The Republic of Kahlua is a massive, efficient nation, ruled by Dio Dinkus with a fair hand, and renowned for its absence of drug laws. The hard-nosed, hard-working, democratic, devout population of 1.298 billion Kahluans have some civil rights, but not too many, enjoy the freedom to spend their money however they like, to a point, and take part in free and open elections, although not too often.

The medium-sized government juggles the competing demands of Environment, Law & Order, and Defense. It meets to discuss matters of state in the capital city of Kahluamarie. The average income tax rate is 29.8%, but much higher for the wealthy.

The thriving Kahluan economy, worth 85.3 trillion Dios a year, is fairly diversified and led by the Tourism industry, with significant contributions from Arms Manufacturing, Beef-Based Agriculture, and Pizza Delivery. Average income is 65,718 Dios, and evenly distributed, with the richest citizens earning only 2.0 times as much as the poorest.

The government regularly hires contractors to construct high rise apartments, the government is dead set on letting people rest in peace, the smell of tobacco is often smelt around legislative buildings across the nation, and dentists routinely perform open heart surgery. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Kahlua's national animal is the Calico, which frolics freely in the nation's many lush forests.

Kahlua is ranked 50,459^th in the world and 990^th in The North Pacific for Largest Furniture Restoration Industry, scoring 4,628.64 on the Spitz-Pollish Productivity Index.