Sovereign credit is the credit of a sovereign country backed by the financial resources of that state. Sovereign credit is the opposite of sovereign debt. Fiat money is sovereign credit and sovereign bonds are sovereign debts. When money buys bonds, sovereign credit cancels sovereign debt.
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Famous quotes containing the words sovereign and/or credit:
“Nota: man is the intelligence of his soil,
The sovereign ghost. As such, the Socrates
Of snails, musician of pears, principium
And lex. Sed quæritur: is this same wig
Of things, this nincompated pedagogue,
Preceptor to the sea?”
—Wallace Stevens (1879–1955)
“Bless my soul, Sir, will you Britons not credit that an American can be a gentleman, & have read the Waverly Novels, tho every digit may have been in the tar-bucket?”
—Herman Melville (1819–1891)