He's talking about the US economy, not the money the government has.
Economy is, in a large part, based on money. If the money is all borrowed, your economy sucks, and is bound to fail.
The federal budget is not the economy.
I know that, but if the federal budget collapse, the US economy will sure have a mess on it's hands, and the federal government has spread their fingers into every economic sector in the country and make huge contributions, including, but not limited to, welfare, aerospace, roads, policing, energy, research, space exploration, the internet, technological development, banks, the auto industry, oil and gas production.