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Bank of England admits UK showing signs of depression

For the first time the Bank of England is now openly discussing the fact that the UK economy is showing worrying signs of moving towards a depression by highlighting the issue in one of it's regular reports. There is also the fact that a deflationary situation is developing which would see prices fall month by month while household debt in the UK continues to rise month by month. Commonly known as the debt deflation trap this is a stark reminder of the 1930s depression which annihilated the worldwide economy.

While Gordon Brown still refuses to apologise for any part he may have played in the ongoing economic slowdown in UK it appears that the Bank of England is more than willing to give a more balanced view of the current economic environment and the direction of the economy in the future. This is yet again in stark contrast to the official line being maintained that the UK government with Gordon Brown and Alistair Darling adamant that their array of rescue plans and financial stimulus packages will work in due course.

Quite how the Bank of England will respond to its own suggestion that a depression could be round the corner remains to be seen but there is no doubt we are now at the "business end" of the task of saving the UK economy.

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