Does the sponsor’s insurance program inflate the private currency?
After explaining why we do not pay third parties to insure trust; it may seem contradictory, that we then offer our own insurance program for the delivery of the MR$ to our Internet buyers. In our opinion, the threat of damage, loss and theft in the delivery of the MR$ notes through a major common carrier is a real risk. As such, we must protect our customers from this risk, which requires us to insure the delivery of the MR$ notes. While we can earn your trust over time, we cannot eliminate the delivery risk. Finally, we are assuming that auction bidders will take into account the handling, shipping and insurance fees, when determining how much they will bid for the MR$ notes. In other words, we expect that rational bidders will only agree to purchase the notes at some discount to the indexed value of the MR$. Assuming this to be the case, our insurance program is not inflationary; since such fees merely reduce the profitability of the sponsor’s sale, but should not increase the winni
