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In 1979 Carter flies to Tehran immediate after the storming of the embassy. He meets with Ayatollah Khomeini, and negotiates a deal: In exchange for the hostages and eventual restoration of relations, Iran will receive US aid in the event of an Iraqi invasion. This deal is secret: The US public only hears that the hostages have been released. Carter wins a second term.

1980-The incoming US congress is far more to the right then Carter would like. Bickering between the president and congress becomes a way of life in Washington, and under pressure to increase home ownership Carter signs the Garn-St. Germain Depository Institutions Act into law.

1984-Stagflation really wasn't ended, and when the savings-and-loan crisis erupts, the economy goes into freefall. Crime increases, and when a gunman robs a bakery, and shoots one Bill Ayers who happens to be buying bread, the police cannot solve it. Rumors start flying. Regan wins, Volker becomes fed chief.

1985-Volker starts raising interest rates to reduce inflation. It increases unemployment.

1986-Protests at the Federal Reserve turn violent. Noam Chomksy starts the Left Party. It quickly swells to 1 million members, concentrated in urban centers. Regan is the same bastard as always, and so decides to use any means to crush this fifth column.

1987-A black block member is unmasked and revealed to be a police officer at a protest in Seattle. It becomes a violent riot. The economy is not doing much better, and the military buildup is becoming hampered by this. Soviet Russia is therefore in a better economic position then OTL because of needing fewer weapons to maintain parity.
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