That would be the USA doe nothing different than it has to date to remedy the situation.
I use VK's last statement as a point of discussion:

"So, do we have a lot of control of our destiny because we owe China so much? I would argue no, that China can easily control our very way of life by simply refusing to lend us more money and demanding payment on the obligations they own when they come due."

To my point, we do not have any control as long as the trends of inaction to solve the spending/revenue problem continue. The controlling our very way of life assumes we continue to make no attempts to change our current mode of borrowing/paying to China. Unlike a bank that can foreclose on a home owner, as an example, China cannot foreclose on the USA.

China is also in sort of a catch 22 inasmuch as they need the US market to continue to ship product. They could threaten to stop shipping until the bill is paid, but that would be counter to their need to manufacture and export goods.

What does have to change and I am afraid those in Washington are not capable of doing so, is to STOP all non essential spending. They would take the next 5 years defining what is or is not non essential. Until such time as they take the same actions many companies have had to take to survive, we will continue to ask for more money....print more money.

Politicians can not/will not do anything that will affect their electability, affect their party, affect their special interest groups or their supporters.
They will cut only that which will affect we the people. Just like all the state and local governments that cut firemen, police, teachers, et al.

Zero based budgeting is the only way to stop the spiral. It is do-able!!! Unfortunately, it will not happen due to lack of capability/competence in Washington. Business as usual is the only order of the day.

At some point in the future, the riots will be in Washington and other US cities just as they have been in other countries.

btk