AH Challenge: Third World USA

If the US loses the Cold War, say due to Khrushev's economic reform attempts in 1960s being more successful, and 1990 Russia being essentially similar economically to present-day China (in terms of efficiency and economic growth), then the US could fall into the "third world status", the only problem would be their possession of nukes.

Say, Reagan's attempted military buildup is easily matched by the Soviets, and by mid-1990s the general economic discontent in the US is at the boiling point, resulting in riots and street battles. Few foreign interventionist adventures that went sour do not endear the people to the government, and the perception that the large corporations, primarily oil companies and military/industrial complex, get richer while your average Joe barely gets by will make secessionist movements gain strength. Then, expect a USSR-style scenario, except on the other side of Atlantic, with fractured US practically descending into Civil War (as the federal government would not let any of the states break away without a fight).

Eventually the other world powers step in to broker an agreement, resulting in removal of the US nuclear weapons in return for economic and military aid, and Russian, British, Japanese, French, German, and Brazilian peacekeeping troops garrisoned among the former US. In 2005, the US economy is in ruins, its government barely able to maintain shaky control over various states, secessionist movements are still going strong, and without the nuclear weapons it is generally considered a world pariah.
 
that might work, except for the fact of our short-term presidents. If Reagan's military buildup failed to do the job and our economy was suffering because of it, chances are that someone would step up and run on a policy of scaling back the buildup before our economy was too fragile.. and he'd win....
 
When the U.S declares independence have the British agree but are coy and make sure all things of worths are owned by British corporations (like Sierra Leonne now).
They still attempt to move westwards but depend on British corporations for support so they only expand in areas expected too contain resources and by the time settlers get their most things of value are taken by companies that take all the good areas.
The U.S government depends almost entirely on transnational business and therefore the British government.
The British decide its easier for the US too foot the bill of expanding into Indian territory and at the same time alll revenues flow back too Britain. It fights a war with Mexico that ensures the U.S gets all of the Pacific coast and the east plains as well as texas.
The companies own all good land and because poor white settlers 'have selfish ideas and demand too high a wage' often employ half-cast Indians or mexicans in plains business like mining, cattle ranching or farming in the calafornia coast.
Not viewing anything without mineral resources in the plains too have no value they gave the Indians two large reservations each about the size of 3 states and many medium sized reservations across the plains. They also gave jobs mining and railroad building too more open Indian tribes and when they came back to their tribes they brought little bits of modern technology and western culture back so it was more difficult too dislodge them.
By 1920 all unclaimed land had been divied up and the push westwards had stopped. Indians, blacks, and spanish labours had merged into the general populace and America had no real anglo population except for a few British ex-patriates and mercenaries who ran the business.
A good deal of this new mixed population worked in factorys in poor eastern shanty towns and too a smaller extent the California/Oregon area.
Then in 1946 Britain had a gigantic war with France, Italy, Spain on one side and Britain, Prussia, Russia and Belguim on another, it lasted for 6 years of trench warfare and Industrial production of mines, machine guns and nerve gas.
It ended in a bitter stalemate that collapsed Britains empire as it sold of most of its colonial possesions including China and Australia too Portugal and both France and Italys empires crumbled away piece by piece. Spain splintered into various different countries and Denmark and Sweden stole most of Africa.

This caused a massive economic crisis in the world and the British owned companies in the Americas collapsed one after another.
This destroyed the U.S economy totally and the goverment struggled too stop the population starving .
By 1957 France had deposed the constitutional monarchy and the Centralist movement seized the country and started a mssive arms buildup.
Italy established a absolute monarchy again and began an arms build up too.
In 1963 a gigantic war began between France-Italy and Denmark-Portugal-Prussia and ended up as Denmark got seized and Portugal blockaded in.
As France began making moves into Eastern Prussia, Sweden declared war on France in 1965. Italy immediatly declared a truce with Portugal and invaded France.
Portugal decided too use this opportunity to seize the United States, Quebec and Mexico.
Sweden declares this a illegal violation of the Norte Amerika treaty and declares war on Portugal. The US government is handed back soverenty but all bussiness are bought by Swedish owners.
As the Indian states undercuts American manual labour in the 1990's the U.S fell once again into depression and warfare as the American Indian states declare independence.
 
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