U.S Treasury’s Own Consolidated Financial Statements For Fiscal Year 2025 Report $6.06 Trillion In Total Assets Against $47.78 Trillion In Total Liabilities

The United States Treasury’s own consolidated financial statements for fiscal year 2025 report $6.06 trillion in total assets against $47.78 trillion in total liabilities.

That is a negative net position of $41.72 trillion. And that number excludes Social Security and Medicare, which CBO projects add another $50 to $70 trillion in unfunded obligations over 30 years.

Steve Hanke and David Walker wrote in Fortune on March 23 that these numbers constitute insolvency under any standard accounting framework.

The Treasury has not used that word. No sovereign government that issues its own reserve currency calls itself insolvent. But the numbers are the Treasury’s own. They are published on Treasury.gov. They are audited. And they show a government whose liabilities exceed its assets by a ratio of nearly 8 to 1.

Now layer the war on top.

Annual interest on the national debt reached $1.22 trillion in fiscal year 2025. That is more than the defence budget. More than Medicare. The war supplemental request for the Iran conflict exceeds $200 billion.

The Federal Reserve cannot cut rates because Hormuz-driven energy inflation has pushed PCE to 2.7 percent and rising. Every basis point the Fed holds is a basis point that compounds against $39 trillion in gross debt.

The war that was supposed to last weeks is now costing hundreds of billions while the borrowing cost of financing it rises with every barrel of oil that does not transit the strait.See more, details. .