The Karnataka Situation

Day 921, 11:15 • Published in USA USA • by Desertfalcon

Just a couple of days ago the president of India issued a statement which said that he would be seeking the return of Karnataka to India. Currently the high iron region is being rented out to the U.S. in order to maximize productivity of the region and to help keep the region secure from Phoenix. For the past several months this deal has been going on, however the Indian president now feels that it would be in India's best interest to take back the high iron region as a way to make India more self sufficient and independent. There have also been rumors of a Phoenix nation making a better rent offer however none of these rumors have been found to have any merit.

The president of India has said that rather than align with Phoenix or EDEN, India will be making Karnataka a free trade zone. This means that both alliances will be able to move in citizens and create companies in the region although seeing as Karnataka has a history of being under EDEN control, most of the exports will likely be to EDEN countries. This is probably the best move for India if they were to retake Karnataka since it gives both alliances a reason not to attack the country and also opens the gates for more people to move into the region to help maximize productivity which is something India desperately needs. As of right now it's hard to say how much India will make off of the high iron region since there is no sure way of knowing how many people who work in iron will move to India. If India wants to make a lot of money off the region though, they will need to have a baby boom in order to increase their productivity and make them less susceptible to PTOs. Still, in the long run this is probably in India's best interst so long as they can keep the region secure.

On the other hand the U.S. stands to lose quite a bit. While most of the revenue gained from Karnataka is lost in the rent payment there is a small profit which will be missed by the U.S. government. On top of that this will result in the loss of hundreds of American raw material jobs which will lead to an influx of land workers trying to find work in other land industries such as wood. The surplus of workers will likely mean a decrease in land wages across the board until enough raw material companies are started up in the U.S. to make up for the lost jobs in Karnataka. The loss of Karnataka could also lead to stepped up efforts by the U.S. to take Lion King from Serbia and possibly make a rent agreement with China.

The major question for India though, is how will they keep Karnataka secure from a foreign invasion given India's small population. The truth is Karnataka will actually be less susceptible to invasion now that it will be in Indian hands since in order to attack the region a country would have to activate a string of MPPs unlike before where they would only have to fight off the United States. The region is also located in southern India and is only bordered by other Indian regions so an invader would have to fight through one or two regions first before they could even have a shot at taking the region. Despite being secure from a military invasion India will likely be the target of multiple PTOs. With such a small population it won't be hard for Phoenix or EDEN to move in a couple hundred voters and take control of congress or the presidency. Now that Karnataka will be under Indian control there will be even more motivation for PTOs so expect a lot of chaos in India on election day.

It is pretty clear now that the region will be handed over peacefully. While the American president said that he would consider holding Karnataka against India's will in his last campaign, he has since said that he would not take such action in this situation and that he would respect India's wishes. The Indian president has also reportedly made up his mind on the issue so it's only a matter of days before an official announcement will be made. After that announcement there will likely be a grace period for American workers to leave Karnataka before it is officially handed over to India. So if you live in Karnataka it's probably a good idea to purchase your moving tickets in advance, unless you want to have the government bail you out.