Fiat magicked out of thin air funds big wars. It's fact not delusion:
The **United Kingdom** made significant strides in paying off its historical debts, including those related to the **Napoleonic Wars**. Let's delve into the details:
1. **Undated Bonds Redemption**:
- In a historic move, the UK government redeemed the last four **undated bonds** in its portfolio, effectively completing the repayment of **£2.6 billion** of historical debt.
- These bonds date back as far as the **18th century** and include gilts issued during significant events such as the **Napoleonic Wars**, the **Crimean War**, the **Slavery Abolition Act (1835)**, and the **Irish Distress Loan (1847)**.
- The final four undated bonds were traced back three centuries and include gilts issued in **1853**, when Chancellor Gladstone consolidated capital stocks of the **South Sea Company** (which had become government liabilities after the infamous **South Sea Bubble financial crisis of 1720**).
- On **July 5, 2015**, the remaining four undated gilts—**2¾% Annuities**, **2½% Annuities**, **2½% Consolidated Stock**, and **2½% Treasury Stock**—were redeemed in their entirety at par¹.
2. **War Loan Bond Redemption**:
- The UK Treasury also repaid the **first world war debt** by redeeming the **war loan bond** that paid **3.5% interest** on **March 9, 2015**³.
- Additionally, in **February 2015**, the UK paid off **£218 million** from a **4% consolidated loan**, which was part of the redemption of bonds stretching back to the 18th century²⁴.
3. **Historical Significance**:
- These actions represent an **historic moment**, demonstrating fiscal credibility and value for money for taxpayers.
- The low interest rate environment allowed the consolidation of the debt portfolio, benefiting the taxpayer in the long term.
In summary, the UK's commitment to clearing historical debts reflects both responsible financial management and a nod to the past events that shaped its economy and society¹.
Source: Conversation with Bing, 11/02/2024
(1) Repayment of £2.6 billion historical debt to be completed by ... - GOV.UK. https://www.gov.uk/government/news/repayment-of-26-billion-historical-debt-to-be-completed-by-government.
(2) UK Treasury to repay final £1.9bn first world war debt | Bonds | The .... https://www.theguardian.com/money/2014/dec/03/treasury-repay-war-debts-bonds-uk.
(3) Paying the price of war: Britain makes good on historic debts. https://www.theguardian.com/business/blog/2014/oct/31/paying-the-price-of-war-britain-makes-good-on-historic-debts.
(4) Britain to repay National War Bonds as it clears £218m chunk of debt. https://www.thisismoney.co.uk/money/investing/article-2815576/Britain-repay-National-War-Bonds-clears-218million-chunk-debt-dating-far-300-years.html.
(5) History of the British national debt - Wikipedia. https://en.wikipedia.org/wiki/History_of_the_British_national_debt.
