The U.S. is Dead Broke
When you see it, you’ll want gold and silver instead of dollars!
Steve Hanke
The U.S. government is broke. The numbers don’t lie.They are right there in Washington’s latest financial statement.
It is pretty big news. But the only report we’ve seen about it is from Steve Hanke, an economics professor at Johns Hopkins University, in a Fortune magazine piece.
He writes:
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.
So those are big government number – you know, a trillion here, a trillion there. But Hanke puts into a comprehensible household perspective:
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.
Hanke offers up a couple of legislative steps to try to get our fiscal situation under control. We don’t blame him for trying, but he questions whether Congress has the will to act. Based on long experience, we believe that proposing legislative solutions is an exercise in futility. There is no fiscally responsible coalition in Congress. There is only a spend, Spend, SPEND coalition.
If we are correct, the sure outcome is that as Washington’s bankruptcy becomes more widely known, gold and silver will continue to be safe havens.
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