We are uncertain what exactly this threat means. It is possible that some sort of state of "war" may soon exist, but what form this might take is uncertain. War, as it is known in larger nations, does not exists in small unrecognized nations, largely because most unrecognized nations lack physical territory to defend. Even those small nations that possess territory do so at great distance from each other, and lack the resources with which to defend it, creating even more obstacles to the concept of traditional war.
However, both Molossia and Mustachistan actually have physical land, tangible territory to defend, and this territory is located in Northern Nevada. This proximity that changes the complexion of war between unrecognized nations. There is every possibility that some sort of physical conflict could occur between Molossian and Mustachistan, although what shape this conflict might take is as yet undetermined.
In the meantime, His Excellency, the President continues to pursue a diplomatic solution to the crisis, while encouraging Molossians to be vigilant against foreign incursions. He has further called on the Naval Infantry to patrol the Molossian frontier and guard against any possible enemy action.
More information about the ongoing Mustachistan dispute here, here, and here.
The Naval Infantry in Traditional Uniform
The Naval Infantry in New Field Uniform