It is not literally true. The author is making the claim that the US is insolvent based on book assets and liabilities, but the finances of a government are very different from other financial entities where this simple view is no longer accurate. The US has unique assets, such as the ability to tax its citizens or manipulate its own currency to satisfy debt. What is the value of infinite money or the power to obtain it on demand? Thus, the government has theoretically unlimited assets that are not directly comparable to any business or individual. It can make assets out of thin air.

Insolvency only becomes relevant for governments when they’re unable to satisfy debts and investors no longer believe that they will be repaid. The short-term bond markets are still strongly of the opinion that US debt is virtually risk free. Until we see a large spike in short-term interest rates, insolvency? Absolutely that’s hyperbole. By that assets-based definition, most governments are insolvent right now.