The first televised prime ministerial debate was great fun, the second was interesting, but the third will be the most important event of the election campaign. That's because this debate will show whether or not the candidates can summon up the courage to say something real about the most important issue facing the country in the next five years.
That issue is spending cuts. At the moment, out of every four pounds the government spends, one is borrowed. In those circumstances the most powerful forces in the world of UK domestic policy are not our politicians, but the international bond markets. That's because the bond markets are the people who are lending us afloat. The situation is, in principle, no different from what happens when a small business gets into difficulties and has to go to the bank. The bank manager can tell the business to lay off staff, cut overheads, cancel holidays and anything else, and even if these are bad ideas, the business has no choice about whether or not to execute them. In the same way, a country that has gone into debt as quickly as we have has in effect lost some of its sovereignty.