Not a commie, just came to check this board out but let me try and answer your question as someone who likes Nietzsche.
Nietzsche was basically a proto existentialist, what he meant by "God is dead" is that people's faith in God has been shaken to a point where return to Christian values is impossible. This might be both exciting and terrifying. On one hand, it opens up the possibility of something greater, the overman, an individual or perhaps the whole humanity that will overcome themselves and bring about something far better, on the other hand it's terrifying, because all of our values are dead alongside with God, or rather the faith in God.
It's more of a cultural statement than a metaphysical one. It doesn't matter whether God exists or not, because people do not believe in him anymore, and we are moving further and further away from faith in God. This is something that is impossible to stop, because as we learn more about the world, it seems more chaotic, insane and meaningless to us. Slowly, we understand that nothing but our individual ideas of meaning are worth anything. This brings with itself existential dread, depression and slow erosion of culture. Therefore Nietzsche poses a dictochomy, humanity can either try to become better by becoming the overman, or just die out by destroying all of its hopes and dreams and becoming the Last Man, a creature that only cares for the lowering of its discomfort and no longer dreams.