Is this how the dollar dies? Investment banker sounds alarm as China exits US debt
The alarm follows the IMF’s recent flag on the U.S.’s $36 trillion federal debt—largely fueled by post-2008 bailouts, record defense spending, and pandemic-era stimulus. Now, America’s biggest lenders want their money back.
- Oct 12, 2025,
- Updated Oct 12, 2025 12:27 PM IST
What happens when the world’s biggest borrower starts defaulting in slow motion? According to investment banker Sarthak Ahuja, that question may soon define the global economy—as major nations begin pulling their money out of the U.S., and the IMF warns the American debt spiral is “out of hand.”
Ahuja’s LinkedIn post is sparking debate across financial circles for its blunt warning: “The U.S. owes more than the combined GDP of Europe, Africa, and South America. That’s over $100,000 in debt per American.”
The alarm follows the IMF’s recent flag on the U.S.’s $36 trillion federal debt—largely fueled by post-2008 bailouts, record defense spending, and pandemic-era stimulus. Now, America’s biggest lenders want their money back.
China, Japan, the UK, and Canada have started quietly offloading U.S. Treasury bonds. “China, the largest lender to the U.S., has already started,” Ahuja writes. “Japan is doing the same.”
To retain investors, the U.S. is raising interest rates. But that deepens the crisis—annual interest payments now top $1 trillion, more than even the Pentagon’s budget.
The shift is already visible in global capital flows. Central banks are turning to gold, and the Chinese yuan is gaining ground as a trading currency in emerging markets.
What’s left for the U.S.? Ahuja suggests higher taxes on the wealthy—but notes that tax breaks continue instead. Cutting spending on defense, healthcare, or welfare could spark unrest. In reality, the fallback appears to be tariffs and immigration rollbacks—moves that risk isolating the U.S. further.
“If this continues,” Ahuja warns, “the dollar may begin to get devalued—and the world could move on.”
What happens when the world’s biggest borrower starts defaulting in slow motion? According to investment banker Sarthak Ahuja, that question may soon define the global economy—as major nations begin pulling their money out of the U.S., and the IMF warns the American debt spiral is “out of hand.”
Ahuja’s LinkedIn post is sparking debate across financial circles for its blunt warning: “The U.S. owes more than the combined GDP of Europe, Africa, and South America. That’s over $100,000 in debt per American.”
The alarm follows the IMF’s recent flag on the U.S.’s $36 trillion federal debt—largely fueled by post-2008 bailouts, record defense spending, and pandemic-era stimulus. Now, America’s biggest lenders want their money back.
China, Japan, the UK, and Canada have started quietly offloading U.S. Treasury bonds. “China, the largest lender to the U.S., has already started,” Ahuja writes. “Japan is doing the same.”
To retain investors, the U.S. is raising interest rates. But that deepens the crisis—annual interest payments now top $1 trillion, more than even the Pentagon’s budget.
The shift is already visible in global capital flows. Central banks are turning to gold, and the Chinese yuan is gaining ground as a trading currency in emerging markets.
What’s left for the U.S.? Ahuja suggests higher taxes on the wealthy—but notes that tax breaks continue instead. Cutting spending on defense, healthcare, or welfare could spark unrest. In reality, the fallback appears to be tariffs and immigration rollbacks—moves that risk isolating the U.S. further.
“If this continues,” Ahuja warns, “the dollar may begin to get devalued—and the world could move on.”