The purpose of this article is to examine the USA sectoral flows for August 2020 and assess the likely impact on markets going forward.
Source: FRED, CBO and author's calculations based thereon
The table above shows the financial balance of financial flows from the USA national accounts since April this year when the COVID crisis started. This is an interesting period to study, as there has been almost unprecedented fiscal expenditure by the federal government and a likewise contraction in consumer consumption and income.
The good news is that though the flows are much weaker