Last month I watched the celebrated US economist Paul Krugman explain to 2000 people in Las Vegas why debt doesn’t matter. Despite being at a business focused libertarian conference he convinced a sizeable chunk of his audience, by a show of hands, to his argument. He has clearly convinced the masters of the global economy too… He bravely reassured the audience, whilst the US is projected to rapidly exceed a debt to GDP ratio of 100 per cent, that “there is no conclusive evidence or study that claims there is a cliff at 90 per cent.” Krugman used Britain as his example in explaining to the crowd: “You should always keep an eye on debt, but it’s not necessarily a priority. The UK operated with a much higher debt to GDP ratio for most of the 20th century.” The week’s news has been dominated by the dimming light of the