We're doomed.
Relax, T. The Japanese did the "same thing" back in the 80s, and everyone got PO'd and upset, but it didn't amount to a hill of beans. Just billions and billions trading hands, and their so-called investments are still here, now owned by someone else. Unfortunately, it's the damned Saudis etc.
If we'd default on it all, China goes into the dumper, where it belongs, IMO. But we won't.
America will survive and prosper, in spite of it all, if History is an indicator. And it is.
We're doomed.