(OOC: Note that these minutes are from the String session on 8/29, and thus do not take into account the events which have occurred since then.)
Minutes: String Session 816
Attendance: 86%
Nahuel Wayra: The 816th String Session is now called to order. Tonight we will cover the crisis in McMasterdonia, beginning with a briefing from Alaula Noe on the financial developments.
Alaula Noe: Thank you, Nahuel. Without delving too deeply into technicalities, the assassination of Queen Matilda and the repeal of the McMasterdonian tax code caused an international crisis of confidence. McMasterdonia hold significant foreign debts, and a robust system of taxation is a critical factor in the ability to meet both internal and external financial obligations.
In response to this, and due in part to perceptions that the newly crowned King Albert's hold on economic policy is somewhat tenuous, stock markets around the world have suffered downturns, and in some cases, outright crashes, with a median loss value of about a third. Some nations have had minimal losses so far, but we predict they will see further drops in the coming days.
Taken in combination with the closure of all of McMasterdonia's borders - land, sea, and air - this has potentially severe implications for our own financial stability. McMasterdonia itself is a long-time friend and close tourism partner, and as its citizens scale back their travels in the wake of their economic troubles, our own income will decrease noticeably. The same will happen with other nations who are likewise affected.
It is the opinion of the Finance Bureau that it is critical for SillyString to secure stable, guaranteed sources of income for the coming months in order to stabilize our nation during this crisis. To do this, we must reach out to wealthy nations as well as those which are least affected by this crisis. It is also important for us to shore up our relationship with McMasterdonia and stop the financial hemorrhage on that front.
Thank you.
NW: Thank you, Alaula. Citizens will find a list of suggested approaches in their document sidebar. I see two questions flagged by the aides for public response. First: What is the worst case scenario outcome here?
AN: An excellent question, and I'm sure a commonly held fear among our citizens. The absolute worst case scenario that we envision - and I do want to emphasize that we find such an outcome
highly unlikely, is complete bankruptcy. If the economic crashes are worse than we predict, and if popular tourism all but vanishes as a result, our economy has no diversity to fall back on. We will lose our source of income, and to get through we will be forced to take out significant loans... but this time, from a much weaker world economy.
As I said, however, we at the Finance Bureau consider this outcome extremely unlikely. Nations, including our own, will undoubtedly take steps to reduce the impact that this crisis will have, and all of those will in turn reduce its impact on us.
NW: Second: In the event that, as the situation develops, things begin to look bleak, what financial safeguards and backups do we have in place to tide us through the worst?
AN: As most of you are probably aware, we usually opt to maintain a somewhat delicate balance between the debts we owe and the ones we are owed. While we may be able to negotiate calling several of our loans in early, so too might the debts we owe be called up before we anticipate. So, this is not a good arena for us to plan to make much money back.
We do have several assets that will be of assistance here, however. The first is our bank reserve. As agreed upon, we have worked to obtain a backup operating fund of one year's worth of necessary expenses. This project is largely complete, and ought to sustain our population at an acceptable level through the more difficult times.
The second is our land reserves in other nations, some of it quite valuable. These have been obtained over the course of many, many years through various treaties and other arrangements, and we retain the right to sell them if necessary. This can provide a means of attaining backup cash in a hurry.
Third, we have the capacity to negotiate with other nations, as well as their airlines and other elements of their tourism industries, to incentivize people to continue to travel to our shores. A low fare is better than no fare at all, for airlines, and they may get quite creative in their desperation to keep customers.
These three comprise the majority of our financial fallback, should such prove necessary.
NW: Thank you, Alaula. Further questions on these subjects may be directed to the Finance Bureau. Next, we will hear from Maro Hare, about our shipping and imports.
Maro Hare: I will be brief, and blunt. If other nations halt their export industries, either because they are unaffordable, or because they require those goods internally, or for any other reason, we will lose our prime source of food. Everything else as well, but we can live without luxury goods. Food is our chief concern at this time, and we must act swiftly to ensure our supply.
NW: Brief indeed. Maro, the aides have escalated questions for you as well. The first question is what we have available in food reserves.
MH: Not a lot. What we have on hand is what each Dot has in storage, as well as that which is on the shipping docks waiting to be sold or transferred. We also have several silos of basic ingredients - wheat, corn, and so on - that can be used to produce staple foods.
We have almost no livestock, which means no dairy or meat, except for fish. The supply of fish is high, strictly speaking, but we have a very limited ability to acquire it given our sustainable fishing regulations. If we hit a food crisis, several of our environmental laws will need to be altered or lifted entirely in order to get by.
NW: Second: How reliable are our trading partners in this matter?
MH: It varies. The Imperium is highly reliable, and McMasterdonia itself, through New Intelligensia, will surely do all it can. Others will be forced to consider themselves first, and break agreements if that's necessary for them. We have tried to avoid making necessity agreements with nations or corporations considered unreliable, but in a situation like this... it's hard to know for certain.
NW: Will we need to look at canceling any of our own export agreements?
MH: Highly unlikely, and we advise against it. Our exports are luxury goods - focused on the rare Anuenue fish, which we harvest in very limited quantities and which fetches a high price on the world market, and our sole remaining local crop - Moemoea. Both are excellent revenue generators and it would be foolish to cancel our agreements.
NW: Thank you, Maro. The last department we will hear from is Tourism, presented by Ms. Jessica Little.
Jessica Little: Thank you, Nahuel. As you've been told already, the tourism industry is very vulnerable at this time. It is our primary source of national income - the only one that produces significant revenues - and it is, by its very nature, incredibly sensitive to worldwide economic events. We must, therefore, continue in would-be travelers minds the idea that SillyString is a safe and affordable place to travel - and for our wealthier clientele, that we remain poised to provide them with their heart's desire at a moment's notice.
What does this mean, in actionable terms? Lower prices, as feasible. Provide for foreign nationals who are trapped here until they can return home, and if necessary make special arrangements for their safe journey home. Try, as best we can, to ensure business continues as usual.
Thank you.
NW: For you, we have only one escalated question. What arrangements will be made for foreign nationals who are unable to travel home due to closed borders or canceled service, but who cannot afford to pay to stay extra nights?
JL: All efforts will be expended to find them less expensive housing for as long as necessary, and we strongly urge the String to absorb those, and reasonable extra expenses, as a cost of business. We see no other viable alternative that would not sacrifice our reputation.
NW: Thank you, Ms. Little. This concludes our briefings. The Ambassador from McMasterdonia was unable to attend personally, but has released the brief that would have been presented at this session. We will now adjourn for thirty minutes, in order to read the brief and provide a brief, heh, break.
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NW: And we're back. A number of legislative proposals have been floated today, as I'm sure you are all aware. On a number of the issues they address, however, the Bureaucracy staff has already created bill templates with the appropriate language and consideration of other laws. The text of these has been sent to your sidebar. Three bills have achieved the requisite popular interest level to be brought up for a vote today.
We will turn first to the question of nationalizing the tourism industry. Functionally, what this will do is divert all profit into the hands of the String. This will allow each Dot to continue running at a zero balance - a bad thing over the long term, but in the short run it will allow us to ensure backup funds are available to be routed as necessary. The language in this draft provides for such nationalization until the tourism industry rebounds to a stable and profitable level, or for a maximum of eighteen months before being reconsidered.
A preliminary vote will now be held on this measure. If it attains a 66% approval rating, it will be passed. If it attains 66% disapproval, it will be vetoed. Anywhere in between, and we will open the floor for debate and discussion. You may now begin voting.
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NW: This measure has reached 76.2% approval, and is now in force. Dot managers will receive materials over the next several days on how to comply.
Our second bill is one that outlaws all foreigners for the duration of any worldwide recession, and is not one which my bureau has drafted functional language for.
I am sure I do not need to explain the impact that banning foreigners would have on our tourism industry, nor the impact that eliminating tourism would have on our economy.
As before, we will hold a preliminary vote beginning now.
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NW: With 2.8% approval, this proposal is soundly vetoed.
Our final bill tonight is one that eliminates individual income. There are two versions of this proposal. One would provide exactly as much basic income as necessary to survive, and is the version endorsed by my ministry insofar as we endorse either one - which is not far. The other would provide no income, but rather the food that is judged to be necessary. It is our opinion that, due to allergies, intolerances, and even basic preferences, the latter version is inadvisable. We will therefore begin by holding a preliminary vote on the first version.
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NW: This bill has received a 38.6% approval rating, and is neither passed nor vetoed.
Given this low approval rating, I am exercising my authority as Chief Bureaucrat to suspend debate on this bill for the time being. If our other preventive measures fail, we can reconsider this. Otherwise, I believe it to be premature and not in the public interest. A majority vote may override my decision, if you prefer.
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NW: Majority has not been attained, with only 23.1% wishing to reopen discussion. Therefore, this bill is hereby tabled.
Finally, we have a motion proposed by the Tourism Bureau: to waive the rooming expenses of foreign nationals who are unable to return home due to closed borders, provided they agree to stay in inexpensive areas of Maika'i, and to provide a reasonably sized stipend of $35/person/day for food. The text of this motion has also been sent to your sidebars.
If this motion passes, the String will assume the associated costs, which will be funded from the nationalized income we just established. You may now vote on this motion.
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NW: With a whopping 89% approval, this motion passes unequivocally. This concludes today's business, and this emergency String session. Thank you all for your time.
