Washington DC, the American left and the deep state have lived high on the fiat US dollar, overspending and leveraging America's long-built stability and economic strength.
Destruction of the US dollar as the major world-reserve currency means bankruptcy of the nanny state, particularly at local levels like IL, CA, NJ, etc...
And while that's a good thing, the Left is in ascendency in the USA, so they will double-down on socialism and state power as things get worse. They could make it extremely ugly.
Yes, the nanny state is doomed, but big government will persist as long as the government elites can feed at other people’s expense, with the quality of perks and food getting better the higher up the food chain you go.
That’s why I wrote “The governing elites will certainly continue to eat first even if no one else is eating.”
A classic example of this is North Korea.
It is not the unproductive leeches at the bottom of the economic ladder that threaten the nation but the counterproductive (actually far worse than unproductive) leeches in the government.