While the focus over the last week has been on the downgrade of France and subsequently other european countries, the UK continues to slip under the radar. The 20% fall in GDP between 2007 and 2010 was $562bn which is over two and half times the entire eurozone. Funny how now of this gets any media attention. In a post a few days ago was a chart overviewing UK’s debt.

Some of the headline stories coming out of Britian are starkling.

Almost one million Britons have taken out an emergency ‘payday’ loan to help pay their rent or mortgage in the last year, according to Shelter, the housing charity.

………

Around six million households would be unable to survive for more than five days if they stopped being paid, such are the low levels of savings among Britons, new research shows.

According to rough calculations on The Automatic Earth blog:

If we put the average household size at 2.5 people, that means that, out of 60 million living in Britain, 2.5 million are on the verge of losing their homes, and 15 million, or 25% of the population, risk having to cut on their basic needs, food and heating, if they hit even the slightest speedbump.

John Ross, Visiting Professor at Antai College of Economics and Management at Jiao Tong University in Shanghai writes a real stunner on his blog Key Trends in Globalisation:

The magnitude of the blow suffered by the UK economy since the beginning of the financial crisis is very considerably minimized by not presenting it in terms of a common international yardstick. Gauged by decline in GDP, using a common international purchasing measure, dollars, no other economy in the world has shrunk even remotely as much as the UK.

Only Iceland faired worse, but at least they are over their troubles.

Expressed in percentage terms the situation is no better. Of all economies for which World Bank data is available only Iceland, with a decline in dollar GDP of 38.4%, suffered a worst percentage fall than the UK – even bail out economy Ireland, with a fall of 18.4%, outperformed the UK economy.

Already its tried, austerity and QE which haven’t worked. The figures keep getting worse and the presstitutes keep ignoring the story.

Source: The Automatic Earth

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