[spikeytx86]

If the Chinese balk, and no one takes up the slack, the only alternatives are either A.) Curtail Spending or Drastically Raise Taxes to cover the short fall or B.) Raise interest rates until a point is reached that buyers are enticed to buy more of our debt.

If he doesn't raise interest rates and no one else fills China's void the Fed’s either have to go with option A. or we default.

[BfloGuy]

If the Chinese balk, and no one takes up the slack, the only alternatives are either A.) Curtail Spending or Drastically Raise Taxes to cover the short fall or B.) Raise interest rates until a point is reached that buyers are enticed to buy more of our debt.

Um, you neglected to mention Option C. Print dollars till hell won't have 'em -- and neither will the Chinese (but perhaps i repeat myself.)