Date Posted:14:58:54 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:
Anthony
's message, "Re: Why did the British Empire break up?" on 14:55:09 02/04/07 Sun
>>>>
>>>>"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?
>
>Not forgetting compound interest
I've been to hard on America at least you dropped two atomic bombs on Japan free of charge.
