Scott Bessent is Selling Payday Loans
Let’s start with a situation of which almost every one of us has personal knowledge. You have overspent your income, probably without intending to, but stuff happens. You are running behind on your bills and think, “I just need enough money to get by for the next month, then I can get things under control.” So, you take out a loan, pay some bills, buy some groceries and get the kids some shoes. But at the end of the month, you are more in debt than before. You try for another loan, and then another, and another. Soon the only people who will loan you money are demanding you pay exorbitant interest. You know you have hit bottom when you are thinking about a pay day loan. The United States government does the same thing. When a government needs to raise money that it hasn’t raised in taxes, it sells bonds. But if all they do is pay interest on the debt, instead of paying down the debt, we keep getting in more trouble. ...