The Conversion War is over, ponies have lost a war caused by their formally beloved leader Celestia. Reservations in the former Equestrian state have been set up, while humans move into the new state of Lincoln.

The consequences of desperate measures sometimes outweigh the actual rewards.

To the far east across the vast sea is the forgotten homeland of the diamond dogs. A land once full of poverty, sickness, and famine has become a new super power that threatens Equestrias economic dominance/standing.

Celestia and a human donor have a chat.