A Scottish slang term meaning to be stuck in a bad situation without anyway of fixing it. The bad situation being 'shit creek' and the 'paddle' being the solution.
Germans: 'Oh nao, we haz lost WW1 and now have tons of debt and our country is facing hyperinflation!'
The Allies: 'Hahahaha, they're up shit creek without a paddle now! *slaps knee*'
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