RussellEbertHandball
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This video below, gives you an idea what Ukraine might have to go thru in the next 30 to 50 years after the war ends, depending if you have a generous USA and Europe or a hard headed USA and Europe when it comes to paying back monies used on the war with Russia.
Supposedly a lot of funds Europe is LENDING to Ukraine is against frozen Russian assets.
I knew the UK had to pay for most goods in cash up front early in WWII and then after they got Lend Lease from the Yanks, that had to be paid back post WWII, but I didn't know the full extent of it and it wasn't much publicised by the UKians or the Yanks.
I knew the big picture was that the UKians lost their empire after WWII due to what they had to spend, but was unaware of how many post war restrictions the UK faced from the Yanks as part of Lend Lease.
And the Germans got so many free kicks under the Marshall plan and Germans were allowed to migrate to allied countries. The commie threat from the USSR assisted that. How many Nazis made it to Australia, USA, Canada, NZ etc? in with refugee type Germans? You hear politicians going on about you can't trust immigration from war zones like Afghanistan, Iraq, Sudan etc yet our forebears didn't seem to have too much issues with post war German immigration. From Japan, not so much, but we had a White Australia policy in place then.
Ethnic Germans living in Eastern Europe did cop it. About 13 million lived in Eastern Europe, mainly Poland, Czechoslovakia and Hungary, were forced by the Soviets to move back to Germany, usually on foot, to Soviet controlled East Germany. About 2 million died in that 5 year period, but the West didn't care given what the Nazis did, even though nearly all of these 13 million had nothing to do with the Nazis.
The voice over in the video is AI and dramatizes things, especially repeating the 61 years to hype up things, but as there was a fixed low interest rate loan of 2%, then there is no real advantage paying off loans early by a government who has so many areas it has to spend money on and successive governments further down the decades don't see the need to pay off earlier than scheduled, low interest debt for stuff they never spent money on,
But the video makes several important points about financing a war. What would have happened if the UK let the Nazis take over Poland and France and only start fighting when UK was invaded?? Same sort of questions can be asked about Ukraine's position.
Inflation over time eats away at the real value of these payments, so that after 40-50-60 years the annual repayments aren't that harsh.
It makes sense for householders to pay off their mortgage early as interest rates usually aren't fixed for the full 25-30 year loan on a house and they don't have so many things to spend on like a government, who can run annual deficits. Your monthly repayments are 85%+ interest at the start of your 25-30 year mortgage and last dozen or so are 90%+ principal. So making regular principle payments over and above the minimum reduces how long it takes to pay off the loan.
The Sydney Harbour Bridge - land acquisition and building the approaches as well as the actual bridge, cost £9 million to build and nearly all monies were borrowed from England. In mid 1955 after 23 years of bridge tolls, £6,519,000 was still owing on the bridge with the NSW government making the minimum required repayments. 1966 £1 becomes $2 when the currency changes.
In mid 1988 Nick Greiner decided to pay off the 75 year loan early ie 56 years after the bridge opened and paid out the outstanding balance of $8.3 mil. That amount didn't cause that much of an opportunity cost to the NSW government to pay it off in 1988, compared to £6.5mil / $13mil in 1955.
Compound interest is the 8th wonder of the world - for the receiver, not the payee.
PM John Curtin was aware of the financial problem the UK was in and how it had sold its past gains and mortgaged its future to the US to fight the Nazis. And he was aware The Pacific was the real theatre for Oz to fight in.
That's why 3 weeks after the Japs invaded Pearl Harbour, he made his famous speech - ‘Without any inhibitions of any kind, I make it quite clear that Australia looks to America, free of any pangs as to our traditional links or kinship with the United Kingdom.’
It pissed off the conservatives in Oz like Menzies who were so wedded to the motherland, it pissed off Churchill and it astonished President Roosevelt who had no idea Curtin would make such a speech. It meant we gave General MacArthur and US forces free reign in Oz for the next few years and never got into the huge long term debt burden of Lend Lease as Oz only received a small amount under the Lend Lease program.
Supposedly a lot of funds Europe is LENDING to Ukraine is against frozen Russian assets.
I knew the UK had to pay for most goods in cash up front early in WWII and then after they got Lend Lease from the Yanks, that had to be paid back post WWII, but I didn't know the full extent of it and it wasn't much publicised by the UKians or the Yanks.
I knew the big picture was that the UKians lost their empire after WWII due to what they had to spend, but was unaware of how many post war restrictions the UK faced from the Yanks as part of Lend Lease.
And the Germans got so many free kicks under the Marshall plan and Germans were allowed to migrate to allied countries. The commie threat from the USSR assisted that. How many Nazis made it to Australia, USA, Canada, NZ etc? in with refugee type Germans? You hear politicians going on about you can't trust immigration from war zones like Afghanistan, Iraq, Sudan etc yet our forebears didn't seem to have too much issues with post war German immigration. From Japan, not so much, but we had a White Australia policy in place then.
Ethnic Germans living in Eastern Europe did cop it. About 13 million lived in Eastern Europe, mainly Poland, Czechoslovakia and Hungary, were forced by the Soviets to move back to Germany, usually on foot, to Soviet controlled East Germany. About 2 million died in that 5 year period, but the West didn't care given what the Nazis did, even though nearly all of these 13 million had nothing to do with the Nazis.
The voice over in the video is AI and dramatizes things, especially repeating the 61 years to hype up things, but as there was a fixed low interest rate loan of 2%, then there is no real advantage paying off loans early by a government who has so many areas it has to spend money on and successive governments further down the decades don't see the need to pay off earlier than scheduled, low interest debt for stuff they never spent money on,
But the video makes several important points about financing a war. What would have happened if the UK let the Nazis take over Poland and France and only start fighting when UK was invaded?? Same sort of questions can be asked about Ukraine's position.
Inflation over time eats away at the real value of these payments, so that after 40-50-60 years the annual repayments aren't that harsh.
It makes sense for householders to pay off their mortgage early as interest rates usually aren't fixed for the full 25-30 year loan on a house and they don't have so many things to spend on like a government, who can run annual deficits. Your monthly repayments are 85%+ interest at the start of your 25-30 year mortgage and last dozen or so are 90%+ principal. So making regular principle payments over and above the minimum reduces how long it takes to pay off the loan.
The Sydney Harbour Bridge - land acquisition and building the approaches as well as the actual bridge, cost £9 million to build and nearly all monies were borrowed from England. In mid 1955 after 23 years of bridge tolls, £6,519,000 was still owing on the bridge with the NSW government making the minimum required repayments. 1966 £1 becomes $2 when the currency changes.
In mid 1988 Nick Greiner decided to pay off the 75 year loan early ie 56 years after the bridge opened and paid out the outstanding balance of $8.3 mil. That amount didn't cause that much of an opportunity cost to the NSW government to pay it off in 1988, compared to £6.5mil / $13mil in 1955.
Compound interest is the 8th wonder of the world - for the receiver, not the payee.
PM John Curtin was aware of the financial problem the UK was in and how it had sold its past gains and mortgaged its future to the US to fight the Nazis. And he was aware The Pacific was the real theatre for Oz to fight in.
That's why 3 weeks after the Japs invaded Pearl Harbour, he made his famous speech - ‘Without any inhibitions of any kind, I make it quite clear that Australia looks to America, free of any pangs as to our traditional links or kinship with the United Kingdom.’
It pissed off the conservatives in Oz like Menzies who were so wedded to the motherland, it pissed off Churchill and it astonished President Roosevelt who had no idea Curtin would make such a speech. It meant we gave General MacArthur and US forces free reign in Oz for the next few years and never got into the huge long term debt burden of Lend Lease as Oz only received a small amount under the Lend Lease program.
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Which is the point.
