Loss of Backing
A fiat-money currency generally loses value once the issuing government or central bank refuses to further guarantee its value, but this need not necessarily occur. For example, the so-called Swiss dinar continued to retain value in Kurdish Iraq even after its legal tender status was withdrawn by its issuer, Iraq's central government.
Read more about this topic: Fiat Money
Famous quotes containing the words loss of, loss and/or backing:
“Our ego ideal is precious to us because it repairs a loss of our earlier childhood, the loss of our image of self as perfect and whole, the loss of a major portion of our infantile, limitless, ain’t-I-wonderful narcissism which we had to give up in the face of compelling reality. Modified and reshaped into ethical goals and moral standards and a vision of what at our finest we might be, our dream of perfection lives on—our lost narcissism lives on—in our ego ideal.”
—Judith Viorst (20th century)
“Quarrel not at all. No man resolved to make the most of himself, can spare time for personal contention. Still less can he afford to take all the consequences, including the vitiating of his temper, and the loss of self-control. Yield larger things to which you can show no more than equal right; and yield lesser ones, though clearly your own. Better give your path to a dog, than be bitten by him in contesting for the right. Even killing the dog would not cure the bite.”
—Abraham Lincoln (1809–1865)
“And no one, it seemed, had had the presence of mind
To initiate proceedings or stop the wheel
From the number it was backing away from as it stopped:
It was performing prettily; the puncture stayed unseen....”
—John Ashbery (b. 1927)