[Hyena]

Cascading default in state, local and foreign governments along with the end of a largish chunk of firms, ending with a series of currency unpeggings that make the end of Bretton Woods look carefully choreographed.

There may be riots in China. Wars are a distinct possibility. Depending on how the back-end is handled on letters of credit, international trade could grind to a halt. See riots in China above.

[olefoo]

Not just china. Most states are reliant on the feds for transfer payments, that means 2 million or so households losing their apartments. It means foodstamps stop or get cut, nationwide. It also will mean reduced police coverage in many of the larger cities of the Southern US (remember that thing about blue states being net tax exporters and red states being more dependent on federal dollars...).

If you were trying to create race riots in the US that's pretty close to the recipe you'd follow.

[chopsueyar]

Race riots or class riots?