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That's certainly an interesting suggestion, well I guess if you're trying to avoid specifically the NSA...
But using a Russian VPS for day-to-day browsing may be inconvenient due to a number of websites being censored by the government, including some CloudFlare IPs which affects a lot of sites they didn't even intend to block.
Nnnope, that part about two VPSes is entirely "out there", if you need anonymization, just use Tor and call it a day. (and no it's not compromised/broken/"solved", and no it's not run by the CIA).
Can you explain why it's "out there"? Traffic goes from your IP to VPS1 in Russia, they intercept encrypted stream, then check the routers going out of Russia and see the only IP VPS1 talks to is your IP. Meanwhile, VPS1 talks to VPS2 also in Russia over encrypted VPN channel, supposedly they can't intercept the peering network within Russia. Then VPS2 goes out to the Internet, but it's just a random IP out there.
@elwebmaster you've just reinvented Tor, except not free and orders of magnitude less secure due to having just 2 jumping points instead of 3, and linked to your real name and billing details both at entry and exit points. One leak somewhere and your entire setup is useless, as you can't rapidly change your two VPSes to two new entirely different ones.
While Iceland may be a country for free speech and privacy, it's not guaranteed.
There has now been an Icelandic domain takedown http://www.ndtv.com/article/world/iceland-shuts-down-islamic-state-website-606108