The Queen's State of Kratzer Islands is a gargantuan, genial nation, renowned for its national health service, complete lack of prisons, and punitive income tax rates. The compassionate, cynical population of 21.194 billion Kratzer Islandsians are ruled with an iron fist by the dictatorship government, which ensures that no-one outside the party gets too rich. In their personal lives, however, citizens are relatively unoppressed; it remains to be seen whether this is because the government genuinely cares about its people, or if it hasn't gotten around to stamping out civil rights yet.

The enormous, socially-minded, well-organized government juggles the competing demands of Welfare, Education, and Defense. The average income tax rate is 71.3%, and even higher for the wealthy.

The Kratzer Islandsian economy, worth a remarkable 1,004 trillion betales a year, is quite specialized and led by the Woodchip Exports industry, with significant contributions from Automobile Manufacturing, Tourism, and Book Publishing. Black market activity is notable. State-owned companies are common. Average income is 47,383 betales, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Public loudspeakers constantly tell citizens they are "happy people", all beauty contests have been banned, the study of medicine is popular throughout Kratzer Islands, and toddlers are wielding machine guns in the name of national defense. Crime is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Kratzer Islands's national animal is the deer, which frolics freely in the nation's many lush forests.

Kratzer Islands is ranked 82,971^st in the world and 47^th in Ancient Lands for Lowest Crime Rates, with 68.1 law-abiding acts per hour.