That Debt From 1720? Britain’s Payment Is Coming

NY Times ^ | December 27, 2014 | Stephen Castle

[C19fan]

Share prices went through the roof, speculation ran wild and money poured into ill-fated ventures before the boom turned, inevitably and catastrophically, to bust.

After that financial crash in 1720, called the South Sea Bubble, the British government was forced to undertake a bailout that eventually left several million pounds of debt on its books. Almost three centuries later, Britons are still paying interest on a small part of that obligation.

Now, prompted by record low interest rates, the British government is planning to pay off some of the debts it racked up over hundreds of years, dating as far back as the South Sea Bubble.

[C19fan]

Part of me is sad the British are finally retiring these consols, debt with no maturiy date. They did provide a handy continuous data set of interest rates going back to the 18th century. Also, if you enjoy British Literature these consols, called The Funds, have been mentioned in the works of Austen, Dickens, E.M. Forester, Charlotte Bronte, and Thackery. At the time the Funds were the only relatively safe investment besides land until the birth of the modern corporation.

[cloudmountain]

The check is in the mail?

[SamAdams76]

Very interesting. The world was a much different place back in 1720. If I could climb into a time machine and go back to that year, I’d look up J.S. Bach and tell him to keep up the great work. Mozart - he wasn’t even born yet.

[Sasparilla]

So, we can expect a check for our investment in WWI?

[cloudmountain]

So, we can expect a check for our investment in WWI?

Right.

[Star Traveler]

A debt that is older than the USA has been a country!

[proxy_user]

"George Osborne, the chancellor of the Exchequer, said this month that in 2015 Britain would repay part of the country’s debt from World War I, and that he wanted to pay off other bonds for debt incurred in the 18th and 19th centuries." Apparently, we can.

[SunkenCiv]

What's their rush?

[NoCmpromiz]

On another note, I hear that the illustrious Barry Hussein Odumbo has offered George Osborne, chancellor of the Exchequer, his particular peculiar expertise at lowering debt...

[rdl6989]

Right, there’s no need to get in a hurry.

[moose07]

...Barry Hussein Odumbo has offered George Osborne,...

When it comes to Debt, Barry is an amature.

[moose07]

Best you tap France up for that one.

[Rebelbase]

I guess we will still be paying off China 300 years from now?

[Oztrich Boy]

Also, if you enjoy British Literature these consols, called The Funds, have been mentioned in the works of Austen, Dickens, E.M. Forester, Charlotte Bronte, and Thackery.

Also Trollope.

[Verginius Rufus]

In 1720 my grandfather’s grandfather’s grandfather was a young man. Since he was a peasant in eastern Europe, I doubt he had any of these bonds. If he did, none of them came down to me.

[Bigg Red]

If this was owed by some disgusting Third World cesspool, Obamugabe would be clamoring for debt forgiveness.

[colorado tanker]

The Odumbo Administration could buy a clue here. The proper reaction to historically low interest rates is pay off debt, not go out and borrow more.