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Examples from some British dictionary for learners:

Police fired tear gas and loosed police dogs.
The recent court case has loosed a number of racist attacks.
The tanker loosed 13,000 gallons of...

Not to mention the fact that they are prounounced COMPLETELY differently.[/quote]

No they are not that different.

Breathe has a long E vowel and voiced th
Breath has a short E vowel and...

A similar problem for native English speakers is Breath and Breathe. The former is the noun and the latter is the verb, but they are commonly mixed up.

In the south-east (standard) English accent, Due is pronounced the same as Jew.

That's why "I've paid my dues" can be amusing.

It is due to the British pronouciation of the "oo" sound with an...