It is a common British expression. They like to say things like "this bloody chair," etc. I hard a few curious explanation about the origin of this phrase, some of them real urban legend. In reality bloody has been wisely tranfered to the American English as "stupid" as in "this stupid chair." Actually, the word bloody comes from an old Germanic root that gives modern German the word "blödig" (stupid). Furthermore in Shakespeare's times, the oo in blood was pronounced as in food. May bloody influenced in the change of pronunciation of blood.
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