Q: I read this on FB. Is it true? The U.S. Treasury just declared the U.S government is insolvent.
A: No. That’s the conclusion of an opinion piece that cited a Treasury report showing the government’s liabilities outweigh its assets. But that’s been the case for decades, and unlike an insolvent business, the government can levy taxes.
FULL ANSWER
Two economists — Steve Hanke at Johns Hopkins University and David Walker, a former comptroller general of the U.S. — published an opinion piece in Fortune last month advocating bills aimed at reining in the national debt. In support of this, they pointed to the U.S. Treasury’s financial report on fiscal year 2025, noting that the liabilities for the U.S….