UK War Debt

Just come across this story on Sky.
http://news.sky.com/story/1363938/uk-begins-paying-back-first-world-war-debt
Unbelievable that the country still owes a debt dating back nigh on 100 years ago. This probable means that the current debts owed will not be paid back for centuries.
http://news.sky.com/story/1363938/uk-begins-paying-back-first-world-war-debt
Unbelievable that the country still owes a debt dating back nigh on 100 years ago. This probable means that the current debts owed will not be paid back for centuries.
Always be yourself, unless you can be Aaron Rodgers....Then always be Aaron Rodgers.
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http://www.bbc.co.uk/news/world-europe-11442892
I read that the Rothschild Bank loaned money to both sides during the Napoleonic wars. Kerching ! Win-win for the Rothschild's especially the longer it went on for.
It's only Kerching if the debt gets paid, innit. No use if the war bankrupts both sides. Then they can't pay the bank back.
It's an irrelevance that the original bonds were to fund the war. It's rolling debt, and as there's an outcry every time the govt makes attempts at reducing spending to clear the debt it looks as though some of these ancient obligations will continue, until it's cheaper to replace them with a new debt. That situation seems to have arisen.
Issued in 1927 when UK was in a bad way, big economic turmoil post return to gold-standard.
Since then inflation has annualised at 4.77% and the coupon was 4% so the treasury sold for £100 each and has bought back at £1.82.
Good sense, in short.
This only makes sense if the new debt is on a perpetually fixed rate, as the war bonds were. If not then the new debt would ultimately be more expensive if/when interest rates rise again...