The World Blog by humble servant.

Economic Turmoil Looms as Tariffs Threaten U.S. Stability: A Chronicle of Events March 31, 2025 The United States stands on the brink of economic upheaval as President Donald Trump’s aggressive tariff policies, set to take effect April 2, 2025, ignite a firestorm of uncertainty and pessimism. What began as a promise of economic “liberation” has morphed into a looming specter of inflation, stagnation, and eroded confidence, with Federal Reserve Chairman Jerome Powell at the center of the storm, coining a new term—“tariff inflation”—that may define the nation’s trajectory for years to come. The Fed’s Warning and a Familiar Echo The saga intensified this month when Powell addressed the nation, cautiously suggesting that inflation tied to tariffs could be “transitory” if it passes quickly and inflation expectations remain anchored. “It can be appropriate sometimes to look through inflation, if it’s going to go away quickly, without action by us,” Powell said, echoing his 2022 assurances th...

Key Findings National Debt Surge U.S. national debt reached $36.56 trillion by March 6, 2025, up from $34 trillion in January 2024 and $18 trillion a decade prior. Debt-to-GDP ratio hovers at 122%, with public debt at $29 trillion and intragovernmental holdings at $7.4 trillion. The climb reflects deficits and interest, not just new obligations. Interest Payment Explosion Annual interest soared to $1.16 trillion gross ($882 billion net) in 2024, a 39% leap from $659 billion in 2023, tripling 2020’s $352 billion. Rising rates (3.32% in 2024 vs. 2.97% in 2023) fuel this, eating 16% of federal spending—more than defense ($800 billion). Interest now competes with Medicare ($1.05 trillion), siphoning funds without return. Deficit Growth The 2024 deficit hit $1.833 trillion, up 8% from $1.695 trillion in 2023, ranking third-highest ever after 2020 ($3.132 trillion) and 2021 ($2.772 trillion). CBO forecasts deficits swelling to $2.8 trillion by 2034, pushing debt-to-GDP to 122% without action...