Would You Loan This Guy Money?

In this episode of the Money Metals Midweek Memo, host Mike Meharry delivers a stark warning about the unsustainable fiscal condition of the U.S. government, comparing its financial state to a household running a $1.3 million deficit. Using data from the Treasury Department’s 2025 consolidated financial statements, Meharry reveals that the U.S. government has $47.78 trillion in liabilities against only $6.06 trillion in assets—equivalent to $7.90 in debt per dollar of assets. He argues that the government is effectively insolvent, with a negative net worth of $1.72 trillion and a debt-to-GDP ratio exceeding 120%. Despite this, mainstream media and political leaders largely ignore the crisis, perpetuating a dangerous illusion of fiscal stability. Meharry debunks common defenses like 'we owe it to ourselves' and 'printing money is harmless,' calling Modern Monetary Theory (MMT) a flawed accounting tautology. He emphasizes that rising interest payments—$1.2 trillion in 2025—now exceed spending on national defense and Medicare, and that the Federal Reserve is forced into rate cuts and quantitative easing to manage the debt burden. The episode also explores the implications of de-dollarization, declining foreign demand for Treasuries, and the risk of currency collapse. Finally, Meharry promotes gold and silver as essential hedges against currency debasement, citing their scarcity and rising demand, especially as institutional investors begin to adopt precious metals as a core portfolio component.