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For example, the so-called Swiss dinar continued to retain value in Kurdish Iraq even after its legal tender status was withdrawn by its issuer, Iraq's central government.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:
“The poorest children in a community now find the beneficent kindergarten open to them from the age of two-and-a-half to six years. Too young heretofore to be eligible to any public school, they have acquired in their babyhood the vicious tendencies of their own depraved neighborhoods; and to their environment at that tender age had been due the loss of decency and self-respect that no after example of education has been able to restore to them.”
—Virginia Thrall Smith (1836–1903)
“Ours is a culture based on excess, on overproduction; the result is a steady loss of sharpness in our sensory experience. All the conditions of modern life—its material plenitude, its sheer crowdedness—conjoin to dull our sensory faculties.”
—Susan Sontag (b. 1933)
“Better risk loss of truth than chance of error—that is your faith-vetoer’s exact position. He is actively playing his stake as much as the believer is; he is backing the field against the religious hypothesis, just as the believer is backing the religious hypothesis against the field.”
—William James (1842–1910)