What assets will secure the Millennium Dollars®?
The assets, securing the issuance of the private currency, will be inflation-index securities and cash investments. Initially, the securities will be securitized TIPS, which are issued by the U.S. Treasury, but may include other inflation-indexed instruments later. The TIPS will be stripped into the real-interest-only (RIO) strip and the real-principle-only (RPO) strip. The RPO strip will then be stripped into the original nominal-principal-only (NPO) strip and the inflationary adjustment or accrued-interest-only (AIO) strip. Inasmuch as the NPO and AIO strips provide the perfect asset to secure an inflation-adjusted currency, the RIO strip can be sold to cover overhead and generate a reasonable profit. The AIO strip is then stripped off monthly and sold, converting the accrued interest payments stream into a cash payment stream. This enhances the value of the assets, thereby allowing us to meet the present value test. Finally, the assets will also include cash investments of 12 months
