The Dow Jones Industrial Average has given up all of the gains it has made this year over the course of the past couple of weeks. Why? Well, in large part due to fears of a Greek default. But that’s not all. When Germany announced last week that it was banning hedging on Euro-zone government debt, markets tumbled further.  A consequent rise in interest rates between Europe’s banks doesn’t bode well for the rest of the world.

China is worried about the astronomical prices of its real estate, and the renmnibi is still highly inflated against the Euro, which China has yet to incrementally attack. If the European situation worsens, more may have to be done sooner.

Deflation, already extant in Ireland and Spain, is causing American fears too. The United States’ G.D.P. remains low, and with cash failing to circulate, the consumer price index (CPI, as a measure of inflation) is continually sliding from its year on year percentage.

While global markets are hoping that deficits are cut, especially in Europe, that fear may lead to more unknown occurrences, which is why the VIX volatility index has reached its highest rate in over a year.

What does it all mean? For right now, things aren’t getting any better. Let’s just hope they don’t get any worse.