When Peter finds out his property is not part of the US he creates his own nation called Petoria and makes it a dictatorship. There are pros and cons to being a sovereign nation and Peter learns that throughout the episode. Peter gains a lot of freedoms one of which is "diplomatic immunity", since he is now a foreign diplomat in the UN, he can break some laws that ordinary citizens can not. Also Peter is able to do whatever he wants in his "country" because the US is not able to dictate what he can and can't do. For example he takes over Joe's pool and stakes it as a claim to Petoria.
Peter and his family also looses many freedoms all citizens get. Peters kid's are unable to attend the public school which is provided to all kids by the government and is forced to have home school them because they are technically not citizens anymore. Also Peter looses electricity, water and plumbing because he is no longer apart of the USA anymore. Towards the end Peter is no longer able to leave his country because the USA set up a blockade around it so he does not invade. This brings an end to Peter's dictatorship over his authoritarian government.
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