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Drekkus
28-12-2006, 11:51:28
Or am I reading this wrong?

http://www.thesun.co.uk/article/0,,2-2006600203,00.html

BRITAIN will finally settle its Second World War loan debt to America and Canada tomorrow.

A £55million instalment completes the £4.8billion repaid since 1950. The loans of £2.8billion bankrolled the war effort and post-war reconstruction.

Economic Secretary to the Treasury, Ed Balls, said: “This week we honour in full our commitments to the US and Canada for the support they gave 60 years ago.”

Colon
28-12-2006, 12:39:21
That might actually be less than the inflation since 1950.

fp
28-12-2006, 12:47:01
Almost certainly less, I'd say.

Drekkus
28-12-2006, 12:56:06
Over 60 years, half the amount in interest isn't that big, but still, 2 billion pounds is a nice sum of money :D

Chris
28-12-2006, 14:51:12
About time those limey deadbeats paid up.

fp
28-12-2006, 15:23:29
The cheques kept getting lost in the mail.

Colon
30-12-2006, 00:46:33
http://news.bbc.co.uk/2/hi/uk_news/6215847.stm

The US loaned $4.33bn (£2.2bn) to Britain in 1945, while Canada loaned US$1.19 bn (£607m) in 1946, at a rate of 2% annual interest.

2%? That's certainly less than the average annual rate of inflation. Some mighty fine deal for the UK.

Koshko
30-12-2006, 02:19:28
So the Brits have 2 billion pounds just lying around?

HelloKitty
30-12-2006, 03:04:13
The brits don't have reaganomics.

notyoueither
30-12-2006, 08:56:34
Originally posted by Colon
http://news.bbc.co.uk/2/hi/uk_news/6215847.stm

2%? That's certainly less than the average annual rate of inflation. Some mighty fine deal for the UK.

And?

Skanky Burns
30-12-2006, 11:00:25
... not so fine for the US and Canada?

Colon
30-12-2006, 14:44:00
It means that the sum the Brits paid back is less than the sum they borrowed.

Drekkus
30-12-2006, 14:51:11
no, they borrowed 2.9 bn pounds, they paid 4.3

Colon
30-12-2006, 15:06:26
Do I really have to explain the concept of inflation?

the Fin
30-12-2006, 16:25:34
bbbnhjjyjgjj

Scabrous Birdseed
30-12-2006, 22:12:17
Originally posted by Colon
Do I really have to explain the concept of inflation?

Yes, but you must explain it using only emoticons.

HelloKitty
30-12-2006, 22:50:18
(:clueless: + :beer: +:shoot: )/:confused: = inflation

Koshko
30-12-2006, 22:51:35
They should probably just cut the middle man, and sent the cash directly to Iraq.

notyoueither
30-12-2006, 23:17:46
Originally posted by Colon
It means that the sum the Brits paid back is less than the sum they borrowed.

I wouldn't have thought these loans were purely business transactions.

BTW, what were mortgage rates and inflation like from 1925 to 1945 in Canada and the US? I'm not sure the 2% was an absurd number.

Lazarus and the Gimp
30-12-2006, 23:30:15
Originally posted by Colon
http://news.bbc.co.uk/2/hi/uk_news/6215847.stm



2%? That's certainly less than the average annual rate of inflation. Some mighty fine deal for the UK.


Not as fine a deal as Germany and Japan got...

Koshko
30-12-2006, 23:31:46
Originally posted by Colon
It means that the sum the Brits paid back is less than the sum they borrowed.

Actually given that most of the time, the USA never really sees the money that they lend out, we'll take what we can get. On the same token, we'll never pay back all the money we owe other countries either. It's amazing that pretty much every country in the industrialized world is in debt to pretty much every other country in the industrialized world ...

Colon
31-12-2006, 00:22:24
Only normal when there's international trade and when most debt is tradeable.

Diss
02-01-2007, 04:30:19
bad fiscal responsibility. It would have been cheaper to surrender.