Date Posted:13:03:42 01/31/07 Wed Author:RMW Stanford Author Host/IP: 74-134-107-100.dhcp.insightbb.com / 74.134.107.100 Subject: Re: Why did the British Empire break up? In reply to:
Anthony
's message, "Re: Why did the British Empire break up?" on 10:15:50 01/31/07 Wed
>>
>>"In a nutshell, everything we got from America in
>>World War II was free," says economic historian
>>Professor Mark Harrison, of Warwick University.
>Some professor! did he think Britain paid with
>Monopoly money to greedy uncle sam.
No but he actual understands economics and the change in value of money. The nominal interest rates that we usual see has a number of different parts, in order to get the real rate of interest you have to subtract out the rate of inflation. In this cases since the nominal interest rate the US charge on those loans was 2 percent far below the average inflation rate over the life loan, which was close to 6 percent for that time period, the amount that was gained in interest revenue was below the lose from inflation, so real value of the money that was paid back to the United States was less than what the real value of the loan was. Hence is statement isn't exactly true, but its pretty close. The UK got a lot of cheap money from the United States that why the Government took their time in paying it back.
If the US was greedy, dont think we would have charge a higher rate of interest, one that would of insured we made money off the loan?
