Date Posted:14:55:09 02/04/07 Sun Author: Anthony Author Host/IP: webcacheh02a.cache.pol.co.uk / 195.92.67.66 Subject: Re: Why did the British Empire break up? In reply to:
RMW Stanford
's message, "Re: Why did the British Empire break up?" on 13:03:42 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?
