The Great State of Walmart.

Republic of Jamaica, as seen after a night of drinking Red Stripe beer.

Haiti - white / Dominican Republic - red?

Japan - land of the rising stripe

perhaps Liberia

perhaps not

McDonaldland. The red was for ketchup, the white for mayonnaise. The nascent offshore island republic was quashed by a commando raid from Tonga, who stole all their napkins.

A couple of clues -- the flag's creation was part of a very brief bid for independence from a nation that still exists, although the territory it flew over is now part of another country. In between, it was claimed by two other governments.

The name of the "country" does not survive in that of any current nation, but lives on as a local place-name. It was a coinage of the "founder," and appears to have been a reference to a value related to those inscribed on the flag itself.

BobHopelandia

Because I think that it may prove nearly impossible for anyone who has never heard of this nver-quite-a-country to correctly guess its name without a lot of prompting, I propose this revised answer criterion: correctly identify the nation which trashed the "rebellion" that the flag announced. The extra credit still stands.

Whiskey!

Hah-hah!

Texas (or is that pretty much the same as Whiskey?)

This isn't that damn pirate radio station island, is it? Freedonia or whatever?

Sealand?

Oh, here I am. Is it that Bahia breakaway in
Brazil that Vargas LLosa wrote about in
War of the End of the World? Can't be bothered to get off my ass and try to find the name in the book just now.

Obviously, this was a poor question indeed.

The answer we were originally looking for is "Fredonia" -- close enough to Hackly's dredged-perhaps-from-the-unconscious reference to "Freedonia" that it feels wrong not to acknowledge his near-miss; indeed, as I assume that "Free-donia" was the probable pronunciation intended by Haden Edwards for his breakaway nation, it's a close guess indeed. We salute Mr. Fracture and his great, associative powers of thought.

The nation from which the Fredonians declared their independence in 1826 was Mexico; later, the area which they claimed would be subsumed under both the Lone Star Republic and the Confederate States of America.

The question of the red and white stripes remains, however, available for your speculation.

uh, just WHAT was the symbolism of the red & white stripes?

I'm glad you asked: it was to represent the alliance of Native Americans and whites upon which the Republic of Fredonia would supposedly be based. This looks to have been part of a strategy by Haden Edwards -- either naive, cynical, or both -- to get local Cherokees to give them military support in their revolt against the Mexican authorities.

The idea was that they (Anglo whites and the Cherokee) would split up Texas after throwing out the Mexicans. But although there was a treaty negotiated by a Cherokee-associated white man named John Dunn Hunter (who claimed to have been captured by Cherokees as a child and raised by them), the Mexican envoy convinced the Cherokee council not to honor the agreement, and Hunter was later executed by the Cherokee for getting them mixed up in the whole mess.

Fredonia is the name of the country in the Marx Brothers' Duck Soup, and I might well have guessed it for that reason if Hackley hadn't beaten me to it. But not with any hope of success.

Fredonia is not to be confused with Louis Jordan's Caldonia. (Caldonia! Caldonia! What makes your big head so hard?!)

(Scott, yep, that's probably where my unconscious dredged. So I was doubly off. Don't tell the wombat.)

In re wombatty quote above:
"We salute Mr. Fracture and his great ass."
Bill! You're married! Salutations are my job!