The purpose of this article is to examine the USA sectoral flows for September 2020 and assess the likely impact on markets as we advance.
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 Federal Government response to the COVID crisis started.
The flow to the private domestic sector (where the asset markets are) was over fifty percent lower than last month but still positive at over $79B.
Asset markets can be expected to keep climbing as the injection of more money is factored into their prices.
The chart below from the CBO shows the deficit spending path.
The chart above shows the big difference in deficit spending year over year. The CBO summarising the result for September as follows:
The table below shows that the overall Federal expenditures were