As the Union Jack was raised on highest summit of Nova Britannia and the allied troops marched through London a major problem began to emerge slinking through Humanity's leadership and that was simple. What now? Humanities greatest foe had been defeated and now the massive issues of demilitarization and economic reshuffling were still problems. Each country dealt with this in their own way, but all were effected by the Grand Recession which completely threw world politics into disarray.
The recession began when the government held stocks of the major conglomerate Porsche where released in a single go. The sudden glut of stocks on the market led to the value of shares plummeting which collapsed confidence in the market. By the end of the 20th of November three days after the London Triumph the German economy officially entered recession which brought the rest of Europe into a recession which dragged the United Empire into a minor one. By the end of the week every economy on the planet save the Republic of the Andes' had shrunk from 10% in Iran to 1.4% in Costa Rica. But every country was affected in a way.
The fact that the recession did not get worse was thanks to the actions of the German Government in immediately freezing all further transactions and the speedy reactions of the British and American Governments in shutting down their local stock exchanges, but it was still a harsh recession. Esspicaly since the majority of the world had been involved in strong economic growth since the beginning of the Goa'uld and this was a slap in the face with reality.
The first direct influence the recession had on politics was the collapse of the Conservative German Government and the re-election of the SPD under Helmut Schmidt in the election of 1964. His appointment as Reichskanzler was tainted with worry as the Far-Right German Union Party won ten seats under the leadership of Heinrich Himmler which was the first sign of the re-aligning of politics that was to come.
As the shock spread to the United Empire the United Imperial Conservative and Loyalists Party nearly collapsed following MP Margret Thatcher suggesting that the recession was caused by socialist infiltration into the Party and therefore the government. Prime Minister Menzies's reaction to this was to permanently expel her from the Party and the Government. She did not leave alone though with around fourteen MP's following her and forming the Imperial Union Party a decisively right-wing Party though not Far-Right like the Empire's Guardians, National Front, or the British National Party.
The recession also gave birth to the debate around Keynesianism in the world's political scene. The ideas of Baron Keynes had been empowered by the war effort with a majority of shares in arms companies held by governments in order to focus production purely on the war effort or in quite a few companies completely nationalized. Arms Companies were not the only thing to be secured by governments. For example British Transport was founded under Clement Attlee and promptly became one of the largest groups on the planet due to holding the rights to all rail transport in the United Empire and the continuously expanding Cape to Cairo railway alongside controlling the largest air fleet in the world and pioneering orbital transport for civilians. The group was one of the largest in the human economy and completely government controlled while Keynes did not support the form that British Transport had taken his works had been a core base of their foundation and they were one of the largest boogeymen of the world's right wing. The Conservative Government had never managed to get around to dealing with it always finding something more important to deal with ranging from making Rule Britannia the National Anthem to modifying the Royal Line of Succession so that Princess Elisabeth of Bavaria could marry the then Duke of York.
-Extract from an explanation of the Grand Recession and its effects.
The position of the far-left and the far-right in world politics following the Götterdämmerung was one of unease as the far-left and the far-right were expelled from the general coalition established during the war of respectable politicians. Then of course came the problem that many of these politicians and radicals were very popular among the population. No-where was this clearer then in the United States of America when the central two parties tried to push the American Worker's Party and the American Union Party into obscurity and death. However, this failed as both parties had settled into the political establishment as central parts of it that could not be erased. They had established a perpetual dance of compromise, coalitions, and conditions in American politics which despite what many desired could not be removed.
The rise of Michael Harrington to leadership of the American Worker's Party and his support for a second Parliamentary Constitution in the United States is generally seen as the beginning of the end for the first American Republic. He was supported in this endeavour somewhat paradoxically by the right-wing American Union Party under Russel Long and the far-right All-American National Union Party under Francis Parker Yockey. This blatant support for the end of the current United States form of government struck fear into both centre parties who despite despising each other despised the radicals more. This was mainly due to the centre of the Republican-Progressives seizing control of the party following the death of Henry Wallace. The Coalition of Democracy as it became known lasted an impressive six years from 1965 to 1971 when it collapsed allowing Harrington to win the 1972 elections and end the First Republic.
Of course in the Old World the far-left had a lot less influence because of the strong conservative bent the culture had due to the many monarchies that railed the population pf said nations together pushing both the far-left and the far-right to the fringes. They arose every now and again, but they were often relegated to one or two seats in national parliaments without major influence only rarely deciding governments.
-Extract from John Smith's book Our Misguided Friends: Radical politics following the Götterdämmerung.