Micronations

Ever wanted to just declare your independence and form your own banana republic?

Well, actually a LOT of people want to do that....

  
Much easier to do in the virtual world than in the real one. Not to say some haven't tried. History is filled with failed attempts at nation building:

Try this game out:

http://nationstates.net/

But that hasn't kept people from trying the real thing.

They're called "micronations". A micronation is basically a one-person government, dictatorship and subjects are usually members of one's own family (like in some areas of Utah or the South) or just themselves. A King/Queen in their own minds I guess. And the land mass is no bigger than one's own residence. 

It also pays to be absolutely insane (or have balls the size of watermelons.)

Sealand:

The most famous of these is Sealand. Sealand was created out of an abandoned man-made World War II Royal Navy base in the English Channel called Rough's Tower. 

When the Royal Navy abandoned it in 1956, a pirate radio operator named Paddy Roy Bates took it over. Since Rough's Tower was abandoned and in international waters, he declared Rough's Tower a sovereign nation and called it Sealand. Bates and his family moved there and the hobby grew, minting their own coins and stamps and issuing passports. All worthless of course, but one can dream, can't they?

http://www.sealandgov.org/

Molossia:

Located in Nevada, this guy is your basic Micronation hobbyist. This video explains everything. 

And he's STILL at war with East Germany.....

http://www.molossia.org/countryeng.html

More on micronations:

http://en.wikipedia.org/wiki/Micronation