What will happen now?

Britain entered the 20th century as the world’s creditor. In less than 50 years, it was the world’s largest debtor. British national debt stood at just 29% of GDP on the eve of World War I in 1913. It hit 143% after World War I, and reached an all-time high near 250% of GDP after World War II in 1946. It was so broke it had to beg the U.S. for the 1946 Anglo-American Loan of $3.75 billion.

Britain did not finish repaying that loan until December 2006, 61 years later. And in the meantime, it lost its entire global Empire and saw its standard of living collapse relative to the rest of the world, even against its own former colonies. Singapore, three times poorer than Western Europe in 1960, is today roughly twice as rich per capita. Hong Kong, a British possession until 1997, overtook the mother country in income per head decades ago.

Much like America, Britain bankrupted itself with useless foreign wars that it lost. The propaganda that passes for public-school education in America teaches that these were noble, existential battles: that World War I was a war to end all wars, and that World War II was a battle against pure evil.

The reality is nothing like that at all.