What are the implications of selling the RIO strips?
The sale of the RIO strips, to fund the creation of the private currency, makes the overall process irreversible without incurring a loss. In other words, it will not be possible to convert the private currency back into the TIPS without incurring a loss equal to the value of the RIO strips, plus other liquidation costs. However, this should not be surprising, since this occurs in any process that creates a more refined product. As an example, the conversion of silicon chips back into sand would create an even larger loss, as would the conversion of steel back into iron ore; and so on. Conversely, the stripping of the RIO strip occurs along with the stripping of the AIO strip, which enhances the present value of the assets securing the issuance of the private currency; just as the silicon chips and steel become more valuable, so too does the private currency. Finally, the sponsor’s ability to sell the RIO strip will allow us to create the private currency as a product, which can be sol
