What Did We Borrow For?

What Did We Borrow For?The Thread · Special Report · June 22, 2026Episode summaryA client in his early sixties asked me a question I couldn't put down: we've borrowed tens of trillions of dollars — where did it all go, and who actually pays it off? This special report pulls that thread. Almost all of it went to making the present easier — cushioning two crises, cutting taxes, fighting wars — and very little to building the future. Now the interest bill has crossed a trillion dollars a year, and the bill is coming due just as the generation meant to pay it grows smaller. The number isn't destiny. It's the sum of choices we can still see clearly enough to act on.ChaptersEstimated — will refine after audio QC0:00 — Cold open0:25 — Ron's question: where did it all go?1:14 — Putting the number in proportion2:18 — Where it all went3:45 — The cost of carrying it5:14 — Why this time is different6:26 — Ron's date: Social Security's math8:09 — Not a cliff, a decision9:41 — What I'd actually tell Ron10:54 — The common thread12:11 — Where to read the full pieceSources and further readingThe number and the proportionThe 2001 surplus and CBO's projection to pay off the debt, plus the breakdown of how the debt rose since — including the share passed with bipartisan votes — Committee for a Responsible Federal Budgethttps://www.crfb.org/papers/riches-rags-causes-fiscal-deterioration-2001The current national debt (above $39 trillion) — U.S. Treasury, Fiscal Datahttps://fiscaldata.treasury.gov/americas-finance-guide/national-debt/Debt as a share of GDP, and the interest-cost projections — Congressional Budget Officehttps://www.cbo.gov/publication/61882The cost of carrying itThe federal interest bill crossing $1 trillion a year (and how it compares with defense and Medicaid) — American Action Forum, on CBO's February 2026 outlookhttps://www.americanactionforum.org/insight/highlights-of-cbos-february-2026-budget-and-economic-outlook/The 30-year Treasury auction clearing 5% — CNBChttps://www.cnbc.com/2026/05/19/treasurys-yields-inflation-traders-fed-interest-rates.htmlWhy this time is differentDefense spending after World War II, and why today's fiscal outlook is harder — Peter G. Peterson Foundationhttps://www.pgpf.org/article/why-is-the-us-fiscal-outlook-more-daunting-now-than-after-world-war-ii/The ratio of workers to Social Security beneficiaries — Peter G. Peterson Foundationhttps://www.pgpf.org/article/the-ratio-of-workers-to-social-security-beneficiaries-is-at-a-low-and-projected-to-decline-further/The worker-to-beneficiary ratio falling below 2.5 — Bipartisan Policy Centerhttps://bipartisanpolicy.org/explainer/immigration-social-security-solvency/Social Security's trust-fund projections — Social Security Administration, Trustees Summaryhttps://www.ssa.gov/oact/trsum/Read the full pieceThe written edition includes every source linked inline and all four charts embedded directly.https://matthewgdavis.substack.comRelated — why the cost of an ordinary life keeps climbing (Issue #4):https://matthewgdavis.substack.com/p/the-thread-issue-4-may-18-2026About The ThreadThe Thread is a biweekly newsletter and podcast from Matthew Davis, co-founder of Sherwood Financial Partners. It follows the connections between the economic and political stories shaping your financial life — for readers and listeners who want a calm, data-driven lens on a noisy news cycle.Compliance disclosureMatthew Davis is the co-founder of Sherwood Financial Partners, LLC (”Sherwood”). Sherwood is a registered investment adviser. This platform and this briefing are solely for informational purposes and do not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investing involves risk and possible loss of principal capital. The information contained herein is not intended to convey or constitute legal or tax advice. Past performance is not indicative of future performance. Comments by viewers or third-party rankings and recognitions are no guarantee of future investment outcomes and do not ensure that a viewer will experience a higher level of performance or results. 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