Forget Double Dip, The UK Is Now In A Depression

Tyler Durden's picture

With the Olympics about to kick off in all its glorious celebration, the sad reality of UK's GDP shrinking 0.7% as the empire drops further into a double-dip. As Bloomberg Brief notes, this came along with a 5.2% plunge in construction output as the IMF estimates austerity has cut 2.5% off GDP. What is most concerning is that GDP has fallen for five of the last seven quarters and is now 4.5% below pre-crisis levels. The level of disbelief is palpable though since the BoE sees only a 10% chance of this recession lasting into 2013 and while it estimates that it will take until 2014 before the UK gets back to the 2008 level (magically), we note that that is already longer than it took during The Great Depression.




Source: Bloomberg Brief

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mrktwtch2's picture

calling ben bernmake..pick up the white courtesy phone..

Buckaroo Banzai's picture

They don't call it "Old Blighty" for nothin'.

cynicalskeptic's picture

nah....he's looking for solace in phone sex............


'Oh Timmy... yes, you've been a BAD bioy.... a VERY bad boy.......     oh my.      what do we have here?       OH MY.   you're SUCH a're the biggest I've ever seen....oooooh....... more.... MORE.......yes, yes, YES!!!!!!......      

 ....................................Is this going on Visa or Mastercard?''


A depression and a printing press.  Ole' Merv and the boys are doing a great job managing the economy.

The Big Ching-aso's picture



Well at least their pubs will continue to be their main industry. 


FieldingMellish's picture

Since the smoking ban the pub industry in the UK has been on a death spiral. The only things propping up the UK is continued oil and gas revenue, seemingly endless bankers bonuses (extra if they have commited a criminal act) and London property prices... oh yeah.. and Wills and Kate.

battle axe's picture

Ben picks up the phone: "between you and me, we are busted, we have no more money, but for the love of god, do not tell anyone."

The Big Ching-aso's picture



World's hoping 4 another no-equity Ben-loan 2 get them past this Depression & into the next one.

drink or die's picture

Don't worry, the Olympics will generate a huge recovery there.  What do you mean hosting the Olympics is always a huge flop for the host country? Oh...

Neethgie's picture

technically i dont think the uk is in a depression, but thats because unlike krugman i do not condsider the uk's growth to have been "real" it was just a housing bubble.

Haager's picture

What a surprse,

I mean, it's the UK - not London...

101 years and counting's picture

They're just not as creative in their lying as the US is.  We're magically over 2007 GDP levels with 4 million fewer jobs, 1.4 million fewer homes being built and 4 million fewer cars being sold.  But, AAPL sold 8 million gadgets in the US during a 3 month time period means all is well.

adr's picture

GDP includes government spending and financial services in the number. There is a whole lot more of those two making up GDP now than in 2007.

If I give you $10, and you give me the $10 back, $20 in financial service took place. Since you held the $10 once and I held it twice, there is actually $30 in income recorded. Giving us a grand total of $50 recorded to GDP.

Doesn't matter that only $10 really actually exists. As long as you just move shit around, it counts as commerce.

Yes, that is actually how the economy grew over $10trillion without the labor force and average income growing much at all.

Doubleguns's picture

Unfortunately that $50 is debt and we only have one of those $10 bills to pay it off.

madcows's picture

Awesome.  I've a $10 bill in my pocket right now.  Let's hand it back and forth 16,000 and I can pay off my mortgage.

Overfed's picture

Can we montize those transactions and then sell the debt as a security? If so, count me in!  :-)

cynicalskeptic's picture

And the derivatives based on that $10 are valued at $100,000.........

The Big Ching-aso's picture



Geez.   Just what they need less income for dental work.

Offthebeach's picture

Re : " AAPL gadgets " People are hungry. Plastic, IC chips, pieces of display screen can be fished out of human wastes, wiped and re-eaten. So a IPad can be used for an entire family for weeks. Poorer muppets can use Android devices. With fedgov SUPPLEMENTAL NUTRITION ANDROID PROGRAM, there no need for people to have to eat TANDY.

Frederick N. Chase's picture


"We're magically over 2007 GDP levels"


Not according to the chart, above, labeled "Depression" and offered by the author of the posting ("Forget Double Dip, The UK Is Now In A Depression") against which this assertion is made. 


brockhardman's picture

Perfect timing for a false flag attack in London!

adr's picture

To get back to the 2008 level would assume that the growth rates from 2000-2008 were sustainable.

Someone must have shot a rocket into space containing most of what was produced in the past decade, or loaded a few giant barges with it and sunk the crap to the bottom of the Marianas Trench. I don't think it is possible that all the crap was actually bought.

It would be pretty funny if James Cameron led a dive to the Marianas and we found that it is no longer the deepest place in the ocean, thanks to a giant man made reef of garbage with "Made in China" stamped on it.

Inthemix96's picture

Smashing, you lot cannot even do this right.  You leave it up to us Brits,

We are in a depression bitchez!!!!!

And you lot are not.  Ever heard of catch up folks?  Well come on then, catch us up, the water is fucking great!!

DogSlime's picture

Agreed.  We are an example to the world :)

Britain is once again Great - even if it's only for our Great Depression.

Hype Alert's picture

All is well.  Quick, someone make a speech.  Say good things.

madcows's picture

Expect that in the Good Ol' USA soon enough.

cynicalskeptic's picture

Be real.... the basics havent't changed there or here since '08.....      If you eliminated the manipulation of statistics and massive market pumping you'd see a constant 20+% unemployment and negative GDP with ALL trends flat or down.  The only reason we're not seeing the breadlines of he 1930's is foodstamps, long term unemployment and vast increases in programs like Social Security disability.  The competition for cans to turn in (at 5 cents each) is brutal.  It's recycling day here and the number of guys triolling through before the truck comes by is at record levels (the early bird - at 5AM - got the worms here)

MOPE is all about illusion - smoke and mirrors  - and that doensn't work forever

ElvisDog's picture

Santelli had a good line: "What's the difference between Europe and the U.S.? About 6 years". I personally don't think it will be that long.

machineh's picture

Just like the 'world's tallest building' curse (which signifies an imminent recession), there is also an 'Olympics curse' which punishes national hubris.

Britain is getting it now ... and Brazil is headed for economic doom in 2016.

All Olympic hosting victories are pyrrhic victories.

Dr. No's picture

"...bad food, worse weather, Mary-fucking-Poppins. London!"

DogSlime's picture

The weather is shit but the food is whatever you like - Indian, Italian, Chinese, Japanese.  Nothing wrong with the food over here as long as you choose somewhere decent to eat.  If you really want to go upmarket there's always McDonalds, KFC and Burger King.

piliage's picture

Nicely done, well played. Great film too.

elwu's picture

Looks like QE isn't the answer.

Which vindicates the German point of view,.

Haddock's picture

I guess home equity and deficit spending trends can't last forever.

And the UK is now a net energy importer.

And the boomers are retiring.

Game over.

Jlmadyson's picture

Decline in GDP exceeding 10% at the onset: check.

A recession lasting 2 or more years: check.

Depression economics indeed.

Congrats UK you get to join many of your fellow Euro brethren in what is becoming a very popular club as of late.

Winston Churchill's picture

You think we are any better off ?.

The UK is giving out honest figures(strange I know), unlike the US counterparts.

Only one of my clients is really doing well,coutesey of EPA regulations.

Cheat Street may be doing fine ,but the real economy is in intensive care.

I know many working unpaid to keep things going.

Small businesses are about to " pull the plug", by saying fuck it.

SheepDog-One's picture

Right, what took a year to happen in the 1930's now is measured in no mind to eclownomists 'timeline estimates' theyre totaly meaningless in todays SKYNET based world.


pods's picture

Release the Chavs!

RiverRoad's picture

So can we finally start using the capital "D"?

Monedas's picture

QE3  ?       ....       "D2"  ?

DosZap's picture

So can we finally start using the capital "D"?

Anyone with half a brain has been using the D word.(if they are honest)

Call it what it is,not what you want the sheeple to think it's not.(the sheeple have ZERO clue the real UE rate is pushing 23%.)

Most here, do not live in denial..........the rest are living Egypt,by that other form fo the word.

RobotTrader's picture

FTSE bottomed at 3,500, now at 5,500, hardly a "depression"^FTSE&t=5y&l=on&z=l&q=b&c=


However, the gold mining industry is clearly in a depression, as many of those stocks are still grinding it out near multi-year lows.

SheepDog-One's picture

RIGHT you got it! As long as a manipulated fraud INDEX is wherever, then thats all that matters! GEE youre so smart n all!!

DosZap's picture

However, the gold mining industry is clearly in a depression, as many of those stocks are still grinding it out near multi-year lows.

Not for much longer Bot.

cynicalskeptic's picture

Showing how bad things are - there's no shortage of people willing to work for 1 cent a word perpetuating the official line -  "all is well..... things are getting better... gold is bad..... '

One of the few growth fields is online media manipulation - hiring people to 'develop online personas to post in various forums material that supports defined positions.'   There are numerous classifieds defining such positions.    You've got paid 'reviews' for business, restaurants, travel AND political candidates and parties, and far more.  Even the Fed and Pentagos are involved - it's all about a broadened manipulation of perceptiopns. 

Monedas's picture

Piers Morgan interviewed Tony Blair and they fixed it !           Monedas      1929        Comedy Jihad Truth Discovery Mechanism