Clarke's men were skittled out for just 60 in 18.3 overs -- the shortest completed first innings in Test history -- after losing the toss in overcast but not totally 'unplayable' conditions.
Read: Australia 60 all out against England
Stuart Broad took a Test best eight wickets for 15 runs in 9.3 overs on his Nottinghamshire home ground as the fast-medium bowler became only the fifth England cricketer to take 300 Test wickets.
By stumps, Joe Root's unbeaten 124 -- his second century of the series -- had taken England to 274 for four and a lead of 214 runs.
England are 2-1 up in the five-match series and need just one more victory to regain the Ashes.
Read: The 2015 Ashes story so far
Australia will continue to hold the Ashes if they either somehow win this match and the last Test at The Oval or if the campaign ends all square at 2-2.
"I'm really disappointed with how the day has turned out, but it's only one day down," said Clarke as Australia's batsmen were once again undone by sideways movement of the ball.
"We've got to find a way. I think we were mentally up for the fight, obviously it doesn't look like we were, but I don't want to take anything away from Stuart Broad, and England were brilliant in the field."
Clarke's wretched Ashes series continued as he fell for 10, caught at first slip by opposing captain Alastair Cook off Broad.
Read: Michael Clarke: I won't quit
It left him with a meagre series total of 104 runs in seven innings and meant that in his past 29 knocks at this level the 34-year-old, one of the best batsmen of his generation, had reached 25 just six times.
"We tried to defend and got out and we tried to play shots and got out," said Clarke, whose career has recently been hampered by hamstring trouble in addition to a longstanding back complaint.
"I don't think it was the aggression that got us out -- I tried to be aggressive and with that comes risk.
"We weren't as good as we need to be with the ball, but it doesn't help when you've only got 60 runs," he added.
"We can still find a way to save Ashes, but we've got to fight."
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