World

‘Real News From The Blaze’: Are We Heading for a Double-Dip?

This week the United Kingdom joined the ranks of Portugal and Spain by sliding back into a recession. Critics have used this as an opportunity to jump all over David Cameron’s austerity measures, which he has vowed to stick with, International Business Times reports:

The dire figures fuel growing criticism of Britain’s Conservative-Liberal Democrat coalition, as a broad backlash against strict austerity measures is building across Europe.

“The uncomfortable fact remains that the economy is in a desperately fragile state, despite unprecedented stimulus and financial support,” said Neil Prothero, U.K. economist for Economist Intelligence in London. “This should come as no surprise, with the U.K. struggling to adjust to a severe (and rare) balance-sheet recession. The underlying picture is still one of very weak household consumption and business investment, exports being constrained by a stronger sterling and the inevitable escalation of the euro zone crisis, and government spending now acting as a drag on economic activity.”

The New York Times’s Paul Krugman has especially enjoyed Cameron’s struggles, attempting to use them to shut up American pundits urging President Obama to take on austerity measures:

When David Cameron became PM, and announced his austerity plans — buying completely into both the confidence fairy and the invisible bond vigilantes — many were the hosannas, from both sides of the Atlantic. Pundits here urged Obama to “do a Cameron”; Cameron and Osborne were the toast of Very Serious People everywhere.

Now Britain is officially in double-dip recession, and has achieved the remarkable feat of doing worse this time around than it did in the 1930s.

But did the U.K. really apply the austerity measures that Republicans call for in the U.S.? And are the issues that the U.K. economy faces the same as the U.S.?

Will Cain says no.

On “Real News” Thursday Cain explained that you have to look at the total debt, the sum of both government and private debt, which shows the U.K. and U.S. going in oppositie directions. Cain argues that the U.K. has not even applied real austerity measures, for unlike the U.S., the U.K. total debt has risen because of the lack of cuts to private debt.

Matt McCall is not totally onboard with Cain’s presentation, and believes the U.S. may be heading for similar economic downturn as our friends across the pond. McCall argues that the reason the U.S. private, consumer debt, has decreased is because the government has absorbed it. A practice that cannot continue too much longer.

Comments (28)

  • Individualism
    Posted on April 28, 2012 at 8:31pm

    Financial Collapse coming the world has more debt than capital, all they can do is print more money and make it worthless anything now is better currency than paper money and they might try a global currency and the same thing will happen and than eventually will be forced to sound money.

    Report Post » Individualism  
  • NewBee
    Posted on April 28, 2012 at 9:04am

    I guess the sheeple need to explained really? this is news ? The dirty litte joke is that we never left the 2008 crash … little something I cliped from ZeroHedge.com

    “Even if we use the REAL GDP figures provided by the BEA, the result is absolutely horrific when analyzed in comparison to what our “leaders” have done:

    Real GDP has gone up by $200 billion since the 2nd quarter of 2008, a 1.4% increase.
    The National Debt has gone from $9.5 trillion in the 2nd quarter of 2008 to $15.6 trillion today, a 64% increase. Not too much bang for our Keynesian buck.
    There were 146 million Americans employed in the 2nd quarter of 2008. Today there are 142 million employed Americans. The working age population has risen by 10.5 million over this same time frame. According to the fine drones at the BLS, almost 8 million Americans willingly decided to leave the workforce during this time and do not count as unemployed.
    Profits of the mega-corporations making up the S&P 500 are at all-time highs.
    Wall Street Too Big To Fail banks have paid out average bonuses of $130,000 per employee from 2009 through 2011. The average compensation is $350,000.
    Wall Street banks reaped $102 billion of profits between 2009 and 2011, as Ben Bernanke bought their toxic debt and continues to loan them hundreds of billions at 0% interest.
    Five million Americans lost their homes to foreclosure since 2008.
    There will be at least 6 million more foreclosures in the next three year”

    Report Post »  
  • Bodysnatcher
    Posted on April 28, 2012 at 6:03am

    Petty much as I see it. The blacks will reelect Obama and we will be here bitch’in about it.

    Report Post »  
  • pinkruby
    Posted on April 28, 2012 at 5:10am

    Obama know 100% what he is doing to our economy. A double dip depression is where Obama and Soros want the U.S. to be and worst. This Misogynistic Narcissistic Corrupt Gangster Anti – American out of the White House. Obama has direct ties to the Muslim Brotherhood . Rumor’s of war 3 targeted for the U.S. Ties to ercreate the Arab Spring in the U.S.

    Report Post »  
  • jcvillar
    Posted on April 27, 2012 at 6:25pm

    I’m losing count. I thought we already went through a double-dip. Aren’t we looking at a tripple-dip. That’s the problem, you know, Too many damn dips in Washington.

    Report Post »  
  • Turin
    Posted on April 27, 2012 at 3:56pm

    Duh, I could’ve told you we were going to have double dip recession over a year ago.

    Report Post » Turin  
  • theamericanvision
    Posted on April 27, 2012 at 11:17am

    If proper (a.k.a Adam Smith) economic policies had been in play, there wouldn’t be a double-dip. There would have been one deep dip followed by robust growth. It would have been more painful in the short-term, but ultimately much better. The government trying to support a down-cycle is always going to be counter-productive in the long run. It’s interesting they feel the need to quell the down-side but are fine when they have an artificial up-side.

    Report Post » theamericanvision  
  • Tigress1
    Posted on April 27, 2012 at 9:42am

    After seeing the numbers on this mornings Squawk Box, we are seeing early stagflation. (A stagnant economy of 2.2% combined with inflation).

    Women who shop already see the inflation. Here’s an practical example: Wal-Mart has been selling 5 pound bags of Ol’ Roy dog biscuits for $3.98. These have been repackaged into boxes of 4 pounds-7 ounces which are being sold for about $4.75. Just one example that I’ve noticed this week.

    Report Post » Tigress1  
    • Jaycen
      Posted on April 27, 2012 at 10:18am

      You betcha.

      The up side is manufacturing has been much stronger. A lot of steel products have seen a surge in demand the last 8 months. I’ve got customers (steel manufacturers) who can’t keep up with orders. Several can’t get capital equipment in the door fast enough to get into production to meet demand.

      I‘m not sure where it’s coming from. I hope it’s a factor that “some sectors do well while others suffer”, and not another artificial boom spurred by government spending. Of course, now that I’ve said something, the government will probably swoop in and over-regulate the industry.

      Report Post » Jaycen  
    • chazmo
      Posted on April 27, 2012 at 2:38pm

      @jaycen hmmm could it be gun manufacturing using all that steel.. :)

      Report Post » chazmo  
  • historyguy48
    Posted on April 27, 2012 at 6:21am

    This “recovery” is nothing but an illusion being generated by the “Liberal Progressives” (Marxists) by the digitizing of money and the blatant mis-application of facts. When you look at our real unemployment numbers, unadjusted, they are in the 18+% area which is completely consistent with European style socialism.
    We have sustained no actual job growth in over 12 years. In 1999 this country had approximately 130 million jobs, today we have a slightly smaller number of jobs but that number is still close to 130 million. The difference is the type of job available today, for the most part the average American is being forced to accept a lower paying job because the over taxed higher paying jobs have fled the country or the companies have gone broke. Unfortunately this is also consistnet with the joys of Marxism.
    If we get there, and there is no guarantee we actually will, this years election will probably be the last meaningful election in Americas history. The groundwork has been completed and we are facing Checkmate! If Barry wins, the country is finished! If Barry loses, the civil disturbance that will be generated including the fun his “friends” in the Muslim world have been purposely allowed to prepare for here, will “force” those in charge to declare Martial Law, of course, “only for the duration”. Checkmate!
    The duration is forever! Lenin called it “The dictatorship of the proletariate”!
    Then the rumors of people dissappearing into the non-existent FEMA

    Report Post » historyguy48  
    • rocky155
      Posted on April 27, 2012 at 6:37pm

      You are avery smart man. Your comments are spot on.

      Report Post »  
  • SychinLegacy
    Posted on April 27, 2012 at 12:52am

    So it was finally announced that Ron Paul has won in Iowa and Minnesota be securing at least half of the delegates in both states. And not a SINGLE mention by Beck and the blaze. “REAL NEWS” indeed. Bunch of phonies. You sheep better wake up because Beck has been delivering you into the progressive Romney’s hands since day one.

    Report Post » SychinLegacy  
    • Ghandi was a Republican
      Posted on April 27, 2012 at 1:08am

      That is not news. This is a war on the progressive movement. That is all that matters. A defeat and dismantling of the bureaucracy they have created. Newt was the man for the job. And we will live to regret the loss of the imagery of Newt traveling in the wake of air force one to mock the daily teleprompter recital from the Great Alinsky! priceless. Basically FREE and something no amount of money could buy. The awakening-0 the landslide with coat tails all the way down to dog catcher. Our loss.

      Report Post » Ghandi was a Republican  
    • Kenny_in_Indiana
      Posted on April 27, 2012 at 8:45am

      I am surprised by the number of sore losers from this primary. I was a Santorium and was disappointed by the results, but it is time to move on. Why do you guys waste so much of your time crying in your beer? Your team lost, time to move on. It’s called growing up. You can point out what a mistake Romney is all you want, and how Paul and Newt was going to break government down and rebuild it (which I doubt would have happened since you need more than a one man wrecking crew to do that), but the fact of the matter is a poor non-conservative Romney is better than the socialist liberal Obama any day. Glenn isn’t leading anyone anywhere. He throws out the facts as he sees them. If you don’t believe him, do your own homework (where have I heard that phrase……). All I see is rhetoric and hurt feelings over a lost candidate. Ya know, more of the same crap we have now.

      Report Post »  
  • Ghandi was a Republican
    Posted on April 27, 2012 at 12:48am

    Great Britain is not in a double dip. Great Britain is finishing off THE dip so they can move forward and be the first out of the Great progressive depression. We have been down this road and we know that what happens. The Keynesians will sink further into the OBAMA DEPRESSION and another OBAMA LOST DECADE or two and Great Britain will recover and buy up all they have lost from the triple dip losers (at a discount)..
    It is a no brainer who will win this..

    Report Post » Ghandi was a Republican  
  • lukerw
    Posted on April 26, 2012 at 11:27pm

    A ‘double dip’ would be alike a Treat… compared to the Plunge that is coming!

    Report Post » lukerw  
  • TRONINTHEMORNING
    Posted on April 26, 2012 at 10:11pm

    There is no recovery at present; and won’t be until we defeat the disease–liberalism and it’s carriers.

    Report Post »  
    • A Doctors Labor Is Not My Right
      Posted on April 26, 2012 at 10:45pm

      The term “double dip” is misleading. It suggests that a possible, if also fragile, recovery was taking hold, and then something unfortunate happened to stop the recovery.

      What’s actually happening is that the “fragil recovery” was an illusion created by new fiat money. It LOOKED like a recovery in those areas which were actually correcting unsustainably high prices, because that’s where the new money went.

      But the resources misallocated to those areas are still unsustainable; It doesn’t matter how much new money you throw at it, because the structure of production is such that it consumes wealth, rather than creates it.

      “Double dips” are really just government interferences in the free market’s process of correcting all the misallocations of resources.

      And we’ve had more than two dips, already. The housing crash was preceded by the Dot Com crash, which was preceded by Black Monday. It’s all the same dip; And misallocations of resources go all the way back to the creation of the Fed.

      The only reason America‘s inflated markets haven’t been fully corrected from the misallocations caused by fiat money is because being able to print the reserve currency of many countries enables us to export inflation.

      Fiat money is misleading.

      See here.

      Smashing Myths and Restoring Sound Money | Thomas E. Woods, Jr.
      http://www.youtube.com/watch?v=HAzExlEsIKk

      Report Post »  
  • trueamerican40
    Posted on April 26, 2012 at 10:06pm

    Hyperinflation anyone?

    Report Post » trueamerican40  
  • Unix
    Posted on April 26, 2012 at 9:53pm

    It’s a freaking depression! I could go on forever giving facts, but alas few will believe me! The market is being kept afloat by stimulus, and it cannot go on forever, next up will be stagflation…ugh, I throw my hands up, I capitulate, I waste my time no more!

    Report Post » Unix  
    • PatriotDadOfSix
      Posted on April 26, 2012 at 10:54pm

      You’re right. And don’t give up..I know it’s frustrating as hell to break through to people, but if you have the knowledge..it’s your calling to educate. Chin Up…some of us are still listening.

      Report Post » PatriotDadOfSix  
    • Thevoice
      Posted on April 27, 2012 at 3:22am

      Don’t give up..Your spot on the entire financial market today is a shell game. One driven on what money the government is flushing into the system. I am only going to use food as a example. hundreds of millions a week in food stamps..Now good or bad …our entire price structure on food alone is corrupted. And that is only one example says nothing about ag subsidies…It also translates into the stock market on company’s profits losses and what their shares are trading at.It also directly relates to the commodity market. . So it all adds up to a phony market. Now the question. When will the system crash in ? Because it will.

      Report Post » Thevoice  
    • Unix
      Posted on April 27, 2012 at 12:34pm

      Thanks for the uplift! It is hard to show the facts, because of obfuscation…but I will journey on!

      Report Post » Unix  
    • chazmo
      Posted on April 27, 2012 at 2:45pm

      Don’t give up man.. You are absolutely correct about what is really going on.

      Report Post » chazmo  
  • sb36695
    Posted on April 26, 2012 at 9:43pm

    Did we recover from the first? My business never got better, and if it gets worse, I won’t make it. ABO!

    Report Post »  
  • CatB
    Posted on April 26, 2012 at 9:36pm

    When did we undip … I know the MSM is trying to spin it .. but I don’t see people doing any better or finding jobs .. or houses selling .. when did thing get better? We are still on a downward sprial from what I see …. and under Obama regime I don’t see it getting any better, REALLY, only worse …

    The recovery begins … November 7, 2012 .. after we throw Obama out!

    OMG 2012!

    Report Post »  

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