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Britain To Repay £2Bn First World War Debt

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The UK is taking steps to repay the £2bn debt it originally borrowed to finance the First World War.


The debt had not previously been paid off because the Government has to pay relatively little interest on it, having paid a total of £1.26bn since 1917.

This amounts to roughly £13m a year, a relatively small item on the Government’s balance sheet in today’s terms. [more at link]


http://www.independent.co.uk/news/uk/politics/britain-to-repay-2bn-first-world-war-debt-9830086.html

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The UK is taking steps to repay the £2bn debt it originally borrowed to finance the First World War.

The debt had not previously been paid off because the Government has to pay relatively little interest on it, having paid a total of £1.26bn since 1917.

This amounts to roughly £13m a year, a relatively small item on the Governments balance sheet in todays terms. [more at link]

http://www.independent.co.uk/news/uk/politics/britain-to-repay-2bn-first-world-war-debt-9830086.html

Yes! Pay off your cheapest debt first, as any good financial adviser will tell you.....

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It isn't actually being repaid though is it? It is simply refinancing it. That a lower interest rate will be achieved is no bad thing of course, but the unduly positive spin can be seen through.

From the Treasury announcement

https://www.gov.uk/government/news/chancellor-osborne-to-repay-part-of-our-first-world-war-debt

"The Treasury takes into account a number of factors when deciding whether to redeem its stock of undated bonds. But the Treasury is confident that it can deliver value for money to current and future tax payers by refinancing this borrowing now at lower rates than the 4% it is currently paying. The government is only able to do this today because interest rates are lower today, thanks to the confidence in the plan that the government has put in place to cut borrowing and create a resilient economy."

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From the Treasury announcement

https://www.gov.uk/government/news/chancellor-osborne-to-repay-part-of-our-first-world-war-debt

thanks to the confidence in the plan that the government has put in place to cut borrowing and create a resilient economy."

Nope, thanks to massive money printing and the current circumstances that having spent further £10bn's on wars and toppling long establised leaders (and countries) throughout many parts of the world, sterling assets are still seen as somewhat touchable compared to the trail of crap left behind elsewhere, regardless of the return.

Edited by onlyme2

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So the money used to fund that war with Germany is almost worthless (relatively speaking) after about 100 years.

It could only happen with the UK bankers and the UK politicians in each others pockets - but the UK now knows the consequences of that. A UK economy now dependent on money printing, ponzism and debt - with Germany more or less pulling the strings.

Edited by billybong

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you also pay your debts off before you give to charity.

depends which charity.

sometimes it's worthy giving a bit toward a cause you may need in future years.

stuff like cancer relief or help the aged I don't have a problem paying a couple of quid..although I must be blunt, the aged have been helipng themselves to our kid's futures quite a bit more than the social contract stipulated.

not entirely their fault, they got greedy, that's all.

that, and a bunch of politicians who are idealogically minded to sell their own kids into slavery too..feck yours.

they thought socialism was this nice fluffy student union version......oh boy are they in for a shock.

we did try to warn them.....

when it really comes down your family history might be a problem.....prone to obesity?, mental illness?, handicaps?..maybe a little too harsh ith questioning the state apparatus?

...they're all for the scrapheap.

now dave and gordon should know full well their kids will be euthanised at birth(or before)..if their wives are ALLOWED to conceive in the first place.(that will be state appointed too..none of this love ********..pure genetics is where it's at)

maybe this is the kick in the pants wet blankets like him need to convince them to grow a pair..appeasement doesn't work with these people..they are social darwinists...they believe in survival of the fittest..and your kids don't measure up...end of.

Edited by oracle

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So the money used to fund that war with Germany is almost worthless (relatively speaking) after about 100 years.

It could only happen with the UK bankers and the UK politicians in each others pockets - but the UK now knows the consequences of that. A UK economy now dependent on money printing, ponzism and debt - with Germany more or less pulling the strings.

well I guess if we stopped fighting all those wars we didn't start and let europe get on with it on their own it would probably make quite a big dent in that surplus.

we fight the wars, take the blame and the rest of EU lives in comfort without lifting a finger..except the one wagging at us pointing all the blame in our direction.

the yanks are getting fed up with this arrangement and so are we.

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well I guess if we stopped fighting all those wars we didn't start and let europe get on with it on their own it would probably make quite a big dent in that surplus.

we fight the wars, take the blame and the rest of EU lives in comfort without lifting a finger..except the one wagging at us pointing all the blame in our direction.

the yanks are getting fed up with this arrangement and so are we.

Indeed there is that as well - but just to say that the way the arrangement has ended up is largely as a consequence of the UK bankers and UK politicians being in each others pockets and thinking that banking and the financial sector and latterly stuff like money printing etc rather than producing things is a solution to anything.

Otherwise how has such a massive debt turned out to be worthless unless with the cooperation of the bankers. Normally any organisation seeing their loans being frittered away would either call them in or massively hike interest rates.

Also as long as the UK bankers and politicians (the other we?) are skimming off from the rest of the UK population then they seem unlikely to be getting that fed up with it - from past evidence.

The economic policies used to fund wars to defeat other nations (whoever started them and whoever is to blame) is also resulting in the financial defeat of the UK people.

Edited by billybong

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http://www.sovereignman.com/offshore-banking-2/it-begins-german-bank-charging-negative-interest-to-its-customers-15524/

In 1927, then Chancellor of the Exchequer Winston Churchill issued a series of bonds to consolidate and refinance much of the debt that Britain had racked up from World War I and before.

This debt is still outstanding to this day. And the British government is just starting to pay it down– about $350 million worth.

Think about it– $350 million was a lot of money in 1927. Thanks to decades of inflation, it’s practically a rounding error on government balance sheets today.

Just a rounding error.

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