Country survives the great resession, sends inflation and taxes;

Yes and no. It all depends on how the political game is played. Yes, we'll definitely not have a splurging fun time like we had in the nineties for quite some time to come. We'll have to work harder and do with less. In the long run they'll drop quite a bit of those lovely government program that hand out the freebies. There is a reason as to why China has been giving us loan after loan after loan and financed our 'bail-outs'. They themselves are not exactly in great shape and could be pumping all of it into their own economy. But they have a higher goal and don't mind letting their people suffer. They want acceptance as a superpower. They don't want to be told anymore what to do or else. They want equal influence so to speak on world affairs. Less import restriction and support in trade expansion, maybe even something like NAFTA with China... It's all in the realm of possibility. In turn some of the US debt will quietly be forgiven. They might even get the US to reconsider their position on Taiwan, making it easier to annex that place. China does believe it's part of China. The status of Hong Kong might be changed, too. Lots of things are negotiable when it comes to money. So, you are right, our nations security will be weakened and we'll probably have a shift in alliances. This might not be very pretty.