We'll have the last laugh. When we default, all China will have is a stack of worthless US Treasury bonds. We, on the other hand, will have all those Happy Meal toys to play with!
You are assuming we will default before we weaken ourselves and strengthen China to the point where they can kick our ass and seize real estate and other assets as re-payment.
Happy Meal toys and all the crap at The Dollar Tree (or whatever they are called).
I would go short on the USA right now. This is still going to come down. They can only flail around for so long. The government is like a caught fish flopping on the deck