The Democratic Republic of Lae Federation is a colossal, efficient nation, ruled by Yu Qingwei with an even hand, and remarkable for its complete lack of prisons, daily referendums, and avant-garde cinema. The hard-nosed population of 2.566 billion Lae Federationians are prohibited from doing almost everything except voting, which they do timidly and conservatively.

The large government juggles the competing demands of Education, Administration, and Defense. It meets to discuss matters of state in the capital city of 南津州. The average income tax rate is 73.4%, and even higher for the wealthy.

The very strong Lae Federationian economy, worth 236 trillion Federal Currencies a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. The industrial sector is led by the Information Technology industry, with significant contributions from Arms Manufacturing, Uranium Mining, and Tourism. Average income is 92,246 Federal Currencies, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Rural Lae Federationians stare in awe at the bright lights of the big cities, the best spies are positively radiant after completing a big mission, trade ministers have to consult a fifty-page "sanctions spreadsheet" to determine which countries they are allowed to do business with, and main battle tanks stalk the woods of Lae Federation in search of sheep. Crime, especially youth-related, is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Lae Federation's national animal is the sheep, which frolics freely in the nation's many lush forests.

Lae Federation is ranked 70,921^st in the world and 1^st in The Brandenshiren Council Alliance for Most Eco-Friendly Governments, scoring 1,440.35 on the Dolphin Recycling Awareness Index.