The Principality of Karlsburgh is a massive, environmentally stunning nation, ruled by Prince Karl VI with an even hand, and remarkable for its museums and concert halls, smutty television, and multi-spousal wedding ceremonies. The compassionate population of 1.005 billion Karlsburghians enjoy extensive civil rights and enjoy a level of social equality free from the usual accompanying government corruption.

The enormous, liberal, socially-minded government juggles the competing demands of Education, Welfare, and Healthcare. It meets to discuss matters of state in the capital city of Karlsburgh. The average income tax rate is 73.4%, and even higher for the wealthy.

The strong Karlsburghian economy, worth 67.3 trillion Karls a year, is quite specialized and led by the Tourism industry, with significant contributions from Beef-Based Agriculture, Book Publishing, and Information Technology. State-owned companies are common. Average income is 66,967 Karls, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

Government theft from poor artists to give to rich allies has been dubbed the "reverse Robin Hood" policy, relations with Dàguó have warmed from frosty to chilly, refugees from other nations are flocking to Karlsburgh's border, and cops shout apologies with every swing of their baton. Crime, especially youth-related, is totally unknown, thanks to a very well-funded police force and progressive social policies in education and welfare. Karlsburgh's national animal is the Sloth, which frolics freely in the nation's many lush forests.

Karlsburgh is ranked 283,808^th in the world and 5,258^th in the South Pacific for Largest Gambling Industry, scoring -13.86 on the Kelly Criterion Productivity Index.