Kalistan

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Her Imperial Majesty welcomes Luthorian economic downturn
Insists that Embargo is "Price we are Willing to pay" as KalSiE responds
Eveari, Grand Duchy of Ananto
October 15, 5571


Empress Pavlina I Ananto acknowledges that Embargo will affect Kalistani Stocks

Her Imperial Majesty, Empress Pavlina I Ananto stood by her decision to impose an embargo on Seleyan Nations who host Luthorian economic and political institutions, and suggested that the embargo will also hurt the Kalistani economy due to reduced trade.  "But cost is not so severe in Kalistan as to Luthori," she said, attempting to reassure jittery commodities traders in Kaliburg.  "Sanctions will hurt Luthori more than Kalistan, and this is something we welcome.  Our hope is Luthori sees this as opportunity to seek settlement with us, but somehow we doubt they will, so we continue sanction."

"Is cost too high for Kalistan?" Her Imperial Majesty asked when responding to questions about how the economic downturn in Luthori will affect other markets.  "Is price Kalistan is willing to pay to stand in way of Luthori expansion in Continent."  The Empress stated that her economic advisors said that the KalSiE can be expected to take a fairly significant hit in the opening months of the Embargo. 

"The Minister of Finance says as much as 3 percent per annum," said Her Imperial Majesty.  "Pain will be shared, but we have authorized national intervention for domestic businesses that struggle with downturn, and price protection for consumers who have trouble finding product at stores.  With timed and targeted intervention in Kalistani economy, we will avoid both inflation, with strict price controls, and deflation with subsidies for business and consumer, unemployment, and poverty, but Kalistanis will experience some scarcity in some product in market.  This is inevitable, and with current policy, also unavoidable.  We will be there to support Kalistani people and business through entire ordeal."

The Empress defended the embargo as "necessary" to check henceforth unchecked Luthorian imperialism in Seleyan.  Some economists, however have criticized the policies in public, stating that Luthorian expansion into Seleya is not the nemesis that the Institutionalists make it out to be but a normal part of business expansion for a growing nation.  Some think that Kalistan's selective targeting of Luthori, while looking the other way about Canrille represents a double standard, and some suggest that the loathing of Luthori is at least in part due to the Empress' roots in Kundrati.  The Empress dismissed these critiques, however.

"Luthori has long legacy of attempts to dominate Seleya," she said.  "This is latest episode.  Luthorian colonial arrangement is designed to tie nations politically and economically to Mother Country.  Those who fall into trap become states that feed Luthori, limit their trade network to Luthori primarily, and exist exclusively to benefit the Luthori, with full cost carried by colony.  It does not matter what liberals in Luthori, or their cheerleaders in our own intellectual community, call it:  It is colonialism on face, and has no place in Seleya.  And Kalistan can not do business with those who have chosen, explicitly chosen to enter into subordinate relationship to Luthori Crown.  If we trade with Mordusia, that only helps Luthori.  If we recognize crown in Mordusia, which is itself illegitimate, we recognize right of Luthori to imperialize completely foreign nation which has no relation whatsoever to Luthori except as former colony.  This is impossible for us."

Many outspoken members of the business community and several noted economists have come out in support of the Empress' action.  "We will see a sharp reduction in trade volume in the medium term, both in terms of imports and exports," said Dr. Brian Jackson, of Vrassa Duchy University, "but in the long run, I think Kalistan will come out ahead.  In laying out the terms of this embargo, the Empress has not only put a credible commitment on the table:  Kalistan will feel some pain from the policy as well, so it is not a completely free choice.  This is a very hard position to take, and the Empress adopting it, shows that she is credibly committed to enforcing it.  But it also creates an opening for nations, maybe even Luthori itself, to at least attempt to discuss the matter with the Empress.  To date, there has been no evidence that Luthori has ever taken Kalistan's opinion of their economic and political expansion into Seleya into account, and I think it is Her Imperial Majesty's belief that this will give Luthori a reason to come talk to Kalistan to resolve the matter rather than continue its blase attitude toward Seleya.  Kalistan has said here that Luthori cannot act in Seleya with impunity, and is willing to bear some of the costs in ensuring that Luthori knows that it no longer has a free hand in this continent."

Whether Luthori will see this as an open door to come and try to settle differences or not is a completely open question.  It is highly likely that Luthori will simply attempt to ignore Kalistan's action, or deligitimize it as paranoia or overreaction:  this has been Luthori's historic attitude toward Kalistani protests against their economic, political and cultural imperialism on our continent.  But there have also been brief moments when a new path was possible.  There are many reason why Luthori should attempt to resolve the outstanding disagreements, and very few reasons that they should continue to either ignore or downplay them.  Yet, to date, Luthori continues to add irritation to provocation, one after another, to their relationship with Kalistan, and the Embargo is therefore an unfortunately predictable response in the long slow escalation of tensions between the two nations.

"One thing is not negotiable," said Her Imperial Majesty.  "Attempts to restore Luthorian colonial empire must end before we can work on any other issues between Kalistan and Luthori.  Is sad that that rogue state thinks it is Luthori right to carve Continent up for themselves, but this is ancient Luthori policy, and nearly 4000 years, nothing has changed.  If Luthori must imperialize other countries, why not focus at home?  They have two countries in Artania who are their colonies currently.  Why not dump resources there, and help them rise from third world status to join modern world?  Why must Luthori impose itself once more in our home, in our front yard?  It does not belong here, except as equal nation among equal foreign nations.  Is not special, especially in Seleya.  If Luthori understood fact, Kalistan would have no more problem with Luthori."

The Empress concluded by saying that Luthorian moves to expand their financial sector into Gaduridos is troubling and may lead to an expansion of the sanctions act to cover Gaduridos.  "We must evaluate move.  Anything we do to nation who helps Luthori, helps Luthori.  But Liberals are in charge there now, so while is disappointing, is certainly not unexpected.  We shall observe and make decision with more information."  When asked about the recent Lourennais diplomacy to Luthori, the Empress added "Lourenne is not Seleya.  They stand outside scope for sanction."