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.”

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