Italy defaults on its debts. Most major Italian bank collapses. Recession turns to Depression in the Euro zone. Sovereign defaults begin and bank failures ripple across the Continent. Saddled with bad loans to the Euro zone nations and lenders in Europe, the four major American banks will begin to hemorrhage cash. Credit freezes in the United States and as a result, multinational companies, unable to raise money, will dramatically curb U.S. investment and hiring. Wall Street will demand new bailouts, but the Obama Administration will stall due to voter anger during an election year. Gold and Silver market will make new highs and the Federal Reserve will invoke a new round of quantitative easing that will set the stage for rapid inflation. Political instability will continue to increase and large-scale protest will intensify and spread throughout the entire developed world as the global economy plummets into full-blown recession and, quite possibly, depression.
