L i c e n s e d B y V i r t u a l m o n e y, I n c.
We make money the old-fashioned way - - - We print it !
Then we secure it with assets on a present value basis.
Patent(s) Pending
A b o u t U s
September 7, 2005
Money is not an Investment, etc.
Our mission is to offer a private currency for public consumption that will fulfill the social contract of money by being worth as much tomorrow as it is today. This is achieved by indexing the private currency to the purchasing power of the United States dollar (USD), as measured by the inflation index; and then, by securing the currency with assets on a present value basis that will match the private currency issued and outstanding in a ratio of 1:1. By using a present value analysis to test the assets, we are restoring a rational, mathematical approach to money; so that we may properly measure, and thereby account for and control, our monetary affairs over time. TOP
Private currencies are simply currencies that are issued by the private sector, as opposed to the government sector. Private currencies are legal in the United States and in most other countries around the world. By various surveys, there are at least 30 private currency systems in the United States, over 2,000 private currencies in 14 industrialized countries and over 400 in Great Britain alone. Generally, these currencies are meant to be complimentary to the government-issued currency, and are not intended to replace it. In fact, our private currency requires the continued use of the government’s fiat currency in the marketplace for the purpose of measuring inflation and deflation over time. TOP
The government-issued currency is recognized as legal tender in most countries. While this means that you must accept the government-issued currency as legal tender for the payment of all goods, services and debts; typically, the legal tender laws do not prohibit the use of other currencies, if both parties to a transaction agree to use another currency. This not only occurs, but is commonplace in the marketplace; since checks, credit cards, debit cards, traveler’s checks, money orders, frequent flyer miles, etc. are not legal tender. Only the paper currency, and coinage, issued by the government is legal tender. Nonetheless, inasmuch as our private currency will be the only currency in the marketplace that is secured by assets, at a 1:1 ratio on a present value basis; we expect that it will become the preferred tender. TOP
Our private currency is called the Millennium Dollar®(MR$) which is a trademark owned by Real Monetary Systems, Inc., an affiliate. The private currency received this name, since it is defined as equaling the purchasing power of the USD on January 1st, 2000. Thereafter, the purchasing power of the MR$ is assumed to be constant, while the purchasing power of the USD varies with inflation and deflation over time. As such, the inflation index is used to measure the changing USD value of the MR$, which we call the indexed value. Our goal is to auction the private currency on the Internet, so that people and businesses, who are in a position to distribute the private currency, can benefit by purchasing it wholesale. Subsequently, we will offer to convert the private currency into USD at the prevailing currency exchange rate. However, we will also encourage merchants to accept the Millennium Dollar® at the indexed (or retail) value for the sale of all goods and services. As such, MR$ holders can avoid the conversion expense by simply spending the Millennium Dollars®in the marketplace. If your merchant has not heard about Millennium Dollars®, we suggest you direct him, or her, to this Web site. TOP
Money is not an Investment, etc.
The Millennium Dollar® is not an investment, a payment instrument nor a promise-to-pay. The purpose of the private currency is to represent a constant unit of purchasing power for use as a medium of exchange, a unit of account and as a store of value; which is to say, the purpose of the Millennium Dollars® is to serve as money. As such, there are no payments made to the holders of the Millennium Dollars®, nor is there any redemption, due date or promise-to-pay. The holder of the MR$ notes receives value upon the acceptance of the private currency in exchange for goods, services and/or the satisfaction of debts; just as the holder would with any other currency. The acceptance of the Millennium Dollars® by the receiving party, thereby represents payment in full for goods, services and/or debt satisfaction. This is how money works; but now, everyone can use a private currency that is indexed to inflation and 100% secured by present value assets. TOP
By 1973, the concept of a currency being a promise-to-pay became obsolete, when the world went off the gold standard. While some currencies promise to pay in other government-issued currencies, those currencies promise nothing. Instead, the Millennium Dollars® are issued as a promise-to-conserve the purchasing power of the holder’s capital, as measured by the inflation index. The value is then supported by setting aside assets on a present value basis that secure the issuance of the Millennium Dollars®. While the sponsor is not obligated to redeem the private currency for USD; nonetheless, the sponsor is permitted to hypothecate (or borrow against) the assets to fund monetary conversions. The assets are then subject to an annual audit, using a present value analysis, to see that the assets match the Millennium Dollars® issued and outstanding on a 1:1 basis. We call this the present value test, which is used to verify the purchasing power of the MR$ monetary unit over time. TOP
The assets securing the issuance of the private currency will include inflation-indexed U.S. Treasuries and cash investments. The Treasuries will be Treasury Inflation Protection Securities (TIPS), which will be securitized so that a liquid-payment market can be made for the inflationary adjustment. This will enhance the value of the real-principal-only (RPO) payment stream, which includes the original nominal-principal-only (NPO) payment stream and the inflationary adjustment or accrued-interest-only (AIO) payment stream. By stripping off and selling the AIO strip monthly, the resulting present value of the RPO strip will meet the present value test. This leaves the RIO strip, which can then be sold to cover the cost of the private currency program and generate a reasonable profit for the sponsor. In addition, the sale of the RIO strip allows us to sell the private currency wholesale. A portion of the proceeds from the sale of the MR$ notes will also be invested in cash investments of 12 months or less. Later, other inflation-indexed investments, such as Real Mortgage-Backed Securities® (RMBS) will also be used to back the private currency. The RMBS are deemed to be an even better asset to back the issuance of the private currency; since they are secured by mortgage liens on real estate, which is an excellent hedge against inflation. TOP
The Millennium Dollar® will be indexed to the USD using the Consumer Price Index for All Urban Consumers (CPI-U). The CPI-U is tabulated by the Bureau of Labor Statistics (BLS), which is an agency of the U.S. Department of labor. The BLS has been tabulating inflation indexes since 1913. The assets used to secure the issuance of the private currency, such as the TIPS, will use the same inflation index. As such, the inflationary adjustment on the assets will flow through to the holder of the MR$ notes, thereby justifying the acceptance of the Millennium Dollars® at their indexed value. TOP
The merchant’s benefits in accepting and using Millennium Dollars® are as follows:
Secured by Present Value Assets: The Millennium Dollars® are backed by assets on a present value basis. As such, the value of the Millennium Dollars® in United States dollars (USD) should rise with inflation over time, since the assets securing them are rising with inflation.
Better Money, Better Trade: The Millennium Dollars® represent whole units of purchasing power, which will thereby serve the primary functions of money better, including it use as a medium of exchange, a unit of account and as a store of value. If money works better, then trade will do better.
Cheaper Capital: The use and acceptance of a real monetary unit, such as the Millennium Dollar®, should result in real interest rates ratcheting downwards over time. As this occurs, consumers will have more money to spend on the purchase of goods and services, since their cost of money will decline. This is good for the community, since it increases employment, as well as commercial and tax revenues.
Increased Sales:: The merchants are not purchasing the Millennium Dollars® with USD; but rather, with goods and services which they purchase or create, wholesale and sell retail. Every time a merchant can increase his or her sales volume, they can generate greater revenues and profits for their business.
Convert or Trade MR$: The Millennium Dollars® may be converted back into USD at the prevailing currency exchange rate. This is roughly equivalent to the discount that merchants pay for converting credit card receivables into cash; except that, the Millennium Dollars® are cash. As such, the merchant can avoid paying the merchant’s discount simply by paying their own creditors in Millennium Dollars®.
Hold MR$ as a Store of Value: Finally, the Millennium Dollars® receive an inflation adjustment, which usually exceeds the interest earned on a bank or money market account; so the merchant can do better by holding Millennium Dollars® as a store of value than by holding USD. TOP
Th sponsor will offer to convert the private currency for USD at the prevailing currency exchange rate. Inasmuch as anyone may offer monetary conversions, the market will ultimately decide the prevailing currency exchange rate. However, the sponsor will initially use the weighted, average sale price, of the Millennium Dollars® sold at auction on the Internet, to determine the currency exchange rate. When new financial instruments are traded in the marketplace, the spread generally begins wide, but then narrows as the instrument becomes more widely accepted. For more information on monetary conversions, please see: Selling MR$. TOP
The sponsor’s ability to offer the private currency is based upon certain technology that has been licensed from the issuer. This technology is the subject of a pending patent application with the U.S. Patent & Trademark Office. The purpose of the technology is to resolve certain problems associated with the introduction of real (or constant) financial instruments into our nominal monetary system. In particular, this technology resolves a stripping problem, which belongs to a class of mathematical problems referred to as P = NP? problems. The stripping problem is resolved by creating a liquid-payment market for the securitized assets. This technology is owned by an affiliate, Real Monetary Systems, Inc. (RMSI), which also owns the trademark for Millennium Dollar®. TOP
The issuer of the private currency is Virtualmoney, Inc. (VMC). VMC has been licensed by RMSI to use the patent-pending technology for the purpose of offering a private currency, called the Millennium Dollar®. The issuer actually offered the private currency electronically over the Internet from May to December, 2001, but was forced to cease operations due to the Dot.com crash and the 9/11 terrorist attack. Now, VMC has licensed the sponsor to offer the private currency in a paper format. As the Millennium Dollar® notes become accepted in the marketplace, VMC intends to re-establish the offering of the private currency in an electronic format. TOP
The sponsor of the private currency is Real Monetary Reserve, Inc. (d/b/a Millennium Dollar® Store of Value). The sponsor has received a license from VMC to offer the Millennium Dollars® in a paper format in the ninth Federal Reserve District; and elsewhere, until such other areas are separately licensed. The sponsor will oversee the printing, distribution and conversion of the paper currency, as well as purchasing, securitizing and maintaining the assets on a present value basis. The sponsor and issuer share common management. TOP
Thomas W. Tripp (Tripp), 56, president, chief executive officer and director of Real Monetary Reserve, Inc. and its affiliates. Tripp was the founder of the Company and each of the affiliates, as well as their primary shareholder. He was also the inventor of the Real MortgageTM, Real MonetizationTM process, Real Monetary SoftwareTM and the Millennium DollarTM. As the inventor, he drafted the 1,892-page patent application and then assigned the rights to Real Monetary Systems, Inc. (RMSI). Subsequently, RMSI licensed the technology to the Company.
Tripp’s work on real financial instruments began in January, 1989. Prior to that he held a real estate broker’s license in the state of Minnesota for about 15 years, as well as a Series 7 and Direct Participation Program (DPP) licenses from the National Association of Securities Dealers. His experience is varied, including work as a insurance underwriter, journalist, Realtor, builder, securities broker, syndicator, CEO of a small publicly-registered company and mortgage broker.
Tripp attended Harvard University, Cambridge, Massachusetts, graduating with a B.A. in economics in
1971.
Robert E. Nisen (Nisen), 68, secretary, treasurer & chief financial officer of Real Monetary Reserve, Inc. and its affiliates. Nisen joined the affiliates in December, 1999. In addition to his role as CFO, Nisen was also instrumental in the creation of the monetary service software for Virtualmoney, Inc. (VMC), while acting as the company’s primary liaison with the software developer.
Formerly President & Chairman of the Board, Biwabik State Bank, Biwabik, Minnesota (1969 - 1988). Vice-President & Director, State Bank of Aurora, Aurora, Minnesota (1971 - 1995). Independent Bankers of Minnesota, Executive Council, 1975-1983. Nisen also holds real estate & insurance licenses and has worked as a mortgage broker. He has also offered business consulting services to a wide range of businesses.
Nisen graduated from the University of Minnesota, Duluth in 1959 with a B.A. in business and economics.
Any and all information received by customers, and prospective clients, will be deemed to be confidential; subject only to the sponsor’s legal obligation to supply such information to the government. For more information, please see: Privacy & Security. TOP
Please see: FAQs. If the FAQs do not answer your questions, then please post them in the Forum. If the questions are personal, or confidential, then please contact us at 952-707-8400 or via e-mail to USD@MillenniumDollar.com . We will do our best to answer your questions promptly.