Stuart,

Argentina recently defaulted and all but got away with it. Yes, there were demonstrations in the streets, but there are also on a regular basis in the US. What is your definition of "civil disorder" then? Elections were held, there was no revolution or coup.

In fact, the Argentine example might yet come to mind in the next decade if not-so friendly foreign creditors start to give the US a hard time. I think it was Keynes who argued that if you owe somebody a million dollars you have a problem, but if you owe him a trillion dollars, he has a problem (have changed the numbers to account for inflation). We could default and view it as "screw them" act.