I know this is UK GDP you can find others.
The reason it is deflationary is that it is not enough. It never has been. The balance sheet construction that was built on the myth of MBS and all the other ancillary bonds has disappeared. The expansion that was thought to have happened was lost the minute those bonds failed to be priced anywhere near the previous prices. QE(insert country or number) did not work. We have been in a silent depression. The MBS shenanigans simply covered over the cracks of the first of the boomers to start retiring. The single largest cohort of humans not only in the US but in the whole of western society is leaving the workforce and "downsizing" as they should. All at the same time.
There is no cohort large enough to fill their demand gap. The next largest behind them can have a camera/telephone/secretary/television/hifi/.../etc all in the palm of their hand. If this person wants to start a business many of the services involve very few people many of whom are spread across the planet.
It always worried me over the summer when people were calling for a "V-shape" recovery "fuck please no don't let it only be v shape!". Because the GDP after 2008 was V shape and the problem is the right stick doesn't reach back to trend. We need a "tick" shape recovery, else we end up like the chart above. With less output.
"tick" or "check" mark, one... (More)