Friendly trend

A decade or two ago, a US trade deficit of 4.9% of GDP would have sounded alarming. When this key indicator of global economic balance fell to -3.3% in 1985, there was much talk of dire consequences to the global standing of the US. But as it stands, the ratio has improved from -6.1% in 2005. Many investors are ready to say this imbalance is nearly righted. By the new standard, the latest numbers, for June, were encouraging. The monthly deficit fell from $59.2bn to $56.8bn. True, the smoother th...