It could cascade into a world wide bankruptcy and then depression. It'll start with the Euro countries throwing in the towel, one by one. The people in these countries say FU to their Governments and vote populist/socialist leaders into power. But that won't matter (look at California), Banks around the world will start to fail, like dominos. The world's currency system will be obliterated. Governments will have to wipe the slate clean and their citizens will lose everything except their physical posessions... Therein lies the pretext for martial law!
Mike
Disagree Mike. This is the first step toward healing. It would occur far faster than you think. Consider the U.S. Civil War: the South's currency was ZERO. It sucked. Yet within five years, large portions of the South were already being rebuilt; within 15 years (!!!!!) more than 10% of
all land in the South (!!!!!) was owned by former slaves.
That statistic alone is stupifying. It says that whatever the condition, capitalism recovers astoundingly quickly to right the ship. Germany's slate was "wiped clean," and within five years (no, not thanks to the Marshall Plan) Germany's stores were again filling up, people had rebuilt buildings, and in 10 years, Germany was already becoming a new European power again, all because it had a capitalist Finance Minister and Chancellor.
Now, if you and Glenn Beck want to have a gloom and doom pity party, feel free. I shall not participate.