So what happens when people stop lending money? No more military spending? No more social security? Massive tax rises? Hyper-inflation?
Compound interest is one of the most powerful forces in the world. Currently interest on the debt is ~19% and is growing at a CAGR of 11.2% per year. At the current growth rate, how long until interest on the debt consumes 100% of all tax revenue?
A ray of sunshine & hope: Many state governments who are both low-debt and fiscally conservative will be fine. We also experience small amounts of this with each governmental shutdown.
Start planting fruit trees so the next generation can eat.