A huge portion of the population is directly receiving benefits that enable them to pay for life critical medical care/meds, food, and shelter including a majority of people receiving social security and every military member and other government employee.
The entirety of the population is doing business in dollars that would end up worth nothing which means everything grinds to a halt while people figure out how to reorganize this brave new world. Right now you own what you own courtesy of the government providing armed men to keep others from taking it and courts to settle differences.
This reorganization would inevitably mean that different groups compete to be the new powers that be. The obvious inheritors would be the existing state power structures which controls lots of armed men and women but nothing is stopping people from setting up their own feifdoms and disagreements about who controls what could trivially have to be settled by shooting each other.
It's not like we don't have plenty of examples of failed states collapsing. Look at Yugoslavia for example. Can you provide me with some counterexamples?
