Why a primary deficit is a massive reason to change your investment portfolio

When primary deficits, the budget deficit BEFORE interest expenses, are presented, a lot of investors, journalists, and even economists look at the numbers and think: well, that’s not too bad. Likely this is because budget deficits are normally presented as a total, hence including interest expenses, and as you will know by now, those expenses are huge and rising fast. But the gigantic impact of running primary defi — via @jsblokland

Primary deficit signals structural fiscal risk, prompting portfolio shifts amid rising debt concerns.