The Federation of New Caratonia is a massive, efficient nation, renowned for its state-planned economy, parental licensing program, and restrictive gun laws. The hard-nosed, cynical, humorless population of 1.517 billion New Caratonians are ruled without fear or favor by a psychotic dictator, who outlaws just about everything and refers to the populace as "my little playthings."

The enormous, corrupt, moralistic, socially-minded, well-organized government juggles the competing demands of Education, Law & Order, and Defense. The average income tax rate is 94.8%.

The frighteningly efficient New Caratonian economy, worth 224 trillion Carats a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. However, for those in the know, there is a slick, highly efficient, quite specialized black market in Information Technology, Arms Manufacturing, and Furniture Restoration. The private sector mostly consists of enterprising ten-year-olds selling lemonade on the sidewalk, but the government is looking at stamping this out. Average income is an impressive 147,994 Carats, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

Much of New Caratonia's computer network is controlled by a rampant artificial intelligence, it is illegal to have the wrong clock time showing on your microwave oven, psychiatrists bizarrely accompany Leader to meetings with foreign heads of state, and jabbing a baby's bottle at officials gets parents waved straight through immigration. Crime, especially youth-related, is totally unknown, thanks to a very well-funded police force and progressive social policies in education and welfare. New Caratonia's national animal is the Rabbit, which frolics freely in the nation's many lush forests.

New Caratonia is ranked 9,121^st in the world and 169^th in 10000 Islands for Healthiest Citizens, with 15.48 bananas ingested per day.