Re: a problem
There's only one percentage point reduction between the peak 2007 GDP of $13.36 trillion and the latest 3rd quarter estimate for 2010 of $13.26 trillion. Sorry, but a spike on a ratio graph like the one above would have to be almost all from drastically increased spending.
We've been over Keynes before. In great detail. Maybe you've forgotten.
In any case, a $787 billion "stimulus" bill exceeding the cost of the entire Iraq War to date has resulted in...about 1.4 million fewer payroll jobs today than when the bill was passed.