Yeah, but the jokes on them: we will devalue our currency whilst chastising them for currency manipulation. Of course the EU will do the same, as will all the non western eu economies (Switzerland racing to devalue as we speak). So, ultimately, if the Chinese don't transfer all their excess US cash horde into natural resources, they'll be screwed.
dopey, this is a repeat performance. We will happily never quite pay off the debt with useless inflated paper, all the while selling our gold to them at double what it is worth.
Then we simply make gold crash and take it all back.
Switch to real estate.
Switch to treasuries.
Rinse, lather repeat.
Ever hear the saying that if you owe someone a little money you may have a problem. If you owe someone LOTS of money then THEY (your creditors) might have a problem. So tell me, how exactly will China collect their debt?