In this post-financial crisis world, the Fed has taken a Keynesian edict and turned it on its head: instead of the government stepping in after a crisis to make up for the loss of aggregate demand from the private sector, it has fallen to central banks.

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But it may be worth remembering that the aggregate public-sector and private-sector indebtedness of the UK is higher than for any eurozone country, even Greece - and our annual government deficits are significantly greater than those of Spain or Italy.

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What it would do is shift economic activity from the less productive government sector to the more productive private sector, thereby stimulating aggregate output and growth.

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Instead of trying to save particular jobs or groups of jobs, the government should encourage a vigorous private sector so that aggregate demand will be able to absorb those caught up in creative destruction or the job churn.

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Importantly, we looked at the aggregate of individual investments themselves rather than funds since sector-specific and diversified venture funds exist.

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"Small losses in one sector of the credit market can have an outsized impact on aggregate economic activity, " said Federal Reserve Board Governor Frederic Mishkin at a conference in New York Friday.

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So given that the UK government, UK households and UK banks are struggling to repay a veritable mountain of debt - more in aggregate than the UK has ever borrowed in its existence - why on earth does the UK public sector look an attractive place to investors for their precious cash?

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As I have explained here many times, it is impossible for the US to default on the debt (because it is denominated in dollars), deficits create private sector wealth (while surpluses reduce it), and we NEED the government to supplement aggregate demand so that we can generate output and employment to our potential.

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