Shireroth likely to leave SCUE

SHIREKEEP – With forty-eight hours still remaining in the vote, Shireroth’s Landsraad appears ready to approve it’s removal from the SCUE amid a populist anti-micronational economy wave of sentiment in the micronation.

The binding resolution, introduced by Jonathan Ayreon-Kalirion on August 24, was prompted largely by frustration on his part. Despite his efforts to inspire Shirithians to engage in economic activity during his reign as Kaiser at the outset of 2015, Ayreon-Kalirion’s attempts were met with indifference due to the lack of a local market. “We should just leave the SCUE. There’s no market for the money. No one wants an economy, there is no supply nor demand for money. We might as well leave the ship before it sinks,” he said dejectedly while tabling the motion.

The motion was quickly seconded by Malliki Nur Pinito, an established opponent of micronational economics, who charged that “[Shireroth gains] nothing from pretending that tomorrow, or the day after tops, is the day that a ‘real’ micronational economy will take off. It’s not going to happen. Let’s abandon this failed system (SCUE) and build something of our own.”

As a banking product developed by Erik Metzler of Shireroth and Andreas the Wise of Gralus in 2009, the proposal touched a nerve with several Shirerithians, some of whom did not feel comfortable withdrawing from something of their own.

Vilhelm Benkern led opposition to the motion, exclaiming that “a time when Shireroth turns its back on its own creation, when it turns its back on the outside world, gazes into its own navel, would be a dark time indeed.” While he acknowledged that Shireroth has made limited use of the SCUE1 in recent years, he did not see a need to withdrawal from it, as being a member of the organization was “not hurting us, and it’s not getting in the way.”

Benkern further suggested that a removal from the SCUE would limit Shireroth’s ability to participate in intermicronational commerce; though there has been little such commerce in recent years within the Micras community, both within the SCUE and outside of it in those micronations that maintain local economic systems use forum points systems or other mechanisms.

Pinito proclaimed, in response to Benkern, that it was pointless to remain in the SCUE as it was a “malfunctioning banking system” that was “useless”. He suggested that being a member of the SCUE limited Shireroth’s endeavours in other areas of micronational economics, preventing it from being more creative; however the fact that Shireroth is not exploring any economic alternatives raised a quick rebuke from Benkern. “What is the use of removing ourselves from a system without an alternative? I don’t believe we will spontaneously have good ideas because we’re not in SCUE … As this proposal stands, we are leaving SCUE to go to nothing,” he countered.

With the vote on adoption of the resolution continuing until September 2, supporters of an exit from the SCUE currently hold a 5 to 3 majority. With most active Shirerithians having cast a vote, it is likely that Shireroth will leave the organization by September 12.

It is presently unclear what means, if any, the Imperial Government will introduce to facilitate future economic transactions in place of the software offered by the SCUE. At present, it appears that Shireroth will fully abandon micronational economics for the foreseeable future.

  1. The SCUE is a treaty organization that provides to its signatory micronations a common currency and access to software to facilitate banking transactions. []

Proposed SCUE tax divides micronationalists

HUB.MN — The implementation this month of the Trade Equality Act by SCUE has divided members of the Micras community, with many expressing that the intermicronational organization has no role in taxation.

The Act was introduced as the first measure of newly-appointment SCUE Administrator Pallisico Sinclair as a means of promoting trade and trade equality amongst the organization’s member micronations. To accomplish this goal, a 5% tax is imposed on the total currency reserves of each member that has a bi-monthly Gross Domestic Product (GDP) equal to zero. If the member has a GDP greater than zero, it will be rewarded by being granted a sum from SCUE equivalent to 5% of the value of its total transactions during the bi-monthly period. The first taxes are scheduled for debiting on April 1.

It is the expectation of Sinclair that the tax will spur members that have dormant economies to begin making transactions and increasing economic output to qualify for the reimbursement incentive. “All that is requested in order to avoid a tax is at least one transaction,” said Sinclair in attempting to minimize any opposition to the tax, as one transaction would result in a non-zero GDP.

Despite his attempt to minimize the negative connotations associated with the implementation of a tax, the SCUE Administrator quickly experienced a backlash from several micronationalists who hold accounts with the organization’s bank.

“Are you kidding me? You cannot just steal half of my personal money,” exclaimed Jack de Montfort at the prospect that his holdings in Coria would be taxed due to the micronation’s lack of trade activity. Sinclair rebuked Montfort harshly in the exchange, replying that “Clearly, doing nothing has not encouraged you to participate in any meaningful way.”

Malliki Tosha, the Arbiter of Shireroth’s Imperial Judex, questioned the legality of the measure, noting that the organization was in his reading of its charter treaty only permitted to enforce, not introduce, taxation. “Even if you can interpret it as meaning that [SCUE] can impose taxes, I would still consider the language ambiguous,” he said.

That opinion was echoed by Iain de Vembria and Vilhelm Benkern, the latter of whom angrily pronounced that “SCUE shouldn’t be led by a despot but someone who takes in the views of many members.” Benkern called on SCUE to re-think the implementation of the taxation, calling it counterproductive to economic development. “[The organization] should surely be providing a platform for co-operation between member states and allowing them to flourish themselves, without having to actively ‘encourage’ or penalise certain nations in the way proposed.”

Yet the pronouncements of those in opposition to the tax have failed to sway the opinions of several micronationalists who voiced support for the measure. “… Penalising members for just sitting on piles of money and never spending it seems fair,” Joe Foxon opined with the support of Giles Melang and James-Robert Knight.

Former SCUE Administrator Andreas the Wise, while agreeing with Tosha’s legal interpretation of the treaty, nonetheless expressed his support for the tax and encouraged further discussion on its merits and implementation. “This actually sounds like quite a reasonable plan to me – taxing [inactivity] and rewarding economic activity,” he said.

Despite the ongoing opposition from his detractors, Sinclair appears to remain intent on implementing the tax. “If most aren’t using the currency, then the currency is essentially worthless,” he proclaimed, “It is not in the interest of the bank, or of the members …, for the currency to be essentially worthless. Therefore, it is incumbent on the bank [to] adopt fair measures to promote the usage of the currency, even if it means taxes.”

SCUE to receive new Administrator

HUB.MN — More than four years after its founding, the Standardized Currency and Unified Economy, the preeminent intermicronational economic organization of the Micras Community, is to see a change in leadership.

The current SCUE Administrator, Andreas the Wise, who has played an instrumental role in the creation and administration of the organization, including the development of its integrated banking and stock market software, announced last week that he intends to step down from the position. Citing a decline in his active participation in micronationalism amid increased economic activity in the community, Wise announced his resignation, to take effect once a successor is named.

That successor is widely expected to be economist Pallisico Sinclair, who recently was awarded the 2014 FNORD Award in Economics for his work to develop Hamland’s economy. Sinclair has accepted the nomination though the confirmation vote amongst member micronations is not expected to take place until next week at the earliest.

The Administrator position is responsible for a variety of tasks, including the active management of memberships, responding to micronational court orders requiring production of financial records, and administering the bank and stock markets.

Need for micronational economies debated

BASTION UNION (CS) | A recent spat between Thadeus Melanje and the Bastion Union administration concerning the fate of the common economics forum has spurred debate about the place of economics within the Simulationist community.

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Hamland economy lessons shared

HUB.MN (CS) – A discussion at the Hub.mn community forums led by Gordoth (a.k.a. President Elvis of the capitalist South Patrovia micronation) is exploring the lessons learned from Hamland’s former economic system model.

Reflecting on his participation in that micronation’s economy, Gordoth praised Hamland for exploring different approaches to micronational economics though he admitted that the approaches were problematic as “they used to be too centralised and controlled and not natural enough.” Gordoth explained that a “natural” economy is one in which individuals participating in the market decide what products they want themselves, as opposed to the common micronational approach of having goods produced or specified by governments in an attempt to define the market.

Calling Hamland’s previous economy unworkable, Gordoth implored micronations to decide whether they want to simulate a real state or find a system that applies to a micro state. Said Gordoth, “Our old approaches in Hamland were trying to link the macro with the micro and that just never worked because we were trying to achieve different things.” He suggested that micronations start with a small basic money supply and offer products that individuals want such as graphics, stating his belief that this would allow for a bottom-up progression that will allow trade to develop naturally.

Gotzborg’s Vice-Minister for Commerce & Industry, Ross Kilder, echoed Gordoth’s criticism of micronational economies failing to cater wanted products to those participating in the market, noting “the key to a workable economy – where money actually flows, in some direction other than payment of government salaries – is to have scarcity and necessity. Where a product or a service is necessary, people will seek to obtain it. Where it is also scarce, people will pay for it.” Kilder suggested that micronations offer “real, tangible goods and services” that citizens and visiting foreigners will want and need and are in a scarce quantity to spur value.

The architect of the Standardised Currency and Unified Economy (SCUE), Andreas also voiced his agreement with Gordoth’s identification of the failings of micronational economics, offering that ultimately for the micronational economy to succeed, “we just need more people who actually want to buy.”

MITO reboot proposed for Micras trade

LINDSTROM CITY (CS) – The latest attempt to integrate the oft-forgotten Micronational Cartography Society’s Micras resource map into a workable economy involves a Natopian-led rebirth of the ill-fated Micras Initiative Trading Organisation (MITO). The proposed revival is the brainchild of Nathan Waffel-Paine of Natopia.

The proposal aims to resuscitate the former resource map-based trade system as, in Waffel-Paine’s words, “It gave a substantive quality to international relations, gave direction to how and when a nation expanded, and made things a little more fun.” Waffel-Paine bemoaned the complexity of the MITO system, nothing that the revived structure must “take the best qualities (trading and collecting and interacting) and make a much more simplified system […] so the thing can continue without the need of a spreadsheet.”

Much like the original system, devised by Andreas the Wise in 2008, the proposed revival would make use of ten increasingly-diverse levels of economic development, tied to the complexity of the map resources found within a participating micronation’s borders or otherwise imported by it from its trade partners. Waffel-Paine further seeks to favour smaller micronations and spur economic development in those jurisdictions by easing the large land ownership requirements under MITO to allow for resource extraction and the related trade benefits.

At its height in 2009, MITO was utilized by sixteen Micras micronations to varying degrees.

Nelaga contemplates dissolution

NELAGSARA (CS) – Four years after it was founded as the spiritual successor to the turn-of-the-century popular Apollo Sector micronation of Jasonia, the Nelaga Territories is contemplating dissolution following a year in which it struggled to maintain activity and avoid eclipse by the wider Bastion Union community. In a motion before the legislature, Kai Jackson has called for the Territories to be dissolved.

The motion represents the culmination of six weeks of internal discussions amongst the citizens concerning the end of the micronation. In convening that discussion, Andreas the Wise was blunt on the micronation’s future, stating, “I lack the time and creative energy to actually do anything with [Nelaga] … and I don’t think anybody else is that excited to do stuff with it.” Andreas’ comments quickly found widespread acceptance amongst the citizenry.

While a vote on the motion has yet to take place, discussion on the dissolution is presently focusing on the creation of a “Will” to divide up the territory of Nelaga among its closest allies, such as the Imperial Republic of Shireroth.