What if Interactive History V had happened? - German WWI victory

[Flavius Clemens]

For those of you who haven't followed Kraxis' excellent Interactive History V - The Duel of the Sea ( https://forums.totalwar.org/vb/showthread.php?t=59564 ) , in it an aggresive campaign by the German Navy, combined with errors by the Royal Navy allow the Germans to block Calais, Dunkirk and Boulonge at a key moment in the 1918 offensive. The lack of supplies to the BEF allows the German army to push them back to Calais and threaten Paris, and the allies request an armistice.
In the course of the campaign the Kaiser developed some affinity with the Navy having been sidelined by the generals.

So, in these circumstances, what would the likely developments be? Could the Kaiser have continued in power in peacetime? The German economy would still have been in a poor state after the war, how would it have coped? What would the effect of this humiliation have been on Britain and France, especially given the magnitude of their losses in the war. Would they have been the cradle of fascism rather than Italy and Germany?