The year is 2009 and America is falling apart, the economy failing, much of the military is engaged in UN and NATO peacekeeping operations, and the nation isn't exactly moving toward energy independence. Then the final blow is struck, on February 8th 2009, Missouri senator Kit Bond is killed in an automobile accident while on his way to his office in the morning. The governor of Missouri, Jay Nixon, a Democrat, appoints a democratic to the senate to replace Bond, giving the Democrats a fillibuster-proof majority. One week later, on February 13th, former Secretary of The Treasury Alan Greenspan requests permission to meet President Obama. During their meeting, Greenspan suggests that the only way that the government will be able to get the nation out of the recession is to nationalize the banks, unlike in OTL, where Greenspan's suggestion was ignored, President Obama takes his advice and proposes a bill to congess regarding the nationalization of all banks in America. Opposition and support are met by both parties, but in the end the vote passes by a vote of 60-39, with the Minnesota senate seat still disputed between Franken and Coleman. The next day stocks tumble to the lowest ever recorded, and the economy is almost effectively shut down, history repeats itself, and Americans turn to revolutionary leaders that they would normally dismiss as radicals, losing all faith in the federal government, the majority of citizens support rebellious secessionist movements and the United States is effectively dissolved.
Since the world is now essentially one global economy, the chaos is not limited to the United States alone. Canada ceases to exist and many nationalist movements in the different nations of Britain, France and other European countries succeed. While some countries attempt to simply put down the movements and repair their ravaged economies on their own, others use a more effective tactic of combining with nations that have a greatly similar culture, as a result, the Nordic Confederacy and the Alpine Union are formed.
It did not take long for the new governments to establish control, many loyalists, afraid of being persecuted, (Which many were) fled to the only state still controlled by the old American government, Maryland. The U.S. Government could do little if anything, a majority of it's military was stuck overseas or putting down riots in cities they still controlled, after meeting with his cabinet, President Obama announced that the rebellions were little more than small groups of 15-20 people, however it was far from the truth, the militias/military of the secessionists was almost equal to the size of the US forces in Maryland. On February 28th, President Obama announced that if the US was to survive at all, let alone remain a superpower it would have to recognize the new republics. On March 9th the treaty of St. Louis was signed by all parties except the New England Confederation (The Confederation refused to recognize the Republics of Vermont, New Hampshire, and Maine, claiming that they were legally part of New England). The treaty stated that the US would cede all land except Maryland, The District of Columbia, Delmarva Peninsula and Territories in the Caribbean and Pacific. The treaty also stated that the nations would be allowed to keep three-fifths of all military equipment that was inside their borders. Finally the treaty stated that all nations signing the treaty would recognize each other and establish diplomatic relations.
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Manchester, Republic of New Hampshire, Green Mountain War: The last remaining New English troops were routed from the city after a week long confrontation with Defending New Hampshirite and Mainer forces. The confederacy declared war on March 10th, stating that Vermont, New Hampshire, and Maine all legally belonged to New England. New English forces are still bogged down in the mountains of Vermont, due to a relentless guerrilla war by citizens of the Green Mountain Republic. Mainer and New Shamperite Forces now control a majority of New Hampshire, only 10 days after New English forces were at the Maine Border. The decisive turning point was when the Republic of Quebec, a strong ally of all three nations began to give air and artillery support to the defenders.