Pre-Settlement: In the tumult of the Exodus, The Liberty launched before the other great sleeper ships. Colonists whisper, even today, that the launch date may have been intentionally moved forward against the explicit wishes of the Great Planners. Early launch would have guaranteed the Liberty free access to the worlds of the Sirius Sector before the other sleeper ships arrived, but all proof of such a betrayal of trust was lost along with Earth. Even if the Liberty did launch early, there is little that can be done about it now...but there remains a lingering feeling of resentment among the other houses: a vague feeling that, somehow, Liberty does not entirely deserve the position of superiority it enjoys eight centuries later.
When the Liberty first arrived in the Sirius Sector they found an area rich in resources but lacking in habitable planets. With a hundred systems at their fingertips, they settled on those near the center of Sirius where the highest number of main sequence stars and Earth-like planets existed and a fair number of resources could be easily obtained. Eventually they made planetfall on Manhattan, in the system they christened New York. They began the difficult task of rebuilding civilization two full years before any other sleeper ship arrived.
The Liberty (colony ship) was commissioned by the Americans and was the first to arrive in the Sirius Sector. The colonists settled in the center of Sirius space, where the highest number of main sequence stars and Earth-like planets existed. These mostly-American colonists called the first system they settled "New York" as they began the difficult task of rebuilding civilization, two full years before any other sleeper ship arrived. The actual sleeper ship Liberty itself was originally stripped down to allow for rapid building, but has since been refurbished and proudly flaunts Liberty's logo over Manhattan's main landing dock for all travellers to be reminded of just how far Liberty has come.
Liberty is a very capitalistic colony, cherishing free trade above all else. Its location at the center of Sirius has made it extremely rich off of inter-colonial trade, and Liberty's military forces have the protection of free commerce as their primary mission objective. While their military (as seen in the game, anyway) is comparatively the weakest of the houses, so are its criminals, resulting in a remarkably secure colony that the other Houses can only envy.
Liberty's initial meteoric rise was fuelled by early scientific discoveries leading to Ageira Technologies invention of Jump Gates by 180 AS, with production going into full swing by 215 AS. Jump Gates were incredibly expensive to build, but allowed the phase alignment of a jump hole to be controlled, forcing the hole to stay open for trade, or allowing it to be "locked". Therefore, Jump Gates were incredibly useful for normalizing trade and communications between colony systems, and thus highly in demand, spurring an influx of cash to Liberty and the rise of Ageira. In particular, Interspace Commerce made a killing financing the construction of the extremely expensive Jump Gates as well as underwriting interstellar shipping insurance packages. By 280 AS, Ageira introduced Trade Lane technology, and the second half of the modern interstellar trade infrastructure began to take shape. Ageira and IC grew rich beyond their wildest dreams; Deep Space Engineering expanded rapidly to handle the increased demand. Universal Shipping used the new Trade Lanes, Liberty's central positions and its favourable deals with IC to gain a competitive edge in the early years. Things were looking pretty good for Liberty.
However, free-market capitalism rapidly exploited and depleted the resources in Liberty space, producing a vast fields of scrap metal in the New York and Texas systems as used-up junk accumulated. The central position in Sirius that made Liberty the master traders of the early years now worked against the House, as it was boxed in by the other Houses and had no direct access to the vast resources of the Tau, Sigma, and Omega Border Worlds. To make matters worse, disaster struck in the Texas system in the form of the Dallas Incident in 521 AS, squandering a vast amount of resources and prompting Liberty to pull all funding for scientific research in the Texas system, cutting many promising careers short. In the same year, both Rheinland and Kusari defaulted on their financing terms with IC for Jump Gate and Trade Lane production, leading to a financial crisis: as usual, the little guys took it the hardest. The combination of the loss of scientific funding in the Texas system and the economic downturn throughout Liberty caused unemployment in Texas alone to jump by 50%. The crime rate exploded, with a 300% increase in the next decade.
Soon afterwards, terraforming efforts on Planet Los Angeles failed, causing the rich residents to start considering the possibility of relocating, and many began to eye Planet Denver. Increasing costs and workload from the additional crime in Liberty's downturn, combined with decreasing funding put the pinch on the Liberty Police Incorporated, forcing them first to cut corners and privatize, starting with their detention facilities. The wealthy on Planet Denver begin taking advantage of this shift and used their influence to pass laws to gentrify the planet, enforced by the now for-profit LPI. By 600 AS, this dynamic spiraled into a full-blown prison-industrial complex, a cat-and-mouse game involving the LPI on one side of the law, and the Xenos, Lane Hackers, and Liberty Rogues on the other. Manhattan, by contrast, has become a cornucopia of wealth, and planets like Denver and Los Angeles are playgrounds of the rich and corporations, respectively. Meanwhile, the labour of Texas that fuels Liberty's industries is supplied by a near-permanent underclass of convicts and those at the margins of Liberty society.
Liberty's prospects began to change for the better in 600 AS, however, when Kruger Minerals and Daumann Heavy Construction convinced the Imperial Rheinland government to begin the 80 Years War against the Gas Miners Guild of Kusari. Rheinland underestimated the independent GMG, and suffered heavy casualties. The government ran up huge bills with Daumann for ship construction, which were exacerbated somewhat due to the strong Alster Union, formed after the disaster at the Alster Shipyard in 512 AS. Finding itself in a financial pinch, Rheinland was forced to seek loans from Liberty and Interspace Commerce, who were only to happy to comply... with some pretty serious default clauses written in the fine print!
When Rheinland was eventually defeated in 680, it was time to pay the piper. Liberty corporations regained complete access to Rheinland, Synth Foods in particular. The food-producing corporation quickly bought up land on the fertile Stuttgart to pay off Rheinland war debts. In 700 AS, the financial crunch culminated in the Popular Revolution. The Imperial Rheinland government was overthrown by 705 AS and reborn as the Republic of Rheinland, led by the Chancellor and the Reichstag. Rheinland has since slipped into economic, social and military decline, with Liberty only too eager to further exploit its regained economic advantage.
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