  We apply the DMRG method to the 2 dimensional delta function potential which
is a simple quantum mechanical model with asymptotic freedom and formation of
bound states. The system block and the environment block of the DMRG contain
the low energy and high energy degrees of freedom, respectively. The ground
state energy and the lowest excited states are obtained with very high
accuracy. We compare the DMRG method with the Similarity RG method and propose
its generalization to field theoretical models in high energy physics.
