Buiter Says Markets Will Punish Treasuries for 'Unsustainable' Deficit

The video discusses the potential economic impact of a US government shutdown, emphasizing that a second shutdown could cause more damage than the first. It highlights concerns about the US deficit, which is unsustainable at 6% of GDP, and compares it to Europe's lower deficit. The discussion also touches on the concept of secular stagnation, where high debt levels can dampen productivity and innovation, leading to weaker economic growth.

What are the implications of a high deficit to GDP ratio for the economy?

How does government spending and taxation relate to the generation of debt?