The Republic of Valkhofn is a colossal, efficient nation, remarkable for its ubiquitous missile silos, digital currency, and stringent health and safety legislation. The cynical, devout population of 4.744 billion Valkhofnians 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 medium-sized, corrupt, moralistic government juggles the competing demands of Defense, Law & Order, and Industry. The average income tax rate is 36.8%.

The all-consuming Valkhofnian economy, worth 491 trillion Ducats a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. However, for those in the know, there is a slick, highly efficient, fairly diversified black market in Arms Manufacturing, Tourism, Information Technology, and Uranium Mining. The private sector mostly consists of enterprising ten-year-olds selling lemonade on the sidewalk, but the government is looking at stamping this out. Average income is an impressive 103,521 Ducats, and evenly distributed, with the richest citizens earning only 4.8 times as much as the poorest.

The nanny industry has had a boom after maternity leave was recently banned, Valkhofn Barrier Island residents anxiously await their 'Bridge to Somewhere', naturists are jailed regularly for indecent exposure, and the sun rises an hour later on border communities. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Valkhofn's national animal is the Lynx, which frolics freely in the nation's many lush forests.

Valkhofn is ranked 257,854^th in the world and 265^th in Valerian Reach for Least Corrupt Governments, with 90.09 percentage of bribes refused.