Debt is high, and the U.S. imperialist finance is in a quagmire
The U.S. debt is mountainous, has now climbed to the astronomical figure of $37.4 trillion, the Treasury data is clearly placed there, the public holds more than 30 trillion, and the government has more than 7 trillion.
Interest spending is simply the golden beast, accounting for 17 percent of the federal budget, and will hit $921 billion in 2024, continuing to rise in the first half of 2025 and squeezing out other spending.
From the beginning of the 33 trillion in the end of 2024, in a few months to jump to more than 36 trillion, the reason is that the fiscal deficit is the annual burst, tax receipts can not be collected, but the expenditure is as big as a snowball.
Trump came to power for the second time, he wanted to do a great deal of reform, the result of the tax reduction policy pushed, the fiscal gap was bigger, the intention was to pull the economy, who knows in the decade more than 22 trillion in debt, the Congress debated that the debt ceiling was repeatedly raised, this summer the government shutdown.
The efficiency committee was set up to cut spending, military spending and welfare for those who are dead in the iron bowl, capital group lobbying, and plans to end up talking on paper. Economists shake their heads straight, the debt ratio of GDP rose from 94 percent to 117 percent, private investment was swallowed and economic growth slowed by 0.5 percentage points.
The U.S. surface landscape, in fact deep into structural trouble, interest spending is pressured by public services, private investment is shrinking, innovation is limited. fiscal deficit in July 2025 will be 289 billion, more than 45 billion in the same period last year, the World Bank reports that global trade growth has slowed, the East Asia Pacific region dropped to 4.5%.
The great beauty bill of Trump wants to regulate the budget, can reduce spending in the face of the wind, little effect. enterprise bankruptcy cases accumulate, unemployment rate is hidden up, the Federal Reserve has high interest rates, enterprises borrow money is difficult to increase. tax cuts in the short term stimulate the stock market, can increase long-term debt burden, interest rate rolls like a snowball.
In his speech, Stiglitz pointed out that excessive debt eroded investment, and the Federal Reserve held more than 7.5 trillion debt to become the largest creditor. After years of accumulation, the base number in 2024 is already high, 2025 is accelerating, the infrastructure bill cannot be pushed forward, and there are wide partisan differences. Welfare expenditure and social security eat up the bulk, military expenditure overseas bases burn money, and the audit report of the Efficiency Committee is shelved.
Economic growth is slowing down, tax revenue can't keep up, private enterprises are turning overseas, the debt brake effect is obvious, and consumers are tightening their wallets. Trade tensions have aggravated uncertainty, and U.S. exporters are under great inventory pressure. The debt ballooned to 37.4 trillion yuan in September, and the public browsed fiscal websites with dazzling numbers. Under this situation, the U.S. economy is like a leaky ball, which can't fill the hole, and it is getting bigger and bigger.
Tariff pressure, China fights back and doesn't give in
Trump's eyes couldn't fill the debt, so he turned his head and pointed the finger at the trade deficit and creditors. On February 4, 2025, he ordered a 10% tariff on all Chinese imports. He originally wanted to protect the manufacturing industry, shrink the deficit, and pull back the industrial chain. On April 2nd, the overweight was increased again, and a general tariff of 10% was imposed on imports from other countries, and Chinese goods were additionally cut.
China's Ministry of Commerce was not idle. On April 9th, it responded to 84% retaliatory tariffs, and all agricultural products, meat and dairy products on the list were recruited. Trump refused to accept it, and continued to increase it by 20% in May. The tariff on high-tech chips once reached 70%. However, Chinese enterprises were tough, and the supply chain turned to Southeast Asia. Exports were looking for other markets. American farmers' inventories exploded, and exporters were in a gloomy cloud.
In July, China clearly stated that it would fight a lasting war, and the list of the Ministry of Commerce expanded, focusing on domestic markets and scientific and technological autonomy, and reducing external dependence.
Trump added on April 8th, and in May withdrew some of the tariffs, want to stay behind the road, but the trade deficit has not shrunk, China's exports are flexible adjustments, the U.S. economy is shocked, inflation has risen, GDP growth has been cut.
April openly questioned Powell's political manipulation, signed an executive order on 18th, pulled securities regulation into the White House and crushed the Federal Reserve's independence. July 16, borrowed the building and renovated the super office, charged Powell with the job and wanted to be dismissed. August 26, the government appealed to the Supreme Court on 18th, allowing the dismissal of Federal Reserve officials, threatening Powell.
The Federal Reserve has strong independence, no concessions, Powell insists on the Federal Reserve not to yield. Trump's tariff war has become a lasting shaft, domestic and foreign pressure, allies expect, Chinese enterprises resist unilateral tax increases, supply chain adjustments are systematic. trade war impasse, U.S. export anxiety, members of the Chamber of Commerce talk straight.
Trump's anti-Fed action is like a political farce, and the media keeps chasing it. Tariffs are aimed at sensitive goods, China retaliates to industrial products, Trump's killer fails, and emerging markets benefit. The Fed's debt holdings are stable, and Trump's intervention is mired in the quagmire. The game is fierce, China sticks to the bottom line, promotes multilateral trade, and strengthens the foundation of financial risk management.
Trump's plan falls through as the Fed resists
Trade war dragged into mud, U.S. exporters stockpiles accumulated, farmers grumbled when harvesting. China insisted at the end, domestic market expansion, scientific and technological innovation accelerated, strategic patience was effective. Trump tariff strategy did not push China down, but in turn wounded allies, EU Japan did not cooperate, Vietnam's port of Hanoi was busy with shipping goods.
The Federal Reserve remained strong, discussed defense on September 15, and Trump’s intervention fell empty. Debt issues stretched, interest pressed the hospital budget, private investment was limited, the global pattern changed, the dollar’s position shaken. China’s strategic adjustment was steady, Shenzhen Labs tested new technologies. The game revealed fiscal currency contradictions, the Washington think tank expert spoke.
The shadow of debt is shrouded, with a deficit of 345 billion in August, and military spending and welfare are difficult to cut. Trump's tax cuts are booming in the short term, and the stock market is active, but the debt is increasing. The long-lasting trade war hurts both sides, and the Federal Reserve is constrained. Institutional deadlock, tug-of-war between interest groups. U.S. money printing, tariffs, policy responses, structural problems have not been solved.
In the future, debt will increase, interest will pressure services, and innovation will be limited. The crisis may shake the dollar and lower trust. China's supply chain adjustment, multilateral promotion, financial management, focus on domestic, technological independence, and long-termism. Confrontation and steady progress. Trump's measures in the U.S. debt crisis exposed transformation and high monetary and financial risks. China's persistence in the war is protracted, and the conclusion is undecided.