The Theocracy of Calaith is a titanic, efficient nation, ruled by Ayatollah Herakles Staic with an iron fist, and renowned for its rum-swilling pirates, avowedly heterosexual populace, and devotion to social welfare. The hard-nosed, cynical, humorless, devout population of 24.193 billion Calaithians are kept under strict control by the oppressive government, which measures its success by the nation's GDP and refers to individual citizens as "human resources."

The government — a sprawling, bureaucracy-choked, corrupt, moralistic, well-organized morass — juggles the competing demands of Defense, Law & Order, and Industry. It meets to discuss matters of state in the capital city of Ysula. The average income tax rate is 92.3%, and even higher for the wealthy.

The frighteningly efficient Calaithian economy, worth a remarkable 2,839 trillion Chevs a year, is highly specialized and mostly made up of the Arms Manufacturing industry, with significant contributions from Beef-Based Agriculture. Black market activity is rampant. State-owned companies are reasonably common. Average income is an impressive 117,373 Chevs, and evenly distributed, with the richest citizens earning only 2.2 times as much as the poorest.

The legal definition of "clothing" is now a 472 page document that still covers nothing, cloud nine refers to the top floor of skyscrapers, astronomy is stifled by widespread astrophobia, and Ayatollah Herakles Staic accepted United Federation theatrical awards for Best Writer and Best Actress on behalf of the absent recipients. Crime, especially youth-related, is totally unknown, thanks to the all-pervasive police force and progressive social policies in education and welfare. Calaith's national animal is the boar, which is also the nation's favorite main course.

Calaith is ranked 312,790^th in the world and 14^th in Lair of the Dragon for Highest Disposable Incomes, with 9,037.78 Standard Monetary Units.