The collapse was already unfolding at least as far back as 2008. The economic crash resulted in a stupendous wealth transfer to the top that left most people in a precarious economic situation, and they've been seeing their standard of living declining ever since. This led to loss of faith in the system and opened the door for opportunists like Trump. US is now in a death spiral and it's not really clear that there is any way out.
This article is obviously being dramatic/hyperbolic; American military leaders are already well aware that in a serious military engagement with China where we go all-out (excluding nukes because that’s a whole different animal) we might lose. That’s why this is being war gamed: the US is working on restructuring the military from how we have been engaged in the Middle East to how we would engage in a serious conflict in the Pacific region.
These sessions play out a lot of different scenarios that lead to different outcomes; China doesn’t always win, but them “winning” in a protracted military conflict can have a lot of different meanings too. Remember that China has practically zero real-world military experience; it’s why they have been so interested in seeing how Russia’s invasion of Ukraine plays out. They’ve certainly learned a lot, but practical experience is important. There would also be devastating economic consequences for China if they got into a real conflict with a Western nation at this point; even if they pounded Taiwan and the US into short-term submission, they would not come out unscathed and then they would be facing a united Western world that would likely turn its back on them. Not as easy as sanctioning Russia has been, but I think one thing China has seen in Ukraine is that the West is more united and has more will than it might have seemed before the invasion.
Bottom line is that this shouldn’t freak anyone out: we are learning what our weaknesses are and how to fix them before we get into a real conflict with China, which may never happen. Be glad that the military is working on its strategic posture now! Honestly, what should be scaring younger Americans is how shitty our recruiting is right now…if a conflict did arise in the next few years, you can bet your ass that the draft would come back in a hurry.