This is the moment the Queen Elizabeth II and former president Ronald Reagan discussed the problems faced by the next generation in the West.
Reagan and his wife Nancy, had been invited aboard Her Majesty’s yacht, also known as the Royal Yacht Britannia, for a function with the Queen in 1991.
A BBC documentary, Elizabeth R: A Year in the Life of the Queen, captured the moment the pair discussed the perilous economic situation facing the UK and US over a coffee during a social event on the boat.
This is the moment the Queen Elizabeth II and former president Ronald Reagan discussed the problems faced by the next generation in the West
Reagan (left) and his wife Nancy (center) had been invited aboard Her Majesty’s yacht, also known as the Royal Yacht Britannia, for a function with the Queen (right) in 1991
Reagan, who finished his second term as president in 1989, told the British monarch: ‘Now if you’ve got two thirds… paying for the bureaucrats and give only one third to the needy people, something’s wrong there.
Queen Elizabeth responded by saying that ‘democracies are bankrupt’ because of such policies.
‘But you see all of the democracies are bankrupt now, because of the way the services have been planned for people to grab,’ she told him.

A BBC documentary captured the moment the pair discussed the perilous economic situation facing the UK and US over a coffee

Reagan, told the British monarch: ‘Now if you’ve got two thirds… paying for the bureaucrats and give only one third to the needy people, something’s wrong there’
‘I know we tried to get some of these things changed and reduce them,’ said Reagan, who had demanded servers brought him decaffeinated coffee while the Queen stuck with a regular.
‘For example, we have a rule to this day, that a supervisor’s salary is based on the number of people he supervises,’ he continued.
‘Well now, you have a group of people that have no interest in reducing the payroll, even if they can, because it will reduce their salary.’
The Queen, who has hosted the event for Florida’s grandest society including another former US president – Jimmy Carter – agreed.
‘Obviously, yes. It’s extraordinary, isn’t it? I think the next generation is going to have a very difficult time.’
While Reagan, who was around 80 years old at the time, appeared to carry on the conversation with ease, it is likely that he was already battling with the early onset of Alzheimer’s.

Queen Elizabeth responded by saying that ‘democracies are bankrupt’ because of such policies

The monarch was also seen chatting to the then-First Lady Nancy Reagan
The 40th president of the United States was diagnosed with the degenerative disorder just three years later in 1994. He receded from political and public life and died at home a decade later aged 93.
His son Ron later claimed that he’d noticed early signs of dementia as early as 1984 when he saw his father as ‘an out-of-touch president’ during his campaign that year.
He says he saw those signs again in 1986 where he claimed his father could not remember the names of the familiar California canyons he was flying over.
Researchers at the University of Arizona have also carried out posthumous studies which led them to believe Reagan was suffering from the early onset of Alzheimer’s while acting as president.
Scientists found subtle changes in the former president’s speech during his term in office from 1981 to 1989. ‘Key word counts previously associated with cognitive decline in Alzheimer’s disease were extracted and regression analyses were conducted,’ the authors wrote.
The findings, published in the Journal of Alzheimer’s Disease , do not conclusively prove that Reagan had dementia that affected his judgment as president.
Reagan was one of countless former foreign leaders, celebrities and other high profile persons invited aboard the Royal Yacht Britannia until it was decommissioned in 1997.
The Queen’s son Charles and then-wife Diana even honeymooned aboard the boat in 981, a decade before Reagan joined the Elizabeth II. They famously divorced a few years later in 1986 after multiple affairs.
Her Majesty is said to have loved Royal Yacht Britannia, which she viewed as a country home at sea, and was often seen wandering the decks in an old headscarf and slacks. The royal apartments were filled with photographs of her family and heirlooms.
Britannia was commissioned for the Queen’s father King George VI, but he died before the keel could be laid. One of his daughter’s first acts on becoming monarch was to reject the designs for its royal apartments as too stuffy and opulent.
She opted instead for white-painted walls, mahogany woodwork and brass metalwork, with homely touches including chintzy sofas and armchairs.
‘The overall idea was to give the impression of a country house at sea,’ said Sir Hugh Casson, Britannia’s architect. ‘There was no question of her saying “That will do”. She had definite views on everything, from door handles to the shape of the lampshades.’
Other practical considerations included a garage for the Queen’s Rolls-Royce, and a knighting stool to be carried on all voyages.

Queen Elizabeth II and Prince Philip, Duke of Edinburgh entertaining then-President Ronald Reagan and Nancy Reagan on board HMY Britannia on a previous occasion on March 4, 1983 in San Francisco harbor, California
On April 16, 1953, the Queen launched the yacht from Clydeside, UK, with a bottle of Empire wine. At 412ft long, and weighing nearly 6,000 tons, she was then the largest yacht in the world.
The recession of the Nineties saw questions asked about whether Britain could afford the luxury of a Royal Yacht.
Tony Blair’s Labour Government having decided to retire her in 1997, and she became a tourist attraction in Edinburgh — where she still sits in the port of Leith.