Lodamun

[imperialpearl]

In his first major/headline address on the economy, President George Menkyn flanked by members of his economic team, including Secretary of the Treasury Dr James Woodall, Secretary of Commerce and Industry Robert Ellison and President of the Economic Advisory Committee Dr Cynthia Browning, proclaimed a new era of economic investment as he pledged some 1.2 trillion LOD, over the next fifteen (15) years to address what he turned “serious issues” in the national economy. President Menkyn supposedly broke from the precedent set by many of his predecessors when he sought to address the nation’s foreign/external policy concerns before the administration could articulate its domestic economic policy. He noted that the extraordinary circumstances of the times, namely Lodamun’s withdrawal from the Anantonese Empire and the series of geopolitical challenges throughout the world necessitated that the administration articulate its external, outward-facing policy before matters related to the domestic economy could be addressed in full. “I can understand the confusion that might have caused among the Lodamese people and I’d like to say that it was imperative that we addressed the numerous ‘holes’ in our foreign policy, if you may, before we sought to speak to our broader ambitions from the Lodamese economy,” President Menkyn explained. 

The announcement, although supposedly part of the administration’s economic program, is ultimately set against the backdrop of Lodamun’s withdrawal/split from the Anantonese Empire and the economic fallout which followed. Having enjoyed economic stability under the Anantonese Empire for the better part of fifty years, Lodamun’s withdrawal and the subsequent disruption to the once-seamless flow of commerce between Kaliburg and Kensington have sent the domestic markets into a frenzy as many questioned whether the Lodamese economy would be able to weather the transition and ‘bounce back’. The HSE (Harrington Stock Exchange) closed some ten points down yesterday as part of the market’s reaction to the administration’s noticeably slow reaction to the concerns of investors and citizens alike on the prospect of the nation’s ability to indeed make a positive turnaround. “Although it goes without saying that we were not as dependent on our relationship with the Anantonese Empire as, say, Gaduridos, the disruption that this split has caused certainly begs for the federal government’s intervention to calm the markets and regain confidence,” Steve McKnight, a market analyst, explained.

Secretary Ellison stated that within the administration’s 1.2 trillion LOD spending plan, there was significant grants and transfers set aside for numerous sectors of the economy, including the automotive industry, semiconductors, agriculture, aerospace and defence, petrochemicals and the green economy. He lamented that the Lodamese automotive industry had been ‘neglected’ under previous administrations, as the significant subsidies which were once used to encourage the sector to expand both domestically and internationally had ultimately ‘dried up’ and that there seemed to be a return to the sector’s risk-averse mentality. President Menkyn has said that he intends to meet with the CEOs of the major auto companies with the hopes of encouraging them to shake off their malaise and to ‘drop the risk-averse act’, noting that he intends to use subsidies to ‘push the sector towards new heights’. Beyond this, the administration is seeking to refocus the federal government’s assistance in state and local economic development. 

Historically, previous Lodamese administrations have placed significant emphasis on assisting state governments achieve their economic growth and development ambitions through targeted investments and partnerships between state and federal agencies. Entities such as the Federal Industrial Finance Corporation (FIFC), the Research Projects Administration (RPA), and the Agricultural Credit and Insurance Corporation (ACIC), etc have been at the cornerstone of numerous administrations’ industrial policies; Secretary Ellison stated that the Menkyn Administration is no different. “We intend to aid the states (wherever we can) in achieving their long-term economic development goals, whether in Berkwaki by continuing to support the development of its vibrant downstream petrochemicals sector or in St. Christopher by enhancing our green energy financing partnership with the Green Bank or in Barrington with greater agricultural subsidies. Unlike previous administrations, however, we do not intend on creating a new entity but will work with those that are currently out there, doing the work.”

To address uncertainty within the banking sector, Treasury Secretary Woodall confirmed that the Credit Reconstruction Corporation (CRC) would be mobilised to help the nation’s financial institutions recapitalise. President of the CRC, Dr Beverly Huber, stated that some of the agency’s interventions would range from purchasing non-performing assets from small to medium-sized financial institutions. She noted that the nation’s larger financial firms, namely Bank of Newchester, PCH Carville, and Blackwell & Kramer, would not require recapitalisation as they had significant capital reserves when compared to the nation’s smaller community trust banks. The CRC will likely hold onto these non-performing assets until the markets have calmed, whereafter they may be transferred to the Federal Holdings and Investments Board (FHIB) or simply resold on the domestic market. Beyond the CRC and recapitalisation, a significant portion of the government’s spending plan hinges on infrastructure development, particularly on public utilities ranging from the construction of nuclear powerplants and hydroelectric damns to providing financing from wind, solar and potentially tidal energy projects on the federal, state and local level. The Civil Projects Administration has stated that it will continue to enhance the nation’s infrastructure development landscape, with a renewed focus on expanding the nation’s major ports and granting the three regional utilities: the Kregon Plateau Authority, the Nasahatchie River Authority and the Edmiston Basin Authority, enhanced opportunities to explore new areas for power generation, particularly with respect to geothermal energy.