The Eurozone is surely the catalyst for the majority of the global turmoil of late, but there are other, important factors to consider. China’s growth is slowing. In fact, China’s economy has been contracting for the past seven months. Japan…well….not so good. Of the four largest global economies (#1 Europe, #2 U.S., #3 China, #4 Japan), some believe the fiscal problems here at home may be a greater global threat than those in Europe. It seems while Europe is attempting to fix their woes, America has fallen asleep and remains in denial. Although the U.S does have more tools with which to navigate our debt crisis, we must reduce our spending. You see, we cannot continue to run trillion dollar annual deficits!

Unlike the U.S., the Eurozone does not have the luxury of a coordinated fiscal policy. As such, each country is independent and can spend as much as they desire. What could be the result of all this? Here are my eight most likely occurrences. You might want to print this out and pin it on the fridge for future reference.

1. Greece will exit the Eurozone and return to their former currency, the Drachma. They will default, their currency will lose value, and high inflation will result, causing higher unemployment and a further erosion of their economy.

2. There will be a run on several Eurozone banks and a severe recession, or possibly a depression will ensue, spreading across much of the region.

3. China’s economy will continue to slow as the global economic slowdown continues, which will hurt their exports.

4. The global slowdown will cause commodities to continue to decline until global economic growth resumes….several years hence.

5. The U.S. economy will slow and possibly enter into another recession. Much of this depends on the November election and the policies implemented by Washington.

6. Fear will rise and global stock markets will falter. There will be some short term rallies, but the overall trend will be negative.

7. Riots will increase as individuals protest government budget cuts. Anarchists will have their day in the sun.

8. The recent political trends in the EU will continue as anti-austerity sentiment ushers in candidates with a more “progressive leaning” approach.

Whether we have passed some sort of “point of no return” no one can say. However, I can say that with the trend as negative as it is, that’s enough for this author to remain cautious.