It is worth remembering that the inflation rate is always a policy choice - it is impossible to have hyperinflation without someone running a printing press at high speeds. So when you say "on the brink of hyperinflation" what you are implying is the Fed are considering adopting hyperinflation as a policy. That is unlikely; everyone knows how hyperinflations end and they are unlikely to just randomly adopt a policy known to be disastrous. Even if pressured by something big like the collapse of the US dollar or the US being in a position where no-one will buy their debt at an interest rate they can handle.
If the US has a problem, it'll look like some fairly substantial hit (eg, external forces closing their current account deficit) and a longish period of being economically weakened due to a lack of investment in productive capital. Maybe some riots since the pain will probably not be spread evenly.
It is a catastrophe, but mainly a catastrophe of opportunity costs. We've had a counterfactual running in China over the last 20 years of what could have been happening in the US economy if they hadn't mucked up their overall strategy (particularly energy policy and banking regulation) so badly. Plus there is an impression forming that they are actually a lot weaker militarily than had been assumed to date, I wouldn't put money on Taiwan's long term independence right now. The US doesn't have the funds to handle all the military problems if overseas nations stop picking up the tab.
If the US has a problem, it'll look like some fairly substantial hit (eg, external forces closing their current account deficit) and a longish period of being economically weakened due to a lack of investment in productive capital. Maybe some riots since the pain will probably not be spread evenly.
It is a catastrophe, but mainly a catastrophe of opportunity costs. We've had a counterfactual running in China over the last 20 years of what could have been happening in the US economy if they hadn't mucked up their overall strategy (particularly energy policy and banking regulation) so badly. Plus there is an impression forming that they are actually a lot weaker militarily than had been assumed to date, I wouldn't put money on Taiwan's long term independence right now. The US doesn't have the funds to handle all the military problems if overseas nations stop picking up the tab.