Image: AEUimage.jpg
Image of the American Economic Union in 2048, before the crisis

The American War, also known as the US-Brazilian War, the Second Mexican-American War, and World War III, was an extensive military conflict fought between the Coalition (consisting of the United States and Canada) and the Alliance (consisting of Brazil, Mexico, Colombia, Venezuela, and Peru) during the years of 2051 - 2054. The war grew out of the Latin American sovereign debt crisis, which saw several nations in the American Economic Union fail to meet debt obligations to creditors (primarily the US). The refusal of the Brazilian government to implement austerity measures, followed by a sovereign default in Brazil, led to a cascade of similar actions committed by debtor nations in the AEU. Ultimately, the US demanded that the debtor nations meet their obligations to the United States, halt the default, and implement austerity programs. The failure of debtor nations to negotiate led the US president Ronald Thomason to invade first Brazil in April of 2051, and then Mexico, Colombia, Venezuela, and Peru throughout 2052. The American military met immediate resistance, fighting both advanced, conventional militaries as well as insurgent guerrilla bands. By 2054, however, the US had prevailed, resulting in the Treaty of Mexico City on April 15, 2054, ending the defaults and establishing austerity measures.