Here, the economy has collapsed. The previous Government was overthrown by the Pirates, who, through their corrupted trading, collapsed the international money market. The Sorcerers, always being corrupt and inventive, made some Magic Moolah, as a solution to this collapsed Pirate economy. But it just caused a bunch more troubles, upsetting arithmatic and signal flares all over the world. The dragons, who had enough of this nonsense, up and left, with a blunt "Screw you". Everyone is still generally undecided as to whether or not they should care about the dragons leaving, but the general consensus seems to be a firm "Well, screw you too." The ninjas, entirely out of work, resorted to prostitution, while the Pirates continued to try and work things out between each other. The Sorcerers just hid.
Things aren't doing too well at all, but people still try to maintain a good amount of svelte in their lives.