Liberty may be able to take two houses on paper... if it tries conventional war against Kusari, it will get roflpwned. It might stall Kusari's plans in bretonia, but they'll win.
Plus, it wouldn't benefit Liberty at all to directly send military forces against Kusari. It'd simply re-inforce Kusari's xenophobic nature, Liberty would be fighting a fanatically hostile population, and Kusari's economic gates would be shut permanently.
Liberty intervining Indirectly, however...
I can see a 'cold war' situation wherin Liberty would maintain it's diplomacy with Kusari, and openly strengthen ties with it's more liberalized elements... in the hopes said Liberal elements will become the dominant power within. As well, there also exists the potential for Liberty to provide under-the-table support to certain Kusari revolutionary or counter-military factions...