The Republic of Kerlodia is a small, genial nation, notable for its ubiquitous missile silos, irreverence towards religion, and punitive income tax rates. The compassionate, democratic population of 45 million Kerlodes enjoy extensive civil rights and enjoy a level of social equality free from the usual accompanying government corruption.

The enormous, socially-minded government juggles the competing demands of Welfare, Education, and Defense. The average income tax rate is 68.1%, and even higher for the wealthy.

The struggling Kerlodi economy, worth 786 billion Bautista Sovereign Killis a year, is quite specialized and led by the Tourism industry, with significant contributions from Uranium Mining, Beef-Based Agriculture, and Book Publishing. State-owned companies are common. Average income is 17,485 Bautista Sovereign Killis, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

Embarrassed police officers wear spandex and carry net guns, serial commas clarify the relationship between one's lackeys, the taxpayers, and kinsfolk, children are brainwashed at a young age to accept "love and peace!" as a way of life, and local executives are seen on the corner with cardboard signs reading "will oppress the masses for food". Crime is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Kerlodia's national animal is the Jackal, which frolics freely in the nation's many lush forests.

Kerlodia is ranked 127,597^th in the world and 5,306^th in the South Pacific for Largest Insurance Industry, scoring -5.35 on the Risk Expulsion Effectiveness Rating.