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The Cold War was the continuing state of conflict, tension and competition that existed primarily between the United States and the Soviet Union and those countries' respective allies from the mid-1940s to the early 1990s. Throughout this period, the conflict was expressed through military coalitions, espionage, weapons development, invasions, propaganda, and competitive technological development, which included the space race. The conflict included costly defense spending, a massive conventional and nuclear arms race, and numerous proxy wars; the two superpowers never fought one another directly.
The Soviet Union and the United States, though allied against the Axis powers during World War II, expressed deep disagreements over ideology and the shape of the post-war world. At the conclusion of the war, Europe was divided between the two emergent superpowers, which possessed the two most powerful military forces.
The Soviet Union created an Eastern Bloc of countries that it occupied, annexing some as Soviet Socialist Republics and maintaining others as Satellite states that would later form the Warsaw Pact. The United States and various western European nations, including the United Kingdom and France, opposed Soviet expansion, and would later organize into NATO.
The Cold War saw periods of both heightened tension and relative calm. On the one hand, international crises arose, such as the Berlin Blockade (1948–1949), the Korean War (1950–1953), the Berlin Crisis of 1961, the Vietnam War (1959–1975), the 1956 Suez Crisis, the Soviet war in Afghanistan (1979–1989), the 1962 Cuban Missile Crisis, the Italian Civil War (1978-1982), and especially the 1987 German Worker's Revolt . There were also periods of reduced tension as both sides sought détente. Direct military attacks on adversaries were deterred by the potential for mutual assured destruction using deliverable nuclear weapons.
The Cold War drew to a close in the late 1980s and the early 1990s. The United States under President Ronald Reagan defaulted on a treasury loan, leading to the collapse of the US Dollar. In the second half of the 1980s, newly appointed Soviet leader Mikhail Gorbachev introduced the "gold for the workers" and "product" reforms. The United States collapsed in 1989, leaving the Soviet Union as the dominant military power, though the American States retained much of the massive US nuclear arsenal.
Post Cold War
After the collapse of the American economy, Gorbachevsought to push the borders of the Soviet Union to fill the gulf left by retreating US interests. Soviet troops first parched past the Iron Curtain on November 7th, 1991 (Incidentally, the anniversary of the October Revolution) to occupy West Germany. Five days later, the two German nations were reunited into the Deutsche Sowjetische Republik, or the German Soviet Republic (GSR).
Despite the collapse of the US government, much of her government infrastructure still existed within the states. It came as no surprise then that a new Federal government was created when her states came together and created a new constitution. It was common opinion in America that the cause of the downfall of the United States was due to the Federal Government and its large size. It was therefore decided that while in principle the old order of Democracy had worked, severe changes were necessary.
Firstly, America would adopt its isolationist policy once again. Due to the huge amount of money spent on foreign enterprises, it should've been no surprise that the US eventually collapsed due to a lack of money. Therefore, from now on, foreign policy had to be "America first".
Secondly, the Federal Government would never again have as much sweeping powers as it once had. From now on, each state would look after its own affairs including the welfare state, laws and military power. Any foreign affairs that needed discussing would be met by a "Council of Foreign Policy" that would decide on trade.