Senator Rand Paul (R-KY.) is sounding the alarm on America’s looming fiscal catastrophe, declaring the federal government “insolvent” and urging the Donald Trump administration to “stop spending” as he pushes a new “Six Penny” plan to balance the budget in five years.
Treasury Liabilities Surpass Assets
Pointing to the Treasury Department‘s fiscal year 2025 financial statements, Paul highlighted a staggering disparity: $6.06 trillion in assets stacked against $47.78 trillion in liabilities.
To combat this runaway borrowing, the Kentucky Republican introduced a federal budget resolution to balance on-budget outlays and revenues by cutting six cents off every projected dollar spent over the next five fiscal years.
‘Quietly Admitted’ Insolvency
In a recent social media post, Paul stated, “The Treasury just quietly admitted the U.S. government is insolvent.” He stressed that rescuing the nation’s finances “would require the government to actually stop spending money it doesn’t have.”
This grim financial picture is echoed by the fact that the Treasury’s reported liabilities do not include the unfunded obligations of social insurance programs.
When accounting for projected Medicare and Social Security shortfalls, total federal obligations …
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