The power of the bond markets is just bluff – which is why debt could be used to fund the Green New Deal

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In 2010 George Osborne led the UK into solely politically motivated austerity and government cuts using the first of his political bogeymen - the power of the bond markets.

As John Kay says in the FT this morning:

The power of the bond markets is a bluff - with long term borrowing costs at about zero for advanced economies those worried about future financing should issue as much debt as possible.

He is absolutely right.

This is the moment to issue cost free debt to fund a Green New Deal to get the UK back to work on delivering a sustainable future.

It's possible. We just need Courageous politicians to deliver it. They are the sort of politicians who would not as Kay puts it:

spend too much time talking to people who take a daily interest in the bond market, and come to believe that their obsessions are important. Britain’s economic performance should be judged by benchmarks relating to employment, productivity, growth and innovation, not credit ratings.

Quite so.