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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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Thu, 07/26/2012 - 11:07 | 2653238 mrktwtch2
mrktwtch2's picture

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

Thu, 07/26/2012 - 11:18 | 2653273 Buckaroo Banzai
Buckaroo Banzai's picture

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

Thu, 07/26/2012 - 11:18 | 2653275 Daily Bail
Thu, 07/26/2012 - 12:33 | 2653561 cynicalskeptic
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?''

Thu, 07/26/2012 - 11:20 | 2653282 SHEEPFUKKER

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

Thu, 07/26/2012 - 11:27 | 2653315 The Big Ching-aso
The Big Ching-aso's picture



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


Thu, 07/26/2012 - 11:34 | 2653344 TrainWreck1
TrainWreck1's picture

Time, gentlemen

Thu, 07/26/2012 - 11:43 | 2653374 FieldingMellish
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.

Thu, 07/26/2012 - 11:28 | 2653317 battle axe
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."

Thu, 07/26/2012 - 12:22 | 2653360 The Big Ching-aso
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.

Thu, 07/26/2012 - 11:08 | 2653239 drink or die
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...

Thu, 07/26/2012 - 11:08 | 2653240 Neethgie
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.

Thu, 07/26/2012 - 11:10 | 2653247 Haager
Haager's picture

What a surprse,

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

Thu, 07/26/2012 - 11:13 | 2653255 101 years and c...
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.

Thu, 07/26/2012 - 11:22 | 2653287 adr
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.

Thu, 07/26/2012 - 11:27 | 2653312 Doubleguns
Doubleguns's picture

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

Thu, 07/26/2012 - 11:27 | 2653313 madcows
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.

Thu, 07/26/2012 - 11:57 | 2653440 Overfed
Overfed's picture

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

Thu, 07/26/2012 - 12:01 | 2653454 cynicalskeptic
cynicalskeptic's picture

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

Thu, 07/26/2012 - 12:13 | 2653505 The Big Ching-aso
The Big Ching-aso's picture



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

Thu, 07/26/2012 - 12:29 | 2653557 Offthebeach
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.

Thu, 07/26/2012 - 13:46 | 2653830 Frederick N. Chase
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. 


Thu, 07/26/2012 - 11:14 | 2653259 brockhardman
brockhardman's picture

Perfect timing for a false flag attack in London!

Thu, 07/26/2012 - 11:14 | 2653263 adr
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.

Thu, 07/26/2012 - 11:15 | 2653266 Inthemix96
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!!

Thu, 07/26/2012 - 11:27 | 2653309 DogSlime
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.

Thu, 07/26/2012 - 11:16 | 2653267 Hype Alert
Hype Alert's picture

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

Thu, 07/26/2012 - 11:18 | 2653269 madcows
madcows's picture

Expect that in the Good Ol' USA soon enough.

Thu, 07/26/2012 - 12:10 | 2653485 cynicalskeptic
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

Thu, 07/26/2012 - 12:49 | 2653638 ElvisDog
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.

Thu, 07/26/2012 - 11:19 | 2653276 machineh
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.

Thu, 07/26/2012 - 11:19 | 2653277 Dr. No
Dr. No's picture

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

Thu, 07/26/2012 - 11:31 | 2653333 DogSlime
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.

Thu, 07/26/2012 - 11:54 | 2653421 Karl von Bahnhof
Karl von Bahnhof's picture

Burglar King

Thu, 07/26/2012 - 11:56 | 2653434 piliage
piliage's picture

Nicely done, well played. Great film too.

Thu, 07/26/2012 - 11:19 | 2653278 elwu
elwu's picture

Looks like QE isn't the answer.

Which vindicates the German point of view,.

Thu, 07/26/2012 - 11:19 | 2653279 Haddock
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.

Thu, 07/26/2012 - 11:20 | 2653280 Jlmadyson
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.

Thu, 07/26/2012 - 11:57 | 2653438 Winston Churchill
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.

Thu, 07/26/2012 - 11:22 | 2653283 SheepDog-One
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.


Thu, 07/26/2012 - 11:21 | 2653285 pods
pods's picture

Release the Chavs!

Thu, 07/26/2012 - 11:21 | 2653286 RiverRoad
RiverRoad's picture

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

Thu, 07/26/2012 - 11:34 | 2653343 Monedas
Monedas's picture

QE3  ?       ....       "D2"  ?

Thu, 07/26/2012 - 11:48 | 2653388 DosZap
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.

Thu, 07/26/2012 - 11:22 | 2653289 ParkAveFlasher
ParkAveFlasher's picture, ye oldde bitchef

Thu, 07/26/2012 - 11:23 | 2653292 RobotTrader
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.

Thu, 07/26/2012 - 11:26 | 2653307 SheepDog-One
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!!

Thu, 07/26/2012 - 11:50 | 2653397 DosZap
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.

Thu, 07/26/2012 - 12:18 | 2653517 cynicalskeptic
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. 

Thu, 07/26/2012 - 11:24 | 2653295 Monedas
Monedas's picture

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

Thu, 07/26/2012 - 11:25 | 2653298 JustObserving
JustObserving's picture

UK has had $600 billion in QE or about $9500 per man, woman and child.

I wonder what the GDP would have been sans the massive QE?

Thu, 07/26/2012 - 11:33 | 2653340 DogSlime
DogSlime's picture

Probably about the same as it is now - all that QE went straight to the fucking banks.

Thu, 07/26/2012 - 12:55 | 2653659 ElvisDog
ElvisDog's picture

Well, seriously, what does the U.K. produce these days in the sense of real, physical wealth? They're running out of oil. Do they have any coal left? I think they still have a little bit of aerospace. Their beer is pretty good. Say what you will about the U.S., at least we still export food, Boeing airplanes, John Deere tractors, etc. The U.K. economy, from what I read, seems largely dependent on London being the financial fraud capital of the world.

Thu, 07/26/2012 - 11:25 | 2653300 Monkeyfister
Monkeyfister's picture

Nobody could have predicted that Contractionary Austerity policies would be contractionary. But, Cameron and Osbourne are committed and ONIT! They're going to keep pushing their contrationary policies until the ponies deliver growth... because, magic!

Thu, 07/26/2012 - 11:26 | 2653306 Manthong
Manthong's picture

The Olympics.

They've got that going for them.

Thu, 07/26/2012 - 11:27 | 2653310 SheepDog-One
SheepDog-One's picture

Unfortunately hosting the Olympics is a net money loser...oh well.

Thu, 07/26/2012 - 11:40 | 2653363 Monkeyfister
Monkeyfister's picture

Just to make SURE that Britain is well and truly FUCT, Cameron says that the killing blows are yet to come:

David Cameron has delivered a "clear and unequivocal message" that the government will stand by its deficit reduction plan and "finish the job".

Thu, 07/26/2012 - 11:25 | 2653302 Shizzmoney
Shizzmoney's picture

When is the Fed going to bailout the UK?

I wish we could have the NeoFeudal Olympics.  Events include:

"Workers Under the Buss Toss"


"Taxation Accounting Fraud"

"Lack of Accountability Contest"

"Precious Metal Manipulation"

"Servant Triathelon"

Thu, 07/26/2012 - 11:25 | 2653304 spartan117
spartan117's picture

Where's Nigel Farage to deflect this news by pointing out bad the rest of Europe is doing?

Thu, 07/26/2012 - 11:29 | 2653320 SheepDog-One
SheepDog-One's picture

RELAX man! We can FIX it! I Can Fix It - YouTube

Thu, 07/26/2012 - 11:29 | 2653325 adr
adr's picture

There are more than 100 million Americans on government welfare. There are 120 millionish jobs, 50 million of which are part time. More than 30 million people work more than one job.

So there are more people on welfare than actually work in America. That is a 100% true statement.

How anyone can actually claim the USA is not in a depression and that current stock levels are justified, is speaking pure insanity. If we were in battle, and that person was my CO, I would shoot him in the head to save my unit. If I didn't we would all be killed due to his insanity.

Thu, 07/26/2012 - 11:55 | 2653428 Meremortal
Meremortal's picture

"How anyone can actually claim the USA is not in a depression and that current stock levels are justified..."

What an odd statement. Stock levels don't require justification. They are what they are. If you think they are too high, go short. If you think stock levels are being artifically pumped and you are right, those levels won't last, so once again, go short.

If you represent that current stock prices aren't justified, you should be able to quantify what prices are justified. I doubt you can, so you are just venting.

Not that there's anything WRONG with that!

I submit that worry over justification is meaningless. For us there is no justice, there is only the making or losing of value. The market goes where it goes, and we try to use the movements to our advantage. Good luck to you. I've spent decades working around the crooks in the markets, they've always been there and they always will be there.

Concern over a major depression is certainly justified and preparations are in order for that. Again, good luck to you. 



Thu, 07/26/2012 - 12:25 | 2653542 cynicalskeptic
cynicalskeptic's picture

Stocks 'are what they are' because of MASIVE infusions of free capital into the banking and financial sysgtem by the government and ZERO interest rates.  All that money - and the little 'savings left' to the average AMerican in their 4091K's and elsewhere - has gone into the market trying for SOME level of return that outpaces teh REAL rate of inflation.


For the banks it's a no-brainer.  They get money form the Fed at 0% so anything they make is profit.  Leverage it at 30 to one and you've got an explanation for the recent profits in banking... oh wait... things aren't weorking out so well  How much has JP Morgan lost lately?

You'd have done better taking all that money and rewriting every mortgage in the US at 3% - you'd have people stayiong in houseds and a steady rate of retun back to the government, along with some economic stability for the 99%.  Hell for the amounts given to the financial industry you could have given everyone a damn house.   But 'socialism' is only for the wealthiest and our corporate overlords.

Thu, 07/26/2012 - 11:30 | 2653326 spankfish
spankfish's picture

Time for a Jeffery Archer story to draw attention from the coming oh shit.

Thu, 07/26/2012 - 11:30 | 2653330 GMS guy
GMS guy's picture

Agreed - this yesterday asked that very question


Some good additional UK info

Thu, 07/26/2012 - 11:31 | 2653336 Itch
Itch's picture

This depression is a peice of piss. I could do another 5 depressions standing on my head.

Thu, 07/26/2012 - 11:42 | 2653371 DogSlime
DogSlime's picture

It's only the beginning though... gonna get a whole hell of a lot worse before it gets any better.  I suspect most of us will be long dead before it gets any better.

Thu, 07/26/2012 - 12:25 | 2653545 cynicalskeptic
cynicalskeptic's picture

I suspect that death will be an attractive alternative to what awaits.   Can I have my blue pill now please?

Thu, 07/26/2012 - 11:34 | 2653345 EmileLargo
EmileLargo's picture

I have read some very thoughtful writers who suggest that it may take the UK 15 years to get back to the GDP per capita levels of 2007. It may take even longer.

The basic problem is that UK GDP was phony for a good 15 years. A massive property bubble, combined with a consumer boom built on debt, leverage and borrowing against inflated property and a financial services "boom" by the fraudsters in the City of London is what gave the UK economic "growth" for a good ten years. The entire economy was woefully out of balance. To make matters worse, the state got bigger and bigger and bigger and Comrade Brooooon upped the ante on transfer payments and state hiring (an additional 1 million people got employed by the state between 1997 and 2007).

To get back to sanity, the following things need to happen: (1) massive reduction in the size of the state; (2) a massive debt write-off; (3) big drop in the price of property combined with debt liquidation; (4) a resurrection of export industries/manufacturing and the like; and (5) a massive shrinkage in financial services as a percentage of the economy. But even this may not be enough as half the population has learnt to suck at the teat of the state for its survival (and the state now consumes well over 50 per cent of the economy).

The British Government has done everything in its power to prevent any of the above from happening. And since they have not allowed it to happen, the problems WILL continue. How on earth does Britain get back to "growth" when there is nothing left to grow? Growth comes from innovation, technological improvements and improved efficiencies (leading to high productivity). In a country in which the state keeps sucking out everything the private sector produces, this is impossible. The British are done for.

Thu, 07/26/2012 - 11:38 | 2653359 SheepDog-One
SheepDog-One's picture

'Come back'? May as well be figuring how a 747 plunging straight down can just turn up and do some loop de loops.

Thu, 07/26/2012 - 11:58 | 2653446 Karl von Bahnhof
Karl von Bahnhof's picture

OK. Send the IMF!

Thu, 07/26/2012 - 12:35 | 2653588 Anusocracy
Anusocracy's picture

Starship Enterprise using its tractor beam?

Thu, 07/26/2012 - 12:07 | 2653481 IToldYouSo
IToldYouSo's picture

The British Government has done everything in its power to prevent any of the above from happening. And since they have not allowed it to happen, the problems WILL continue...

Emile, very very well put. Each and everyone of the points uve made I heartily agree with.

But how the hell do you convince people that this is inevitable - whether by design or circumstance. Nobody will agree to a debt jubilee, government dont want smaller finance sector as that industry has corrupted the democratic process. Downsizing the state would be easy if people were paid a decent living wage.  

And yes, property is the key to it all. Housing bubbles are the most insidious crimes against society. Housing is the biggest cost of living expense in EVERYBODY'S life. Steep house price inflation wrecks every part of an economy. Only the finance sector has won in this game so far. But the sheep with a stake in an over priced house cant imagine house prices going down, fear it going down and therefor will support moron politicians and central bankers who do everything in their power to prevent the inevitable and very necessary crash in the unsustainable cost of accommodation.

I feel sad :(

Thu, 07/26/2012 - 12:56 | 2653668 EmileLargo
EmileLargo's picture

You cannot convince the people of anything. It won't happen. The pound has to collapse in an orgy of inflation and then you "might" get reform. But even then I am not optimistic. Seeing what percentage of the population has become totally unemployable, I don't think this will happen. I think about half the people in the UK are now incapable of doing any kind of productive work.

I find is more than mildly amusing that London property is considered a "safe haven." It really is the finance bubble's last hurrah. When the UK sinks totally into the mire, those properties will go down with it. There are already some signs that the top end is starting to crumble under higher taxes. It is a matter of time.

I've never really understood why the UK should have a higher per capita GDP than Portugal. Both countries do not produce a lot but one gets considered a top notch economy and the other doesn't. About time that imbalance was redressed.

Thu, 07/26/2012 - 12:27 | 2653549 Bam_Man
Bam_Man's picture

Well said. But we can't blame it all on Broooon. bLiar was the man in charge when most of the damage was being done.

Thu, 07/26/2012 - 12:52 | 2653648 EmileLargo
EmileLargo's picture

Brooooon was the Chancellor of the Exchequor. I think we call it a tie and blame it on both. They're both slimeballs anyway.

Thu, 07/26/2012 - 11:34 | 2653347 Jason T
Jason T's picture

was LaRouche right?  July 25th, 2007 he said there is no possible non collapse.  6:55 ..

Thu, 07/26/2012 - 11:38 | 2653357 falak pema
falak pema's picture

the post olympic effect on UK economy, once the dust has settled and the debt piles up in DEPRESSION times and QE chimes, will be ominous. Especially as now the chickens are coming home to roost in the Libor/ Barclays/HSBC scams which will effect the CIty for many years, making it a shadow of its past. As the battle for Britain will be fought in total denial of admitting scam and of moving it to virtuous captial accumulation. This move means a blood bath accross all capitalist world of which City and WS are the dead nerve centers. 


Thu, 07/26/2012 - 11:53 | 2653414 piliage
piliage's picture

Being in Los Angeles in 1984, I've always been quite suspect of the whole 'olympic economic boom' thing, as LA was a ghost town during the olympics. I remember working at Disneyland (high school job) and the park being staffed for 75,000 - in other words, at capacity, and only 12,000 patrons showing up.

I need to go to London for a meeting next week, and I was worried about finding a hotel. Hell, there are 5 star hotels available for under $200 on hotwire.

This Olympics is going to be an economic bust.


Thu, 07/26/2012 - 12:55 | 2653664 Shizzmoney
Shizzmoney's picture

This Olympics is going to be an economic bust.

Not if you run a security company.

Nothing in today's economy says, "bullish" like a good ole fashions government contract!

Hell, just hire temps for your security, and eat the overhead costs (at the expense of workers).  Win-win for CEOs!

Fri, 07/27/2012 - 01:49 | 2655616 Kobe Beef
Kobe Beef's picture

Nobody I know is going to the Olympics. Nobody I know went to the last World Cup either.

Besides the (obvious) families of the athletes and the corporate sponsors, who actually goes?


Thu, 07/26/2012 - 11:54 | 2653417 Pairadimes
Pairadimes's picture

Tyler will change the 'K' in the title above to an 'S' when the third quarter GDP is reported in October.

Thu, 07/26/2012 - 12:18 | 2653520 THE DORK OF CORK
THE DORK OF CORK's picture

Well sombody or something is buying a shit load of buses in the UK......


In June, new bus and coach registrations increased by 16.5%, boosted by the good performance recorded in the UK (+97.9%), Germany (+39.0%) and France (+24.5%). The Spanish (-15.4%) and Italian (-21.5%) markets declined. From January to June, the segment of buses and coaches was the only one to expand (+5.2%), driven by the upturn in the UK (+67.2%) and Germany (+7.1%). Results in France (-11.8%), Italy (-30.0%) and Spain (-38.8%) were negative”

UK Bus regs Jan – June : 4,473 !!!!!!!!!
Germany Jan – June :2,409
France ,Italy , Spain combined :4,581

The IEA in their latest July report talks of a flattening of European efficiency gains because of suppressed investment in capital stock……
Also Jet fuel in the UK is up…..increased tourists……increased need for tour buses I guess.

Thu, 07/26/2012 - 12:21 | 2653530 THE DORK OF CORK
THE DORK OF CORK's picture

Video of the GDP contraction in the UK for Q2.

Dragged down mainly by a contraction of the construction sector.

The absurd rise of the service sector relative to the production sector can be seen at the end of the video.
The UK farms global money flows and thats about it really

Thu, 07/26/2012 - 12:22 | 2653534 Kantbelieveit
Kantbelieveit's picture

This is exactly what Krugman predicted would result from the idiotic austerity policy in the UK, and idiots on ZH still ridicule Krugman. What does it take to prove austerity doesn't work in a recessionary environment?


Thu, 07/26/2012 - 12:29 | 2653559 Bam_Man
Bam_Man's picture

Yes. Clearly the problem is that the Bank of England isn't printing money fast enough.

Thu, 07/26/2012 - 12:59 | 2653678 EmileLargo
EmileLargo's picture

Krugman is the government's court jester. He provides good entertainment.

"Austerity"? Did you know that public debt in the UK is up 40 per cent in the last two and a half years? What fucking austerity?

Thu, 07/26/2012 - 15:37 | 2654170 Lednbrass
Lednbrass's picture

Exactly.  When I meet the line of argument that austerity is proven to have failed I ask for some concrete proof that it was actually implemented and government spending was truly reduced.

I have not yet gotten it. Nobody making that argument seems able to show anything beyond an unsourced "news" article based on statements from politicians.

If UK government spending were reduced in the real world and not just in the claims of politicians it should be a simple matter to prove. If the poster above claiming that austerity is occuring in the UK is correct, they should be able to show this with ease.

Does anyone claiming that austerity is real have some concrete links to UK annual deficit and cumulative debt (preferably from the UK equivalent of their Treasury and showing FY 2010,11, and 12) proving that debt is decreasing? 

If not, why the hell are you making the argument?

Thu, 07/26/2012 - 13:08 | 2653709 piliage
piliage's picture

So, the solution to an asset bubble is to keep the asset bubble inflated? You must be a Princeton Economist. Well done...

You might want to consider what happens when there is no support for said asset prices. Perhaps, just perhaps, this isn't a macro function of employment?

Don't hurt yourself thinking about this though. I mean, we wouldn't want to effect your ability to get tenure.


Thu, 07/26/2012 - 21:52 | 2655358 StychoKiller
StychoKiller's picture

Yousa be wun smart sock-puppet!

Fri, 07/27/2012 - 05:12 | 2655691 awakening
awakening's picture

Even a broken clock (analog of course) is right two times a day, no?

Thu, 07/26/2012 - 12:30 | 2653562 THE DORK OF CORK
THE DORK OF CORK's picture

Well there is some limited manufacturing coming back to the Sterling area but not much such as the Vauxhall ellesmere plant , increased mini production and this.

“More than 900 jobs will be created and thousands more secured after Transport Secretary Justine Greening approved a £4.5bn contract to supply Britain with the next generation of intercity trains.
In a major boost to the UK’s manufacturing industry, 596 railway carriages will be built at a brand new train factory in the north east of England.
Agility Trains, a consortium made up of Hitachi and John Laing, has been awarded the contract to build and maintain the trains under the Intercity Express Programme (IEP), the project to replace Britain’s Intercity 125 trains with new higher capacity modern trains………..”

Also talk of supplying the crossrail system with trains from this future train factory.

Replacing these locos then……

Rail is really the only growth Industry in the UK now.

Thu, 07/26/2012 - 12:32 | 2653563 THE DORK OF CORK
THE DORK OF CORK's picture

double post

Thu, 07/26/2012 - 12:47 | 2653630 LMAOLORI
LMAOLORI's picture



The U.S. is also in a Depression don't kid yourself


Do Two Recessions Equal One Depression?

Thu, 07/26/2012 - 12:51 | 2653645 Victor Berry
Victor Berry's picture

If all the government spending on preparation for the Olympics is no longer flowing, then they are in big economic trouble in the not too distant future.

Thu, 07/26/2012 - 12:56 | 2653665 Nobody For President
Nobody For President's picture

Where the hell are Gilbert and Sullivan when you really need them:

Thu, 07/26/2012 - 13:21 | 2653742 marco1324
marco1324's picture

Problem is the politicians have abandoned the people, they only seem to care about banks and the markets (London).

A vast amount of people are on some kind of benefit be it job seekers (soon to be changed) housing benefit or disability. Looking around everyday you see a human resource just going to waste, its a crime.

As for surviving on our Oil and Gas you only have to look at the fall in production to see how that one is panning out.

I fear for my country, its on borrowed time.


Thu, 07/26/2012 - 13:27 | 2653772 THE DORK OF CORK
THE DORK OF CORK's picture

The final deindustrialisation UK bout  post Suez ,1960s ,70s Labour boffin destroying goverment and post Maggie and Lawson show was the post 1990 "Dash for Gas" entropy experiment which finally killed a almost dead British Nuclear Industry.

The Brits can now only fall back on 19th century railway cuttings.


Thu, 07/26/2012 - 13:30 | 2653781 Kantbelieveit
Kantbelieveit's picture

Governments should borrow at current cheap rates and put the unemployed to work rebuilding productive infrastructure. The resulting multiplier effect will revive their economies. Instead, they are doing the reverse, laying off workers and letting their infrastructure crumble, while indulging in magical thinking about "austerity."

Much of the developed world seems to be in the grip of a cruel and stupid commitment to punishing the weakest members of society and enriching wealthy criminals and moral defectives.

Thu, 07/26/2012 - 13:48 | 2653836 THE DORK OF CORK
THE DORK OF CORK's picture

As can been seen in the above video much of the contraction is becuase of a decline in the construction sphere - housing , blocs & stuff etc....

This has no real productive was developed to capture external capital flows which are now decreasing.

However This concrete production has internal productive capacity.

Railway Gazette June 29
“UK: Work is set to begin shortly on the construction of a concrete sleeper plant in Doncaster which will supply more than half of Network Rail’s annual needs. Production is scheduled to start in spring 2013.

The factory on the former Woodyard site will be owned and funded by Network Rail, which is seeking to protect supplies and reduce costs by increasing competition and introducing modern production methods.

The plant will be built and operated by the Trackwork Moll consortium of local firm Trackwork and German company Leonhard Moll. The consortium will procure and own the specialised production machinery, and has a 10-year contract to supply sleepers to Network Rail.

Building the concrete sleeper factory is a strategic decision for Network Rail, according to Martin Elwood, director of the infrastructure manager’s National Delivery Service. There are currently two UK suppliers, Cemex and Tarmac, but Tarmac is seeking to leave the market and only retains a small presence to serve an existing Network Rail contract which runs to March 2013.

Thu, 07/26/2012 - 14:18 | 2653919 Arnold Ziffel
Arnold Ziffel's picture

The UK sank long ago imo. as an aside note, my inlaw who lives there needed a total hip replacement...put on a waiting list for 2 1/2 years.......I knew when that Schmuck sold UK's gold they had piss poor leadership. Hopefully it changes for them.

Thu, 07/26/2012 - 15:16 | 2654076 loftgroovv
loftgroovv's picture

I've lived in the UK my whole life, and times are indeed getting tougher.

I'm actually thinking about trying to smuggle myself into Somalia in the back of a truck, where hopefully I claim state benefits. Hey, the grass is always greener!

Thu, 07/26/2012 - 15:47 | 2654214 tony wilson
tony wilson's picture

you all may mock today.

but friday danny zombie boil and trouble will cook a witches brew that will change everything.

you see jesus is so well pre modern.

the lord mighty satan has all the cool dudes and the bankers.

with the power of the billions watching and energy harvesting.

a holographic vision and spectacle will be seen to bring awe and wonderment make you cry and put you on your knees not before general zod but lucifer himself.

look to the skys sheep

jerusalem is coming home 

jerusalem is coming home.

either that or mossad will just wave a false flag and blow that sucker sky high.

fairwell stinky shitpile london.

your rape and pillage is coming to an end

Thu, 07/26/2012 - 21:51 | 2655356 Ted Baker
Ted Baker's picture

We must get rid of George Osborne period.

Thu, 07/26/2012 - 21:51 | 2655357 Parth
Parth's picture

Yippee we will get a new Beatles and Woodstock!

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