The calculations are based on market cap predictions. The price per coin changes based on the market cap and the amount of coins in circulation.
He's right - there will be a massive yet steady change in the "money supply", also known as monetary inflation...
However, if you read the coin site you'd know that Icelandic currency has devalued 96% in the past 20 years...
The author claims that it's illegal to hold currency other than Iceland crowns...
Auroracoin could well be a way to SHIFT money in and out of the country...
Think about it...
Once those bits start flying from anyone with a payment system...