Note: I would like to now remind you that you are NOT the only nations in the world. There are about a dozen other NPCs all over the place. They are NOT barbarian kingdoms which are easy to take over, they are just as poweful as you.
Update 3400 BC
Yet more trouble in the Holy Land. For a while there was peace. The Israeli economy was increased to a recession, it's army mobilized, and it's relations with the Hedjzad improved. Even the grand temple of Jerusalem was nearly completed, and nearly all foreign travelers who stopped by gazed in wonder. The Israeli troops were slowly marching east when as soon as they reached the Euphrates river they saw a group of warriors on the other side. After a few intense moments, the two sides were finally able to communicate. They called themselves the Persians and asked for peace at their current borders. They said that their empire was vast and powerfull and controlled all the area across the river. Israeli troops disheartedly stared at their newly discovered neighbors and awaited the Kings orders. As if that wasn't enough, to the East another empire made contact. A very large procession of a people called Egyptians passed through Jerusalem. At the head was the Egyptian pharaoh, accompanied by hundreds of warriors and slaves and all sorts of luxuries. He said that he had heard a barbarian civilization called the Israelis lived in the area and decided to investigate. He offers Israel the chance to become an Egyptian vassal. Though many Israelis scoff at the idea, one can't help notice that the Egyptians are much better educated and more culturally advanced then the Israelis.
In the South, the news of these new empires reached Mecca soon enough. The locals didn't seem to care much though. THe Hedjaz millitary, now equipped with horses was ridding through the deserts of Arabia trying to recruit as many of the local clans into the Hedjaz service. Many joined simply because their lives were so hard, and others because the Hedjaz economy was constantly improving. However many were perfectly content with the way things were. These were mostly bandits and looters who independently roamed the deserts looking for passing caravans on their way from Mecca to outlying villages and oasis camps. They gathered in the eastern reaches of Arabia and formed a small country ruled by anarchy in which they were free to do as they wish. The problem was that they constantly left it's confines to bother Hedjaz villagers.
In the Holy Roman Empire, Southward expansion is continued when they too meet a new people. These guys are called the Romans and inhabit a rich peninsula. Their negotiator Julius Tiberius explains that their "ceaser" has no need for the forested swamp-infested lands to the North. He asked that the Holy Roman Empire expand no further south, and they in turn would not expand any further North. The increasing economy and soon to be completed wonder leave people hardly worried about such distant events.
In China emperor Erez expanded to Taiwan through his navy, along with increasing it a bit as well. There are rumors of a civilization to the Northeast.
In Timbuktu, the Mali expand South to reach what they call "the great water". They haven't succeeded yet but their scouts say they're not far away now. Their economy is increased as well.
The United States of Europe expand any which way they can without worring about such trivial matters as foreign civilizations. Their Northeastern expansion goes well, but to the Southwest they meet a people known as the Gauls who insist they withdraw from their lands immediatly. Their chief Vercingetorix threatens that a cruel fate awaits them if they disobey.
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Diplomacy
From the Roman Empire
To the Holy Roman Empire
Greetings culturally backwards people of the Holy Roman Empire. We ask that you respect our boundarys and expand no further South. In return, we shall not set foot past your southernmost borders.
Fom Egypt
To Israel
Would you care to become our vassal?
From Persia
To Israel
Would you agree to a border along the Euphrates
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From the People
"They might be the Roman Empire, but we're the HOLY Roman Empire!" wisely reasons Holy Roman tavern-goer Fritz Brandenburg. "Who gives a damn what they think? I say we just invade them and show them who the real Romans are"
"Aagh! Those bandits raided my caravan! They took everything! My salt, my gold, even my prized horses! And I'm not the only one! Surely the Caliph will punish them accordingly?" wails Arab trader, Kerim Ibn-Ismet.
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Statistical Changes
King Richards Crusade, 2/8
HRE economy increased to Stable
Mecca Bazaar, 2/4
Hedjaz economy increased to Slowing
Chinese navy increased to small
Timbuktu economy increased to Recession
Israeli economy increased to Recession
Great temple of Jerusalem, 3/8
USE economy increased to Slowing