Everyone’s in debt, America, China, India, Europe. But if every country owes trillions, who’s actually lending? The answer reveals a financial loop that’s pushing the global economy toward a tipping point, warns investment banker Sarthak Ahuja.
In a LinkedIn post that’s stirring debate, Ahuja breaks down a rarely addressed paradox: the world is drowning in over $300 trillion of debt, yet the global economy is only worth around $100 trillion. “Practically every major country is indebted to every other,” he writes, “but the debts don’t cancel out. Instead, they keep growing.” Advertisement
The U.S. alone owes $36 trillion—with $750 billion of that held by China. But China itself is $18 trillion in debt. The loop keeps going.
Why? “Because countries need money to grow,” Ahuja explains. Th