Kalistani Major History

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Delgado says "Government reconsidering Altatapec"
Inflationary tendencies of LFR appear to be under microscope
Kaliburg, Grand Duchy of Ananto
April 9, 5511


Foreign Minister Paco Delgado discusses Policy at Council of Anantonese Affairs in Kaliburg

Her Imperial Majesty's Foreign Minister, Francisco "Paco" Delgado, was the Keynote Speaker at the Spring Meeting of the Council of Anantonese Affairs this week. At the speech, during the Governor's Luncheon, Delgado delivered a speech titled "Re-Evaluating the Special Relationship." During the speech, Delgado announced that the Empress has been speaking with various foreign relations experts, asking a simple question: "Is our relationship with Lourenne a help or a hinderance to Kalistan?"

"Her Imperial Majesty is first and foremost a nationalist," said Mr. Delgado. "It is with the sober eye of the Nationalist that the Empress tries to evaluate every policy she adopts. She does not rely on sentimentality. She does not rely on nostalgia. And she does not rely on impulse. She is one of the shrewdest individuals that I've ever worked with, and she is always studying, always learning, and always open to new information. But she will always make her decisions based on what she believes to be best for her Nation and her people, for she truly believes that her most important title is 'Embodiment of the Anantonese Nation', and she takes that job very seriously."

The Foreign Minister went on to say that the Empress is looking at both the role of Altatapec, the treaty signed at the end of the recent War in the Sea of Lost Souls (also known as the Hubris War) and the internationalization of the LFR. "With regard to the Treaty, I am not sure that treaty is long for the world in Kalistan," said FM Delgado. "There doesn't really seem to be anything in it for Kalistan. It seems to confirm what Kalistan already states to be a situation of fact, it ties Kalistan to a treaty regime that is otherwise dominated by large powers, both economic and military, and it also signals, through omission, who does not fall into that bloc. Kalistan has long stood outside blocs, and Her Imperial Majesty believes that it may soon be time for Kalistan to reconsider that Treaty."

The Foreign Minister also included some comments about the LFR, which seems to have spread across the world as part of the Neset trading Network. "While Kalistan supports the adoption of an International Convertible Currency, our Empress reflects her Mother's apprehension toward adopting a currency tied to any nation's policy," said Delgado. "When the Lourennais economy is strong, those who have tied their own economic fortunes to the Franc do well. But when the Lourennais economic prosperity fades, as all economies which willingly accept the ups and downs of the Business Cycle must, they will drag most of the world's monetary systems down with it. The dramatic expansion of the LFR is already starting to produce inflation world wide, and as it moves into new countries, the even well meaning Franc Institute will lose control of it. Enthusiasm to adopt it may eventually be the demise of the international monetary regime, and Her Imperial Majesty is taking steps to avoid being taken down with it."

The words from the Foreign Minister seem counterintuitive, as the rest of the world plunges headlong into a global trade network run by Beiteynu and happily pegs their currency to the LFR, or openly adopts it as their own. "But Her Imperial Majesty already sees signs of an inflationary cycle setting in to the LFR regime, and the closer one is tied to that currency, the more inflation will eat up the buying power of the world's workers." The Foreign Minister was careful not to issue any policy during the discussion. "The Empress will say of course that each nation must chart its own course. Kalistan maintains our Zero Percent Growth focus as a protection against inflationary cycles. Our model may not be appropriate for some countries' growth strategies. There are of course trade offs.

"But part of our Nation's policy is to not trust the Market to ever get it right," continued Mr. Delgado. "Not only does the market act erratically: The Market is not in and of itself rational, and individual rationality almost always yields collective irrationality and negative systemic outcomes. But it can also be a tool for the wealthy and powerful to enrich themselves at the expense of those who wish they were wealthy and powerful. Getting a developing nation to buy into a regime controlled by a powerful nation with the promise of one day being like that powerful nation is a form of Imperialism. As long as the powerful nation is clear about the relationship and the weaker power enters into it knowingly, this is not in itself immoral. But when it is sold as a vehicle for advancement to those who themselves have few resources and are being asked to invest them in what is in essence a pyramid scheme, that seems exploitative."

The comments produced immediate backlash from liberals in the audience, who launched into a series of very pointed questions, asking for clarification, including questions like "Why is Her Imperial Majesty's Government so hostile toward any whiff, however small, of free market economics?" and "Where did the Empress get her Economic Degree, since she seems so willing to opine on a subject that most Kalistanis neither know much about, nor care much about?" The Foreign Minister brushed aside the questions from the liberals, referring back to his comments, though some questions characterized the Foreign Minister of attempting to drive a wedge between the two Anantonese Monarchies.

"Any accusation that Her Imperial Majesty has anything other than the most positive feelings toward the United Kingdom is so scurrilous and outrageous as to not even be acknowledged," said Minister Delgado. "Her Imperial Majesty looks forward to travelling to Lourenne this summer, and hopes to meet once more with King Leopold there to reaffirm our Nation's friendship and cooperation with Lourenne." He did add, however, "But the Empress reserves the right to conduct her own foreign policy, and to hold her own opinions, especially when she believes certain arrangements are bad deals for Kalistan and other countries. Make of that what you will." The dismissal raised a host of new questions, and not a small measure of disorder, as liberals and institutionalists began debating with one another in the hall. The Foreign Minister took that as a cue to depart, thanked the Conference attendees for meeting with him, and then headed off for a new meeting.

There is no word about how the Minister's speech was received in Eveari, but later that day, His Highness, the Prince Consort, when discussing plans for the summer's world tour, added "And I'll say one more thing. I should expect a cooler reception in Eroncourt after Paco's speech today, but speaking for myself, I think its about time someone said it." When asked to elaborate, HHPC Bjorn said, "No further comment on that. I may have overstepped."