What causes crash 2.0 is the recognition that the federal government -- which stepped in to alleviate the financial crisis of 2008-2009 -- is itself insolvent. The great economic upheaval caused by the perception that the government can't pay it's bills will lead to panic and chaos.
This line of thought is incorrect. The US government will never NOT be able to pay its bills. Many times, when talking about how bad the economy is, the US is compared to Greece. Greece's financial problems stem from the fact that they spend more money than they produce and the EU will not give them any more. The US, on the other hand, spends more money than they produce, but can print its own money. The difference is that Greece is a currency user whereas the US is a currency issuer.
The United States can NEVER run out of money because they print it themselves. The US will never default because there is a never ending supply of money to pay debts. The US could pay of their entire national debt tomorrow if they wanted to. That's not to say that it wouldn't wreck the economy, it surely would, but it could be done.
Argentina prints their own money; they went belly up. Zimbabwe prints its own money; it's pretty much insolvent.
Your idea that hyperinflation (rapid money printing) saves the day is silly, since it would utterly destroy the banks and the Fed while plunging the state into economic chaos. It might not technically be a default but there won't be a government around to "settle up," so to speak.
Also, not paying off debt does not keep inflation in check. In fact, debt expansion and inflation are two sides of the same monetarist coin.
Argentina may have been able to print their own money, but unfortunately they borrowed US$,, and tried to fix their exchange rate at the same time...oops.
It's not even worth my time listing the ways Zimbabwe is not the USA.
IMHO, not only is the money you borrowed from China quite small - so far less than 8% GDP - YOU BORROWED US $
You can repay the debt. If necessary with some extra help from the presses. But more importantly it has economically & hence strategically linked your 2 countries. The partnership between China & the USA will dominate this century. By 2100 USA + China* GDP will make this discussion trivial.
That as a result of SE Asia working hard we can borrow money at these rates is great. But I agree interest rates should tend to go up from here, and inflation seems unnaturally low...
* By 2100 it'll be in bigger blocks, so think greater SE Asia and an economically amalgamated USA, Canada, Mexico, ...