Interesting video. I don't agree with deficit spending, at least, not for the next 10 years. However, we need to keep in mind a couple of things:
What is owed to China is nothing more than blips in a computer program. There is no vault where there is $3 trillion in cash with a Chinese proprietor stamped on it. In a time of war or conflict, that $3 trillion can be easily frozen or even erased all together.
And as far as owning any hard assets in the US, such as corporations or property, China is way down the list. British, Dutch and Japanese owners, rank as the top three in that order. I don't know who follows, but I wouldn't be surprised, that it is then followed by Canadians, Germans, Australians, etc.
Even hard assets, in times of war, mean very little.
What it really comes down to, is that China's economy, within her own borders, her acquisition of technology, her build up of an industrial base, etc. is unsavory to many in the West. And with a population 4 times that of the US, it is not unreasonable for China to ultimately become larger.
Britain was once the leading world economic power. It is still one of the major economies today, 6th largest after the US, China, Japan, Germany, and France. Becoming 6th, did not mean Britain simply rolled over and died, but rather, other countries, with larger populations simply caught up in industry and technology.
China will be no exception. If the US is someday relegated to the second largest economy in the world, it does not mean the US will somehow end her economic prosperty anymore than Britain becoming number 6 ended hers. Four decades ago, Japan surpassed Germany to become the second largest economy in the world back in 1970. That did not mean Germany simply quit being prosperous. Neither will the US simply quit being prosperous simpy because she will no longer be the largest economy in the world.
So, in conclusion, though I agree with the video about the dangers of deficit spending, I disagree with the emotional response it is trying to convey with the Chinese gloating over the US as China becomes the leading economic country. If China does become the largest economy in the world, historians will not point to America's deficit spending, they will point to China's economic policies and more importantly, that China is FOUR times larger than the US in population.