re: What does it look like when the USA goes bankrupt?

Before we can answer this, we have to understand what "goes bankrupt" really means.

The value of the USD is derived from three main functions:

1. Its position as the primary world reserve currency (over half of all goods traded internationally are exchanged for US Dollars).

2. The value of the USD's debt as an investment vehicle. US debt is among the most secure investments in the world because the federal government doesn't miss a payment (for now).

3. The petrodollar (which can be seen as an offshoot of Point 1, but it's enough for it to be its own point), which is the buying and selling of oil, refined petroleum (gasoline, diesel, etc) and LNG in USD's.

Think of the value of the USD as a tri-pod. If one leg fails, the whole thing falls.

So what might that look like?

The short version is that a dollar crash would be an economic civilization-level event for the entire world. For the US, it would be comparable in human impact to the fall of Rome or the Weimar hyperinflation, but on a much larger scale and faster timeline because of modern just-in-time supply chains and total dependence on imports. Most Americans’ standard of living would fall to early-20th-century or even 19th-century levels within a couple of years, but the problem is that we're not nearly as agrarian as we were back then. This means such an event would come with significant excess mortality from lack of medicine and food shortages which would lead to a quick increase in violence.



Short-term - In the first few weeks:

Inflation/hyper-inflation: This would look like imported goods (oil, electronics, clothing, pharmaceuticals, food staples like coffee, bananas, etc.) having immediate and extreme price increases as the dollar buys far less on global markets. Grocery prices could double or triple in weeks.

Banking: People rushing to withdraw cash or convert dollars to anything tangible (gold, crypto, foreign currency, canned goods) would cause banks to impose withdrawal limits; ATMs would run dry. Digital payment systems might freeze or become unreliable.

Investment/retirement: Dollar-denominated assets would plummet in real value. The stock market (priced in collapsing dollars) would fall.

Government benefits and pay for federal employees: Social Security checks, Medicare/Medicaid reimbursements, federal salaries, military pay, food stamps (SNAP), and unemployment benefits are all paid in Dollars. These programs would either become worthless or the government would be forced to print trillions more (worsening inflation).


Medium-term - Weeks to months:

Unemployment growth: Companies dependent on imports or dollar-based credit would fail en masse. Retail, manufacturing, transportation, and energy sectors would lay off millions. Unemployment would rapidly rise well into double-digits.

Supply-chain collapse leading to empty shelves: With importers unable to pay in credible currency, ports would empty out with the quickness. Basic goods (medicine, auto parts, fertilizer, semiconductors) would become scarce. Black markets and barter would explode in growth.

Mortgages and debt: Fixed-rate mortgage holders would technically benefit from inflation (they repay with cheaper dollars), but banks would fail or refuse to honor deposits. Adjustable-rate borrowers and anyone with dollar-denominated debt still outstanding would face exploding payments.

Evictions and homelessness surge: Landlords unable to pay property taxes, insurance, or their own mortgages would evict tenants en masse. Rent (now skyrocketing) would become unaffordable for most.

Crime and civil unrest: Expect widespread looting, riots, and violent crime as desperation sets in. National Guard and military deployments to cities would become common.

Long-term - After the first year:

Loss of global reserve status: Foreign nations would dump treasuries and dollars, which would send inflation into overdrive (if it wasn't already). The US would lose its exorbitant privilege of borrowing cheaply in its own currency.

Potential breakup of monetary union: States with large export economies (Texas, for example) or gold/silver reserves might push for state-level alternative currencies or even threaten secession. Regional currencies (something like a “CalExit peso” or “Texas dollar”) could emerge.

Wealth redistribution on steroids: Cash savings and fixed-income retirees would be wiped out. Debtors (especially the government itself) would be bailed out by inflation. Real asset owners (farmland, gold, Bitcoin, commodities) would become the new wealthy class.

Emigration wave: Millions of middle-class and skilled Americans would try to leave for countries with stable currencies (Canada, Switzerland, Singapore, UAE, etc.), though most countries would tighten immigration.

Authoritarian turn likely: In the face of chaos, Americans historically tolerate (and often demand) strong centralized power during crises. Expect martial law in some cities, capital controls, price controls, nationalization of industries, and possibly a forced switch to a new currency (digital dollar, “New Dollar” at 1000:1 conversion, etc.).

This is, of course, all speculation and there are LOTS of different ways this could go down but many of these things would be very possible.



I'll add in point the last point for you, DC gets over run, and anyone still there cut and hung in the streets. That's what'll happen.