If the "reason" is to prevent Chinese from dumping "treasuries", I guess the act of invasion would probably give away the clue that the Dollar is rubbish from now on (and/or irredeemable to other currencies). So it wouldn't be a "booster" of Dollar confidence. One way or the other.
Moreover, let's say "debt cancellation" is the "goal" of the invasion. As such, No one would essentially want to do what China did from before: namely selling to the U.S. and accumulating the dollars.
So what good does it do to the daily lives of Americans? Imports would be expensive to most people and vast sections of the society would fall into poverty as a result.
Remember Taiwan is also heavily armed with weapons purchased from the States. They would be in an awkward situation should Mainland China-U.S. War breaks. Russia would probably side with China, I guess as China would have been the major customer of Russian gas/oil/resources. Same goes for Australia and Japan (China is the biggest trade partner to Japan).
Creditors of U.S. alliance, anyone?
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