Fiscal deficits could raise world interest rates and harm economies.
The article discusses how ongoing government spending can lead to problems if it continues for a long time. It shows that large countries with high deficits can cause interest rates to go up worldwide. Additionally, these deficits can also make a country's current account, which tracks imports and exports, worse in the short term. In the long run, the current account can deteriorate even more, especially for big economies like the United States.