigning in of no-bid military contracts (Tomahawk missiles cost $1million per, which is outrageous, but I bet you the Chinese could make em for $50k each, because they wouldn't let the manufacturers set the goddamn price) would save trillions each year, ending the deficit w/out cutting vital services at home.
Move Two: When the Republicans balk, make it clear where there priorities lie, not with the budget deficit but the increase of human suffering for profit. Hammer this home to the public, constantly, that a proposal to drastically restructure (and here, you can use the euphemism of 'modernizing' the Military so that it can be more efficient, quick-response) the military and also end the wars, which everyone fucking hates, was rejected, when it was in fact the best way to both end the deficit and keep jobs and services here in America.
But I think it's probably better to cut education, health care and infrastructure. Because Iraqi roads are more important than American ones. (See how easy it is to coopt the hysterical patriotism of the right wing? It's fucking page one of the goddamn political bullshit play book.)