Woo I want in on the prediction thing!
Kucinich and Paul will win their respective nominations, and the presidential campaign will be a debate of the ideas of honest candidates that will inspire a generation of new genuine patriots.
Following the american withdrawal from Iraq, a representative government will be set up that manages to resolve most of the strife within the war-torn country. After an abuse victim from a neighboring country flees into Iraq to escape an unjust sentence in her homeland, and is granted amnesty there (and attracts international media attention to her case), Iraq's reputation will begin to improve, and the country will become the center of regional reform spearheaded not by an invading power, but by its own citizens.
The american economy will continue to deflate, however instead of spawning a new Great Depression, it results in a widespread movement condemning the rampant excesses of consumerism and marketing. A new religious movement that focuses single-mindedly on service to your fellow human being sweeps the nation, and even those who had become embittered to the idea of religion admit that the volunteer response to the devastating 2010 hurricane, which wrecked havok as far inland as Atlanta, was one of the greatest humanitarian acts of the century.
With the rejection of consumerism, a new light is shed on the idea of intellectual property. While not entirely destroyed, its scope is severely limited, and while creators are fairly compensated, the idea that they can maintain absolute control of their knowledge is in practice abolished. Universities and other places of learning are filled to overflowing with students being taught the cutting edge of research in all fields. Medicines that were in short supply are provided in plenty to third world countries, and human life expectancy continues to rise. While the demand for oil, and the problems caused by the demand have not disappeared, new technological progress guarantees a planned, careful, safe progression to an oil free future.
With America rejecting the "Service Economy" as a "plague of cannabalism" that has maimed the national workforce, the manufacturing base begins to recover. Reduced exports in China spawn unrest, which feeds a growing revolutionary movement. Spurred by demands for human and civil rights, the ruling party's leaders capitulate to demands for fair competitive elections.
(I was going to throw in some stuff about fixing global warming but this is getting long).
Bite me, reality. If you are interested in not sucking so damn much, I'll be in the World of Warcraft.