Say Bill Gates and all the other $500 million+ individuals in the country took out like 80% of their wealth, in cash, from their banks, and they each put it in a pile and set fire to it. Assuming this happened a little more discreetly than maybe ought to be the case--i.e. assuming the Fed didn't take it as an excuse to print the equivalent amount and spread it around, and that the stock markets or whatever absorbed this circumstance gradually rather than hearing about it as "ZOMG BREAKING NEWS"... what would happen?
From what I know of these things, I'm assuming deflation is one answer. Right? The value of all the other cash in the country would go up, so those of us poor shlubs who have at least a few thousand cash savings might be living large for a while? What else, if say $1 trillion or whatever disappeared from circulation tomorrow?