Recession Strikes Olympia [GO News Cycle][Closed/GO Only]

[Greater Olympia]

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Financial Meltdown in Ofrax endangers global markets

01/01/2020

- Putri Sinta

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Recent weather catastrophes in southeastern Nori have caused turmoil.

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Disaster struck the SE Nori nations of Tauke Manuye and Sepura last month as Cyclone Yue pummeled the pair beyond recognition. Thousands of lives have been lost, millions, and quite possibly billions, of dollars worth of damage have been wrought upon local infrastructure, and several offshore oil drilling facilities were knocked out of commission for an unseen amount of time. The oil companies which run the offshore facilities have seen prices per barrel of oil begin to creep upward in the immediate aftermath of the cyclone's path of destruction, but now as the scope of the damage has become clearer, prices are starting to skyrocket. With low production, only three oil rigs are still operational off the coast of Sepura and a handful off the coast of Tauke Manuye, and low stores, prices are bound to continue climbing as storage levels lower and the time it takes to get the damaged offshore facilities functional again drags on. All of this has contributed to the financial turmoil in Ofrax today, where most of the oil companies of the SE Nori oil deposits store their money, investors speculate about oil prices, and companies buy and sell derivatives based on expected market behavior.

As the oil companies begin to feel the huge losses from the devastation of Cyclone Yue, investors began to spook and withdraw large amounts of money from Ofraxian Banks, while not necessarily pulling out huge amounts by individual, thousands of spooked investors pulling out money began to set off fire sales, where banks began selling off assets to be able to return the money of their customers. Fire sales are often characterized by underselling of assets in order to make back liquid capital, and due to this, many banks began to run into insolvent territory. The Central Bank of Ofrax went into immediate panic mode, raising reserve requirements, the amount of money a bank needs to have stored, to ward off future insolvency situations. Combined with speculators losing huge amounts of money as the unseen and unexpected jump in oil prices, the inflated stock prices of the oil companies began to crash as shares were sold rapidly to recoup at least something from the huge losses being endured. The third strike was the unforeseen damaged of Cyclone Yue halting high production of crude oil, which sent derivative packages regarding the commodity plunging in price, banks, corporations, and private investors all lost huge sums of money and with no other way to recoup it began to declare bankruptcy up and down the line as oil prices continued surging and oil rigs remain inoperable for several months into the future.

So far, Ofrax is alone in the financial turmoil, but it remains to be seen whether this ripple will affect the global economy. Many companies around the world are spooking at the collapse of the Ofraxian Stock Exchange and many banks and companies, and the collapse of the Multilateral Trade Deal in Oceania due to political issues may bring about similar turmoil. Unemployment in Ofrax has reached 13%, and millions more are expected to continue losing their jobs and savings as banks continue to lose extreme amounts of money. The Directorate has not yet announced any deviation from their decades old laissez-faire governance of the economy, but as the crisis grows, it may feel the need to change course, and hard. Analysts are wary of an overcorrection by the government, however, as the Central Bank takes center stage in the battle to keep the economy from fully imploding. Tourism is sure to wind down as the crisis grows, impacting yet another piece of the Ofraxian economy and foreshadowing even more trouble ahead.

[Tero Malstreciga]

UNU STELO

Urbo de Liberico Issue, 2/01/2020

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Oopsie.

The ULSE has been dropping rapidly.

- All is not well in Tero Malstreciga. The Isthmian Republic, known internationally for its extremely entrenched capitalistic nature (among several other things), has in recent years become something of a cornerstone in the international financial system as a high-risk, high-profit hub for international investors and brokers trading in a wide variety of assets. That trend has seen the rise of several major corporations brought up with the tide of Global Finance, such as Monon Nun, Tutmondaj Investoperacioj LTD, and Manipulantoj kaj Makleristoj, all of which have quickly risen to the dizzying heights of the Republic's Corporate playground.

The most recent trend in Malstrecigano finance has been the explosive growth of the "Derivative Package" Sector, where a Handling Company (such as MkM or its copycats OLN, BBB, KCK, and others), buys a number of Derivatives, particularly positions like Futures, and uses the funds of investors to fulfill those derivative contracts, then returning the money and keeping a percentage of the profit. This strategy has natural risks, but the shocking profit potential over short periods of time attracted significant attention, and money, from international sources. This would have been fine, as long as investments remained both short-term, and diversified. In the interests of fulfilling the growing demand for the Packages, they remained neither of those things.

And now it seems, the bubble has finally popped. Investments to the tune of billions were made months ahead of time in foreign stock exchanges such as Oceania and Ofrax, on gambles on usually reliable growth in these regional financial sectors. The nosedive in the Oceanian stock exchange, caused by the surprise collapse of trade talks there, effectively erased billions and crippled the liquidity of the Handling Companies responsible for a frighteningly large portion of the holdings of the international banking system.

Now, the dreaded second shoe has fallen, the Ofrax meltdown. The result of Cyclone Yue's damage to infrastructure and oil production, that country's situation has been rocky for the past few weeks, and finally the collapse has begun, with chain-bankruptcy throughout the financial sector in Ofrax. The utter havoc wreaked on the Ofrax Stock Exchange was the final nail in the coffin for several Handling Companies. OLN and KCK have declared bankruptcy and have begun the process of liquidating remaining assets, though it's expected that only scraps will go towards the great debts owed to investors with stakes in the Derivative Packages.

TI LTD is reportedly on its last legs, and while little news has yet come out from the Malstrecigano banks, it is believed that the chain-reaction of interbank debt calls to maintain liquidity will drive several of the weaker institutions into the grave. This is certainly a worry, but not nearly to the scale of the rest of the damage Tero Malstreciga's investment system might do in total.

More than 90% of Derivative Packages owned in name by TM Companies were paid investments of foreign investors, particularly banks which had gotten in on the tempting profit margins despite risks. International observers were worried about regional impacts in the immediate fallout of Ofrax's economic disaster, but this has amplified the damage to a global level. Many billions of dollars formerly belonging to banks and investors worldwide have ceased to exist. Financial institutions will struggle to remain afloat. Coupled with record-breaking rises in the price of oil, financial experts are now warning that "a recession isn't coming soon, it is already in its early stages".

[Lunderfrau]

Salzewinde Times:

Salzewinde Stock Market Plunges 1,200 points, 10% drop, Matriarchy closes Trading “Until Further Notice”, National Police called In to restore order to financial district

Salzewinde, Lunderfrau 1/2/2020

Absolute chaos erupted on the trading floors of the Salzewinde Stock exchange, as news of the derivative bubble burst in Orfax and Oceania, along with news of rising oil prices, led to the 2nd largest sell off of stocsk in Lunderfrausian history. The sell off began almost immediately and did not stop til the Ministry of Finance ordered the closure of the stock exchange at 12:30 PM Local time. In just three hours, the market went from 12,000 points down to 10,800. This corralates to around 6 points lost per minute the stock exchange was open, or 400 points an hour. Stock experts suggested that had the rate of selling continued through the day, losses would have reached 2,800 points, representing a 23% decline.
As the market meltdown occurred, pandemonium broke out into the financial district. Within 40 minutes of the sell off, individuals presumed to be traders began flinging themselves off of buildings. As of this writing, a total of 19 individuals had jumped to their deaths. Emergency response was complicated by individuals throwing themselves into the path of Ambulances and other traffic. By 10:45, Salzewinde P.D had called for National Police support due to being overwhelmed. 30 Minutes after trading closed, the 15 block financial district was “shut down” and evacuated by National Police. All told, the death toll from suicides is likely to reach 30-40 individuals.
The Kaiserin was quick to take to the airwaves to calm the crisis. At 2:00 PM local time, she addressed the nation, stating;
“Due to the volatility of global markets and the risk of triggering a fire sale of staggering porportions, I directed the Finance Minister to close the exchange for the forseeable future, until the panic has subsided. I plan to do everything in my power to steer the Matriarchy through this crisis.”

Recession?

Today’s sell off was just one of several signs of economic trouble both here and abroad. With Oil prices skyrocketing due to damage done from Cyclone Yue in Nori, many economists projected that Lunderfrau and many other nations could slip into a recession by the end of the first quarter of 2020.
“Today’s events make any wondering of if a recession is coming mute, its imminent” Says Dr. Claire Brandt, professor of Economics at Eiswasser State University. “we had initially expected a slight downturn and contraction of the economy by about .5-1% by first quarter, but now I’d say we’re staring at a 1.5-2% downturn beginning likely in the coming weeks if not days”. She added. Lunderfrau last slipped into a recession in 2004, due to Eskeieuran boycotts of Lunder products due to “differences in opinion” in regards to governing. However that recession lasted only 8 months and represented a .3% contraction of the economy. Economcists are instead suggesting this recession will likely resemble the recession of 1990, which was triggered by sanctions levied on Lunderfrau by several states after the 1989 executions relating to Eiswasser State.
“That recession lasted about a year and a half and required a lot of diplomatic wrangling to undo. Thankfully this recession is less manmade in nature, and more a fact of economic cycles” Brandt assured us.
Matriarchy officials are also expecting a recession, with the Treasury revising its 2020 outlook from a .5% contraction by end of year, to anywhere from 1.5% to as high as 4%. Though officials assure us that 4% represents a worse case scenario that would require officials to ignore the recession signals entirely.

[Volga-Dnieper]

Tanayska Pravda
02.01.2020

"It's Just As We Predicted" ─ An Interview With IEF Director

TP: The recent financial collapse has caught many by surprise and already caused not just financial but also physical fatalities. We have asked the Director of the Institute of Economic Analysis and Forecasting (IEAF), Svjatoslav B. Ostojich, to give comments on that matter. Comrade Ostojich, good afternoon.

S.B. Ostojich: Good afternoon.

TP: You know, we all want to know the answers on two classical questions: "Who Is to Blame?" and "What Is to be Done?"

SO: Understandable, and I believe I have something to help us all answer these questions.

TP: You have been director of your institute for five years. Have you ever encountered this before? How could this happen?

SO: This is the first case I see as a director [of the IEF ─ TP] but one predictable from the start. First of all, we have to admit a cyclic nature of the capitalist economy, something everyone of us knows but some tend to forget. There are several kinds of economic cycles going with different periods. We were closing to the apex of one of the short-term, 10-year cycles.

TP: So we were not even at the top?

SO: As long as comrade Klimova and IGEOR [Institute of Geo-Engineering Research ─ TP] don't have their grip on the planet, forces of nature can make their own corrections. Plus, these videos of Oceania and the backlash against them made a correction of their own. But since we were close to the top, four- or six-month delay wouldn't have made much of a difference.

TP: There are rumors that TSPR banks were involved in these affairs themselves. Do they have anything behind them?

SO: Yes, there were machinations of the Avangard Bank on the derivative markets; however, I believe they have made a withdrawal maneuver after a case which involved us in IEF and several other institutes of CISS [Central Institute of Social Studies ─ TP]. Whatever those machinations were, Avangard was not authorized to work without appropriate amortization. They know the rules. And they know what happens if one breaks them.

TP: Since you have mentioned the cycle and the case of the Avangard Bank, I assume you in the IEF have predicted this outcome.

SO: Well, that was classified until yesterday, but yes, it's just as we predicted. Turns out I was the biggest optimist in the IEF, by the way.

TP: When have you expected it to hit?

SO: August 2020. [laughs ─ TP]

TP: Were there any measures taken by the CEC you know?

SO: We have drafted a recommendation for CEC to use our monetary reserves to fund exporters of resources contracted by TSPR, and also a list of economies we as a whole absolutely don't want to collapse in any case.

TP: To name a few?

SO: Storsnia, Sepura and Nunavestland. I believe some in CEC are ready to fight for them with all means we have and to the bitter end, not without a reason.

TP: What about other economies of the IRP and Mu-Kal Union?

SO: Well, opinions there do vary, but that's revolving around priorities whom to support the most. We can't lose any ally and yet we're not even remotely the largest economy to help everyone. We will have to rely on region-wide projects and that will necessitate integrating our economies to some extent. To tell you a secret, Chairman Stamboliyskaya was excited at the thought of making an IRP- and MU-wide ASICC [Automated System of Inter-sector Control and Coordination of economics ─ TP] and it took some time to dissuade her, on the grounds that capitalist economies won't look kindly on this offer.

TP: What can you say for the rest of the world?

SO: It's a certain recession on the 10-year cycle. It is right here and we have to face it as long as we are entangled in the global economy. I'd push for tight regulations, massive public works to reduce unemployment and kick-start the economy and stringent discipline on financial markets. War, so to say, may also be an option as a large public work, of a certain kind.

TP: How do you think will this turn out for TSPR?

SO: We are quite bound to the markets as well so we as a whole will suffer as well. But allow me to be optimistic again: we will get through it more easily than the rest of the capitalist world. This will also facilitate the creation of our own, socialist "world system" and some in our institutions and People's Commissariats are looking forward to it.

TP: How long do you think will it take for the world economy to recover?

SO: About 5-10 years. We are working on a more precise estimate.

TP: Comrade Ostojich, thank you very much for your time.

SO: Take care. That's my best advice for all of us.

[Parthonopia]

Castello d’Cormor
Ancona
2nd of January, 2020

Looking out over the Cormor River and Ancona, the confines of the musky personal office of the King was teeming with smoke and dreary faced, aged men. Sitting at the center of the room, back to the window, was Carlo, his head planted in his hand with his elbow mounted on the desktop. He had his gaze cast on the elderly Egidio Amalia who was oblivious to the glare. The Duke from Carrara sat in a cushioned chair at the front right corner of Carlo’s workspace, gripping a mixed drink with one hand as he used his other one to rub his forehead. Carlo rolled his eyes in contempt at his former father-in-law, who seemed to grow frailer and more removed from reality by the day.

When Egidio was not sipping or serving himself a drink, he was redundantly questioning the group gathered there. He was caught in a cycle of repeating questions, each time he asked receiving a similar answer as he had at least twice before. The man he was currently interrogating was not as visually fed up with the berating as Carlo was however he sighed in return to the last question. Instead of immediately answering he began serving himself a drink from the bar tray next to Egidio.

The elderly duke was once again rubbing his forehead, his brow furrowed deeply as he shouted to the floor, “Dannazione! But what the hell is a derivative?”

The man who was expected to answer the question, for a fourth time, looked on peevishly as he sat back down. He was trying desperately, so as not to be rude, to avoid staring at the droplets of liquor that fell from the corners of Duke Egidio’s thick gray mustache. With a clearing of his throat and a repositioning of his tie, he responded as patiently as physically possible, “Derivatives are financial contracts that derive their value from how a financial entity performs. Futures, for example, are a type of derivative. Derivatives are a form of investment on the value of financial assets where profit is made in a contracted transaction, rather than ownership of the assets.”

Egidio still seemed perplexed, his face flushing redder by the moment as his frustration compounded. The man speaking took note and stopped for a moment, nervously clearing his throat again before continuing, “To summarize, they’re agreements between two parties for one to sell to another an asset or commodity at a set time in the future at a set price. If the price of the asset increases above the forward price, Party B will make money because they can buy the asset at the set price and immediately sell it for higher. If the price goes below the forward price, Party A will make money because they can buy the asset for less and immediately sell it for more in the Future Contract.”

Shaking his head in reply, the rest of the room unsure if in disapproval or sheer incomprehension, Egidio turned to the desk. Finishing the drink in his hand he began to fix another. The man speaking to him seemed to squirm a little in his seat as he could feel the pressuring stares of every man in the room. While a very powerful man himself, one of the wealthiest in the country as a result of the Risorgimento movement, he was in the presence of the most powerful men in the nation. He was not squeamish, however, because of their presence. It was due to the fact that he was unsure how much longer he could maintain composure while repeatedly attempting to explain not entirely complex economic topics to the man whom he truly believed should've been committed for Alzheimer's years ago.

“What Signore Falcone is saying is that this massive derivative market has crashed brutally on a global scale,” another man spoke up, taking a crack at explaining the situation to Egidio. This man sat to the right of the one who had been doing so previously. The two of them together was not an uncommon site as they were the defacto finance minister and the head of the Central First Bank of Parthonopia, two cronies of Carlo’s who had been working hand in hand with the newly minted King since before he was one.

Adelardo Damiani, effectively Carlo’s bookkeeper and economic point man, was a longtime friend and business partner. Previously the head of the Bank of Ancona, Damiani had been superbly instrumental in the moves the Commonwealth had taken to create a unified Parthonopian economy. From the details of the economic and currency zone to the foundation of the Central First Bank and its money printing powers, Damiani had helped Carlo plow the way for the system employed today. While the massive state acquisition of major industries and foreign assets in Parthonopian states was Carlo’s idea, it was Damiani who made it possible.

This was not done without the help, however, of his cousin Tomasso Falcone, who had inherited Damiani’s role as the Bank of Ancona chairmen and eventually the head of the Central First Bank as the former evolved into the latter. Tomasso was a bit relieved at his cousin stepping in on his behalf but could clearly see that Egidio was not having any of it. Carlo still sat at his desk with a displeased expression, turning to Tomasso to silently instruct him to pick it back up.

Egidio was no fan of Damiani, feeling betrayed by him and Carlo when a chunk of his assets became nationalized, despite still retaining much of the profits of them. The elderly duke was waving off Damiani with one hand while he sipped his drink with his other when Signore Falcone butted back in, “Handling companies, largely dealing with future derivatives, in Tero Malstreciga and Ofrax are collapsing from some, well, rather poor decisions.”

“How does the collapse of some Mukalese handbag companies have any damn affect on Parthonopia?” Egidio responded, his frustration mounting.

Damiani had seemed to have enough at this point and rebuked rather blithely, “I thought you were a finance mogul, great wealth provider of the southern coast!”

“Boy I was a builder!” Egidio was suddenly standing, rather lively for a man as old as he was, “I got the work force rallied and put to massive infrastructure projects, we built bridges and factories! Railroads, hehe! What have you done, boy? Steal from the rich and poor alike, hehe, through fancy worded documents and backroom deals?”

It was at this moment that Carlo spoke up, slamming a fist on his desk. The whole room jumped in their seats ever so slightly, some more obviously than others, “Enough, Egidio, the adults are going to be talking now.”

His former father-in-law was dumbfounded but knew better and sat back down. Carlo turned back to Tomasso and pointed to him, instructing him to stand up, “Now I want you, Signore Falcone, to explain to us all, once more, what the bottom line is. One sentence, sum it up, what does this mean for us?”

Tomasso cleared his throat once again, this one more nervously than the last but spoke clearly and calmly after, no infliction in his voice leading one to hear his nervousness. “Well, sir, banks around the world were in on this charade, not ours directly, but were after all, unaware, through Lunder mutual funds. With the stark losses in those markets today, and what is to come when many global banks start going bankrupt, including ones that help finance us, the situation is, well, bleak.”

“One sentence I said,” Carlo was infuriated, as was Egidio, but was keeping it internalized.

“Um, well. The money is gone, billions of dollars are basically vanished around the world.”

The room was silent for a moment, the tension thick like the haze of cigarette and cigar smoke that lingered in there. The gathered men who had been silent while the four others talked it out were slinking back into their seats, attempting to become invisible and praying they would not be asked a question.

Shaking his head perpetually, Egidio placed his drink on the table and pulled out a smoke, “So some foreigners are broke, how in Beo’s name does that mean we are broke?”

There was a group sigh at that moment, impossible to refrain from releasing. Tomasso looked Egidio in his bloodshot eyes and said, “Much of your, and unfortunately King Carlo’s, personal wealth was invested in foreign stocks that are plummeting now due to this crisis.”

This was the breaking straw for the disgruntled duke, he dropped his smoke in his cup and stood up once again, wildly yelling and flailing his arms. Cursing up a storm about foreign globalists and weak willed money men bankers alike until Carlo slammed his fist on the table once more. With the sternest of glares at Egidio he spoke with an angry whip of his tongue, “Out! Get out! You can rejoin us after you take a nap!”

Egidio shook his head, furious by the lack of respect but recognizing he could not show the same in return. He reluctantly turned away from the desk and exited the room, to the chagrin of those still present. Carlo then spanned his gaze across the room, locking eyes with those who remained and said furiously, “Don’t just fucking sit there lets get ahead of this! I need to address the people immediately and reassure them that whatever happens, Parthonopia will remain strong. You,” he was turned onto Adelardo Damiani, “figure out a way we can crawl out of this as best we can. You can have a team, whatever resources you need, but I require some form of a strategy by tomorrow afternoon.”

[Parthonopia]

January 3, 2020

Domestic News
Article by
Pepi Panforte

Speech from King Carlo I

Today Addressing the Public,

Holds Press Conference

On Looming Recession Fears

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"The petty economic woes of the international globalist elites will not affect us." - King Carlo I today, reassuring the nation and the world today of Parthonopian resilience in the face of an economic downturn abroad.

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King Carlo I during his public address from the Castello d'Cormor.

In the wake of the shock to the global economy over the past couple of days, the gears of the Kingdom's government have been working double time to prevent the nasty side affects from reaching Parthonopia.

When at first the word spread of the economic downturn in Ofrax, signs pointing towards a recession in the future were front and center. Coupled with the still lingering effects of the horrific Cyclone Yue in SE Nori and the domino stock market shock in the hyper capitalist state of Tero Malstrecigano, there is now no question that much of Olympia is facing a strong and lengthy economic downturn.

The fear of the repercussions of such an event quickly reached Parthonopia when Lira was shocked by the record breaking plunge in points in the Salzewinde Stock Exchange, Lunderfrau. The masses in the Matriarchy were quick to panic, in some more extreme cases stockbrokers and bankers seen jumping from buildings in the aftermath of the 1,200 point drop. A similar bank rush and panic was very nearly averted today as the first to learn of these events in Parthonopia, specifically upper class businessmen engaged in foreign markets flooded the Bank of Ancona. They were met with closed doors, the bank shutting down withdrawals for an indefinite period of time.

King Carlo I took to the media before midday to address the temporary bank lock out and the troubling recession signs popping up around the globe. Among other issues, the rising price of crude oil, and in turn gas for the consumers, King Carlo made sure to alleviate any concerns the average Parthonopian may have. During an over 45 minute long speech he was able to cover the topics at the forefront of the world's headlines on the topic of this potential disaster.

It seemed clear from the start of the speech that King Carlo was certain in the steadiness of the Parthonopian economy; "We are not a nation based in greed; we are driven forward through strife again and again by our sheer strength and resilience. The petty economic woes of the international globalist elites will not affect us."

King Carlo praised the steadfastness of the national economy that the Commonwealth had laid the groundwork for. Stating; "From the inception of Risorgimento, the achievement of autarky has been a primary goal for our country"; he continued on to explain that it had been largely achieved, but an impossible task to accomplish in the short time span of the Commonwealth and newfound Kingdom. King Carlo later justified international trade agreements and partnerships Parthonopia is apart of, specifically that of CSTOR signatory nations, which the Kingdom is an observer state of. He reasoned that these arraignments, while globalist in nature, if entered freely and monitored closely would not only be good for the nation but drastically help to achieve autarky in the future, as well as in a shorter time span.

"What is clear is that, while our economy is strong, and our people stronger, we are still at the mercy of the direction the world heads collectively. We may yearn to pull ourselves from this plight but the work is not done yet to be able to do so. While globalist greedmongers and wealth hoarders abroad have plummeted their nations into chaos in the poorhouse, Parthonopia will come out the better." King Carlo I said that the people of this nation may still see some effects of a global recession but will not be hurt on the same level that those responsible for this will be.

As far as talk of responsibility goes, the Kingdom's government was in unison that any blame was to be set at the feet of the Revolutionary Republic of Winst and other hypercapitalistic societies; "[Winst/Tero Malstrecigano] have driven the world this way, now they must lay in the bed of worms they have opened!"

King Carlo also took time to detail the Kingdom's plan to avoid any damage and to potentially come out for the better through these global economic woes. Massive public works projects are in the pipeline, similar to those that rallied much of the workforce during the Commonwealth period. Infrastructure to better interconnect the coast and the agricultural inland regions of Parthonopia are a top priority for the nation and something that this possible recession brings to the foreground.

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[Shepmandy]

Governor of the Bank of Shepmandy urges calm amidst growing global financial crisis
The Daily Gainsight

The Highreeve of the Shepmandish Gold-Hoard, Widcen Freyring-Alfredson Rdr. today addressed the press on the growing financial crisis and potential global recession. Lambasting global capitalists for incompetence and greed and short-sightedness Mr. Freyring-Alfredson asserted that the effects of the recession would be limited in Shepmandy, a nation which is monetarily autonomous and where most families keep their savings and income within the household rather than storing it in banks or investing it extensively. He urged investors however to withdraw investments from overseas ventures barring CSTOR nations and reinvest in Shepmandy.
“The Gold-Hoard has contingencies in place for this including funds for direct investments and if necessary the printing and minting of notes and coin. Have faith in our economy, be parsimonious but do not be afraid to spend. Support local businesses.”

What the Governor omitted however was the BofS’ plan to dump its reserves and assets of foreign currency: namely Winst, Carelia, Velkanika, Lykens, TSPR, Produzland and Nunavestland in an attempt to trigger a run on their currencies. It did that shortly after the Governor’s speech this morning.

Separately the Office of Agriculture and Fisheries has said it is willing to buy carcasses off of farmers with surplus produce and freeze them in warehouses to sell onwards at a better time or use for prisons, rations or even give to the Temples for them to redistribute as charity.

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Operation Nidhogg|Codeword ***Fasten the Knot***|Unit: Cyberwarfare Service, National Intelligence and Security Service (TIST)

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A simple order was issued over a closed network to operatives far and wide. There was no discussion: this was a long plotted for plan. Operation Nidhogg, it’s namesake the dragon of Germanic mythology (Níðhöggr) which brooded over a large hoard of treasure but was also highly malicious was a financial assault on the confidence of the international banking community and an attempt, in economic crisis to take advantage of digital banking and plunder the savings and investment accounts of those foolish enough to fall for the trick. Essentially an email produced and sent from a network of internationally hosted servers would be sent, purporting to be from the relevant bank in targeted nations. This would be done by first acquiring the basic client details from banks by purchasing their databases other from them directly under corporate guise or acquiring them illegally. Those in the top tiers of asset brackets would then receive an email ‘from’ the bank warning them of an international financial recession and that the bank wanted to reaffirm their bank details. Having scammed said client and gained access to their accounts the money would be withdrawn to various internationally registered accounts and then sent into the Shepmanish Gold Hoard.

This had twofold effect, the theft and acquisition of potentially millions and millions of capital but also causing panic and distrust in the banks of targeted nations: Winst, Carelia, Velkanika, Lykens, TSPR, Produzland and Nunavestland.

The Shepmandish dragon bared its fangs in malice.

[Meronnia]

Palais Gallois
Cabinet Meeting 5/01/2020

"The motion is agreed to unanimously." Sardou cleared his throat as he shuffled through the binders in front of him. "Next order of business, the recession." There was a wave of paper ruffling across the large table as the Secretaries found their appropriate notes. "The chair understands Consul Pasquier has prepared an initial briefing. Consul Pasquier has the floor." The aging Consul, a political giant in the Moderate Faction and a former stock broker, stood. The other present members of the Committee of Finance flanked him. "Thank you, First Deputy."

"Despite our efforts to prop up economies in Southern Nori, the expected damages of Cyclone Yue have been amplified by the meltdown in Ofrax, as predicted in the December 28th meeting." More paper ruffling. "After the damages to the Oceanian economy thanks to the collapse of the Multilateral Trade Conference, as covered in the Finance Committee Brief on that subject," ruffle, "the financial sector in Tero Malstreciga was on its last legs, and the Ofrax meltdown tipped it over the edge, leading to a significant amplification of the international implications of the financial meltdown." There was little reaction. The Consul looked around the room. He cleared his throat.

"This is the earliest stage of a global financial meltdown, and a recession that might last a number of years." Some murmuring. "Impacts in Lira have already been felt. Secretary Marais has provided national briefs on-" the consul paused to account for what must be the loudest paper in the world. "- on the situation in Lunderfrau which has had a stock crash of its own, as well as Parthonopia which also lost significant amounts of the personal money owned by the high-ranking nobility and royalty."

"As for the internal situation, our strong banking regulations have avoided the worst of the effective erasure of funds, nonetheless it is estimated that anywhere between 5-10% of total liquidity has been lost in private banks and credit unions. The situation is more dire in investment circuits, several private funds have lost upwards of half their value and even the government's Pension Funds have lost significant amounts of their short-term investment capacity. Conservatively, without intervention, we are on track to see a general contraction in the economy of several percent, with the unemployment, homelessness, and other such issues that will cause." With that, the Consul nodded to Sardou and sank back into his chair, exhaling loudly.

The First Deputy looked around. "Thank you, Consul. Now, I understand that Secretary Lafaille has offered a general proposal for the executive response to the recession, titled Nouvelle Économie." The Secretary for the Social Bureau was a member of Parti Socialiste, one of two PS members on the Cabinet in the new coalition. He leaned forwards to speak, but was interrupted. "However, we have also received the submission of Secretary Jacquet, Fausse Confiance, which has received the endorsement of the Committee for Finance. As such, it is the decision of the Chair that the second proposal will be enacted by the executive. This motion will now go to a vote."

First Deputy Sardou raised his hand, quickly joined by that of Secretary Jacquet and the rest of the Secretaries of his Faction. "The motion is agreed to-" Sardou continued to stare at the Social Secretary, with his hand raised. Eventually Lafaille scoffed and raised his hand as well. "-unanimously. Next order of business..."

[Meronnia]

"No crisis here" say Mèron financiers
Nadine Gaumont, Mèronie 24
^{January 5th, 2020}

The chairman of the Mèron Central Bank joked with reporters in a press conference today.

(M24) — The global financial crisis has dominated headlines over the past week throughout the world, as what was initially a regional issue centered in stock markets in Ofrax exploded into a full-on international meltdown, with most onlookers expecting a protracted global recession which will hit every economy on Olympus. While many governments scrambled to respond to local damages, one nation that seemed unfazed by the crisis was Mèronie, which held it's regular cabinet meeting today and offered only a short press conference in which a jovial Roland Chausson joked with reporters and seemed entirely unconcerned.

The Chairman of the Central Bank offered concerned reporters the promise that "There is no crisis here". He went over Mèron banking regulations twice, and even announced a drop in interest rates for the coming financial quarter during the conference, as evidence of his "overwhelming confidence in Mèronie's economic performance". Chairman Chausson said he couldn't speak for the government at large, but that it was abundantly clear that the recession would be a short-term worry for the country.

The Leguine Stock Exchange, the largest in the country, has experienced small dips in the past few days as confidence wavered while more news about the crisis became clear. However, unlike many of its neighbors, Mèronie has kept its exchanges open today, and the government is treating it like business as usual. While in the first hour of trading several stocks dipped in price, throughout the day stock prices stabilized due to large stock purchases by a number of shell investment companies at high values, which provided confidence in the value of the assets.

Business as usual has extended to the banks, which instituted no withdrawal controls to avoid runs as had been imposed in a number of impacted countries. Several banks in Blénoir and Toulers saw large lines of individuals seeking to withdraw their funds, which were provided without delay, strengthening confidence in the solvency of the banks. At the same time, new rewards schemes were offered for savings accounts including a "climbing interest rate" which gradually increased for a savings account for as long as there was no withdrawal. By the end of the day, some of those same banks had lines of individuals hoping to put their money back.

Financial analysts and experts are starting to catch on to what they believe is an extreme economic gamble made by the federal government in Mèronie. By quickly paying out bonds held by banks to fund their liquidity, and purchasing stocks at high prices through shell companies, they have artificially maintained regular financial conditions in the country. Such activities will be very expensive, but they seem to be working, as consumer confidence polls in Mèronie have not dipped significantly in the past week.

At the same time, the government is quietly breaking the piggy bank to spur the economy. The Mèron Investment Fund and its partners have announced several billion new Livre in funding for startups in Mèronie for the coming year. Several large infrastructural projects have been brought forwards, such as the expansion of High-Speed Rail and new Grid Electricity Storage, which will provide large numbers of jobs and inject billions of Livre into the economy. Excitingly, new funding for CNES has brought forward their predicted timeline for the Manned Lunar Mission.

All in all, it seems Mèronie is taking a Keynesian approach, significantly ramping up spending to counteract market trends. However, it is taking a unique and potentially dangerous angle in also trying to artificially spur confidence in the economy, providing quiet support in stock markets and banks throughout the nation. Time will tell whether the billions the government is committing prove successful.

---

NEXT
| Verte's Green Revolution | Does Sardou have a mistress? Evidence says no. | Surprise stabilization in the stock market. |

[Zanaro]

The Koto'Ara Initializes a Bod Plan to Counter the Global Recession
05JAN2020
Written by: Himiko Kirasawa, Writer 1st Class

The Imperial Diet today has released details regarding the passing of three different Imperial Decrees that are to assist in the overcoming of the sudden down-tick of the global economy. Oil Prices have gone up, the overall income of the average subject has been effected, and several Banking Guilds heads as well as several ranking Nobles have been found to be complicit in the economic collapse. The Imperial Diet has stated that public trials will be held for the members of the Banking Guild who broke the law regarding foreign investing and the banning of the use of stock market investing and trading. The Nobility who were found to have purchased foreign stocks and foreign homes are also to be given a public trial as ownership of foreign territory is strictly banned for members of the Zanarite peerage.

The first part of the plan seems to be an attempt to ease the burden of the economic hit on the average subject, starting in February all non-nobles will be receiving 1000 Imperial Credit stipends per month in an attempt to ease the effects of increased fuel and food prices. In addition sales tax will be suspended for all international travelers to Zanaro, and Zanarite subjects will receive increased tax credits for producing additional children during the next three years. The Imperial Diet states that this first economic bill should increase the spending of the average subject as well as bring in more tourism due to decreased costs of Zanarite goods.

The second plan is increased investment to the ending of dependence on foreign energy sources. Starting in March the Koto'Ara will purchase any fossil fuel vehicle from a subject at fair-market cost, in addition there is a tax rebate for the purchase of electric vehicles. The goal is to reduce the need to purchase and import foreign energy and is in line with last months announcement of being entirely renewable before 2030.

The third and final plan is expanding the mass transit systems within Zanaro and proving free rail passes for any subject who is making below the poverty line before the 1000 Imperial Credit stipend. This is designed to help under-working individuals to gain access to jobs, job interviews, and move to cities where jobs are available. By doing this the Koto'Ara hopes to increase economic output and maintain a sense of regularity in the average subjects life.

These three projects due come with a hefty price-tag though and the Koto'Ara has been forced to reduce funding to their space programs and increases on the taxes due by wealthy individuals. This includes wealth that has recently been discovered to have been kept overseas. The Kotonashi is credited with saying the following, "Those subjects who have made wealth off of the labor of our subjects now seek to keep that wealth hidden in foreign banks and secret vaults. This money would not be possible were it not for the sweat and hard work of our people. As such I am instilling our government to seize and hold assets of those individuals until they have paid off their debt to society and to the people of Zanaro."

[Tero Malstreciga]

UNU STELO

Urbo de Liberico Issue, 5/01/2020

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Big trouble in little Isthmus.

Is Prezidanto Brava missing?

- As the economic crisis carries on throughout the world, one of its nexus points has struggled greatly to remain afloat. Tero Malstreciga has closed the stock markets, for the first time in over fifty years. They had contracted by more than 20% before the doors were closed. The Banks have closed their doors to withdrawals, but that has not stopped the wave of bankruptcies in the banking sector that has gone on like dominoes. Protesters outside banks in Bonporton demanding to withdraw their money were dispersed by police. The entire financial sector in Tero Malstreciga has been in freefall, though there has yet to be a concerted government response.

In fact, it has been noted online that Prezidanto Brava, the Head of State and Head of Government of the Isthmian Republic, has not been seen at all in a number of days, leading to the growth in popularity of the hashtag, #HuntForBrava. While this originated as a jest to insult the government for their lack of response, genuine concern began after investigative reporters went to his private residence and found the door locked, all lights off, and none of his family home. No security detail was seen at the residence. State Secretary Juvela claimed to have spoken with Brava's wife on the phone a day after this, but then backtracked, saying "I believed it was Mrs. Brava at the time."

While Brava has been absent, the government hasn't been entirely quiet. Individual Departments have attempted to manage the crisis however they can, sometimes in conflict with each other. The Department of Services announced cuts to welfare spending in the name of austerity on the same day the Department of Infrastructure announced a new spending package to inject money into the economy.

The legislative branch has provided a strange echo of the chaos in the executive, maintaining formalities and procedure but nonetheless bringing out the knifes. The Seĝo of the Chamber of Delegates came under political fire quickly for not providing a legislative package to respond to the crisis. Seĝo Vespera, an RLP politico, has often used the Council of State to defend himself politically, but today they refused to meet, opening him up to serious danger. Angelo Koralo, a front-bencher for the KLP, has surprised many by opening up an impeachment vote against the leader of the coalition in the chamber, which was pounced on immediately by opposition in LibSolPro.

As fingers are pointed and insults are flung in the high offices of the republic, the economic crisis continues unabated.

[Winst]

Financial Times: Special Edition

Main Story: What the Hell Happened?
By:Marie Leblanc
The Markets have suffered in Winst following news of Economic collapse in Orfrax, and TM two other pillars of the financial world. Winst has stayed above the high water line but chaos in Lund has people worried. Further, Michelle Tourne has been unsuccessful in following Meronie's lead in establishing Keynesian fiscal policy after her collation partners refused to sign on, a sign that her coalition is about to have a standoff in the Assembly. The stability of Bnnu markets the fourth Pillar of the International Economy has helped in Wintonian   Markets stablize but they are still somewhat fragile. It seems it is on Winst and Bnnu to restore order to the economic order.

Part of why Winst is still floating is that the Noble Families are taking the majority of the damage atm but these affects will eventually trickle down to the people either directly or through government intervention, although the latter is looking unlikely under the current government. The city of Valais, the financial capital of Lira is somewhere between uneasy and chaotic. Police have noted an increase in suiicide rates in the city. As it is getting slammed hard by the news.

The Government

The Balton-Brisbois faction which currently controls both Secretaries of Treasury and of Business has been coming underfire for it's loosening of regulations in recent years as a primary cause of the damage of this recession. Although many are calling on their resignation both have claimed it necessary to lead the country in this time of crisis and have not given into the claims. The Populous was able to pass a 2 week hold on parliamentary seat changes although useful in keeping the upper house stable it is far less time than she would have hoped for initially proposing 6 months.

As mentioned in the lower house Tourne's alliance is facing trouble internally as Republican Order and People's Union members clash with Liberal Democrats over economic policy. RO is pushing for a tightly focused national plan where as PU is pushing for the nationalization of the banking system. Tensions in government are on the rise.

Noble Families

Nearly all the major Noble Families and therefore most Wintonian Banking and Industry just got hit hard. LBC's Leveque City Bank and Bank of Vaudry, as well as, Brisbois' Pierre Brisbois and the Baltons Bank of Vinch have been hit the hardest by this financial collapse with both having strong ties with banks in both Ofrax and TM. Both Families Holding Companies are quickly shedding toxic assets. The damage is such that even critical assets corporations with Upper House seats are being thrown off. Setting the Stage for an upper house reshuffling the first since 2000 when the Fitzpatrick family lost control of their corporate entity to the Carnagie family.

On the other hand Brassington and Montpellier have been if not winners the least touched by these events. Montpelier escaped with few assets touched their financial team correctly accounted for this economic down turn months ago and began preparations. The damage of these policies in their their third and fourth quarters are now easy to swallow compared to the damage done to others and shorting of markets has given them liquidity when it seemed to have dried up. Brassington and their stable Oil and Uranium income have also been spared from the chaos.

The People

We are unsure what is going to happen it depends on the government and the Noble Families now. We suggest getting in touch with your local bank or financial planner to strategize over what your family should do next. For now the most important thing to do is not to panic as consumer confidence is necessary to keep the economy afloat.

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OP-ED: Jacobins can't handle this

by: Jean Phillipe


The world is on fire economically. Unfortunately for the Wintonian Economy Michelle Tourne and her Jacobin Alliance have been in charge during this crucial juncture. To put simply the current government can't handle this crisis. The coalition Haas been shaky at best but now in the face of Economic Disaster, they will not see eye to eye. The ungodly chimera that is the Jacobin Alliance came out of a reinvigorated Liberal Democrats turning away from the Conservative alliance due to a personal grudge against the most sensible group in the Populist Assembly. Instead she shacked up with Radicals on both ends of the political spectrum who were insane enough to follow her lead, and who have turned out once respectable nation into an international pariah.

What we need now is another election. We need to see a conservative government in power and for Austerity to me measured out. We need to undo the damage done by Reforms tenure in power and cut the fat out of Wintonian society. We are giving money to individuals on the street. We need to cut welfare spending and return to the family health credit system, so as to keep welfare where it belongs as a family matter.

We also need to hold non-corporate noble families more accountable. The Montpelier's have made a massive amount of money unpatriotically shorting out economy and economies throughout the world. They have gotten rich off the misery of the world. The Balton-Brisbois faction as well must be held accountable for allowing such risky trades to take place under their leadership. Both the Secretary of Business and the Secretary of Treasury should be held criminally responsible for their actions.

Although LBC is to blame as well it's harder for me to find fault in the company following Brisbois' lead. Like the need for elections after this chaos, a major reshuffling of LBC is necessary but that will bring fresh faces and new ideas. Brisbois-Balton will remain the same, even after such chaos.

[Carelia]

LOR / MER

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HOME | WORLD | CARELIA | BUSINESS | TECH | SCIENCE | ARTS | MORE >>

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Banks Closed as Stocks Continue to Drop
Jan. 6, 2020

President Foulke during the press conference earlier this morning.

President Jaco Foulke has issued an Executive Directive announcing a three-day federal banking holiday effective immediately as of today. The order temporarily closes down all banking institutions nationwide; no withdrawals, deposits, and transactions are to be made during the period, which will last until 11:59 PM on January 9th.

The presidential mandate comes amidst growing panic in the nation's banks, as account holders rushed this week to withdraw their deposits following reports of billions of dollares in international investments evaporating overnight. After the collapse of the Derivative Bubble and subsequent nosedive of global stock markets, Carelian banks have lost immense amounts of virtual cash, and their ability to stay afloat has been called into question.

In a brief press conference, President Foulke called for level-headedness and stated that the move is intended to prevent a predicted ‘feedback loop’ of financial panic and instability.

"To put things in the most simple terms, we are temporarily putting on the brakes to stop the situation from spinning out of control.”

The Federal Congress is to convene in a special session during the shutdown in order to pass legislation implementing the first steps of a longer-term solution. Measures taken by Bright Hill are expected to include high amounts of government spending to stabilize the economy, as President Foulke gave reporters the assurance that the insurance of consumer deposits would be upheld.

It is expected that the Federales, who hold a plurality in both the Assembly and Senate, will be able to quickly push through any needed legislation-- opposition from the Civics and Democrat-Labor has been limited to a handful of representatives and senators thus far.

“This administration and I remain committed to protecting our citizens and their property. We have no intent to repeat the errors of 1926- Our action will be both swift and decisive.”


See Also
>> Derivatives: What You Need to Know
>> Panic as CSSE Reports 7% Loss in One Day
>> Market Crashes: A History
>> Renewables Legislation “Fortuitous” Amidst Skyrocketing Oil Prices
>> Bank of Carelia Warns Against Email Scam

˅ Comments (118)

[Volga-Dnieper]

09.01.2020

NO RECESSION IN TSPR

The recent outbreak of the financial crisis is already claiming not only financial but also physical lives.

It was first triggered by the Cyclone Yue severely damaging oil production of SE Nori. With markets in Ofrax and Tero Malstreciga being heavily involved in the financial pyramid of derivative packages dependent on that oil production, their collapse was a matter of several days, claiming tens of billions of monetary units worldwide. Stock exchange indices dropped by as much as 2,800 points for Salzewinde Stock Exchange and our independent correspondents are reporting several hundreds of fatalities worldwide.

The Chairman of the Presidium of the CEC, Alexandra A. Stamboliyskaya, personally addressed the Assembly of Soviets on its emergency meeting yesterday, 08.01.2020. She stated that "the global capitalism has entered another era of crisis," which was "entirely expected to happen within this year" and that the economy of TSPR will not be affected by the collapse of financial markets.

"I swear on my own honor! On my own blood! And on my very own life! That the economy that we shaped by our united efforts and common strife will not fall to the machinations of financial swindlers!" She proclaimed from the tribune in the Palace of Councils. "The petty economic woes of the transnational globalist elites have never affected us before! And they will not affect us now! And trust me, never they will affect us! Not while we stand strong, proud and free!"

Chairman also stated that while TSPR will face recession with "cool head and analytical mind on", other economies will fare far worse and they may drag TSPR down.

"The indirect threat to our economy must not be underestimated." Chairman stated. "As much as we are optimistic about living through, we should not forget that we are still dependent on raw materials and if they are gone, what's the use of what we have built with so much starveling?"

This echoes the stern warning Industrial Commission and the Resource Management Commission of the Republican Economic Council, issued to the AoS, CEC and people of TSPR in their joint report:

"With current consumption, industrial stockpiles of petroleum, steel and aluminum will last for four months; stockpiles of silicon, titanium, copper, tin, antimony, tungsten, molybdenum and chromium ─ for eight months. There is a danger of shortages and halt of non-essential production lines after that."

The CEC in conjunction with the Central Institute of Mathematical Economy, the Central Institute of Social Studies, the Institute of Economic Analysis and Forecasting, the Institute of the World Economy and International Relations, the Institute of Social-Economic Population Studies, and the Republican Economic Council and its Industrial and Resource Management Commissions, have devised a plan to prevent indirect damage which in its outline narrows down to two initiatives.

The plan for the IRP is to create an internal monetary system disconnected from the woes of the globalized economy and managed in a centralized fashion by a council of all IRP member nations. Along with that goes the plan to build an alternative high-bandwidth worldwide network dubbed "IRPNET", physically detached from the Internet. This way, the IRP economy will be partially enclosed and will retain its shape even if the monarch-capitalist world economy falls apart.

The plan for the Mu-Kal is less complex and more political in nature. In light of the vast difference of economic systems within MU, it is proposed to create a body to centralize management of the key industries in primary and secondary sectors and Mu-Kal public works and to ensure there is no doubt in our humble intentions of saving economies of Mu-Kal, that body can be located in any other country of the Mu-Kal Union.

The "maximal" plan also proposes automated coordination via an automated system to some extent similar to, but distinct and separate from the TSPR Automated System of Inter-sector Economy Control and Coordination: CIME states it is ready to unveil it in six months with appropriate resources "and a hefty amount of outsourcing". It remains highly doubtful that this plan would be approved or set in motion.

According to its outline, "governments of Storsnia, Lykensburgh and Ascolla-Ternev are invited to participate in the plan right away" while any political action of this extent towards the Oceanian Republic would require "measures of rapprochement" first. It is also not known what measures are to be taken by Tanayan Maximalists in the recession: our experts are confident they will not let loose a chance to refresh connections with the left wing of Mu-Kal, contrary to Stamboliyskiy Doctrine calling for minimal intervention in Mu-Kal internal affairs unless there are demanding circumstances.

Whatever actions are to be taken, quoting comrade Chairman again, "there is no recession in TSPR."

Milovan M. Milovanov II

[Produzir]

Continuing Economic Nightmare in Produzland
JULIO BARROS - 1/8/20 - 0 Comments



When a country of relatively wealthy and important standing in Lira is failing to pay rising oil prices, the country's leading football clubs failing to pay to their top players is hardly the worst of the country's worry, but instead a sign of something deeper that says something is drastically wrong with one of the wealthier economies of the world, with both rich and poor preparing to be affected by a recession on track to be one of the most impactful in recent memory.

The recession and future predictions of the world economy have taken over news around the world and continuing to be the focus of the whole world, and rightfully so with it's potential implications. The downward trend of the economy and the drastically rising oil prices is mostly attributed to Cyclone Yue that took place in Southeast Nori, and as well as taking hundreds of lives, it took out some of the most important oil fields on Olympus, and the stock exchange in Orfax suffered a crisis punching a massive blow in the world stock market and economy. This hits hard on a country like Produzland for it's high dependency on foreign oil imports, with the country being a world leader in different transportation production fields and manufacturing as a whole. The strains are already starting to show in Produzland's normally easy-going life. Residents of the State of Cabeca demonstrated with continued protests for independence from the Kingdom of Produzland in San Aurelio's Lotería district, most notably resulting in the death of a riot police officer a week ago. Many small shops in Burlon have closed. One manufacturing company owner in Bresbon ruined by the financial crisis threatened to jump in front of a train until the local Bresbon government payed him the 500,000 Escudos they owned him.

"We're not going to have a recession, this is going to be a depression with the rate the stock market is plummeting and many many other reasons, like after the first Olympic War", said Amancio Luís de Pascoal e Guimarães, the Minister of Finance under Prime Minister Riccardo Bonadeo's government. A pessimistic view for sure but Pascoal backs up his view with popular predictions among people within the finance industry, including a budget deficit of at least 6% of the GDP and economic contraction of 2%. His predictions of the Produese economy are further supported by foreign removal of assets in the Produese Escudo.

This could hit the 15th largest economy in the world, and 7th largest in Lira severely and it could eliminate the gains of the current Produese currency since it was adopted. Until this global economic crisis hit, the country was performing well since it's return to democracy and prosperity after the end of the dictatorship in Frederico Deusro.

In theory Produzland could replace the lost income of the manufacturing industry with other sectors with it's high global outreach when it comes to it's telemarketing and banking industry. However Produzland’s automotive industry that makes up one-fifth of the country’s exports, is struggling to deal with a collapse in Produzland and across the world. Tourism is an 11-figure industry that is also one of the most important industries in the country that is on pace for decline for the first time this millenium.

Prime Minister Bonadeo however has attempted to reduce fear and downplay the economic situation stating "Produzland probably has one of the most stable financial systems of Inoran Ocean", and "our banking sector has weathered the global crisis relatively well for now". Bonadeo stays optimistic of the future of Produzland's economy in the continuation of his speech to the press.

COMMENTS - 0

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[Meronnia]

Mèronie to "take on the recession in economic combat"
Nadine Gaumont, Mèronie 24
^{January 9th, 2020}

CEO of MégaInvestissements photographed entering la Trésorerie today.

(M24) — The Gamble seems to have worked. Stock indexes are rising at a slow but steady rate and the banks seem solvent and happy. People throughout the country are gradually catching on that financial panic was avoided "artificially", but by now the economy has gotten back on track and the opposition can do nothing but complain that the Moderate coalition's methods were "dishonest but effective".

Mèronie has done the impossible and escaped the punishment of the global recession, though the true extent of the cost this has brought to the federal government has yet to be disclosed, and might never be. The government certainly seemed interested in increasing tax takes, as today the Chamber of Deputies passed an amendment to the Taxation Scheme which, despite opposition, is expected to fly through checks and balances easily. The change is the introduction of a Capital Tax.

Finance Consuls explained the details: "The total value of personal assets, including bank deposits, real estate, assets in insurance and pension plans, unincorporated businesses, financial securities, and personal trusts, is counted. All wealth exceeding a cap of L5 million will be subject to a 1% annual rate of taxation. By our estimates this will not impact a large majority of the population, but for those few very wealthy this will be a large catchment[sic], which we expect to discourage the hoarding of wealth."

A sort of direct Wealth Tax, the policy is seen as radical in many circles, and was likely originally a proposal of PS, the Socialist coalition partner which has pushed for a Capital Taxation in the past. It's expected that revenues from a Capital Tax will be primarily allocated towards paying down government debt which has inflated significantly thanks to the recent crisis, for some time. However, keeping the brave face they have projected so far, the government has proposed an entirely different rationale for the passage of this tax. Reportedly, this tax is intended to discourage building piles of money that then sit still for decades.

"Taxation on wealth means taxation on money that's doing nothing" was the line given by Sardou. Accordingly, this tax will greatly incentivise the wealthy to both spend and invest their liquid assets, which is expected to spur the economy and provide the boost Mèronie will need to soar well ahead of the recession. Radicale politicians called it a "tax on success" but Sardou seems to have the goodwill to spend, with recent opinion polling expressing a significant increase in satisfaction with the First Deputy's government.

Mèronie is not only spurring domestic investment, however. A concerted government effort was announced today to strengthen Mèronie's overseas investments sector, a well-known component of the economy. This is a strategic decision, Mèronie might have escaped the worst of the direct damage but a global economic slowdown will nonetheless impact on the nation poorly. Large financial companies have been meeting with the government in the past few days to devise investment plans world-wide.

Mèron investments are expected to help marginally in the stabilization of the economic situation though wider international cooperation would be necessary for an effective rapid response.

---

NEXT
| Globalespace prepares for takeoff | Sardou seen as "competent", "rat-like" | Keynesian Response adopted internationally |

[Winst]

Government fails second attempt to pass economic reforms

Silvus, Winst

The Government of Winst once again failed it's attempt to implement 3c9nomic reform in the face of a global Economic crisis. For nearly a month now Michele Tourne jas been facing insurrection in her government as Republican Order and People's Union delegates refuse to support the Liberal Democrats economic plan.

People's Union has been pushing for greater economic control. In a statement one of the rogue delegates stated that "now was the time to begin the process of dismantling noble families. Their unaccountable behavior has brought Winst to the edge of recession." Similar sentiments as well as a desire to nationalize strategic businesses such as aviation has been a key sticking point.

On the other side Republican Order also pushing for nationalization of industries is refusing due to the recent political actions taken by Tourne. The Marcomer Peace Talks as well as normalizing relations with Lunderfrau have caused an uproar within the ranks. They are withholding their votes until Tourne cancels the two agreements she recently made.

Polls, however, show that Liberal Democrats are ascendant in the general population as the successful negotiations and victory over Parth are being attributed to her and her party. Opinion polls suggest frustration at the government is high over the failure to pass reform, but when broken down by party Liberal Democrats receive far less blame than the other two.

[Storsnia]

Reliable Reporting since 1923

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Month in Review: Recession in Storsnia

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Finance Minister Iivo Kauko addressing the Chamber of Representatives
following news of a recession

By Ludvik Ahtisaari
28 January 2020

Almost a month has passed since the financial crisis caused by Cyclone Yue in Southeast Nori began in Ofrax. Oil prices skyrocketed, economies collapsed and banks closed in a matter of days as the markets crashed in Ofrax and Tero Malstreciga almost simultaneously. Nations passed measures to properly steer their nations through the storm; some successful others not so much. The winners or rather least affected appear to be Meronia in far away Lira due to their quick economic thinking, Shepmandy the isolated clansman and TSPR our wary friends to the south. The biggest losers being Tero Malstreciga a nation on the brink of collapse, Lunderfrau the feminine monarchy, and the young Kingdom of Parthonopia. But how did the Great White North fair? Land of reindeer, snow and all things cold. Did Storsnia freeze up like the northern lakes or survive like the glorious nation it's become?

When the recession first hit the nation was gripped in fear. Would the bankruptcies and collapse come to Storsnia or would we weather the storm? Only time would tell. Once the news broke the government and various representatives began drafting up proposal after proposal some calling for liberal policies others for austerity. In the end a proposal brought forth by a freshman representative from northern Ensrup, the economic capital of Storsnia, came out on top. The Green Recovery Plan focused on two things: prevent a total economic collapse in Storsnia and improving the nation as a whole. To achieve this the plan called for biweekly bank holidays, and regulations on investing in nations outside of the Mu-Kal union. While regulating investments outside of Storsnia the plan brought incentives to invest inside the nation. Tax breaks would be granted to individuals and corporations that invested in crucial industries, state owned companies and startups geared toward environmental friendly practices. Similar to Zanaro monthly stipends of 500₮ would be granted to citizens with incomes below a threshold set bi-monthly. The plan also called for bonds to be sold that would fund public works projects such as electrifying the railways on the western coast and expanding rail transportation between the interior cantons. But how did the plan fair and is it working?

Overall the plan has been a success. Collapse didn't come to the north today. Initially there was some panic and questions about this new plan. Where would all this money come from? What if investors didn't invest? Will this really help? The stock market in Ensrup saw some dips at the beginning but began to stabilize after a couple days. Oil and gas prices in Storsnia didn't increase by much as most fuel comes from inside the nation and it's large oil reserves and industry. All seemed well in the north. However, not everything was perfect. Debate raged in the Chamber as news of a new plan by TSPR was announced. This plan proposed creating a body that would centralize key industries in Mu-Kal nations if they accepted. The plan also proposed automated coordination through an automated system similar to the system used in the TSPR. Some representatives were quick to denounce the plan calling anyone who supported it a communist and un-storsnian. Debate is still ongoing on if the plan is feasible.

Today, the nation is stable. The recession's impacts have been felt by all with unemployment rising and personal income decreasing. However, the GRP is helping solve these issues with the monthly stipend and jobs being created by public works projects. To quote Finance Minister Kauko "Storsnia will weather the storm, and endure for pohjoiset valot yhdistävät meidät kaikki"

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[Achesia]

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RECESSION REACHES MIDDLE CLASS
Protests on the Rising Price of Consumer Goods Turn Violent as Beldon Police Use Heavy Hand.

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Alwin Fiedler (@AFPKendra)
30 January, 2020| Beldon, Ackesia

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_Chaos today in the streets of Beldon as protests lasting nearly a week were met with the full force of the Beldon Capital Police. It has been a turbulent few months in Ackesia as poverty-stricken demographics feel the brunt of the global recession caused by two major storms in Nori. While poverty had been on the rise on Ackesia before these tragic events, the proverbial hair that broke the camel’s back has triggered a massive spike in poverty, homelessness, and starvation. The economic uncertainty of this global slump in the markets has highlighted the large gap between the rich and poor in Ackesia which has been something critics have called President Ackerman complacent on. Despite this, Ackerman, the 5th term president of over 20 years in office and first president of the Greater Ackesian Republic, has enjoyed hefty approval ratings from those in the middle and upper class of Ackesia, contributing to stability in uncertain times.

That stability however has been challenged, and due to the rising cost of consumer goods in Ackesia which are imported from abroad, the middle class has begun to feel the effects of the spike in price of simple items such as salt and tea. Due to this this imbalance, areas traditionally stable and pro-President Ackerman have begun to see a drop in approval numbers as prices rise for basic household goods.

President Ackerman is no doubt an extremely popular leader, having led the uprising in the 1980s which brought democracy to Ackesia and served as the chief executive of the Ackesian Republic since, there is much support for him from top to bottom in Ackesia. Having won 5 democratic elections, Ackerman has enjoyed a rally of support from the government, his influence being felt in everything from the Chamber of Proxy to the lowest offices of the National Diet. What the President has banked on all of these years (to much success) is the clout of his legend carrying his incentives. However, in this sense Ackerman’s vision has been the only vision for Ackesia, and where his vision has been found lacking is with the rising levels of poverty in the lower class.
Now that sentiment in the middle class begins to turn sour, and with it the challenge to Ackerman’s leadership may be realized. His policy would seemingly need to adjust accordingly should he wish to maintain his popular leadership. This would be the case if in fact Ackerman’s approach to rising levels of social issues in the nation was level headed.

Instead we have the situation today, a protest which had drawn thousands to the streets of Beldon, ironically in the same spirit of those protests in the 1980s which brought forth our Republic, erupted in violence. After nearly a week of gridlock in the streets of downtown Beldon with protests rallying in all directions and commerce nearly coming to a stand still throughout the city, at 3:42pm Beldon Capital Police struck out in full force at the protestors in a multi-agency coordinated effort throughout the city. Armored cars, riot shields, tear gas, and in some cases automatic weapons were all employed to threaten and disperse the crowds that had gathered to highlight the economic situation in the nation and voice their concern.

But simple threats were not enough to disperse the crowds yesterday. Protests turned to riots and both citizen and policeman clashed in the streets. Prior warning of the crack down saw the protestors prepared to resist the forceful ejection by Capital Police and thus violence ensued and blood soon ran. As the push by Capital Police became heavier, the core of the protestors began to rally. Molotov cocktails, rocks, slingshots, and barriers were employed to stop the advance of the government as protestors charged police lines with force. Many arrests were made as the police pressed on this organized resistance with increasing strength, but eventually the situation turned bloody as resistant members were singled out by police, beaten, and in several cases shot.
After several hours of conflict on the streets, the last of the protestors dispersed. In the end over 104 protestors were arrested and sent to secure facilities on the edge of the city. But sadness fell on the nation today as it was revealed that 21 protestors were killed during the crackdown, 12 dying at the scene and the rest passing on the way to or in nearby hospitals. Outrage by many citizens across the nation ensued as social media was ablaze with vitriol for the handling of the situation by capital police. Statements by Capital Police Chief Wyatt today did little to stifle the hurt sensibilities of Ackesians as many including municipal politicians called for the chiefs resignation following the incident.

But looking deeper into the situation, what brought the police to take such a heavy-handed approach with the protestors?

For an answer to that question we need to look at the whole picture of what was happening in Beldon. At the head of the economic crisis in Ackesia leaders from nations all throughout Lira are scheduled to meet with President Ackerman in two days to discuss energy exports and the increasing prices of petroleum due to the recession. Ackesia being the chief exporter of energy to western Lira is critical to international leaders in controlling and already deteriorating situation. Should the situation look unstable in Ackesia, as it did with the outbreak of protests in the capital, the optics of the stability in the Liran energy machine that is our Republic could be at risk. Certain President Ackerman saw this and reacted in fear of international pressure on increasing prices of energy exports.

What has been revealed to me from sources inside the Palatul Poporului is that the order for the Capital Police to use extreme force to remove the protestors form the streets of Beldon ahead of the Energy Summit came from President Ackerman himself the day before the crackdown. Sources also revealed that President Ackerman made it clear to the police chief that whatever force necessary to remove the protestors with haste was needed he was authorized to employ. An internal memo from the President’s office with such details was leaked backing up these claims, and thus far the President’s staff refused to comment or confirm whether President Ackerman did indeed intend for such an outcome.

These harrowing details paint a troubling picture of the President’s state of mind with regard to the global recession in relation to the Ackesian economy. The people of Ackesia clearly are troubled by the current levels of poverty, famine, and homelessness plaguing the country and they deserve swift action to address it. Contrary to this, the cult of personality that surrounds our long time President has forced a gridlock over any meaningful legislation to curb such affects on the most affected by this crisis. With the upcoming election and the wish to appear stable to the rest of Lira, Ackerman’s methods of securing Ackesian “optics” could surely have the opposite affect as tensions within the nation become exaggerated.

The upcoming election will certainly tell what is the will of the people in this regard. President Ackerman is certainly a hero to our republic, but perhaps a 6th term is too much and fresh leadership is needed as Ackesia heads into the new decade.

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[Volga-Dnieper]

Plamen, Koltsograd Region.
24.01.2020

It was already evening. The sun was setting over Plamen, painting it in orange and red. Quite fitting for a flame-named city.

Few buildings were towering over five- and nine-story buildings of the city: TSPR construction policies never endorsed modernist skyscrapers of steel and glass. Of those few, one building was towering over the entire Plamen, a massive concrete ziggurat of seven steps and more than three hundred meters tall, growing up from the earth as if it was about to connect with the infinite, unbound sky. The Palace of Councils, where the best of the best comrades of TSPR met together to steer the country towards its final destination.

Alexandra Stamboliyskaya was looking out the window. Her flat was facing west so the sunset made the Palace look like a silhouette of a mountain in a bright halo. She had a short break, one of the few holidays she always made for herself. This one was entirely justified.

Shutting louvers, she slowly went back to her table on which lied a thick black file of documents with an inscription:

TANAYA SOVIET PEOPLE'S REPUBLIC
REPUBLICAN ECONOMIC COUNCIL

Case #15469

11th Four-Year Plan for the Development of the National Economy of TSPR
11th Eight-Year Plan for the Development of the National Economy of TSPR
Final proposal

ADS: 01E9-6D38-75A2-645C-F876-2345-B382-957F-6ABC-25FA-83EE-AA51-1A64-8710-2285-ACFE

Set in motion immediately when approved.
A. A. Stamboliyskaya

This folder contained results of the hard work of both her and dozens of men in the REC. The recession hit them as hard as it hit TSPR running on two previous plans ─ that is, it didn't hit them at all directly but caused worries. What would happen if the flow of materials was to stop? What would happen if there would be a complete economic collapse in the region?

The new economic plan directly focused on the heavy and military industries and everyone in the Presidium, CEC and REC knew what political move entailed this focus. The strategic goal in the third decade of the 21st century was set and every political and economical move now must push TSPR closer to that goal. Economic plans merely reflected this goal from an economic standpoint; she has been wondering for some time if some smarter people from foreign intelligence services could guess on the next move of TSPR by examining parts of the economic plans they could get. Probably not. Not unless they hacked ASMUK network to get full plans ─ and you'd have to try hard to break something from outside when you have protocol incompatibility and next to no inlets to the system.

Chairman skimmed through the 60-page annotation print again. Military industry. Balanced general expansion. Moderate air force rearmament. Moderate naval rearmament. Full land army rearmament. Heavy industry. A major increase in production within all sectors. No new markets expected to appear for those goods. Light industry. Steady as she goes. Medium industry. Expansion of the nuclear program. Energy autarky to be achieved as soon as possible. Nuclear arsenal to be reduced by 10% to support the expansion. General industry. Support the rearmament. Agriculture. Steady as she goes.

That was everything one needed to know about the plan if they didn't want to dive deeper into the intricacies of the TSPR economic system. She placed the paper back into the file, briefly smiled, put on her parade suite with two medals ─ gold five-pointed stars in laurels on a standard mount ─ and went to the kitchen.

That day was her birthday. Alexandra Andreeva Stamboliyskaya, Chairman of the Presidium of the CEC, former Chairman-Director of the CIME, twice the Hero of Socialist Labor and Science, has finished her 50th yearly life cycle.

If she hadn't had a calendar in her head, she would've forgotten about it because they day passed just as usual. Meeting of the Presidium in their chatroom. Finishing some paperwork. Skimming through summaries of the meetings of the CONPECOM, REC, plus some reports from the CISS. Requesting a summary on Sepura and the Isthmus Republic. Lunch. Working in her main area of work.

50 years have passed, of which 33 were tied with the Institute of the Mathematical Economy, its first Chairman-Director, Ivan Antonov Plamenev, and his school of thought. 33 years of combining restless scientific work with relentless social maneuvering, occasional reading of courses to substitute her mentor and of course engineering. Two Heroes of SocLabor & Science. One for one major theoretical work involving some complex mathematical apparatus, due to the specific of CIME it was aimed at the noble cause of economical organization (awarded in her 25). The other for her role in ASMUK development (awarded in her 48).

Now she was sitting at the table with a mug of tea and a cacao waffle cake before her. 50 years old. Half a century.

She remembered how she got into CIME. It was 1987 and she was to graduate from the 67th Mathematical School in Vishnegrad. Even if mathematics modestly attracted her and she was good enough to skip a grade, she didn't know where to go next. Her father deferred the decision to her. As for her mother, Chairman never remembered her ─ she was long dead.

That day it was another round of "orientation" testing that should be of help in determining which area suited one the best. Because of that, Stamboliyskaya hadn't attended another meeting of the Logic-Mathematical Society and instead was lying on the grass in the courtyard, half-dreaming under the blue sky and May sun.

A man's voice returned her to the reality ─ "Excuse me, comrade student?"

Hearing the voice, she raised herself up, looked at the man and then stood up completely, brushing grass off her uniform. The man looked to be about 50 years old or so and his chestnut hair carefully swept back started to gray. His face with several wrinkles was the face of a thinker.

"Yes?"
"Could you tell me where is the administration section?"
"Ah, I can lead you there. Follow me."

They exchanged a little talk about the school, how it has changed over 40 years ─ turned out the man graduated from the 67th in 1950 ─ and then slowly came on the topic of her own plans of future. Her reply to a straightforward "You look like you're about to graduate yourself. Do you have any plans where to go next?" was a straightforward "None."

"Seriously? None?" The man looked genuinely surprised.
"Seriously, none. I know only one thing ─ I don't want to be at the bulk or at the rear of our effort. We are building socialism and I want to do my best at the forefront of it."
"That's quite a responsibility, mind you, to be at the forefront. And quite a pain too..."
"I'd rather handle it than give up."

She was full of herself. Still, even back then she didn't think she'd be a Chairman of the Presidium.

"Say, you ever read any issue of the Mathematical Economy?" The man asked after a brief pause.
"A couple of them, yes. The latest ones."
"And what do you think of it?"

The future Chairman thought for a bit. She only read two issues of it and a lot of the topics were unfamiliar to her so she couldn't have an opinion on them. She'd be at a total loss over what to say ─ but then she remembered an article that got in her memory.

"There was one article, by comrade Plamenev, I think, that I disagree with."
"Oh? And what was it about?" Then the man asked, clearly interested.

"Electronic currency systems. Think he is in an inertia prison carried from what we know as the currency. He's not radical enough."
"Oh, and I thought he was too radical to be understood and just downplayed it."
"I didn't catch that vibe from his work... Ah, here we are." They have finally arrived.

"Thank you, comrade." He said and proceeded to the door leading to the Principal's office. "Oh, by the way. I am the author of that article. Ivan Antonov Plamenev, Chairman-Director of the Institute of the Mathematical Economy. You are accepted ─ our center is at the forefront of Tanayan economical research. I expect you to show up with your papers for enrollment, comrade..."

She was baffled by the revelation so Plamenev reiterated: "Comrade..."
"Ah... Stamboliyskaya. Alexandra Stamboliyskaya."

Now that she remembered that, she regretted absolutely nothing. Her criticism was perfectly valid, by the way.

In any case, it was time for all Councils to vote on her plan proposals. But she was calm ─ she knew they'll see reason and the reason will prevail.

Because in the end, the reason will always prevail, won't it?

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Excerpt from: Vrijemena Tanaji, 30.01.2020
<...>
New Economic Plans Approved
The Councils of TSPR have finished the vote on the new economic plan proposals put forward by the Central Executive Committee of TSPR and the Republican Economic Council. The plans are now approved with 84% of city councils, 82% of county councils and all regional councils. The plans are to be put in motion immediately...
<...>

[Lykens]

State Counselor's Residence, 19 Condado Street, Lykens, Lykens
5:45 AM Friday January 3, 2020

"In conclusion, the markets in Ofrax are crashing which is going to cause a tsunami of crashes across the world. We expect Wintonian, Oceanian, Malstreciganoj, and Bnnuian to go down hard, hell even the lower rate stock exchanges in Lunderfrau, Carelia, and Sepura are going belly up. Across the board meltdown, I don't see how anyone gets spared from this. People are killing themselves in Ofrax because they can't afford food or rent, and there were reports of bankers in Salzewinde jumping off of buildings after the markets started crashing. We're lucky the wave took a bit before it hit Lykens, we were able to end the trading day as soon as we saw signs. Being that we're about to head into the weekend, I believe a bank holiday starting today and lasting for as long as you can swing it is probably the best bet to mitigate some of the damage." The grizzled looking man sat back down as he concluded his report.

"Thank you Rodrigo, I appreciate you pulling that together so well on such short notice, we will reach out to you as soon as we're done here." Rodrigo nodded and collected his papers, exiting as he exchanged farewells with the assembled cabinet members. Having served as Executive Director of the Lykensburgish Monetary Authority for the last 25 years, under five different State Counselors across three parties, Rodrigo Sanz's words on economic matter carried institutional heft that conveyed the severity of the situation. The room felt very tense, especially as voting across the nation would begin in exactly one week, two hours, and fifteen minutes.

Kenneth sat quietly at the head of the cabinet table as the door closed with a flinch inducing click. Fabiano Astrada, Undersecretary of State for Economic Protection, leaned forward, his youthful appearance compared to his neighbors, the Secretaries of State for the Treasury and Foreign Affairs Faustino del Bosque and Eneida Villalobos, both well into their fifties. Fabiano's superior Faustino cast a contemptuous glance at the younger man as he began to speak.

"State Counselor, this is a perfect example of how continued and expanded globalism will cause damage on the Lykensburgish economy. We've begun to put into place a system that does not fit our nation's spirit and output, we have to chart a path forward to repair the damage wrought upon us by a globalist agenda. We will experience some pain, but eventually we can dig ourselves out of the whole we've been dug into by such a fragile and interlocked system." Fabiano rapped his knuckles at the edge of the table to punctuate his point and looked expectantly at Kenneth, who had during the man's spiel casually rotated his chair to face the window instead of down the table.

Kenneth looked over to Abril Toledano, his Defense Chief. "Abril, your budget is going to be slashed by at least a thirty five percent, all the way across the board. " She gave a resigned nod and began sifting through folders for her budget report for the fiscal year. Not even four months into her post as Secretary of State for Defense, and her most consequential action would be gutting the budget which she had previously fought vociferously for.

"Servicemembers who are furloughed due to this will be paid out of the Military Pension Fund, we'll replenish the fund from the General Fund once we're out of this mess." He paused and looked down at the folder in front of him. He leaved through a few pages, wrote a few notes in a few margins, and then looked back up at his cabinet.

"Labor, Pensions, and Veteran's Affairs will coordinate with Abril and the Under Secretary for the Armed Forces to work that out, including pay rates, frequency of pay, and the like. Bring that data to Treasury by the end of business today. Under Secretaries for Provincial Development, Provincial Trade, and Acquisition, Logistics, Preparedness, and Readiness the trio of you are going to work to buy up the surplus of goods we're about to drown in once demand collapses come Monday. Again, data, numbers, the like forwarded to Treasury by the end of today. The entire Department of Health, Welfare, and Human Development is going to see an influx of money, however we are going to have to shift some money from Public Health to Public Assistance. This is going to be temporary, only until we can get permanent appropriations passed. We'll be offering enhanced unemployment benefits, up to at least 150% of the recipient's salary. The Department of Public Works, Infrastructure, and Transport will be seeing at least 30 billion dollars in supplemental funding, and will be coordinating with the Under Secretaries of Rural Development and Provincial Development. Provincial projects are to be granted expedited review processes and first priority for grant funding. We're already funding all of the existing federal infrastructure projects are already financed throughout the next three years, so we'll be able to send most of the money directly to the provinces."

A few seats down from Kenneth on his right sat Dalia Araya, the Leader of the Assembly. She sat in the cabinet as a trusted ally of Kenneth and by virtue of her leadership of the Assembly, which required her to be appraised of the Government's policies, actions, and intentions. She usually sat policy debates out to defer to her colleagues with more policy related expertise, however as someone who had grown up in poverty, she felt compelled to speak this morning. "State Counselor, I'd like to suggest an increase of the benefit for Parents with Dependents, many of these recipients are employed in lower end wage occupations and depend on the benefit for making up the difference, and many times the unemployment benefit does not always cover the wage requirements of many of these recipients."

Kenneth nodded along as she spoke, penciling something in as she finished. "You're absolutely right Dalia, thank you for noticing that. The lot of you, if you have specific ideas about where we can best help, please speak up, I have you all here for good reason." He chuckled lightly, and the rest of the room followed.

"Now, I know most of the caucus is on their way back home to campaign, and we adjourned last night with the assumption of only a pro forma session today, but it's becoming clear we're going to need the Assembly in session to legislate the beginnings of a response to the crisis. Dalia, if you could call the Assembly into session later today about 7, we're probably going through the night to get through everything we need." Dalia nodded and began typing on the laptop in front of her.

"This is going to be tough business, and we're going to be battered on all sides during this recession, and we have the election coming up in only a week. However, I could not be more confident going into this catastrophe with anyone else by my side. We'll get through this and we'll come out better for it." A few hands shot up along the table and Kenneth smiled.

Grand Assembly Hall, Lykens
6:53 PM Friday, January 3

Tense conversations filled the expansive Grand Assembly Chamber as all 950 Assemblymembers milled about discussing current events. Most had heard about the sweep of the recession on the world and its expected impacts on Lykens, and then the abrupt halt of the trading day. Opposition AMs were clamoring for a response from the government, especially with only one week before the public went to the polls to decide the fate of Kenneth Diaz. Unfortunately for Kenneth, what he'd hoped would be a swift passage of legislation through the night, was complicated by the coincidental public demand of the Opposition Civic Union leader, Valentín Escamilla, to Kenneth and Dalia to bring the Assembly back into session to deal with the impending recession, barely four minutes prior to Dalia's public announcement to bring the Assembly back into session.

Escamilla soaked up almost twelve hours of unusually laudatory media attention while Kenneth and his leadership were hunkered down preparing emergency legislation. A former member of the ARP who leaned to the rightwing and constantly challenged and lost to Kenneth in ARP Leadership elections, Escamilla bolted the ARP for the Civic Union and was quickly elected its leader in later 2018. He was returned to the Assembly on the CU list, and had used his position opposite Kenneth at the dispatch box to endlessly badger his rival. Kenneth personally considered the man an arrogant blowhard, and was infuriated he would be soaking up media attention like a sponge absorbed water.

Some reporters were allowed on the floor of the Assembly prior to the session, and Kenneth glared at the encircled Valentín, wrapped in a throng of naïve reporters who were hanging onto his words with just a bit too much intensity. Valentín caught his eye and winked, prompting Kenneth to grimace in digust and turn back to the group he was standing with, his frontbench. The Leader of the Assembly, the Chief Whip, and the Secretaries of State for the Treasury and Foreign Affairs. Dalia was finishing detailing the schedule to her colleagues.

Alejandro Vargas, the Chief Whip, nodded along while sifting through a little black book. "We have the votes, Maximiliano is releasing 17 votes for us so we'll be comfortable at 480, assuming we go it along with no other party support." Eneida rolled her eyes. "Did anyone reach out to Amaranta? There is no reason for her to oppose this bill." Alejandro shrugged as Eneida scoffed at him, "She refuses to speak with any of us, and you know exactly why." Alejandro looked at Kenneth from the side of his eye.

"It's not my fault I've won every election we've gone against each other, she's not good at what she does!" Kenneth threw up his hands, "If she was better at what she was supposed to do, she'd have my seat and I her's." He folded his arms and took a seat as he saw Calista Borja, the Speaker of the Assembly, striding up to the dais. Assemblymembers throughout the chamber began to quiet down and take their seats as the Speaker took her seat. She rapped her gavel and declared the Assembly in session. She looked over to her right at the Leader of the Assembly, but Dalia remained seated.

Valentín Escamilla took the opportunity to be recognized first and stood up.

"The Honorable Leader of the Opposition is recognized."

"Thank you Madam Speaker. Members of this august body, please recall that last night, we were adjourned for the next week, in advance of the upcoming election. And instead of returning home and campaigning, we are here today, assembled at my call," The Association benches began jeering at the traitor.

The Speaker rapped her gavel three times. "Order! The Government benches will return to order!"

As the jeering died down she cast a scowl at the government backbenches before turning back to Valentín, "The Leader of the Opposition has the floor."

"Thank you Madam Speaker, we are assembled here today to begin crafting a plan to help the most vulnerable of Lykens, and to build back from the excesses of the government. I hope that the State Counselor sees that in just a short while his government will no longer be in power, and he should work across the aisle to ensure his party's interests are protected while they still can." The Civic Union benches erupted in jeers towards the government benches.

"I have instructed my Committee Members to draft policy proposals for the appropriate response to this crisis, and they will be circulated among the Assembly for discussions prior to legislative drafting and handing down the bill. We on the Opposition benches know how to govern, and we intend to show the country in the coming days."

Valentín cast a smug look at Kenneth as he stood to seek recognition.

"The Right Honorable State Counselor is recognized."

"As amusing as it is to see such incompetent braggarts to provide examples for why they should never be trusted with the keys to governing, This government is minutes away from handing down several emergency bills to deal with this crisis, with data and briefs prepared for this august body's consideration. A supplemental appropriations bill will be introduced to fund provincial infrastructure projects, buy up commercial surpluses, and provide for relief for those suffering economic hardships in the coming months. This government will continue to govern until the winners of the next election are invested with power, and I promise this august body and the people of this country that we will overcome this crisis and we will do so with the steady hand of my government, as we have done before.

So ladies and gentlemen of this august Assembly, please sit tight because this session will be going deep into the night, for we will not adjourn until this emergency agenda is passed for the betterment of our countryfolk.

Madam Speaker, I yield the floor."

Kenneth sat down to cheers from behind him.