I’m currently playing with a scenario similar to what you, noobermenschen, mentioned. I’m playing as the US and have set every country I can towards fascist. My basic strategy is to “turtle up” in the lower 48 states and wait for someone to come after me. Currently the game is at January 1st, 1940.
Britain and France have gone fascist and joined the Germany and Italy in the Axis. All of Britain’s puppets are independent, including Malaysia, but they did not form a faction. Currently the Axis is fighting (stomping) the European Defense League; Luxemburg, Belgium, Poland, Greece, Romania, and Ireland. Only Belgium and Romania are left so it’s only a matter of time.
In Asia Japan has been conquering the Chinas and only Communist China is left. In the Americas, Mexico went fascist and formed the Synarchist Pact with El Salvador, Peru, and the Dominican Republic.
I’ve also set various countries on the monarchy path and here some of what I’ve found:
When the UK goes monarchy there’s a short transition period from the democratic government to the monarchy. During this time all the UK’s puppets except Malaysia will go independent. Canada, South Africa, Australia, and New Zealand will form the Commonwealth. India and Pakistan will end up partitioned, India will declare war on Pakistan, they’ll sign a white peace, and then Pakistan will declare on Bangladesh. Eventually there will be a monarchist civil war in one of the Commonwealth countries and Monarchist Britain will join the war on the rebel’s side.
If you set Germany to restore the Kaiser and Hungary to reform the Austro-Hungarian Empire both countries will form the Central Powers. If you set Japan neutral (monarchy) they will, ignore China and eventually attack Russia. If the Central Powers have formed they’ll join.