Great Britain "Double Dips": Is The United States Next?

Home > U.S. Economy
Great Britain "Double Dips": Is The United States Next?
Recession or depression?

By Bob Stokes
Wed, 25 Apr 2012 17:45:00 ET

Get investable insights sent to your inbox at least once a week – for free. Challenge the way you think about investing with The EWI Independent.

Privacy

In Britain, the financial media are calling it the first double-dip recession since the 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...

Reuters, April 25

Britain's construction sector had its biggest fall in three years. The service sector has been weak. There's been a decline in industrial output.

The United Kingdom and the United States are so joined at the hip that one has to wonder if the American economy is next.

Well, the U.S. has already lost nearly half of its manufacturing jobs since 1979. The steepest plunge started after 2000. Take a look at the chart:

Recession? We contend that the economy has never really recovered from a depression.

Bulls say the economy is in recovery, albeit a weak one. Bears are calling for a “double dip” recession, like the back-to-back recessions of 1980 and 1982. But, as is often the case, we disagree with both camps: The economic contraction of 2007-2009 was not a recession; the respite since then is not the start of a new economic expansion; and the economy is not going to have another “dip” into recession. The economy has been sliding into depression. I date its beginning as 2000, but it started getting serious in 2007...

Elliott Wave Theorist, September 2011

Besides the loss of manufacturing jobs and other economic indicators, here's another chart which supports that case:

Here's the latest on U.S. food stamp use:

The Congressional Budget Office said...that 45 million people in 2011 received Supplemental Nutrition Assistance Program benefits, a 70% increase from 2007. It said the number of people receiving the benefits, commonly known as food stamps, would continue growing until 2014.

Wall Street Journal online, April 14

In the United States and the United Kingdom alike, we believe it's a matter of time before the word "depression" replaces the phrase "double-dip recession."

Why?

Our Financial Forecast Service tells you.

Be forewarned: the conclusions we've reached are not what you will find in the vast majority of financial newsletters or from most media pundits.

At this juncture in the financial markets and economy, we believe you'll serve yourself well if you read what we have to say.

We've prepared an exceptional offer for you: for a limited-time, you can read our Financial Forecast Service risk-free via a 57% discount off our regular price. Learn more here>>

LIMITED-TIME 57% SAVINGS OFFER: For 3 months, you get The Elliott Wave Theorist, Financial Forecast and Short Term Update for only $99!

See our EXCLUSIVE charts and read our one-of-a-kind analysis of stocks, bonds, gold, silver, the U.S. dollar, the euro, the economy and more

Keep complimentary copies of the second edition of Conquer the Crash and the Wall Street classic Elliott Wave Principle

30-days RISK-FREE!

Here's how to get your 57% SAVINGS>>>

Tags: Bank of England, deflation, double dip, economic depression, Elliott wave, european markets, FTSE, gross domestic product (GDP), recession

May 13-16

Las Vegas Money Show

July 10-13

Freedom Fest Conference

Get the Perspective You Need to Act Apart from the Herd

"The clarity of your thoughts is so powerful that I typically read an issue at least a half dozen times." - R.N., Financial Forecast subscriber

The Elliott Wave Financial Forecast is a rational voice in a volatile marketplace with an unrivaled record of providing tomorrow's news today.

It helps you take control of your investments and anticipate the larger trends that most investors don’t recognize until it's too late.

Preview the latest Financial Forecast now>>

Most Read

Highest Rated

Free 50-Page eBook

Learn to Think Independently

The Independent Investor eBook can help you to challenge conventional notions about investing and explain market behaviors that most people consider "inexplicable."
Download your free Independent Investor eBook

The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.