There are no such safety nets to support the UK. Bullies tend to pick on the weakest, and the international bond market is perhaps the biggest bully of the lot.
The gond markets are not bullies. There are no bond vigilantes. There are simply investors – individual, collective, corporate – who look at the price of gilts and think “Know what? We don;t want to buy that. Ta!”
If we didn’t need bond markets to fund the debt caused by absurd levels of spending then we wouldn’t need to care about them. If he’s that bothered he should recommend massive spending cuts. And Satan will be ice skating to work.
AFAIK we’re now in a worse situation with the bond markets when Truss had to go because of “crashing the economy”. The people behind this have said nothing.
Because my Warburton’s seeded granary is now over two quid and I choose not to buy it, I’m a bully?
Yeah Tim. It always amuses me when people say markets have opinions. Each transaction requires both a buyer & seller. Whose opinions must, by definition, be contrary.
You could make arguments about herd mentalities, rumour mongering, animal spirits and the like. And you would have to accept, in return, that those same concerns apply to electorates. And democracy is still the least-worst form of government.
The ability to participate, in whatever limited or indirect form, has stabilizing value. So where would anyone possibly want to go with this argument?