What actually happens: Set up a ruthless police state and force a revolution. The rebels overthrow the government, set up a new government. The 'New Republic of Triscuit' resets all national and foreign debts to $0. After the declaration of sovereign default, the 'New Republic of Triscuit' is immediately excluded from all sources of debt. Some debtee nations seize American assets, some because they hate you, like China and Russia, and some because you did it to them in the past, like Chile. The savings and investments of the American people are completely wiped out thanks to fractional reserve banking. The cultural and wealth disparities between the different regions of the United States, further strained by unparalleled economic hardship and near-total unemployment, causes what is left of the United States to fracture. Militarism, which is the only thing keeping the United States relevant today, fails utterly as the government no longer has the enormous amounts of money needed to keep their equipment running or their mercenaries fed; officers replace their lost income by selling American weapons, equipment, and secrets on the black market. End result- the same, just pushed up by about 30 years because the United States is already basically insolvent.