The U.S. has swapped its relatively long-term expensive debts for short-term ones with a low interest rate.

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Yields fell to around 5.5%, lower than the 7% which is considered to be economically unsustainable for a country to repay its debts in the long term.

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That will run up big debts without generating long-term growth.

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The true cost to the country is not a few bad debts but a reduction in long-term investment plans as confidence wanes.

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Most officials barely acknowledge that supply-side reforms, such as an overhaul of training schemes to help combat long-term joblessness, or bigger efforts to reduce household debts, might even be necessary.

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If you are one of those who rails against the short-termism and excessive risk-taking of some banks and finance businesses, you might note that a public sector financial institution, the Debt Management Office, has taken a reassuringly long-term approach to managing the UK government's debts - and without its prudence, we might all be in Queer Street or Skid Row by now.

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But keeping these debts on their books, and so continuing to favour existing long-term but often poor-risk customers, is choking off bank credit to those firms which could actually make good use of it.

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Two of its three main hospitals have PFI debts, and the administrator has said that if services are going to become sustainable in the long-term the government will have to cover some of those costs.

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