Much of what issues forth as economic reporting often makes me laugh, particularly because of the way it’s portrayed by the economically illiterate media; and I just know that virtually nobody who thinks or says "oh, my," has the slightest clue about it.

Before I proceed, let me offer you a single and simple principle that has held for all time and will hold for all time as concerns trade:

Trade only happens because both parties benefit.

Now, that is all you need to know to understand that the term "trade deficit" is a non-concept having no real meaning or import. It exist merely as a political ploy for use by protectionists, which, of course, includes politicians on both sides of the isles, as well as many large corporations who wish to be protected from their betters across the sea.

If you want to go further, Warren Meyer lays it all out for you.