The Citizen Federation of Varkrieg is a gargantuan, environmentally stunning nation, ruled by First Citizen Rivaldo Graecchi with a fair hand, and notable for its smutty television, unlimited-speed roads, and irreverence towards religion. The hard-nosed, democratic, humorless population of 12.63 billion Varkriegians enjoy a sensible mix of personal and economic freedoms, while the political process is open and the people's right to vote held sacrosanct.

The tiny, corrupt government juggles the competing demands of Defense, Industry, and Education. It meets to discuss matters of state in the capital city of Valtar. The average income tax rate is 2.8%, but much higher for the wealthy.

The frighteningly efficient Varkriegian economy, worth a remarkable 4,248 trillion varmarks 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 large, well-organized, broadly diversified black market in Information Technology, Arms Manufacturing, Retail, and Beef-Based Agriculture. 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 amazing 336,375 varmarks, and evenly distributed, with the richest citizens earning only 2.7 times as much as the poorest.

It is popularly believed that "cheese every day keeps disaster away", nature reserves often contain artificial waterfalls and concrete paths, government employees have reverted to carrier pigeon due to never-ending virus scans, and the diplomatic corps stinks. Crime, especially youth-related, is totally unknown. Varkrieg's national animal is the eagle, which is also the nation's favorite main course.

Varkrieg is ranked 19,355^th in the world and 1,300^th in Balder for Lowest Crime Rates, with 90.25 law-abiding acts per hour.