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Why secure the private currency with U.S. Treasuries?

April 26, 2017currency private Secure treasuries

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Why secure the private currency with U.S. Treasuries?

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The U.S. Treasuries we are using are inflation-indexed bonds, called TIPS. The TIPS have the appropriate payment streams, including the nominal-principal-only (NPO) and the inflationary adjustment or accrued-interest-only (AIO) payment streams; which are required to provide us with the appropriate assets to back an inflation-adjusted currency. Currently, there are no other such real financial instruments available in the United States marketplace in any substantial volume. In addition, we feel that a certain percentage of the present value assets should always be U.S. Treasuries; since they should provide a higher degree of (sales) liquidity than other inflation-adjusted investments. Nonetheless, as the acceptance of the Millennium Dollar® reaches a certain scale, then we will begin to shift the assets towards Real Mortgage-Backed Securities®, since the Real Mortgages® will be secured by real estate; which is an excellent hedge against inflation.