NEW KIRRIE – Following a prolonged lack of trade due to its unique SCX-based economic model, Hamland is again considering a return to a traditional model based on its own independent currency.
The “Real Currency Act,” proposed by Lewis, is a continuation of a campaign he began early last year to create a mechanism for what he described as “real trading” by adopting a second currency as a complementary alternative to Pallisico Sinclair’s SCX-based economic model. That economic model, which uses SCX market indices to generate production statistics, resulting in significant internal economic simulation, had served in practice to actually discourage the buying and selling of goods, as the simulation made the local economy virtually independent of the actions of the citizenry.
Lewis’ past campaign, which he labeled “A Return to a Real Economy”, proved a thorny issue, with his efforts to seek implementation of a dual currency criticized by Sinclair, who sought to protect the unique model that he had created. The resulting fray led Lewis, at one point, to take a leave of absence from Hamland.
With the introduction of the Real Currency Act, the opposite has occurred, as Sinclair has announced his resignation from the Hammish Government. The announcement followed Sinclair’s retraction of his original point-by-point rebuttal comments to the Act, which he replaced with a lament. “If you decide that you’d rather adopt a different economic system, I won’t stop you. I’m done trying to defend and explain the work I’ve done in this field. It clearly is neither understood nor appreciated,” charged Sinclair.
The Act itself would create the “Zenar”, as a means of reintroducing “real coinage” to Hamland, in order to reinvigorate trade. The Zenar would carry equal recognition as an official currency of Hamland, alongside the SCX-based Obol, and be of par value with it. The currency will be local, using a forum-based system, and it will be independent from SCUE to avoid confusion with the SCX-based Obol, given that the SCX is operated as a function of SCUE.
The Zenar will also be regulated in a similar fashion to that used by Gotzborg, in which the amount of currency in circulation at any given time is controlled, as opposed to SCUE’s automatic creation of new currency to reflect exchange rates. “Having our own currency allows [Hamland] to meet our needs in the short term, in terms of printing, distributing and taxing,” Lewis commented to the Coprieta Standard. He further noted that under Sinclair’s model, in which currency is held within companies listed on the SCX, meant that the amount of personally-held Obols by any given individual in Hamland was unclear.
Lewis further argued that while Sinclair’s model has had success due to his hard work, the model was labour intensive. “We really need to get a basic system which is both fun and provides some utility,” Lewis said, emphasizing the need for a low-maintenance economic model.
In supporting the Zenar as an independent currency, Lewis expressed his wariness of fully re-engaging the SCUE Unit for Hamland’s local economic needs due to the duplicity caused by Sinclair’s economic model. “The accounts system was a great idea, but the stock market (SCX) has had the unintended consequence of spawning another alternate model of simulated economies,” he said.
While the use of two official currencies within the micronation may generate alarms for many investors, as it is a situation that may arguably lend to increased bureaucracy, Lewis remains hopeful that the Zenar will re-invigorate trade between Hammish citizens and with other micronations. “The fact that we can meet our needs [with the Zenar] is a sign that Hamland is a good place to invest rather than a poor one. I really dream of a world where international business is an element of our simulation,” he told the Coprieta Standard.