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Green Shoots Wither

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"Recession is at an end, says leading economics thinktank" was just one of the headlines we saw last month when the National Institute for Economic and Social Research called the trough in the recession.

Today's output figures suggest that their call was premature.

UK manufacturing output shrinks unexpectedly

British manufacturing output unexpectedly shrank in May, official data showed today, making it less likely the economy returned to growth in the second quarter.

Manufacturing output fell 0.5% in the month in May versus expectations of a 0.2% rise. April's figures were revised down to show no change instead of the 0.2% rise initially reported. On the year, factory output fell 12.7%.

The wider industrial production measure, which accounts for 17.2% of the economy, also fell unexpectedly by 0.6% against forecasts of a 0.2% rise.

Data: http://www.statistics.gov.uk/pdfdir/iop0709.pdf

More QE here we come... ;)

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Bump! (Can't believe this was left languishing.)

The Times: Shock factory output fall dents recovery hopes

Today's data is expected to fuel the Bank of England to expand its quantitative easing scheme on Thursday, when the Monetary Policy Committee will also announce its decision on the interest rate, which is at a historic low of 0.5 per cent.

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Not good all that printed money and the banks just sit on it.

However for Brown it will clearly mean that more money needs to be printed out of thin air to bring growth back.

Yet more green shoots needed.

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Not good all that printed money and the banks just sit on it.

However for Brown it will clearly mean that more money needs to be printed out of thin air to bring growth back.

Yet more green shoots needed.

They are not sitting.

They are actively wiping their arses with it trying to clear up their own mess, sod everybody else. In fact over the last year they have been actively screwing business (particularly small business) for as much as they can get.

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Not good all that printed money and the banks just sit on it.

However for Brown it will clearly mean that more money needs to be printed out of thin air to bring growth back.

Yet more green shoots needed.

cynicuseconomicus has an article on the QE and says

"Quite simply, the Bank of England's money printing is all that stands between sale of government debt and bankruptcy."

and also

"It is only the purchase of gilts by the Bank of England that is supporting the gilts market. "

http://cynicuseconomicus.blogspot.com/2009...oney-in-uk.html

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The banks are not sitting on printed money.

99% of QE has gone to buy government bonds. Either newly issued or bonds sold by foreign investers, taking advantage of the artificially high price created by QE.

The net effect of QE is to keep interest rates artificially low. It is the low level of interest rates that is proping up the housing market.

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The banks are not sitting on printed money.

99% of QE has gone to buy government bonds. Either newly issued or bonds sold by foreign investers, taking advantage of the artificially high price created by QE.

The net effect of QE is to keep interest rates artificially low. It is the low level of interest rates that is proping up the housing market.

Direct/indirect from QE - it makes no difference. Artificially low rates underwritten with taxpayers money, the buying up insuring of junk debt on the banks' books. It is all the same, artificial stimulus to the lenders and gamblers that caused this mess and who were encouraged to do so by less extreme measures over the last 10 years.

The bonus stream is running again, the bosses of failed banks receiving multi-million package, not a care in the world whilst the money keeps flowing to them.

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Regardless of where/what QE is doing, theyre spunking enough on borrowing anyway you would think some of it would filter through to the private sector.

To benefit you have to be a fraudster, crook or gambler.

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"Recession is at an end, says leading economics thinktank" was just one of the headlines we saw last month when the National Institute for Economic and Social Research called the trough in the recession.

Today's output figures suggest that their call was premature.

UK manufacturing output shrinks unexpectedly

Data: http://www.statistics.gov.uk/pdfdir/iop0709.pdf

More QE here we come... ;)

This is big news which is being hidden beneath the 'house prices continue to rise, green shoots and all' bull in the press. Some day soon - when a few more corporations put their staff on 4 days a week or sack 10-20% of their workforce then someone might just grasp the reality of the situation.

We were bound to have a bounce this Spring because businesses stopped doing anything in Jan / Feb. So it isn't supprising that we are doing more now than we were then. All this relativity to seriously bad months is misleading.

Its like poo polishing.

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Tried to book for a meal last night, website now says they have closed due to the recession

(even though they had good reviews)

Walking through Richmond this morning, art shop 8 months empty and still whiteout windows

but now 2 guys were putting up a for rent or sale sign,

\

on the large office block above it (20,000Sq ft or something so seemed like several floors)

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"Recession is at an end, says leading economics thinktank" was just one of the headlines we saw last month when the National Institute for Economic and Social Research called the trough in the recession.

Today's output figures suggest that their call was premature.

UK manufacturing output shrinks unexpectedly

Data: http://www.statistics.gov.uk/pdfdir/iop0709.pdf

More QE here we come... ;)

The money's going down a black hole of deflation

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