French President Hollande welcomes German Chancellor Merkel at the Elysee Palace in Paris 27/06/2012 System ID: RTR348FN Image ID: GM1E86S05FW01 Photographer: REUTERS/Philippe Wojazer French President Francois Hollande welcomes German Chancellor Angela Merkel at the Elysee Palace in Paris, June 27, 2012. REUTERS/Philippe Wojazer (FRANCE - Tags: POLITICS) Packages containing this image: 24 Hours (24 Hours - 27 Jun 2012) Keywords for this image:Candid moment, DIP, France, Hand gesture, HOLLANDE Francois, Humorous, KYWD, KYWD NK, MERKEL Angela, Official visit, Open mouth, Paris, pol, President (State), Surprise, Top Pictures

Germany going into recession is one of Saxo Bank's 'outrageous' predictions for 2014.

Saxo Bank analysts have compiled their annual top 10 list of "outrageous predictions" for global markets in the year ahead.

The analysts note that although the probability of any one of the predictions coming true is low, they are all based on a feasible - if unlikely - series of market and political events.

"The outrageous predictions are not official calls for 2014, but rather an exercise in feeling out the major risks to capital preservation, and intended to encourage investors to prepare for the worst case scenario before trading or investing, " Saxo Bank chief economist Steen Jakobsen said.

For 2014, the list is as follows:

  1. Panicking at deflation and lack of growth, the European Union Commission introduces a wealth tax, heralding the return of a Soviet-style economy.

  2. Following the European Parliamentary elections in May, a pan-European, anti-EU transnational alliance becomes the largest group in parliament, sending the Eurozone back into political and economic turmoil.

  3. A bubble bursts in the US technology sector's 'Fat Five' (Amazon, Netflix, Twitter, Pandora Media and Yelp) and the market wakes up to a nasty hangover in 2014.

  4. A fall in the Japanese yen below US80 cents leads an increasingly desperate Bank of Japan to delete all government debt.

  5. US Congress performs Act II of its "how to disrupt the economy" charade in January, leading to deflation in the world's biggest economy.

  6. The US Federal Reserve reduces quantitative easing through bond purchases but increases the total value of monthly asset purchases from $US85 billion to $US100 billion by going all in on mortgage purchases to boost the housing market.

  7.  Brent crude drops to $US80 per barrel as producers fail to reduce production.

  8. Germany enters recession.

  9.  The CAC 40, the Paris benchmark index, drops 40 per cent due to French political malaise.

  10. Tapering of US quantitative easing prompts a fall of 25 per cent or more in the value of the 'Fragile Five' emerging market currencies (Brazil, India, South Africa, Indonesia and Turkey) against the US dollar.