The article explores the impact of increased U.S. government deficits on the global economy using a special economic model. Unlike traditional models, this one considers people's short-term view of future taxes. The study shows that higher U.S. deficits lead to less savings worldwide and higher interest rates. It also causes a significant drop in the U.S. current account over time. The research challenges old models and suggests that government spending on infrastructure can have positive effects. Additionally, lower U.S. savings and higher global savings may explain why world interest rates are low despite U.S. deficits.