Paul Krugman called this "the moron risk premium"
https://twitter.com/paulkrugman/status/1573656086716071937
https://www.ft.com/content/08908266-cc47-4cda-b8d4-97a8ac433...
https://twitter.com/paulkrugman/status/1573656086716071937
https://www.ft.com/content/08908266-cc47-4cda-b8d4-97a8ac433...
The UK's situation is no different from continental redistributionist disasters - big government, too much spending.
The only reason why the US hasn't fallen to that level is that the dollar is a major reserve currency.