While Laffer is once again right, I wish he would have elaborated on how wrong, wrong will be.
That is, since the bad decisions have been made, when disaster strikes, what will be the ill thought out, panicked administration response be?
I am guessing that they will try to alternatively hyperinflate the economy, and re-denominate the currency. This will mean that once what we can buy now for a dollar, costs 1000 dollars because of inflation, they will just declare that the last three zeroes don’t mean anything, so it will cost a dollar to buy a dollar’s worth of merchandise again.
But that simplistic idea hits the brick wall of reality hard.
Savers crushed. Women and children hit hardest.
Your scenario strikes me as very plausible.
http://www.marchandmeffre.com/detroit/
Add to that imagery hordes of hungry, thirsty refugees looking for something of yours with which to fill their bellies; by any means necessary.