Sixty Joyless De-Britished Uncrowned Commonpoor Years (1949-2009)

Elizabeth II Vice-Regal Saint: Remembering Paul Comtois (1895–1966), Lt.-Governor of Québec
Britannic Inheritance: Britain's proud legacy. What legacy will America leave?
English Debate: Daniel Hannan revels in making mince meat of Gordon Brown
Crazy Canucks: British MP banned from Canada on national security grounds
Happy St. Patrick's: Will Ireland ever return to the Commonwealth?
Voyage Through the Commonwealth: World cruise around the faded bits of pink.
No Queen for the Green: The Green Party of Canada votes to dispense with monarchy.
"Sir Edward Kennedy": The Queen has awarded the senator an honorary Knighthood.
President Obama: Hates Britain, but is keen to meet the Queen?
The Princess Royal: Princess Anne "outstanding" in Australia.
H.M.S. Victory: In 1744, 1000 sailors went down with a cargo of gold.
Queen's Commonwealth: Britain is letting the Commonwealth die.
Justice Kirby: His support for monarchy almost lost him appointment to High Court
Royal Military Academy: Sandhurst abolishes the Apostles' Creed.
Air Marshal Alec Maisner, R.I.P. Half Polish, half German and 100% British.
Cherie Blair: Not a vain, self regarding, shallow thinking viper after all.
Harry Potter: Celebrated rich kid thinks the Royals should not be celebrated
The Royal Jelly: A new king has been coronated, and his subjects are in a merry mood
Victoria Cross: Australian TROOPER MARK DONALDSON awarded the VC
Godless Buses: Royal Navy veteran, Ron Heather, refuses to drive his bus
Labour's Class War: To expunge those with the slightest pretensions to gentility
100 Top English Novels of All Time: The Essential Fictional Library
BIG BEN: Celebrating 150 Years of the Clock Tower

Friday, 29 December 2006

Britain repays transatlantic Allies

The final act of the Second World War "Anglo-American Alliance" is about to take place, with the last installment of Britain's war debt being paid to Canada and the United States before the year is out. The original loans about to be retired seem small ($4.3 billion from the U.S., $1.2 billion from Canada), but by the standards of the day, the credit extended to Britain was in fact quite massive.

In the case of Canada, that amounted to 10% of our total GNP of $11 billion back in 1945. Think about that for a minute. We lent 10% of our country's total economic output to Great Britain following the war in return for an inflationary interest rate of 2%. In present value terms, given our $1.2 trillion economy, that would be the equivalent of lending a single country $120 billion! Put another way, that's roughly Ontario's current total provincial debt, or an amount that represents about $3,000 for every man, woman and child living in the country today. Who in their right mind would do such a thing?

Well, let's not pretend it was an outright gift, even though it was exceedingly generous. It was in our own economic interest to do so because we didn't want to see the UK go bankrupt, not after all the manufactured goods and basic staples of life the British were purchasing from us back then. It was a large reason why our economy was flourishing in the first part, along with meeting the huge demand for our own domestic war needs. Lord Keynes went so far as to say that the loan was a means used by America to subjugate Britain after the war. This is going too far, given the outright size of the financial assistance. Can you imagine the United States giving up hundreds of billions of its tax dollars to another country out of the goodness of their hearts. Charging 2% is hardly subjugation. Subjugation would be letting His Britannic Majesty go bankrupt, rendering him unable to feed His Majesty's subjects.