Trouble brewing for US

The UK economy will continue to grow but there may be trouble on the horizon for the US, according to Tim Congdon, managing director of Lombard Street Research. Speaking at Greig Middleton's conference last week, Congdon said he believed that the US economy is sailing into trouble as a result of the widening trade deficit and the action of implicit inflationary pressures. Working from the assumption that the trade deficit will widen at the same rate in the third quarter as it did in the second, Congdon sees the deficit rising steadily, reaching 3.5% of GDP by the end of the first quarter o...