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Consider the 3-bucket relationship shown below between the US federal government, the US (Domestic) Private Sector, and the Foreign Sector as conceptualized by Modern

 

Consider the "3-bucket" relationship shown below between the US federal government, the US (Domestic) Private Sector, and the Foreign Sector as conceptualized by Modern Monetary Theory (MMT). Given the $$ flows shown in the figure, the US Federal Government will end up The Foreign with a budget Sector will end up with a equal to The US Private Sector will end up with a equal to equal to US Federal Government $100 $85 The U.S. trade deficit, meanwhile, will equal US Private Sector $12 $8 Foreign Sector

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