What is the stripping problem?
The Millennium Dollar® is issued as a promise-to-conserve the purchasing power of the holder’s capital. This promise-to-conserve is deemed to have been satisfied; provided that, the assets securing the private currency on a present value basis match the indexed value of the Millennium Dollars® issued and outstanding. To meet this present value test, the inflationary adjustment on the inflation-index securities securing the private currency must be stripped off and sold monthly. When this stripping process is carried out, a stripping problem arises. The inflationary adjustment, or AIO, stripped off in one month; then begins to earn an inflationary adjustment in subsequent months, which must also be stripped. This creates a geometric progression during inflationary periods; such that, the number of strippings doubles with each subsequent month. When we strip the AIO off 20-year TIPS, the number of strippings in the final period alone reaches 4.42 x 1071 for each original instrument. For
