Horsefeathers ... Winnipeg is selling the stuff at only a 20% discount .... glut yes ... but still cheaper than raw logs ...
We're at the point where your idea has been fleshed out and it's found wanting in several ways ... your source material is still prohibitively expensive even at the 20% discount ... and the decay times are going to be long if we're using bleached paper ... the work-around here is to use hemp paper ... the kind of marijuana that doesn't get you high ... aka ditchweed ...
Who's going to sit there with a pair of scissors cutting this paper up into strips? ... maybe use Chinese slave labor? ...
"Above the clouds" ... do you mean where jet airliners fly? ... there's going to be a few jet engine mechanics objecting to that idea ...
Also ... not a new idea:
en.wikipedia.org
A little study on your part and you'll get all the data you need to confirm or reject your theory ...