Here’s our chart of the day courtesy of our friend Scott Bessent of Key Square Capital and based on the latest Treasury Department data.

Our view is that borrowing and paying interest isn’t always bad, but it depends on what you are spending the money on and whether the borrowing builds a better future.  That was clearly true, for example with the Reagan tax cuts and defense buildup to win the Cold War.  

In recent years we’ve been spending money on three Biden-Harris priorities: welfare and income redistribution programs, green energy flops, and a vast increase in the federal bureaucracy.  

The Democrats blame the burst in borrowing on the Trump tax cuts, but the Congressional Budget Office’s own numbers show that the federal revenues are at an all-time high.  

The first stage to recovery from any addiction is to acknowledge you have a problem. Both parties are still in denial.