UK: GDP goes down 0'5% with price index up 4%

[hugolp]

Lets see how the keynesians spin this one. The price index in the UK is around 4%, yet unemployment is not going down and GDP just slipped into negative again.

Thats not suppose to happen because some "economist" say that rising prices promotes investment and spending and reduces unemployment. They also say that prices can not go up when GDP is down and unemployment is high. Reality differs.

http://www.zerohedge.com/article/uk...med-inflationary-surge-causing-big-head-scrat

For anyone that want to check the Bank of England balance sheet and the reaction to the crisis: http://www.cumber.com/content/misc/boe.pdf Quite impressive. It took a while for the new money to reach the market but its happening.

EDIT: The sad part is that keynesians will keep saying that their policies are designed to help the poor, etc... when in reality what is happening is that rising prices are going to hit the unemployed the harderst.

 

[Seraphim]

Stagflation indeed. 2011 is going to be a year where the commoner sees just how painful this is all going to become.

Pay off your debt ladies and gents. Surging food prices and soaring interest rates are going to cut the legs off of a lot of people.

 

[pmbug]

... and now we see the violence inherent in the system.

 

[SevenEyedJeff]

I keep hearing the pundits say you can't have inflation if the economy is weak, go figure.