US Treasury data shows $136 trillion in obligations, economists warn of fiscal catastrophe
MacroDigital Finance Impact 4
Newly released Treasury financial statements show the federal government held $6.06 trillion in assets against $47.78 trillion in liabilities as of September 30, 2025, prompting economists Steve Hanke and David M. Walker to declare the U.S. effectively insolvent. The pair noted that adding the $88.4 trillion 75-year unfunded social insurance obligation brings total federal obligations above $136.2 trillion. In fiscal 2025, federal revenue totaled $5.24 trillion while spending reached $7.34 trillion. Ray Dalio, founder of Bridgewater Associates, warned of a debt death spiral but said the central bank would print money rather than allow default, leading to currency depreciation. The article suggests gold and real estate as hedges, citing gold's 45% rise over 12 months and JPMorgan CEO Jamie Dimon's view that gold could reach $10,000 an ounce.
