Kalistani Major History

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Premier of the Republic Hails Nationalization
First Steel from KALNAFERCO rolls off the Line
Eshar Odufaray District
December 2, 4407

In the most dramatic reforms in recent Kalistani History, KALNAPECO, KALNAFERCO, The Republican Bank, The National Service Program, The National Food Bank and The Organization of Drug Exporting Nations came online at precisely 12:00:01 am this Morning.  The Premier of the Republic and overseer of the reform, Dianne Carrangus delivered a speech commemorating the event from Kaliburg.


Premier Dianne Carrangus delivers a speech to a small crowd of 600 outside the Socialist Party Headquarters in Kaliburg, announcing the fact of Nationalization.

"In the course of Kalistani events, few moments have been as monumental as this one particular instant.  Many centuries ago, our forefathers and mothers fought to build and protect the institutions we have seen return to Kalistan this morning.  Socialists protected these institutions for countless centuries.  And then the defenders of our National Institutions disappeared, and with them, the Institutions they had fought to protect.  But now, Kalistan returns to our historic orientation.  As if by the switch of a light, the Dual Economy regains its life.  We are gathered here to commemorate the passing away of the aberrant, and the return of the normal.  So long as we fight to defend our Institutions, Kalistan will have life.  When she lets those institutions rust, she rusts with it.  It is our hope that this never happens again."

Within minutes, the National foundry had lit its fires as the first crew of National Workers filed into the plant.  Within an hour, raw iron ore delivered from Neveras by Train was being smelted into Iron, which, in its molten form, was being refined into steel, to be rolled into sheet metal of varying lengths.  By the end of the day, the Foundary had produced nearly 2000 tons of steel in 96 Coils.  All 96 coils were loaded onto one container ship and sent directly to Kaliburg Naval Ship Yard to be pounded into the hull of a new Ananto-Class Destroyer.


The first coils from the National KALNAFERCO Foundry are loaded onto a container ship bound for Ananto

In other News, initial Public Offerings were made on shares in KALNAPECO, KALNAFERCO, and The National Bank.  The prices per share opened, after a period of speculation at:

1.21 KRB per share in KALNAPECO
1.17 KRB per share in KALNAFERCO
and 1.17 KRB per share in the Republican Bank

The Kalistani Government purchased 20.4 Billion shares of KPO, leaving 19.6 shares outstanding for purchase by private investors, 15.3 Billion shares of KFO, leaving 14.7 Billion shares outstanding for purchase by Private Investors, and 2.55 Billion Shares of RNB, leaving 2.45 Billion shares outstanding to be purchased by private Investors.  The sum total amount paid by the Republican Government for the Nationalized Industries was 45,568,500,000 KRB, well under the budgeted amount for the full nationalization of these three industries.  Additional funds will be made available for buy backs of stock pending lack of investor interest.  Stock sale revenues will be held in escrow at the Republican Bank, and previous Kalistani investors will receive bonds for compensation, redeemable in 6 months from the escrow account.

Nationalization is now a fact, and Kalistani Markets are fluctuating. Companies who have invested in the energy, heavy industry and defense sectors are mixed:  More than one CEO has announced plans to contact the Republican Government about outright purchase of corporate assets, while other CEOs have expressed worries about profits when competing with the National equivalent.  Said Boris Davidson, of Vrassa's "Selenarium Consortion" who had previous held a lucrative defense contract:  "I simply don't see how we will profit beyond the fourth quarter of next year.  I have 7,500 workers who I've employed.  I will have to start laying them off so I can maintain the margins my Board have set for this company.  Without those government contracts, I don't know how we can possibly continue to pay our workers even the barest minimum."  Selenarium was one of 73 private Kalistani firms that used contracts to reap mountainous profits.  Under the private contracting system, cash on hand for these 73 companies alone neared 500 Billion, and goods and services sold by these companies were often ten and twenty times the cost of the same items sold in the private retail Market.  Those contracts have all now been cancelled, and the work has been shifted to the new National Service Program, with many of the former employees of these firms leaving to take higher paying jobs with the Republic.

The Nationalization is sure to send shockwaves throughout Selaya and Majatra.  Damage to other national economies is expected, however to be limited to those who had previously been looting Kalistan's private sector.