The U.S. government is insolvent. That’s not hyperbole — it’s the conclusion drawn directly from the Treasury Department’s own consolidated financial statements for fiscal year 2025, released last week to near-total media silence. The numbers: $6.06 trillion in total assets against $47.78 trillion in total liabilities as of September 30, 2025.
Importantly, the $47.78 trillion in reported liabilities does not include the unfunded obligations of social insurance programs like Social Security and Medicare — those are disclosed separately in the off-balance-sheet Statement of Social Insurance (SOSI).
The government’s consolidated balance sheet position, excluding the SOSI, deteriorated by nearly $2.07 trillion between FY 2024 and FY 2025, reaching a staggering negative $41.72 trillion. Total liabilities are now nearly eight times the value of reported assets. The largest drivers were a $2 trillion increase in federal debt and interest payable (now $30.33 trillion) and a $438.8 billion increase in federal employee and veteran benefits payable (now $15.47 trillion).
The Off-Balance-Sheet Iceberg
The off-balance-sheet picture is even more alarming. The 75-year unfunded social insurance obligation surged by $10.1 trillion in a single year, rising from $78.3 trillion in FY 2024 to $88.4 trillion in FY 2025 — driven primarily by a $6.9 trillion jump in projected Medicare Part B shortfalls and a $2.5 trillion increase for Social Security. The Treasury’s Statement of Long-Term Fiscal Projections shows the 75-year fiscal gap widening from 4.3% of GDP in FY 2024 to 4.7% in FY 2025.
If the $88.4 trillion in 75-year off-balance-sheet obligations were added to the $47.8 trillion in official balance sheet liabilities, total federal obligations would now exceed $136.2 trillion — roughly five times U.S. annual GDP.
The Government Accountability Office (GAO) issued a disclaimer of opinion on the U.S. government’s FY 2025 financial statements — the 29th consecutive year it has been unable to determine whether the statements are fairly presented. This is primarily due to serious, ongoing financial management problems at the Department of Defense and weaknesses in accounting for interagency transactions.
What $136 Trillion Looks Like in Your Living Room
Not only has the financial press ignored the consolidated financial statements, but most members of Congress and members of the general public will not read the consolidated financial statements. Documents like the consolidated financial statements are not the kind of thing you want to read before driving. If that’s not bad enough, most people cannot relate to the trillion-dollar numbers in the financial statements. Therefore, it is appropriate to translate them into terms that people will understand.
Most people cannot relate to trillion-dollar figures on a government ledger. So consider this: divide every number by 100 million — drop eight zeros — and federal finances look like a household budget in freefall.
That household earns $52,446 and spends $73,378 — running a $20,932 annual deficit. Its total liabilities and unfunded promises amount to $1,361,788 against just $60,554 in assets, leaving it $1.3 million in the hole. Uncle Sam, by any accounting standard, is insolvent.
Congress has clearly lost control of the nation’s finances. America is facing a fiscal catastrophe. The reckoning, long deferred, is becoming impossible to ignore.
BY: Steve H. Hanke, David M. Walker, via FORTUNE Magazine at: https://www.yahoo.com/news/finance/economy/policy/articles/treasury-just-declared-u-insolvent-151425143.html
Hal Turner Editorial Opinion
Now, perhaps you understand why they've been trying so hard to actually START World War 3; they're broke. They don't want to take the blame for being the one's who did it, they need a really big war to blame it on. Too bad for them the Russians didn't take the bait with Ukraine.
So now they're trying to start it with Iran. They need some really big war they can point to, to tell the American people "we didn't Bankrupt the country, it was the war!"
You see, they're worried about another potential January 6-style event, only this one with Guns and Nooses, lynching them from the lamp posts.
But the Iranians aren't cooperating either.
So they're in a jam. What do do now?
HMMMMMMMMMMMMMMMMMMMMMMM.
I wonder if some of those political psychos are thinking "False Flag attack upon America?" Maybe something akin to 9-11? Then they can BLAME IT on . . . . . whoever, declare war, and have at it!
After all, it really doesn't matter who they blame as long as they can deflect responsibility for wrecking the entire country's finances. It seems to me they'll do literally ANYTHING to avoid the blame.
Americans would do well to learn the old skill of tying NOOSES.
