Our entire economic system is founded on credit.
If the banks just suddenly stop lending money, our economy and most nations will collapse into the dustbin of history.
Your portfolios, your 401Ks, your retirement checks would be worthless.
The cash you have on hand would rapidly become worthless, too.
At first, you wouldn't buy anything because nobody will have anything to sell, except the detrius left over from the previous civilization.
Your houses, assuming you weren't thrown out of them for nonpayment of your mortgages while the whole thing was falling apart, would become dark, cold, tombs.
Many of us would get that laisse fair capitalism we believed we wanted, and I doubt any of us will think it a real good thing.
After the anarchy, (and there would be anarchy, believe me) we would go back though the development of civilization in stages.
First we'd have tribes, followed by tribal warlord states, probably followed by some kind of monarchy based systems, advancing into primative feudal states, -- and who knows? -- maybe something like democracy might happen, too... in a few places.
Eventually one of those feudal states would reinvent some kind currency, likely one based on gold, silver an copper, just as was done 4,000 years ago.
Assuming there were enough people left, more complex civilizations will reinvent themselves over time.
Since we'd be reinventing civilization, but this time with advanced knowledge about science and technology, what forms it might take as it finds the affluence to advance into more complex societies, is pretty much anyone's guess.
My guess is paper money might be a damned hard sell, next time around, though.
On the bright side, land would be cheap enough, because most of mankind would be dead.
Another hap...hap-hap-hap-hap-hap-happy thoughts post from Mr. Sunshine, eh?
