The Treasury can borrow like mad because its bogeyman no longer exists

“I used to think that if there was reincarnation, I wanted to come back as the president or the Pope or as a .400 baseball hitter,” James Carville, a US political adviser, famously said in the 1990s. “But now I would like to come back as the bond market. You can intimidate everybody.”

Carville’s remarks came after the Clinton administration made a number of proposals designed to stimulate a moribund economy in 1993, only to see the plans derailed by concerns that bond investors would balk at the resulting increase to the deficit. 

Such investors were labelled “bond vigilantes”. Governments

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