Ugly New U S Financials are Out (Vol. 198)

Folks, It Just Keeps Getting Worse

Here are the facts from the audited US financials as of September 30, 2025 (in trillions of dollars):

	2025	2024
Financial statement liabilities	$47.78	$45.33
Unfunded Social Security / Medicare obligation	$88.40	$78.30
Debt owed to various government trust funds	$7.31	$7.10
Total	$143.49	$130.90

To put Total Obligations in perspective, this represents $428,328 for every man, woman and child in the United States. That is an increase of $38,745 over the same amount in 2024. 

The interest bearing debt at September 30, 2025, was $37.5 trillion, the 7.3 trillion shown above as Debt to government trust funds is not included as a liability of the actual Financial Report of the U S Government (although it is a liability of the Treasury, and accordingly I have added it back in). This has risen in 5 ½ months to $39 trillion in March, 2026.

The profit and loss for 2025 isn’t any better, although the deficit is slightly smaller as a result of some timing differences of payments. In 2025 there was also included a significant increase in tariffs, an increased tax on imports, much of which has been ruled unconstitutional:  

	2025	2024
Revenue	$5,245.00	$4,978.00
Cost	$7,338.00	$7,403.00
Net Operating Loss	($2,093.00)	($2,425.00)
Budget Deficit	($1,775.00)	($1,832.00)

*The Budget Deficit is calculated on a cash basis, while the Net Operating Loss is calculated on an accrual basis.

If you are interested in the details, you can find the published statements here.

While we are looking at the data, let’s do a quick review of the latest CBO (Congressional Budget Office) projections for the next 10 years as of January, 2026:

• Deficit over the next 10 years:       $24.4 trillion 

• Interest Bearing debt in 2036:       $63.7 trillion

• Ratio of Debt to GDP in 2036:       1.37% (currently 1.24%)

Unfortunately, these numbers are optimistic projections because they only consider current policy and law. It assumes that there are no new government programs, no recessions, wars, pestilence, pandemics, or any other unforeseen costs. There will be something, but no one can project the unknown. It will be worse than the above projections if we do not change policy, no one knows how much worse.

No advanced civilization has ever survived debts like these. The United States will be no exception, it is not a matter of ‘IF’ - it is a matter of ‘WHEN’, if we continue down our current path.

If you haven’t read our pamphlet, Our Ship of State: The USS Titanic, please invest 12 minutes reading it, it’s only 9 pages. It will explain this in more detail, and what we need to do to get to fiscal sanity.

BOTTOM LINE

Folks, we are insolvent but not ‘bankrupt’ since we can still borrow money and survive.  The debt is a Ponzi scheme which will collapse someday. Our credit line will dry up and we will no longer be able to survive when that happens.

This is totally avoidable if we get to fiscal responsibility in Washington. Congress will not go there without our support. Therefore:

Listen, Learn, Think, Act: We citizens must understand the facts and then demand that our elected representatives start acting fiscally responsible before it is too late.  

LEARN ECONOMICS, THEN VOTE SMART