Following the Second World War, the Soviet Union and the United States emerged as new superpowers. The major point of divergence in World of Warsaw begins around 1960 with the United States suffering embarrassing losses against Communist forces in Vietnam, Angola, and Grenada. The increased spending on defenses by the Reagan administration sends the American deficit far too high, plunging the United States into a deep depression in 1987. In 1988, newly elected President Michael Dukakis vows to lead the United States out of the depression and calls off the Cold War. The underfunded American military is forced to withdraw from their bases in Western Europe, South Korea, the Philippines, and Japan. North Korea launches an attack on their southern neighbor and completely conquers it, absorbing