The budget deficit that no one is talking about

Ben Hunt, Salient Partners

The United States faces a one trillion dollar budget deficit in 2019, but you wouldn’t know it just by looking at financial news. Dr. Ben Hunt, author of the popular capital markets blog Epsilon Theory and Chief Risk Officer at the asset management firm Salient Partners, used Quid to look at a year’s worth of articles from Bloomberg on the U.S. budget deficit and compared it to those covering inflation.

Narrative around the U.S. budget deficit (left) compared to inflation (right) from October 2017 to October 2018

Seen above, the narrative map on the budget deficit (on the left) is roughly 1/100th the size of the inflation map. According to Hunt, this virtual absence in the narrative space means that investors are not paying attention in the market space.

Want to learn more? Click here to read the full analysis on Epsilon Theory.

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