The money runs out.
Regular people won't have any money. Regular things will not get bought. People will continue to lose their jobs. (Endless cycle) until a large portion (larger than now) run out of Money. Example = California preparing to fire 10,000 STATE employees. Kansas withholding tax returns. Why? Because they are failing.
Multiply these states by 25 and you have all of the states in America. Alaska and Texas will remain likely to fail last because they are very self sufficient. (Oil, Food, Other Natural Resources and Population Mentality of 'Hardiness')
The FEDERAL government will continue to borrow money in an attempt to keep 'stimulating' the economies. Unfortunatley, the boat of America is sinking - holes like Medicare, Social Security, Foreign Loans, Wars, Wasteful Budgets, Huge Government) will all cause the water to come on board. Expanding the Government, that governs the Government, that will eventually try to tax itself, will fail. We are the fat person that is stuck in a burning building, and too fat to get out the door. What happens? We burn to death.
The Federal and State goverments fail. What then?
People will inherently look for a large 'reset' button. The Constitution. Who of us has read the Constitution? No one but one in 1,000,000 (million) of us have. The Constitution states that the states will govern themselves and that the Goverment will have only two roles, Self Defense and Foreign Relations with free trade with all.
This is the reset button.
Self revolution. States will 're-stand' themselves. Public programs will fail (who bails out the bailer?) and fundamentally, people who do not know how to take care of themselves, work with their community, be 'worth something' to society, will fail.
This will bring about something unfortunate. America's dread of a Revolution. Like every major country before us - Russia, China, France, England, countries in Africa. We will go to our 'original' format - the Constitution - or we will go by our 'new government's format = unknown.
Unfortunatley, there will be those who want to make their own governments. Those who do not agree with the new government, or the old (why agree with what failed America in the first place?) all reasons will be valid.
Revolution.
Cival War #2? Perhaps. There are enough weapons in America to start this revolution. Or defend from one. You will be fighting for or against, or passively watching one happen.
Food shortages. Who has their own garden? Who 'actually' grows their own chickens? Who knows how to hunt, quarter and preserve a deer? Not I. Not my neighbor. Not 95% of you. Those that have this ability to feed those that do not have the ability will eventually rule over them. Do what I say, or you will not get any more food. You will do what they say.
Post revolution. Unsure. Does a foreign Government invade and take over? Or will the foreign Governments be in a similar dire situation? Look at the continent of Africa. A revolution every 3 years. Look at Zimbabwe right now - Cholera, Famine, 2% EMPLOYEMENT, 98% UNemployed. What do they do? They die, fight, leave, revolutionize.
America is originally - constitutionally - The United States IN America. Not 'of'. The States govern themselves. Hence, when the Federal Government fails, States - that still exists - will stand up to govern themselves. No one works for free. 90% of America lives pay check to pay check. And you can not tax the untaxable if they have no money to tax.
Your boat sinks. You burn in your house. Only the skinny and fit survive. Only the states with strong budgets and positive revolutions survive.
Rebuild.
All Governemnt projects are scrapped. The constitution is re-established. Read the constitution. Learn how to survive for yourself. My question to you, is where do the homeless governments go? How do you pay the govenor if he has no money, and no one to tax, and no one will listen to him?
Throw in one of several scenarios: Natural Disaster - Global warming causes sea levels to rise. Sickness/Disease - BirdFlu, Influenza, etc. Terrorist - cause havoc. Financial Disaster - potentially already happening.
Once again, you can not tax the untaxable. People will not work for free. Electricity will fail. What do you do then? No food in the Grocery store. No money to buy it. Theft goes up because people are hungry. Crime rises to sell things to buy things - food, toilet paper, clothes, toothpaste.
The Federal Government will do all in its power to prevent this from happening. Why? Because if it does happen, there will be no Federal Government because there will be revolution. Watch the other states fail - California/Kansas - and then expect it on a larger level.