This is a further alternative timeline of American history after the victory of the Spanish Invincible Armada in England (provided by Kaeim)
The birth of a new nation - New England
After the Spanish invasion of England a large majority of the English nobility fled from her shores abroad, scattering throughout Europe. However, a large part of those nobles ended up in Virginia where an English colony had established itself already. Following these nobles came thousands more colonists and refugees, fleeing the devastation in England.
The majority of these refugees landed at Chesapeake Bay where they declared the city "New London" would be born. With a quickly rising population numbering around 12,000 they immediately set about creating an agricultural base that could sustain them. It wasn't long before a leader was chosen amongst them, one of the refugee nobility around whom other nobles gathered. Gilbert Talbot, the 7th Earl of Shrewsbury quickly found one of the only acceptable nobles that had escaped from England. It was not long before he found himself declared the King of America and was receiving delegates and words of support from English communities in New Jersey, Long Island and Massachusetts Bay.
As soon as it was possible, Gilbert I ordered a general gathering of representatives from these communities in a new Parliament where the future of their nation would be decided. Later known as the Parliament of the Hope, they completely rejected James I rule in England as illegal and stated their full intent of reclaiming England. They declared the new American colonies to be henceforth known as New England and for the political structure to remain the same. New England was to be a Protestant nation based on Puritan values, and perhaps most importantly, they declared Gilbert I the rightful King of England.
Almost immediately, New England experienced an economic boom. With the establishment of a new kingdom that had little competitors or war, refugees from the Spanish-French war fled to America. Following in their footsteps came Dutch traders who at high prices bought rare furs which led to increasing economic development as skilled workers from France and England found their skills in high demand. However, as farmers and sheep herders increasing took and adapted the land for their purposes, they inevitably came into conflict with the local American tribes who reacted with hostility to the mass of refugees.
What resulted became known as the First American war in which English soldiers armed with muskets and pikes faced against native Indians. What followed was a war of extermination on both sides as the local tribes attacked small farms and isolated villages, killing all in their way. In response, the New English army hunted and attacked individual tribes. The result was perhaps almost always inevitable as the native Indians found themselves slaughtered or refugees in their own land, leaving the English as the victors.
So it was that the New English found themselves in a golden opportunity. With no real rivals to threaten them and a whole continent at their disposal, it almost seemed like a dream that their God had given to them, as some compared, "A new Jerusalem for the Chosen People".