In 1863, the Union Army of the Potomac under Maj. Gen. Joseph Hooker and Maj. Gen. George G. Meade is routed at Gettysburg, dissolving in a disorganized retreat from Confederate military forces under General Robert E. Lee after a decisive Confederate cavalry raid by General JEB Stuart breaks the Union forces in the area.
Soviet Confederacy of AmericaWith the road to Washington wide open, Abraham Lincoln, President of the United States of America, signs the Confederate drafted Instrument of Surrender which recognizes the right of the Confederate States of America to exist and protects the legal right of states to leave the Union as they so choose.
Over night, Confederate governments spring up in the border states and the economic and military power of the United States slides slowly into irrelevance. After several decades of Union losses and Confederate gains in the West and in the Caribbean and Mexico, the Confederacy enters the 20th century as the dominant power in North America.
In the 1930s, the South falls on hard economic times as the world plunges into the Great Depression. The South's former slaves, freed by act of President Gustave Tutant Beauregard in 1917 in reaction to fears of reaction by anarchist radicals, are still horribly oppressed and are now denied even the meager wages of the sharecropping farms that have gone under in reaction to decreased demand from factories in Europe and the border states of the Confederacy. Uniting with prominent Southern Communists and dissatisfied veterans of the Confederate actions against Mexico in World War I, they march on Richmond and seize the capitol, executing President Thomas Hardwick and installing a vanguard party, headed by a Stalinst strongman to oversee the Confederacy.
On 5, May 1932, The Confederate States are reorganized into The Soviet Confederacy of America; a Workers' state in direct alliance with the Soviet Union. The full article by Chris Smith can be viewed at Comrade Pants and continues as a thread on this site.