Britain’s debt was nil in 1688 and 60% of GDP in 1717. From 1717 to 1722 the debt was restructured, including through the South Sea operation of 1720. I discuss the reasons for the restructuring and the tensions it revealed between taxpayers and creditors. The South Sea bubble turned the operation into an ex-post Ponzi scheme and redistributed among creditors, from late to early entrants, and from creditors to taxpayers. Parliament intervened to redistribute among creditors (but far less than was feasible) and, very reluctantly, from taxpayers to creditors. Commitment to honor the debt was still weak thirty-five years after the Glorious Revolution.