Breaking News CNN: UK slips back into recession -- latest figures show economy shrank by 0.2% in first three months of 2012. Although when looking at their debt-GDP especially the debt U.K banks hold its not surprising but could this be the start of round 2.
UK Slides Back InTo Recession in First Double Dip Since 1970s Britain's economy slid into its second recession since the financial crisis after official data unexpectedly showed a fall in output in the first three months of 2012, piling pressure on Prime Minister David Cameron's embattled coalition government. More... http://www.cnbc.com/id/47169446
Deficit spending and QE money spent is counted into the GDP the same way as citizens' purchase of large LCD TVs. Add to that that the millions of public workers wages counted twice into the GDP, because first counted as government spending on public sector wages and the second time as pubic sector workers spending that same money into the economy. If you try reducing deficit spending, QE, and the government payroll as needed you will have recession. This is the Catch 22 really.
