Niall Ferguson on the Wonders of the Invisible World

Niall Ferguson:

Today’s Keynesians have learnt nothing: The anti-Keynesians point out that bond market sell-offs are seldom gradual. All it takes is one piece of bad news – a credit rating downgrade, for example – to trigger a sell-off. And it is not just inflation that bond investors fear. Foreign holders of US debt – and they account for 47 per cent of the federal debt in public hands – worry about some kind of future default...

But they don't.

If foreigners holding the U.S...