That sort of actually happened to Weimar Germany... though with less Mad Max Style everyone killing each other and more Communists/Nazis/Freikorps/Anarchists/Thugs fighting in the streets, people burning worthless money since it was less valuable then firewood, and actually giving factions like the RHA and Coalition a chance of actually succeeding, and the old Rheinwehr and their supporters trying to hold things together, and Liberty probably taking a chunk out of Hamburg or trying to hold up an interim government.
Granted, I had the same idea for Kusari, with a military coup effectively collapsing the government, all of the factions turning on each other, and the house turning into Sengoku Jidaiin space!
Though I have other ideas I like better then that so Rheinland needs to die first.
