‘Savage’ Austerity Is in U.S.’s Future, Buiter Says: Tom Keene

Fiscal austerity measures detailed today by the U.K. government will soon be needed in the U.S., according to Willem Buiter, Citigroup Inc.’s chief economist.

Britain’s deepest budget cuts ever, outlined by Chancellor of the Exchequer George Osborne, will eliminate almost 500,000 public-sector jobs and impose a levy on banks. The moves are part of a plan to reduce the 156 billion-pound ($245 billion) deficit, which is forecast to be 10.1 percent of gross domestic product this year, to 2.1 percent in the 2014-15 fiscal year.