[center]January 11th, Loa Nota, The Realm of Faenaria

The Autarch's Palace, 9:47 PM

[img]https://pre00.deviantart.net/bbeb/th/pre/i/2012/306/1/c/castle_of_azar_by_boosoohoo-d5jq8pl.jpg[/img]

[u][b]Those Present[/b][/u]
Her Majesty, Ayiti Faenar
Prime Minister (Great Cacique) Karaya
Chancellor of the Purse Liana
Lord of the Admiralty Ralay
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"The markets were up today on news of Kratorium Mobilization," Liana said, striking a match and lighting her cigar. She paused, taking a long drag of the Sunrise Isles Tobacco, savoring the dark taste before exhaling through her gills. "We saw a thirteen percent rise in the primary Mercantile houses. The Reich's bond value dropped thirty pence past closing. Not much, but it continues the trend. He's looking at a five-percent decrease across the board by month's end."

Great Cacique Karaya, Speaker for the Human Tribes, had to pause in lighting their own cigar, then thought better of it and handed it back to one of the serving staff on the Faenar's terrace. "That's ludicrous. A prince of the crown is dead and no war has been declared! If the Kaiser will not go to war now, he won't at all and the bond market will be the least of his concerns. He'd need to mobilize just to keep the throne."

Lady Ayiti, Scion of Faenar, had to interrupt at that point, pouring herself a dram of Sidaran whiskey into a crystal glass. "But can you blame him, Karaya?" She moved from the table, allowing her sea silk gown to trail behind her as she took a seat at the terrace's cabinet table. "The continent has spent so long backstabbing and politicking, they stand on a house of cards. He doesn't want to start up a general war if he can't be sure to win. Pride is cold comfort to a corpse, as we well understand."

At that, Chancellor Liana had to intercede. "The old windbag is as proud as he is militaristic. He's going to go to war. Just maneuvering his pieces first. The coral market may be up, but we've had a number of requests for gold and mithril bouillon withdrawals from the Bank of Glass. Non-government accounts for now, regional bank reserves, but if they're pulling gold then that means they believe the peace is going to break. They want something to back up their currency with. It's done fine sitting in our vaults for this long, but this is fight or flight instinct. Better to have it on hand."

Karaya eyed the Chancellor carefully. "What sort of danger are we in if we honor the withdrawal requests?"

"At the moment?" Liana asked, drawing another breath of smoke. "None. Like I said, these are accounts held by banks. Market jitters. But if any of the Uruks or the Etresnans or even the Kaiser puts in for a withdrawal, then we will have cause for concern. Everyone is looking for mobilization to be the sign that starts war. The real sign? Cutting a check to pay for post-mobilization. That check will be big. The puffer fish can make itself look ten times its size, but it will die if it stays that size for too long."

"And when they ask for that check, we're looking at a breakdown of global trade." Admiral Ralay waved off another servant's approach, opting to remain sober for the moment. "We'll need every brick in the vaults to weather the storm til' war's end."

"We either sell to everyone or no one."

"Can't do either of those things," Ayiti said bitterly. "Anyone we sell to, they'll publicly accuse us of double-dealing- even as they privately buy from us. Business as usual can continue if the war breaks out, but we'll have no friends. And that says nothing for what the Cethosi will do."

Ayiti eyed her Chancellor of the Purse carefully. Potentially the most powerful person at the table. Their sword and shield before the military could ever be called upon. "Tell me you have a method of recourse, Liani?"

Liani shook her head, her scales taking on a pale blue color. "If the Continent consumes itself, the Cethosi will be able to do as they please. No one will stop them from realizing their ambitions. Gharn knows they haven't a leg to stand on domestically- if there's an economic disruption from war on the mainland, then the Cethosi economy will fall out from under them. The easiest way to retain control would be to either join the war or start their own. Ever since they returned to the global stage, the Cethosi papers have been filled with stories of how Faenaria is the root of all their economic woes. But it's their own laws that bar Corporations from investing in the Coral Market- we can't bankrupt them or buy them out. We've got a number of their oligarchs keeping black book accounts under pseudonyms. The rich will do as they please, after all. The most we can do to hurt them is put the squeeze on his supporting industry titans. But if Gharn wants war, they can only whine while he locks them up and nationalizes their industry. You can't look to me to stop the Cethosi."

Ayiti began massaging her temples. "Then we're looking at a full fledged war of the waves. The Pirate Age again. But with [i]Dreadnoughts[/i]. Admiral?"

"Invasion of the Outer Isles would be required for any serious military operation against us to succeed. We may be of the same blood, but the barrier reefs are still infused with mithril ore- they'll rip any hull to pieces unless navigated with care. The Cethosi ships would need to land marines and conquer them as staging grounds. If Gharn lands there, we know it's more than a power play to give his people a distraction from their recession. The Kratorian offer of basing the Air Corps on the islands is still a real one- it would require significant effort to build the air bases quickly. Effort that will be apparent to anyone with eyes, including the Cethosi. Speaker Karaya?"

"The Rahuri can and will fight to defend the outer isles. But I need the support of the Caciques to declare general mobilization. That will require Cethosi aggression first. Without it, we're looking at a split government. You'll be dealing with a Liberty Party cabinet, Ayiti. As it is, the regular garrisons can put up enough of a fight long enough to recall the Privateers and arm them for war."

Ayiti Faenar called one of the serving staff forward, requesting that dinner be called in from the palace kitchens. Her cabinet knew this was part of her rituals of government. Discussion, then dinner while she made up her mind about a next course of action. A seaweed salad was followed by lobster bisque, and finally a cut of pork seasoned with Sunrise spices.

It was as the serving staff was serving post-dinner brandy that she returned to the topic of politics.

"We have limited engagements with Sidara, due for renegotiation in a few months time. Liana, I want a five-percent domestic cut drafted into the budget. Close schools, issue more bonds, cut the welfare budget- whatever you have to do. That's to be our war nest-egg. Sidara will need the money to keep the war going, and we'll need more guns to defend ourselves from the Cethosi. Karaya, I will need support from the Caciques to keep us afloat when the shooting starts. A Neutrality act of some kind needs to be passed through the Senate, but frame it as a defensive measure. Anyone who moves to declare war with Faenaria, or sides with an aggressor of Faenaria, will have all their bouillon in the Glass Bank seized and nationalized. Same with gems, hard currency, stocks, bonds, everything. I'm going to use executive power to declare any national withdrawals void unless claimed by diplomatic staff, and withdrawn aboard ships. Anyone who wants to claim their wealth needs to come here and get it themselves and run the risk of being sunk by enemy vessels. Dress it up. Beg, borrow, steal votes. However you get it done, do it.

"Finally, I want the Cethosi black book accounts locked up. If they make noise, let them know their money will be returned once we have a public declaration from their government that they do not intend to declare war."

"What of the Merchant Fleet?" Ralay paused only long enough to take a draw from his cigar. "Our merchant ships have strict armor requirements to haul valuables. That's three-hundred destroyers carrying cargo. Enough to bloody the Cethosi if they come for us. Potentially enough to take the war to them if we move the Second Flotilla back to the home islands."

"I'm not issuing a general return order for them or the Flotilla." Ayiti could see the Admiral's bluster rising, his chance to get more toys dashed by a single declaration- but his request had merit. "But I won't stop any captain that seeks voluntary armament from doing so in the docks. I'll reach out to the Kratorians and see what it would take to get the deployment of their Air Corps accelerated."

Ralay nodded, his usual grim smile returning as he considered it. "Less than enough, but better than nothing. There are some patriots afloat. I can probably wrangle up a good thirty or so ships immediately. That'll allow the Third Flotilla to take position in the Outer Isles, supplement the garrisons with naval guns. They were hit by a typhoon a week ago. Small thing, but damaging to the locals. We can sell it to the papers as a relief effort for the Rahuri peoples there. But Gharn will get the message. We've got our eye on him."

"Do it. But I don't want a hothead leading them. No gunboat diplomacy with the Cethosi."

Ralay smiled, stood from the table and donned his cap. "Madam, I know just the person!"

---

Late at night, as Ayiti Faenar sat at her home desk, listening to the lapping of waves far below the Autarch's Palace, she opened her writing scroll and dipped her quill in Orichalcum ink, preparing a document that, depending on how it was worded, could stave off the Cethosi invasion or tip the waves into war...

[hider=Most Enlightened Highness, Emperor Alexander of Kratoria,]

[i]Your proposal for the establishment of air bases in the Outer Isles has been received and considered by all parties. In light of recent events and our longstanding history, we have reason to believe the Cethosi may attempt to capitalize on an outbreak of war on the mainland and secure dominance of the waves. Efforts will begin immediately to clear and build sufficient facilities to house the Air Corps. 

Consider this letter a formal acceptance of your proposal. Funding and recompense will be provided as outlined in your initial proposal, and a 20 year lease on the air bases will be approved by the Rahuri Caciques in the coming days.

Haste and discretion are appreciated with this matter, but haste most especially.

~ Ayiti Faenar.[/i][/hider]

Ayiti gave the letter some consideration, pausing over every sentence to read and re-read them. But she kept coming back to the ending.

Haste, most especially.

While the continent was beginning to unravel there would be considerable chance that any quick movement on any continental power's part would begin shooting- even as far away as Faenaria. Still, the continent was a world away and Ayiti had her own problem to consider. The Cethosi were capable of overwhelming the Faenarians in a straight battle. Ayiti's mother had been careful to craft a web of alliances across the waves that might be called upon to help shield Faenaria. 

The Luminarians would not answer any call to war- most likely they'd demand the two sides come together in a grand peace session. But a truce at gunpoint was no truce at all. The Shah of Kera-Bijan would be willing to join the war, but would require a hefty payment to renew their defense pact. The amount of money required would generate considerable antagonism among the Caciques.

As it was, Ayiti knew their closest allies in Kratoria would be the fastest to respond to any call for help. The Sidarid might be willing to answer as well.

Come the morning, Ayiti knew the situation would be out of her hands as the letter she'd written would be speeding toward the Empyreum aboard the frigate [i]R.F.S. Mama Yaya[/i], hopefully arriving before the shooting started...

[hider=Summary of Events]
[b]Public Knowledge[/b]
- The Faenarian Senate will enact an "austerity" budget cut on the grounds of combating inflation. This represents a 5% savings in the budget.
- The Merchant Fleet enters a period of "voluntary armament". They may accept letters of marque and pay in the service of the navy. This will represent a 10% drop in shipping capacity for any nations that trade with or through Faenaria. Not enough to harm, but definitely noticeable.
- For the foreseeable future, Governments seeking loans from the Glass Bank must dispatch diplomatic personnel to make such a request. Movement of gold, cash, or other precious materials from the vaults must be done aboard ships flying their own flags.
- Faenaria will soon approve the establishment of Imperial Air Corps bases in the Outer Isles on a 20 year lease.
- The Faenarian Third Flotilla is dispatched to the Outer Isles (also called the Barrier Isles) to aid in the recovery from a small Typhoon.

[b]Private Knowledge[/b]
- The Great Cacique reaches out to Sidara to begin renegotiations for their armament treaty. Specifically, an enormous increase in guns purchased, with a promise of cash in hand.
- Faenaria approves the establishment of Air Corps bases in the Outer Isles. Rapid deployment of assets is requested.
- The Third Flotilla is dispatched to the Outer Isles (also called the Barrier Isles) of south-west Faenaria as an additional defense against the Cethosi.
- Cethosi oligarchs with illegal, off-the-books accounts in the Coral Markets and Glass Bank will find themselves unable to access funds. Their complaints will be met with a response that they will have access to their funds again once the Cethosi make it clear they have no intention of attacking Faenaria in the event of a general war.
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