Quote:"The Government of Kalistan has, in the interests of peace and security, approached representatives of the Dorvish Kingdom and has opened negotiations with them.  Negotiations between Kalistan and Dorvik took place in a neutral location, set to ensure the safety of each side's representatives.  The negotiations themselves were quite tense in their early stages, but ultimately, the discussion boiled down to a matter of interests.  We can assure the public that a final agreement on the Straits has been drafted, and offers us the possibility to finally open the Straits once and for all time, reducing Kalistan's commitment to patrolling such a vast stretch of water, and dramatically decreasing the potential for war to erupt accidentally.  We feel that these provocations must stop or we will have war.

"But how do we stop them?  Do we force others to accept our viewpoint on the Straits, or do we see where we can bend so that we may come closer to the legitimate concerns of our neighbors, while still promoting our own national interests?  In the negotiations, it was revealed that Dorvik sought to ensure freedom of navigation.  To us, freedom of navigation often meant a decrease in security.  So how then could we better enhance Kalistani security, while at the same time acknowledging the desires of other nations to transit that stretch of water safely themselves?  Were the two interests mutually exclusive?

"At the end of the day, I believe we discovered that they were not.  An opening of the sea lanes between Ananto and the Mainland to peaceful commercial traffic is obviously in everyone's interests.  But so is reducing our commitment to prevent military transit which has no aim toward Kalistan but which is just going somewhere else.  In the end, our position on the matter was a practical one, and not an ideological one. We have moved from the position that starting wars enhances our potential for peace.  And we believe that Dorvik and other nations have moved from the position that Kalistan is merely a speedbump in their quest for world domination.  Neither position helps anyone acquire anything but war and heartache.  So, to resolve the conflict, we must be committed to the notion of peace.

"I believe our negotiations will bear fruit.  The treaty our joint negotiators have drafted and forwarded to the Dorvish Foreign Minister for consideration and contribution I believe shall form an important international framework.  It will allow Kalistan to continue to maintain a role in the Security of the Northern Anantonese region, and most importantly, it will finally acknowledge and respect Kalistan's sovereign desire for peace and security in and around the Republic.  From a personal point of view, as a Brethrenist, I believe that this treaty finally allows us to actually achieve a more permanent peace, which has eluded our nation for more than 1000 years while we maintained a militarized presence in the Strait.

"More than anything, more than in any other nation, the chance for peace in Kalistan is one in a million.  We still have a few hills to climb regarding this Treaty.  But if we are able to pass this Treaty, we will have a much greater chance to see our sailors come home after their patrols.  We will have a much greater chance to dedicate our national resources to national improvement, rather than to blindly creating machines of death.  We will obtain the chance to finally gain the fruits of Kalistani Socialism, rather than simply spending all our time trying to weed the garden.  When the Treaty is tentatively accepted by Dorvik, I will advance it to the National Assembly for ratification.

"We may finally see true peace for Kalistan, which is something all seek.  Thank you for your patience and both the Premier and I ask you to hold Kalistani and Dorvish negotiators in the Light of the Truth during this process."

Quote:[The Kalistani Republic's] F[ranka] G[irrard]:  Comrade Minister, thank you for coming in to talk with my paper today.

N[edra] S[tuart]:  It is my pleasure.  Thank you for reaching out.

FG:  We recently ran a story about a massive budgetary inflow due to ODEN's success.  Following on the heels of this success, the Government has proposed a recharter of the Republican Bank.  Can you tell our readers what this will mean?

NS:  Sure.  First, it will mean that we will regain control, for the first time in nearly 200 years, of the business cycle.  Under liberal economic policies, Kalistan experiences boom and bust cycles like every other liberal economy. Speculation in one sector leads to a rush to investment, which leads invariably to over-production, surplus, and then bust, which means producers can't sell their surplus, let alone the new things they are trying to create.  Even if employers wanted to keep workers on, a recession sets in, layoffs and unemployment increase, and a vicious cycle occurs.  Whatever one thinks about that, it is a fact of liberal economics.  Due to the features of supply and demand, and a market economy, boom-bust cycles are inevitable.  The Republican Bank therefore exists to create, and this is an explicit feature of the Bank, it exists to create a floor and a ceiling, and to regulate the business cycle to the point where it is no longer a wild up and down, but closer to a flat line.  We do this through monetary supply, interest rate setting across the Republic for loans, especially to those people who seek to buy things like homes, and to businesses who wish to expand, and through various regulatory policies that ensure that there is faith in our currency, even in times which would otherwise cause people to lose faith in the bank.

FG:  The Bank charter that the Government supports promotes zero percent economic growth.

NS:  That is correct.  Zero percent growth provides...

FG:  Excuse me, Comrade Minister, but surely your critics will answer that at zero percent economic growth, you have stagnated the economy, have foreclosed the opportunity and even the incentive for investment, and have missed out on many lucrative opportunities that are associated with boom times.  Your critics will argue that surely the bad times are outweighed by the good.  How do you answer them?

NS:  With zero percent growth, we also eliminate inflation.  We also are able, as a political body, to deal easy with the very real burdens that people face when the economy changes.  We get rid of unemployment, and can maintain our priority toward a negative unemployment landscape.  We may not make a ton of money, and investment may be sluggish, but at the same time, we do not specifically prevent economic growth in  any specific sector, nor do we eliminate the potential for profit in the private sector.  We merely counter it through monetary and fiscal policy, so that economic expansion in one sector is met with contraction in another.  This allows us to meet our political responsibilities under the dual system, and ensure that mania cannot possibly sweep the entire society and otherwise rational individuals stampede at the slightest hint of trouble.  The SP would much rather navigate smooth flat waters than waters which are filled with twenty foot tall triangular waves and covered in shoals.  The Bank charter allows us to ensure that our waters are tranquil, if nothing else.

FG:  But are you concerned that foreign investment will dry up?

NS:  Look, Comrade.  There is a ton of money to be made in Kalistan.  We have a massive, highly educated, motivated, exceptionally well trained workforce in Kalistan.  We have advanced infrastructure.  We remain awash in natural resources that other nations want.  We abound in tourist opportunities.  Under normal circumstances, we would not be able to keep up with the inflow of FDI into Kalistan.  And though the Bank Charter, and Kalistani National Law prevents that tsunami, even under these conditions, foreign investors can still make money hand over fist in our private sector.  And we welcome that impulse.  It leads us to a strategic goal of the rechartering of the Bank, that being convertibility.

FG:  Are you suggesting that the Kalistani Ruble could be a more universally-convertible currency?  It is pretty common understanding that a tightly controlled currency decreases convertibility, so does the Government actually believe that this will increase Convertibility?

NS:  Absolutely.  Most countries can not make their currency truly convertible because their economies are weak.  They are plagued with hyperinflation and their own people do not have confidence in their currency.  Our Bank Charter locks in the value of our Ruble, against foreign currencies.  When even stable currencies fluctuate, the Kalistani Ruble only jiggles a little.  When other currencies collapse, the Kalistani Ruble is held to where it is.

FG:  But this doesn't answer the question, with respect.  Bank controls decrease convertibility, they decrease the free flow of currency across state lines.

NS: The Kalistani Ruble is a fiat currency and only its value, not its trade, is regulated.  It doesn't matter where the currency is, or in whose hands it sits.  Our aim is to control the interaction between the money supply and the business cycle.  We have controls in the charter which guarantee that the vast majority of the Rubles available are in reserve, to such a degree that we could weather any international shock, and if currency levels in Kalistan proper are getting too low, we will release more of the reserve to pick up the slack.  Meanwhile, if we see too much of our money flowing out, we will play with our interest rates, to encourage that money to come back home in the form of foreign investment.  Ultimately, we want people to use our money.  The more they use our money, the less we have to use theirs.

FG:  Will too large a reserve cause the Republic to miss out on investment opportunities of its own?

NS:  We have built in provisions that allow Kalistan to make very conservative investments abroad.  That fund does not touch the reserve.  But in terms of "missing out", we are not missing out when our goal is 0% GDP growth.  Under these circumstances, we will always have entirely more than we need to meet any request, and to cover all emergencies.

FG:  Do you foresee a robust currency leading to a trade imbalance as imports become cheaper in Kalistan and exports become much more expensive for others?

NS:  In theory, yes.  We will certainly import more, because we will be able to buy more things with the Ruble.  This should encourage other countries to accept our currency, because we will tend to make large orders.  But the imbalance should be offset by the value of our exports.

FG:  Suppose other nations find Kalistani exports to be too expensive?

NS:  Then we will keep them ourselves and pay in cash.  A strong currency means a weak competitor, so, if they do not want to acquire Rubles for whatever reason, we can also acquire a mountain of their cash on a one for one exchange, and use it to purchase their goods in their own denomination.  Either way, we won't incur a deficit if we buy the goods in cash, even if it isn't the Ruble.  But I have a feeling that Kalistani exports will draw some interest abroad eventually, and meanwhile, our currency will become rock solid, guaranteed to hold its value over a long period of time, and should serve as a nice harbor for nations who do not wish to invest in stormier seas elsewhere.  Convertibility is the goal here.  A very conservative approach to monetary policy will yield benefits for Kalistan over the long run.

FG:  Do you have any plans to renationalize the oil and steel industries?

NS:  We will be sponsoring bills to that end, once the funding mechanism is in place via the Bank.  We also have passed legislation recently which will rebuild the Kalsie, and we will encourage domestic and foreign investments in the Exchange, and now we just need to put in place the Charter.  Coming on the heels of the passage of the Ananto Strait Accord, we will be uncapping those wells out in the Strait, and we can expect to see Kalistani oil returning to Kalistani gas stations sooner rather than later.  Energy Independence is a very real possibility once more.

FG:  We are nearing the end here.  Have you had any input from either the National Conservatives or the Syndicalists on the plans to renationalize?

NS:  We have not heard from either Party.  We had an assist from the Syndicalists on the Omnibus, and the Nationalists supported withdrawal from the extradition treaty.  But we have the votes to carry all bills over the line, so perhaps they simply feel that they aren't particularly needed.  It is the Government's wish that they would participate, but at the end of the day, the SP still needs to move its agenda.  So we will keep working, and perhaps we will have some help sometime.

FG:  Well, Comrade Minister, we thank you for the time you spent with us.

NS:  Thank you Comrade Journalist.  I look forward to our next meeting.

FG:  Thank you.  Me too.

alaskancrabpuffs21 Wrote:

Kalistan Delegation Visits Dolgavia to Open Further Trade Between Dolgavia and Kalistan


President of Kalistan Henry Cohen shakes hands with the Prime Minister of Dolgavia

Aikums, Dolgavia
January 12th 4696

The start of the new year brings major trade talks between Kalistan and Dolgavia. The Kalistani delegation has not appeared in Aikums for over 200 years despite the two nations being reasonably close to each other. The two dignitaries talked about increased trading between Kalistan and Dolgavia and also increased crack downs on ODEN smuggling ships in the region. The Prime Minister told the delegation that he will not back down on sinking these ships as they come in from Kalistan and elsewhere.

The two nations also talked about mutual security because of their close proximity. The main topic of discussion however was trade. The Kalistan officials desired Dolgavian raw material such as aluminum and bauxite. Free Trade was thrown out as it is the best interest in both parties to keep to fair trade instead. The hope for both countries it to encourage trade between them and see more trading between the two nations. The President of Kalistan also visited several Dolgavian sites including the Royal Palace where he met with the King and Queen and also was shown the new Konigsbahn and infrastructure projects.

ChitinKal Wrote:
NCP Begins Elections Campaign
Party Invests Thousands in Advertisements and Events
December 18, 4696

Rally Held in Eshar, Odufaray for Gubernatorial Candidate Jerry Bannerman and Presidential Candidate Tod Paris Receives Thousands of Attendees

The National Conservative Party has officially begun its reelection campaign with an advertisement campaign put out in force across Kalistan. The campaign has consisted of the distribution of material, such as flyers, posters, and party literature detailing the positions of the party and its candidates as well as the history of the NCP dating back to the days of Flynn F. Colbert. The party has also initiated a media campaign of television, radio, and internet advertisements as well as guest appearances on a number of public and private shows. The ad campaign has cost the NCP around 750,000 KRB in public funds as well as contributions from the candidates themselves to their own campaigns. PR Director Tristram Dwerryhouse has informed reporters that the ad campaign will continue up until the elections in June of next year.

The NCP has also kicked off their event campaign yesterday night when Presidential Candidate Tod Paris and Odufaray Gubernatorial Candidate Jerry Bannerman greeted thousands of supporters in a crowded stadium in Eshar, Odufaray. Paris, a former soldier and singer, and Bannerman, a former CPK Deputy for Odufaray, addressed a number of issues important to the NCP platform and Kalistan's current situation, including Kalistan's stance on the international stage and a declaration of support for the reestablishment of the Republican Bank. Paris also took time to address national defense policy and the Ananto Straights, again solidifying the party's view of the Straights as the sovereign territory, however still endorsing the compromise created by the Ananto Straights Comprehensive Accord.

Quote:Quote from Presidential Candidate Tod Paris

The protection of the Straights is of vital importance to the defense of Kalistan. Not only are they a barrier between Kaliburg and the mainland and have vital communications lines running through them, but they also contain a large supply of oil and natural fuels that serve as an economic base for our great nation. Allowing foreign militaries access to these waters put us at a great risk economically and politically, and an unexpected attack would cause great destruction that would take years to undo. However, compromise is necessary. The ASCA is for the best, as it would serve to prevent war with belligerent foreign powers which would serve to kill thousands of Kalistanis, and hundreds of thousands of foreign imperialists. Such a blood cost is not worth proving a point. What we need to do is accept compromise, but also take steps to strengthen our defensive capabilities and solidify Kalistan as the hegemon of the Straights. We need to increase national military funding and increase the size of the Regular Navy as well as take steps to improve the naval capabilities of the militias. Imperialists and authoritarians have no problem poking the unarmed man, but will not dare harm the man armed to the teeth.

The next rally is scheduled for December 30th in Kaliburg, and will again host Tod Paris and a number of other candidates, including  Shadow Premier John Colbert Ananto Gubernatorial Candidate Flora Fujimori.

Quote:[Iquierda Reporter] D[ianne] R[ogers]:  Comrade President, it is a joy to meet you at last.  You are a hard man to catch up with!

[President of the Republic] H[enry] C[ohen]:  That is partly by design, Comrade journalist.  It seems I have become something of a world traveller!

DR:  It does seem so.  Welcome back.

HC:  Thank you.  As much as I love traveling overseas and meeting all these wonderful foreigners, I'd always rather meet foreigners in Kalistan than in their own country.  Kalistan is such a beautiful nation.

DR:  So tell us about the Microbus.

HC:  Well this is a KalMoCo, 4517 Escape Wagon.  It seats 6 comfortably, with two bucket seats up front, two bench seat in the back.  Its got a 4 cylinder 3.4 L engine, which is water cooled, not the air cooled models which don't do so well down in Suldanor.  The top pops up and the seats swivel back, a table comes up from the floor, and the thing turns into a little camper.  And then at night, this turns into a surface here, see, which you can drop a couple twin sized air mattresses on.  You can almost live in one of these things!  It even has a built in generator, which is separate from the vehicle's battery, and is solar powered, so you can operate appliances or radios or whatever in here on a charge that lasts a full 12 hours.  All of this stuff was standard at the time.  A real outdoor's person's vehicle.  We had to rehab it.  My secretary found the the thing in a junkyard up in Dulnerstaad.  We had the rust removed and some of the panels had to be replaced.  We replaced the canopy and the batteries, detailed the inside and had it repainted, and we've been driving around Mainland in it for a couple weeks now.  Its been a lot of fun!

DR:  What inspired this bus trip?

HC:  This is something I wanted to do for a long time.  It took a while to get the bus fixed up, but when I want around Lourenne with the "squad" as we started calling them, I got reinspired.  Here's a perfect opportunity to get to meet people and to let them know that they should vote in the elections.

DR:  Yes.  Let's get to your campaign for President.

HC:  I would like to correct that term.  I am not on campaign.  I am merely standing for re-election. 

DR:  Forgive me, Comrade.  What is the difference?

HC:  Oh, people always wish to portray politics as some sort of gladiatorial sport.  I assure you, I have much respect for Comrade Paris, the candidate from the National Conservative Party.  I think he is an intelligent person and I think he will represent his Party's ideals well.  But the role of the President is to sort of be above the petty ideological squabbles which the punditocracy likes to engage in.  We must be the face of the entire People in Kalistan.  As a result, he will do as good a job, I am sure as I have, and perhaps better.  Maybe he has some new ideas that we can all benefit from.

DR:  This is an unusual take for someone who is asking people for their vote.

HC:  Perhaps it is.  But, if I do not set a high tone for this office, it will descend, and will be devalued, and I promised myself, my Party, and my People that if I was ever asked to serve Kalistan in some capacity, I should hope to leave the place a little better than when I arrived.  Admittedly, in Kalistan, that is difficult, seeing how amazing this nation truly is.  I wish Comrade Paris well, and leave the choice up to the people.  If they like me, they will re-elect me, but if they like Paris better, they will elect him and I will be the first to shake his hand and wish him well.

DR:  Can you give the voters some reason to choose you over the National Conservative candidate?

HC:  Well, speaking to my record, we have enjoyed three years of peace and prosperity. We have stepped back from the precipice of war, we have returned ODEN, we have rechartered the National bank and just last week, we reopened the Kalsie.  all very strong economic successes.  But of course, I had nothing to do with those things:  that was the Comrades in the National Assembly and the Government.  I am not taking credit for those things.

DR:  And your own record?

HC: (with a smile)  Well, I am not crazy.  That is something that works out in my favor. I named a balanced and very capable government.  I have traveled for the first time to Dolgova and met their king.  I met the new Canrillaise Emperor.  I did not embarrass the country, and I improved relations between our nation, those nations as well as nations like Dorvik and Kizenia.  I'd say I have done a decent job as President, and it really comes down therefore to whether or not you think I am doing alright or you would like to see someone else have a chance.  But at the end of the day, I mean, what do you expect of a President of the Republic.  I have been the best public face of our nation that I could be.

DR:  Do you feel like you have a lot of support among the population?

HC:  I know I have made a lot of friends during my time in office so far.  I met a lot of very intelligent and promising kids on my trip to Lourenne.  I hope they are inspired to do great things in Kalistan.  And a lot of adults who must think they are kids, who call into radio contests during the day when they should be working.  But that is really their business.  Ive met a lot of folks on this tour so far.  We picked up a hitchhiker outside of Razar, up in Vrassa who told us about a particular forest that she was interested in going to here in Neveras.  It appears that the forest is slated to be logged in the near future and she was on her way to try to save it.  She made a very compelling case about why I should intervene.  I listened respectfully, and then I responded that I think that forests should be used for resources in a sustainable way, and without taking at least some trees, a forest does not remain healthy for long.  Scheduled burns in forested areas are beneficial as well for new growth and to preven other catastrophes.  We respectfully disagreed on the matter, but I feel that I learned something from that young lady, and I am glad that this nation strikes a balance that allows her to feel that she can discuss matters that she finds very important with political leaders, while I can use my office to lean on the Socialist Governor of Neveras to meet with her and discuss a solution that will satisfy all. 

DR: And did you?

HC:  Yes, we detoured to the Governor's Office in Neveras City, and we had an hour meeting with him.  I feel that she was satisfied with the solution he agreed to, and she decided to continue on to the forest anyway, to go visit the natural spot.

DR:  If you are re-elected, what will you do in your next term?

HC:  I'll try to name a good balanced cabinet in consultation with the Parties, and then do basically the same thing I did in the current term.

DR:  So no changes?

HC:  Personally, I'd like to see the Nationalists and the Socialists get a move on with KALNAPECO and KALNAFERCO.  The Premier has been sitting on that for a while, moving very slowly so as to not cause a lot of major disruptions too soon and give the institutions a chance to take root again, but I think it is about time, and naturally, I will meet with whoever it is to tell them my opinion on the matter.

DR:  How do you see Kalistan's influence growing overseas?

HC:  Kalistan is in a really good position right now.  Whatever the outcome of the election, I would like the Nationalists to take the lead on naval modernization.  The ASCA affirmed our role in both the Straits and in the Anantonese Ocean as a whole, and especially if we get KALNAPECO going, we are going to need an updated navy to protect our assets in the international zones.  So this is something I am convinced the Party will help the Nationalists with, regardless of who wins the election.  As for other nations, I am convinced that as they meet us, and get to know us, they will soon see us as a very friendly and welcoming nation, and will finally accord Kalistan the respect it deserves as a paradise on Terra.

DR:  Do you have any final words for our readers?

HC:  Yes, please remember to go and vote.  Voting is the main way you can participate in your Government which doesn't involve you getting elected and moving to Kaliburg.  It is very important that no matter who you are, or who you support in the elections, you go and vote.  Kalistanis have literally fought and died for the right to live in a society free of fascist influences, so it is now up to you, and to everyone, to protect those gains.  Please do your duty to the Republic and vote. I am Henry Cohen, an I approve THAT message!

DR:  Well spoken, Comrade President.

HC:  Thank you Comrade Journalist. Now-  If I may, I would like to invite you and your charming assistant there to join me and Ben [the President's driver] for some pancakes.  I know a wonderful restaurant just across the street, and their pancakes are to die for.  Off the Record, of course.