Analysis of figures show Britain may be heading into another recession

[AlfieMcWawa]

I think capping needs to start with organisations that are out of control, like the banks and the utility companies. There are people wanting to start businesses but are getting no support.

 

How can we cap them? Most of them are foreign owned.

[Anna Glypta]

Most of Europe is NOT in recession, and most experts seem to think you spend your way out of recession with investment in infrastructure and uilding projects.

 

Is that this Europe or do you mean a different one?

 

http://www.guardian.co.uk/business/2013/jan/15/eurozone-crisis-german-gdp-shrinking-inflation

 

Germany's economy has shrunk in the last quarter, according to new data that is likely to force the Berlin government to slash its economic growth forecasts for this year.

 

The German Statistics Office reported this morning that Germany's economy contracted by 0.5% between October and December, as the financial crisis hit Eurozone's powerhouse economy.

 

http://www.reuters.com/article/2012/11/06/us-europe-economy-idUSBRE8A50MW20121106

 

Reuters) - The fourth quarter has so far brought no improvement in the fortunes of most of Europe's economies, which now risk shrinking more than previously expected, gloomy data showed on Tuesday.

 

Purchasing managers indexes (PMIs), which gauge the activity of thousands of companies worldwide, showed euro zone businesses endured their worst month in October since June 2009, with little hope of a turnaround coming soon.

 

The euro zone relies heavily on Germany, its largest economy, to generate growth.

 

Business activity there shrank at faster pace last month and new data show industrial orders in September plummeted at a far faster rate than expected.

 

PMI compiler Markit said its latest survey was consistent with the euro zone economy shrinking at a quarterly rate of around 0.5 percent.

[SheffDon]

How can we cap them? Most of them are foreign owned.

By having certain policies/laws for them to operate in the UK.

[acman]

Most of Europe not in recession?, Spanish & Greek Youth unemployment at over 55%, manafacturing declining across the continenent, figures seem to show different.

With a recovery like this who needs a recession.

[NorthernStar]

No, the figures don't show Britain in another recession. A recession is, by definition, two consecutive quarters of retraction of the economy and we have so far only had one.

 

Osborne cooking the books for the purpose of pulling the wool over our eyes might be a good reason why.

 

Here's an explanation as to how $35bn is taken from the tax payer to achieve the appearance that we are not in recession.

 

 

Things are much worse than Osborne's cooked books would have us believe.

[Anna Glypta]

Most of Europe not in recession?, Spanish & Greek Youth unemployment at over 55%, manafacturing declining across the continenent, figures seem to show different.

With a recovery like this who needs a recession.

 

http://www.reuters.com/article/2012/11/15/us-eurozone-economy-idUSBRE8AE0HV20121115

 

(Reuters) - The euro zone debt crisis dragged the bloc into its second recession since 2009 in the third quarter despite modest growth in Germany and France, data showed on Thursday.

 

The French and German economies both managed 0.2 percent growth in the July-to-September period but their resilience could not save the 17-nation bloc from contraction as the likes of The Netherlands, Spain, Italy and Austria shrank.

 

Economic output in the euro zone fell 0.1 percent in the quarter, following a 0.2 percent drop in the second quarter.

 

Those two quarters of contraction put the euro zone's 9.4 trillion euro ($12 trillion) economy back into recession, although Italy and Spain have been contracting for a year already and Greece is suffering an outright depression.

[AlfieMcWawa]

Is that this Europe or do you mean a different one?

 

http://www.guardian.co.uk/business/2013/jan/15/eurozone-crisis-german-gdp-shrinking-inflation

 

Germany's economy has shrunk in the last quarter, according to new data that is likely to force the Berlin government to slash its economic growth forecasts for this year.

 

The German Statistics Office reported this morning that Germany's economy contracted by 0.5% between October and December, as the financial crisis hit Eurozone's powerhouse economy.

 

http://www.reuters.com/article/2012/11/06/us-europe-economy-idUSBRE8A50MW20121106

 

Reuters) - The fourth quarter has so far brought no improvement in the fortunes of most of Europe's economies, which now risk shrinking more than previously expected, gloomy data showed on Tuesday.

 

Purchasing managers indexes (PMIs), which gauge the activity of thousands of companies worldwide, showed euro zone businesses endured their worst month in October since June 2009, with little hope of a turnaround coming soon.

 

The euro zone relies heavily on Germany, its largest economy, to generate growth.

 

Business activity there shrank at faster pace last month and new data show industrial orders in September plummeted at a far faster rate than expected.

 

PMI compiler Markit said its latest survey was consistent with the euro zone economy shrinking at a quarterly rate of around 0.5 percent.

 

As pointed out above, the definition of recession is two quarters of negative growth. Apart from Spain, Italy, Greece, and a couple of others minor countries most are not in recession.

[Tradescanthia]

Problem is things will never improve until people have more cash in their wallets to spend.

 

Pay is frozen, jobs are becoming part time, jobs are more insecure and things that you have to spend money on are increasing in pounds and not pennies (in fact £100s of pounds for items like car insurance)

 

Just the Britain the Torys love. Workers too scared to say boo to a goose, minimum wage widespread. In spite of the difficulties being experienced by Europe and most of the world we have Cameron and Osborn adding to the misery. They, in the name of 'austerity' have taken much needed money from the pockets of consumers. This has caused extra misery and added to the problems. As for the rich ?? They are still sticking two fingers up at the rest of us and thanking these two 'Posh Boys' for the favours bestowed on them.

As for Master Clegg, he's too thick to comprehend. Without his votes the Posh Boys would have had to go back to the polls by now. We know how evil the Torys are, Clegg has hoodwinked his own supporters and sold his soul to the devil. He will get his reward at the next election............and so will his party...

[Vague_Boy]

Most of Europe is NOT in recession

 

Greece, Spain, Portugal, Italy, France, the UK, Ireland.

 

Need I go on?

 

Germany is not "most of Europe".

 

 

and most experts seem to think you spend your way out of recession with investment in infrastructure and uilding projects.

 

Ahhh, Keynesians. Haven't they been discredited enough?

 

Have a look at the history of the Great Depression of 1920-21.

 

Not heard of it? That's because it didn't last very long.

 

Interestingly, the US government's response was to cut spending drastically.

 

The Forgotten Depression of 1920

 

The conventional wisdom holds that in the absence of government countercyclical policy, whether fiscal or monetary (or both), we cannot expect economic recovery — at least, not without an intolerably long delay. Yet the very opposite policies were followed during the depression of 1920–1921, and recovery was in fact not long in coming.

 

The economic situation in 1920 was grim. By that year unemployment had jumped from 4 percent to nearly 12 percent, and GNP declined 17 percent. No wonder, then, that Secretary of Commerce Herbert Hoover — falsely characterized as a supporter of laissez-faire economics — urged President Harding to consider an array of interventions to turn the economy around. Hoover was ignored.

 

Instead of "fiscal stimulus," Harding cut the government's budget nearly in half between 1920 and 1922. The rest of Harding's approach was equally laissez-faire. Tax rates were slashed for all income groups. The national debt was reduced by one-third.

 

The Federal Reserve's activity, moreover, was hardly noticeable. As one economic historian puts it, "Despite the severity of the contraction, the Fed did not move to use its powers to turn the money supply around and fight the contraction." By the late summer of 1921, signs of recovery were already visible. The following year, unemployment was back down to 6.7 percent and it was only 2.4 percent by 1923.

LINK

[BoroB]

I along with millions of other people could spend our savings to buy loads of tat that we don’t need, which would prevent the economy going into recession.

 

Or everyone else could borrow lots of money like they did over the past decade and spend it on tat that they don’t need, that will also stop the economy going into recession.

 

Or the government can borrow loads of money like it did over the past decade and spend it on infrastructure which would stop the economy going into recession, but would increase the countries debt and interest payment for the next generation.

 

Or we can cut spending and reduce our debts, conserve resources and give the next generation a better life.

 

I forget who said it but it went along the lines of 'We can't keep borrowing money from China to pay for goods imported from China'.

 

Sums up the UK's problems.