UK economy shrank 0.5% in Q4 of 2010, compared to a 0.7% growth in Q3 of last year.
The bad Q4 number is being blamed on the bad weather by government officials. Yeah, right.
On top of it all, government borrowing rose to a record high level in this past November, though it has pulled back some.
And if that weren’t bad enough, there is the looming issue of UK inflation, which we’ve written about here, here and especially here, where we discussed the final 2010 UK inflation figure of 3.7%.
The question remains: Is the UK the canary in the coalmine for the U.S. economy?