[identity profile] luzribeiro.livejournal.com posting in [community profile] talkpolitics

Some of you may've already heard of Blueseed, a startup corporation that's planning to create a floating city, some 12 nautical miles away from the California coast. It'll be an offshore city equipped as a cruise liner. The location is deliberate: international waters, but close to Silicon Valley, so that the US and foreign workers could conduct their business without the necessity of obtaining work visa. A labor offshore zone of some sorts, that is.


The statement of the company says that the project aims to create an ecologically clean place for work, full of all cutting-edge technologies and facilities of our time. Of course it doesn't miss to mention that you'd only need a passport to be able to work there. There's also another nice side effect of being located in international waters, in that nobody would be paying any taxes.

No doubt, only the wealthiest would be able to afford the luxury of owning property on the floating city, including all those modern apartments with swimming pools, fitness gyms, private sports grounds and all other fancy stuff. The smaller lodgings will be for the workers. The city will be supplied with essential goods from trade with the many businesses along the West Coast. Traveling between Blueseed and the mainland will be possible either with smaller ships or helicopters. Renting a room would cost from $1600 a month. About 250 corporations have already stated their intention to book offices there, and create jobs on board.


The founders of the project are Max Marty and Dario Mutabdzija, former chiefs of Business Strategy and Legal Strategy at the Seasteading Institute, are enjoying huge popularity among the corporate world. Peter Thiel, the founder of PayPal, chairs the finance research and economic maintenance sector at this "marine estate". The city is supposed to be self-governing, and effectively be a city-state in neutral waters. Both Marty and Mutabdzija have previously worked on seafaring projects exactly aimed at researching the possibilities for creating offshore territories in international waters.

In their bolder statements, both founders and analysts are calling Blueseed an entirely new concept for the creation of "new sovereign states", which are to be developed on such floating platforms, away from state regulation of any sort, away from any country's legislation and off the sphere of influence of any sea nations. As if they'd exist in a bubble universe where the Pacific is not America's backyard, and where their economy wouldn't completely depend on the surrounding markets. But anyway. The boldest plans are that by 2050 such pieces of neutral territory should be hosting tens of millions of people.


The UN Law Of the Sea Treaty (LOST, haha) is deemed most appropriate as a possible basis for the legislation of such sea territories. It could help the offshore cities gain legitimacy as independent, sovereign city-states. In this sense, the idea is that all economical, technological and scientific innovations originating from these territories wouldn't be subject to any of the existing laws and rules that are present on the mainland. So the various pro-offshore think-tanks and organizations are planning to convene in 2015 and forge the legal basis for the establishment of the first sovereign city-state, ruled by international maritime law rather than obeying any one single state legislation.

While the idea may sound too far-fetched at this point, and chances are that governments (particularly the US, in this case) would have objections to such a development, on the other hand the involvement of multinational corporations such as Google, Microsoft, Facebook and some industries (including those from Silicon Valley) and their heavy investment in offshore cities in international waters could turn things around, and what now seems like utopia may become reality one day in the not so distant future. After all, the special status of these territories could grant these corporate giants freedom from the jurisdiction of any existing state. They could turn out to be capable of not only funding the establishment of new states, but also running them. I.e. these "new territories" would be running themselves as they please. Which may or may not be the pipe dream of any corporate CEO, and certainly of many libertarian dreamers visionaries.

As for the implications for the global economy, should the most paranoid conspiracy scenarios play out; and the consequences for economies such as the US (which would certainly be among the most affected from this "capital drain") - the conclusions (or wild guesses) I'd rather leave to you guys.

(no subject)

Date: 15/10/12 15:07 (UTC)
From: [identity profile] mutive.livejournal.com
As if they'd exist in a bubble universe where the Pacific is not America's backyard, and where their economy wouldn't completely depend on the surrounding markets.

This is the key.

It's a fun idea. (Straight out of cyberpunk - which I suspect is part of why the techies are so into it.) But as long as it's wholly reliant on the US (and California) for food, materials, escape from the claustrophobic confines of the ocean liner...they're not really free. (Esp. as I'd assume that the US could be all, "Um...not so much" pretty much any time, although I suspect they won't unless things get seriously out of hand.)

Also, at $1,600/month for a room, the idea is only really of interest to wealthy tax dodgers and a few highly paid migrant workers who can afford the high costs, but can't get a visa, need to be proximate to Silicon Valley, *and* are okay with the cost/small confines. (I'd imagine that, say, your average brilliant Chinese computer programmer would prefer to live in Hong Kong and Singapore, which are sort of less claustrophobic versions of the same thing.)

With that said, I totally want to visit. I'm expecting a booming tourist trade.

(no subject)

Date: 15/10/12 17:46 (UTC)
From: [identity profile] sandwichwarrior.livejournal.com
Less claustrophobic?

In Hong Kong, for less than 1,600 a month?

(no subject)

Date: 15/10/12 17:57 (UTC)
From: [identity profile] mutive.livejournal.com
It's pretty doable if you live outside of Lan Kwai Fong. I had a four bedroom, two bath place out by Sai Kung for I think around $1,200/month US (with a living room and Asian-style kitchen). And I knew someone just a stop or two down from the island who was paying around $800/month for a two bedroom place. (And my boyfriend at the time was in Lan Kwai Fong and was paying maybe $1,800/month for a two bedroom apartment.) Hong Kong really isn't that expensive, unless you demand luxury living in the expat districts. (Stanley, Disco Bay, Lan Kwai Fong.) At least from what I can recall.

So compared to $1,600/month for a single room, that's pretty cheap.

Plus, of course, even Singapore is a lot larger than an aircraft carrier.

IDK. I guess I get the advantage in being close to Silicon Valley (in case someone needs to do lots of face to face meetings?) But there are already city-states out there that offer fairly easily immigration (to highly skilled professionals, anyway), that are cheaper and offer a lot more "open space". (Hong Kong, at least, has a lot of it if you're willing to take short bus/ferry rides.)

(no subject)

Date: 15/10/12 21:45 (UTC)
From: [identity profile] prisoner--24601.livejournal.com
It's a fun idea. (Straight out of cyberpunk - which I suspect is part of why the techies are so into it.)

I'm not going to lie, the first thing I thought of when I read the article was "Huh, what a great setup for a zombie movie."

But I suspect that your points about a) there being less claustrophobic and cheaper places to live that will achieve the same thing and b) their dependance on the nations around them is probably going to kill the idea before it gets started.

It sort of sucks though that the work visa program in this country is so fubar that something this far fetched seems like a solution, but I suppose that's a whole different discussion.

(no subject)

Date: 15/10/12 22:04 (UTC)
From: [identity profile] mutive.livejournal.com
Well, to be fair, Hong Kong is highly dependent on the People's Republic of China (and is legally part of it), and Singapore is highly dependent on Malaysia. So that would be a common problem. (And both do have issues with their dependence. Singapore regularly freaks out about Malaysia deciding that it's not so into selling them cheap water any more or whatever.) But I can't see how that would be different here, unless Blueseed made it waaaay out into the ocean + was large enough to be self sufficient. (May I laugh hysterically now?)

I do agree that the US really, really needs a better work visa program. (I knew at least one company in HK that had moved there precisely because of the screwed up US visa program. Pretty sad, considering how many roboticists they employed...) And I could see this working pretty handily for tax evasion. (Although perhaps not in the US, considering the tax laws here. But hey, in the UK....)

(no subject)

Date: 15/10/12 17:21 (UTC)
From: [identity profile] mahnmut.livejournal.com
Oooh the new realm of the Illuminati Bilderbergers! I say let'em stay there.

(no subject)

Date: 15/10/12 17:31 (UTC)
From: [identity profile] sophia-sadek.livejournal.com
I look forward to the first incidence of mutiny.

BTW, it is not truly tax-free since residents and users pay rent. That is a form of taxation.

(no subject)

Date: 15/10/12 17:42 (UTC)
From: [identity profile] sophia-sadek.livejournal.com
Although it keep dollars out of the pocket of Seal Team 6 members, those gang bangers may wind up taking out a target on board.

(no subject)

Date: 15/10/12 17:45 (UTC)
From: [identity profile] rimpala.livejournal.com
"The smaller lodgings will be for the workers."

Anything to prevent this from becoming the slave quarters? Given the fact that the place is run by the 1% corporations, I'm starting to see parallels to factories built right on the border with Mexico, for the cheap labor that is.

(no subject)

Date: 15/10/12 17:53 (UTC)
From: [identity profile] abomvubuso.livejournal.com
Indeed (http://www.youtube.com/watch?v=gMh-vlQwrmU). 3 million people are in Dubai as workers, and many of them have their passports seized. Many of them don't get pay the money they have bargained for. They have no other option but to become slave workers to their Arab masters, who treat them like cattle. Particularly the Filipinos, Indians, Pakistanis, etc.

(no subject)

Date: 15/10/12 18:04 (UTC)
From: [identity profile] ddstory.livejournal.com
The Arabs have never been quite alien to slavery. It's ironic how UAE claims to be at the cutting edge, and yet employ Medieval strategies.

(no subject)

Date: 15/10/12 20:03 (UTC)
From: [identity profile] underlankers.livejournal.com
It's even more ironic how a union of emirates, a term that is itself medieval, can claim plausibly to be at the cutting edge of modern anything. ;) But that's the Middle East for you, on the one hand the most cutting edge extremist ideologies (like the Islamic Republic of Iran), old-school nationalist settler colonialism (Israel) and then relics of the middle ages like the UAE and Oman. If the governing system is medieval, it's shameful but not a surprise that the economic system in practice is medieval, too.

(no subject)

Date: 16/10/12 19:43 (UTC)
From: [identity profile] rimpala.livejournal.com
It's hard to say the word slavery, but unfortunately it hasn't gone away since the Emancipation Proclamation, it just took on other forms and ensnared other groups of people.

(no subject)

Date: 15/10/12 19:14 (UTC)
From: [identity profile] underlankers.livejournal.com
Only human good will, worth much less than the paper that good will would be printed on.

(no subject)

Date: 15/10/12 18:29 (UTC)
From: [identity profile] oportet.livejournal.com
They did a great job on the marketing. The original concept - 'Dude, you wanna get really high and start a business?' - probably wouldn't have been taken as seriously.

(no subject)

Date: 15/10/12 18:44 (UTC)
From: [identity profile] policraticus.livejournal.com
$1600/month seems pretty cheap, depending on the amenities.

I don't think it will work, though. The internet makes this kind of idea sort of redundant, don't you think? When your work is mostly intellectual, all you really need is a high speed modem, a HD camera and WiFi.

(no subject)

Date: 15/10/12 21:05 (UTC)
From: [identity profile] malasadas.livejournal.com
When your work is mostly intellectual, all you really need is a high speed modem, a HD camera and WiFi.

Don't forget disposible underwear and a really giant bag of potato chips.

(no subject)

Date: 15/10/12 21:43 (UTC)
From: [identity profile] policraticus.livejournal.com
No Jolt! Cola? No Red Vines? No Hot Pockets?

What are we? North Korea?

(no subject)

Date: 15/10/12 19:11 (UTC)
From: [identity profile] underlankers.livejournal.com
I predict that like all utopias these fail in a minimum of five months and a maximum of five years, with only a few outliers nobody cares about making it to 100 years.

(no subject)

Date: 15/10/12 21:49 (UTC)
From: [identity profile] gunslnger.livejournal.com
I've been on a cruise ship and loved it, but it was only 7 days and we were in a suite. I would not want to live in one of the normal rooms. I don't know that they've really thought this through.

(no subject)

Date: 16/10/12 00:00 (UTC)
From: [identity profile] kylinrouge.livejournal.com
A lot of people would be happy to live in cardboard boxes if they think it lets them get away from their paranoid notions of Big Brother.

(no subject)

Date: 16/10/12 06:43 (UTC)
From: [identity profile] gunslnger.livejournal.com
*shrug* Yeah, I think they believe that, but wouldn't last more than a month.

(no subject)

Date: 16/10/12 02:29 (UTC)
From: [identity profile] mikeyxw.livejournal.com
I’m not sure how this is going to help those trying to avoid taxes, the US taxes its citizens and companies based on their world-wide income, so this won’t go uncollected. I expect the extradition treaty for a relatively undefended ship 12 miles off the US coats would read something like ā€œdon’t make us come and get them.ā€

This looks a lot like a way to get engineering talent close enough to work in the same time zone and have some face to face meetings while their H1Bs get processed. Currently these companies already have something called ā€œVancouver, B.C.ā€ that kind of serves this purpose. Canada is a sovereign country, on paper anyway, and, while it requires a bit more than a passport, it’s far easier than getting someone into the US to work. Vancouver is further than 12 miles from Silicon Valley, making the face to face meetings problematic, which gives this ship some advantages.

(no subject)

Date: 16/10/12 07:09 (UTC)
From: [identity profile] htpcl.livejournal.com
> the US taxes its citizens and companies

Apparently, they're planning to become a sovereign country.

(no subject)

Date: 16/10/12 07:57 (UTC)
From: [identity profile] mikeyxw.livejournal.com
Unless they somehow set up some trade agreements, having a company incorporated on a sovereign ship will mean you don't have access to any markets and your IP wouldn't have any advocates. I'd also expect that a passport from such a "country" wouldn't get you anywhere. I really don't expect this is the purpose as much as getting around requirements for work permits. Kinda like corporate America's answer to Guantanamo.

(no subject)

Date: 16/10/12 02:48 (UTC)
From: [identity profile] harry-beast.livejournal.com
It sounds very attractive for highly skilled workers and high income people. As long as such an independent state does not run afoul of US law, I don't really see much of a downside.

(no subject)

Date: 16/10/12 09:28 (UTC)
From: [identity profile] omnot.livejournal.com
"highly skilled workers and high income people" who are happy to do their own housework and menial tasks. Or pay 1600 a month plus wages to pay someone else to do it for them.

Or is housekeeping etc all part of the deal offered by Blueseed? I skimmed and I don't remember seeing those services offered.

(no subject)

Date: 16/10/12 12:17 (UTC)
From: [identity profile] mutive.livejournal.com
It would be more than $1,600/month. That's just the cost of the room. I'm going to throw out a wild guess that food and energy prices are also inflated.

If you compare that to say, Hong Kong, where you can get domestic help for virtually nothing well...

I'm not sure that I see the benefit of this ship vs. already existing city-states with liberal immigration, tax, and trade laws...

(no subject)

Date: 17/10/12 00:34 (UTC)
From: [identity profile] harry-beast.livejournal.com
I see domestic chores as an issue that they can probably decide on for themselves. And they can probably figure out how much they feel like paying to live there.

(no subject)

Date: 16/10/12 03:30 (UTC)
From: [identity profile] peristaltor.livejournal.com
Sooo many problems. I'll throw in my immediate semi-expertise as a former mariner.

I'm assuming this utopia will be built on a foreign-flagged hull, since crewing with US requirements will be cost-prohibitive. Great. I'm living 24/7 on a former Panamanian bulk carrier or Cayman cruise ship that will sit at anchor in off-shore conditions. Even foreign flagged vessels need haul-outs, dry dockings that lift the whole darned thing from the water to make sure the steel under said water don't leak. Where will that happen? Drydocking is a tricky enterprise reliant on calm waters; tugging a monster drydock from shore once a year or so would get equipment to "city", but they would never get conditions calm enough to lift the hull without building a ring reef of substantial size and depth.

Okay, so they will have to "put in" to port on occasion. Will the self-declared citizens of the world (read: keepers of own money free of taxation assholes) be able to scrub the hard drives of their revenue streams quickly enough, and keep them down long enough, for a re-welding that goes long because no qualified welder can pass the new drug screenings? (True: a boat I managed stayed an extra 2 weeks on blocks for this very reason, resulting in canceled service.)

Even if they manage these substantial hurdles, what happens when the cost of bunker diesel spikes? Will their rent? You can't have a ship full of apartments without a substantial number of them being without windows, and you can't have lights and ventilation without power; diesel, even the low-grade bunker variety, more than any other commodity, will dictate the viability, let alone the live-ability of this Randian fever dream. This will further impact shore service. Will the high-powered exec be as high-powered when the ride to the money center is off limits due to a sustained el niƱo spring? (Another true from boat times: Such a weather event delayed delivery of a new boat bought in LA for, you guessed it, two weeks. Thanks to the cheap-ass company that once employed me, they cut enough safety corners to make the delivery round. That boat nearly sank off Oregon as a result, but nobody talked about the danger they were in for months. PTSD.)

This city-state on water is laughable fail writ large. They are probably resorting to this because the arcologies in Oath of Fealty can't remain tax-free enough.

(no subject)

Date: 16/10/12 03:35 (UTC)
From: [identity profile] danalwyn.livejournal.com
Would they even be independent there? To my knowledge, the US is not party to the United Nations Convention on the Law of the Sea - if that's the charter that people hope to use, doesn't the US have the ability just to ignore it? I suppose that they could just decide to enter it whenever they wanted without even bothering to knock.

Maritime claims are a bit weird. Better to buy an island from someone and set things up there.

(no subject)

Date: 16/10/12 07:04 (UTC)
From: [identity profile] existentme.livejournal.com
"...doesn't the US have the ability just to ignore it?"

Yup, like all treaties, international agreements, and world courts, whether signed party to or not, the US has the ability, perhaps the propensity, to ignore such things as it pleases. 'Cause yeah, Seal Team 6 and all.

(no subject)

Date: 16/10/12 07:44 (UTC)
From: [identity profile] peamasii.livejournal.com
If they simply want to avoid taxation they could just set up in an offshore location that's tax free, it's a lot cheaper and more practical than floating at sea. But it seems 'practical' does not factor in this.

(no subject)

Date: 16/10/12 15:23 (UTC)
From: [identity profile] danalwyn.livejournal.com
The only reason I can think for them to set up in international waters is to avoid legal problems. Of course the trouble with that is that if nobody recognizes your nation, well, we can't all be Sealand.

(no subject)

Date: 16/10/12 06:53 (UTC)
From: [identity profile] omnot.livejournal.com
These plans are always amusing to me. A bunch of rich, entitled individuals decide that they can have the benefits of at-whim access to the privileges and amenities of a tax-paying nation without fulfilling their obligation to pay any contribution toward the cost of those benefits.

If one of these offshore floating nation deals does actually come into existence, I wait in breathless anticipation for the day when well equipped pirates move to plunder the ship, or even to acquire the ship. I can only imagine that the occupants of the Blueseed (or equivalent) would call on the US for military assistance. I rather hope that the government of the US would have the nerve to respond with "Sorry, you're not an American territory, you're on your own."

(no subject)

Date: 16/10/12 07:41 (UTC)
From: [identity profile] peamasii.livejournal.com
Well-equipped pirates 12 nautical miles off the coast of California? That would be a very funny plot indeed.

(no subject)

Date: 16/10/12 07:54 (UTC)
From: [identity profile] mikeyxw.livejournal.com
How about CIA equipped pirates?

(no subject)

Date: 16/10/12 13:11 (UTC)
From: [identity profile] abomvubuso.livejournal.com
That would be so un-American.

Oh wait.

(no subject)

Date: 16/10/12 09:18 (UTC)
From: [identity profile] omnot.livejournal.com
Hey, international waters. The US is not obliged to intervene. *shrug*

Who is to say that they would not be organised-crime equipped pirates? Say, a hostile corporate takeover between tax-dodging "businessmen".

(no subject)

Date: 16/10/12 10:32 (UTC)
From: [identity profile] peamasii.livejournal.com
The US regularly intervenes outside its borders in many matters not involving US taxpayers. I'm certain that the presence of pirates off the US coast would elicit a response even if the target was foreign. What about Pacific trade routes and such?

(no subject)

Date: 16/10/12 15:59 (UTC)
From: [identity profile] underlankers.livejournal.com
The LULZ would be......epic.

(no subject)

Date: 16/10/12 09:24 (UTC)
From: [identity profile] omnot.livejournal.com
What would be hilarious would be if some bunch of anti-tax, anti-regulation, anti-government zealots got out on the ship-nation thing and discovered that in order for their businesses to function, they had to pay for their own healthcare system, military defense, ship maintenence organisation etc, etc. And then they gradually came to the realisation that it was more efficient and economical to pay for such things by instituting some kind of, um... levy ...or similar on the whole population.

That would be entertaining to watch.

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