The economic recovery in the UK suffered a shock blow today as figures revealed that gross domestic product (GDP) declined by 0.5% in the fourth quarter, raising fears of a double-dip recession.

The severe weather last month was almost entirely to blame for the unexpected plunge between October and December, which ended a year of economic growth in the UK, the Office for National Statistics (ONS) said.

The decline in GDP - the first since the third quarter of 2009 - was driven by a 0.5% drop in the key services sector, which makes up more than 75% of the total economy. With this drop, total growth in 2010 stands at 1.4%, far below analysts' forecasts.

The figure, which is a preliminary estimate and subject to revision, will raise serious concerns over the strength of the economy as it enters the age of austerity and its ability to withstand the coalition Government's deficit-busting austerity measures.

Economists were expecting growth of between 0.2% and 0.6% in the fourth quarter - but warned that the adverse weather made it difficult to provide accurate forecasts.

http://www.independent.co.uk/news/uk/home-news/doubledip-recession-fear-after-gdp-fall-2193631.html

Flood victims and low-income earners will be exempt from a one-off levy to help meet the $5 billion cost of paying for this summer's devastating floods, Prime Minister Julia Gillard has confirmed.

Speaking at the National Press Club this lunchtime, Ms Gillard said borrowing to pay for the rebuilding of flood-ravaged communities was not an option and warned that Australia's economy must "pay as we go".

http://www.abc.net.au/news/stories/2011/01/27/3123050.htm

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Of course Julia will be panned by the media and the Libs... But had Abbott done the same he would be lauded as the nation's savior... He would have also slashed the modest welfare, creating a hungry class of citizens as well.... Remember that under the Libs, the economy would have taken a nose dive a couple of years ago with the world economic downturn. They would have supported the banks instead of supporting the little people, like they supported the banks in the US and Europe... Thus we would have to pay from the eighth ball in our pockets, and on top of that we would not have an NBN in progress, a school "reconstruction" program and such.

Please remember the Baby Bonus... Every couple who could went under the doona... While giving the bonus away, Rattus jacked up all the schooling and university fees... Now all the little bubs' families have to pay far more than they ever got from the Baby Bonus... That's the Liberal philosophy for you.

Meanwhile I would urge anyone planning to reconstruct into flood prone areas to be aware. Public and private engineers (structural and town planners) need to be consulted to prevent this happening again. Permanent super levies might need to be constructed around some areas, houses may need to be built on stilts or floats, pumps may be added to the areas like in New Orleans... Take your pick.

A powerful solar eruption that has already disturbed radio communications in China could disrupt electrical power grids and satellites used on Earth in the next days, NASA said.

The massive sunspot, which astronomers say is the size of Jupiter, is the strongest solar flare in four years, NASA said.

The Class X flash - the largest such category - erupted on Tuesday, according to the US space agency.

"X-class flares are the most powerful of all solar events that can trigger radio blackouts and long-lasting radiation storms," disturbing telecommunications and electric grids, NASA said.

NASA's Solar Dynamics Observatory saw a large coronal mass ejection (CME) associated with the flash that is blasting toward Earth at about 900 kilometres per second, it said.

The charged plasma particles are expected to reach the planet's orbit on Thursday (US time).

http://www.abc.net.au/news/stories/2011/02/17/3141943.htm

The chairman of internet giant Google has thrown his support behind Australia's National Broadband Network (NBN).

The Federal Government has come under pressure from the Opposition because of the cost of the $36 billion rollout.

Speaking at a conference in Barcelona, chairman Eric Schmidt says Australia has shown great leadership on the issue.

"Australia is leading the world in understanding the importance of fibre," he said.

"Your new Prime Minister has announced that 93 per cent of Australians, which I guess are all the folks in the cities, will have gigabit or equivalent service using fibre, and the other 7 per cent will be handled through wireless services of a nature of LTE," he said.

"This is leadership from Australia, which I think is wonderful."

A spokesman for the NBN Co says Mr Schmidt's comments underline widespread international interest and support for the project.

Last week Telstra and the NBN Co finalised aspects of a deal to roll out the NBN.

They agreed on key commercial terms which pave the way for the NBN Co to use Telstra's assets and for Telstra to phase out its copper network.

Communications Minister Stephen Conroy described it as a "significant milestone".

http://www.abc.net.au/news/stories/2011/02/19/3143457.htm

See "happy" joe at top...

Might I commence by congratulating you on your strong and principled stand against Labor’s great [blah blah blah...]

However, might I raise strong objections to your statement on PM yesterday that “many new jobs will be created through the reconstruction effort which is likely to take several years”. This statement is a clear example of what is termed, in economic circles, as the “broken window fallacy”, and was thoroughly debunked in 1850 by Frederic Bastiat, in his essay, “That which is seen and that which is Unseen”.

Since that time, no serious economist would ever dare make such a comment, and, despite it still cropping up from time to time by economically illiterate members of the press, it is a statement that only invites laughing stock by anyone with any knowledge or understanding of economic principles.

As a longstanding Liberal Party member and supporter, I urge you in the strongest possible terms to refrain from making such thoroughly-discredited comments. They not only perpetuate an argument that is flat out wrong, they severely undermine the Liberal Party’s credibility regarding responsible economic management. Furthermore, taken to their extreme, statements such as yours can be used to support failed economic policies such as the so-called “stimulus”, or, to make the case that, if only we could have had floods that were more damaging, and maybe a couple of devastating earthquakes as well, we could eradicate unemployment in Australia. Clear foolishness, of course, but it is the logical consequence of stating that disasters create jobs.

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http://www.menzieshouse.com.au/2011/01/an-open-letter-to-joe-hockey.html

Yes Joe, you have it from the longstandingest liberal supporter (he was born with the supporter stamp on his forehead) Tim Andrews... When you have friend like these, who needs enemies... But this is not the point... Tim's spruik (invites laughing stock by anyone with any knowledge or understanding of economic principles) though calling on illusive economic illusions, is as useful as a tin of tacks being used for loo paper...

Disasters like those brought by wars often bring benefit to those manufacturing weapons for example... That's why the US has been at war with someone or another since the mid 19th century... Those involved in war "reconstruction" benefit from "Marshall plans" for example... Corruption can interfere with "reconstruction" as well as the ability to muster a workforce to "reconstruct"... No two situations are similar... In the end some disaster will bring employment, some won't...

see toon at top...

They may lack the exotic ring of Venice's Piazza San Marco or Marrakech's Djemaa el-Fna, but Norwich's planned Rain Square and Flood Park may one day earn a little renown of their own in the epic battle with the weather.

After England's wettest year on record, planners this spring will be asked to grant consent to 670 homes by the confluence of the Wensum and Yare rivers featuring these new public spaces, where half the site has a high probability of flooding and its edge is only 45cm (18in) above sea level.

The project, described as a folly by opponents, is a bellwether for Britain's readiness to tackle the twin pressures of rising floodwaters – which the Environment Agency estimates put one in six homes at risk – and ever increasing housing demand in popular places such as Norwich.

In a counter-intuitive attempt to persuade homebuyers to set aside their fear of the rising tide, the scheme proposes homes around marshes, squares that are designed to become ponds, and parks that become small lakes.

Other plans are afoot too. Next month the UK's first floating house will go on site by the Thames at Marlow, while a scheme has been proposed to flood 100 hectares (250 acres) of threatened farmland at Littlehampton to create a lagoon development.

http://www.guardian.co.uk/environment/2013/jan/14/rain-square-flooding

"Floating" houses were one of the solution I proposed in flood prone areas... (see above somwhere)... I have investigated the possibility and made plans in the early 1970s...