Alan Longbon — Good News: U.S. Government Posts A $214 Billion Deficit For August 2018, The U.S. Private Sector Posts A $214 Billion Surplus

Summary

The US budget deficit is $214 billion in August 2018; this is a net add of income to the private sector and a bumper month.

• The good news is that dollars are being added to the economy by the Federal government, allowing the private sector to post a $214 billion surplus.

• Further, net inflows are expected for the rest of the year from the Federal government and private credit growth.

• Private credit growth is a big surprise, growing strongly despite Fed rate rises.

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Good News: U.S. Government Posts A $214 Billion Deficit For August 2018, The U.S. Private Sector Posts A $214 Billion Surplus
Alan Longbon