American politicians should be particularly worried about a conversation Xi had this week in Jakarta with Indonesian President Susilo Bambang Yudhoyono. Xi proposed creating a regional bank to invest in infrastructure in Southeast Asia and pledged funding from China. Asia is also gradually building a neighborhood International Monetary Fund. Where will all this cash come from? Asia’s $7 trillion in currency reserves, much of it currently in dollars.

Asians aren’t panicking just yet. Many here think U.S. lawmakers aren’t crazy enough to default on their nation’s debt, no matter how much they despise President Barack Obama’s policies. They will bicker, close the government and embarrass the U.S. on the world stage by forcing Obama to cancel visits to the Philippines and Malaysia. But come Oct. 17, when the U.S. runs out of money, politicians will avert disaster. America’s banker, Asia, is betting bond guru Bill Gross of Pacific Investment Management Co. is right that the risk of the U.S. reneging on its debt is zero…

But the more the U.S. plays with fire with its Aaa rating, the more Asia will find an alternative. Researcher Zhang Monan at the National Development and Reform Commission surely speaks for many in Beijing when he says China “must” change the situation of holding “too much” U.S. debt. The Federal Reserve’s easing program is one thing. It’s quite another for lawmakers to hold U.S. finances hostage to score cheap political points in a farce that’s even drawn comments from Lady Gaga.