By the constitution states are not allowed to issue currency. Triggering a default would lead to devaluation of bonds and probably currency, but why would it stop elections?
If it gets to that point, the Federal govenrment will have ceased to operate as anything recognizable, and most of the finance industry is faced with two options:
a) update the valuation of their assets, recognizing that they are instantly insolvent, cease trading, and lock their doors;
b) continue operating "illegally" in the hope that some sort of order will materialize
Option (a) causes all the non-cash economy in the US to stop functioning. The gold and silver bugs are, briefly, ecstatic - this is their moment. Everyone else who would rely on their debit or credit cards to buy food and gasoline, less so. The legal order that is supposed to maintain things like elections theoretically remains in place, but the rapid collapse in public order forces states to step in. You have elections to some thing called the "United States", but when most of its money has been rendered worthless, does it really exist any more? Essentially this is the "prepper" fantasy.
Situational. Right now, the Federal bits are stronger than any state.
The Federal bits of the US being strong (and indeed all institutional strength) is not a law of nature, and people who think it is a law of nature are the most likely to blindly run it into the ground while fighting each other to wield that strength.
But right now, the Federal bits are stronger than any state.
