You all knew this was coming.
It is bad to owe money to the Chinese. It is even worse to go into default with them. They will cut off our line of credit if they do not think that they will be paid back. They might decide to do so anyway if Sino-American relations break down. Either we make some painful spending cuts soon, or we'll have to make excruciating spending cuts later. If the stock market continues to go up, Obama cannot use the economy as a pretext for more spending.