Relation To Debt
A debt is a deferred payment; a standard of deferred payment is what they are denominated in. Since the value of money – be it dollars, gold, or others – may fluctuate over time via inflation and deflation, the value of deferred payments (the real level of debt) likewise fluctuates. A device is termed "legal tender" if it may serve to discharge (pay off) debts; thus, while US dollars are not backed by gold or any other commodity, they draw value from being legal tender – being usable to pay off debts.
Read more about this topic: Standard Of Deferred Payment
Famous quotes containing the words relation to, relation and/or debt:
“The difference between objective and subjective extension is one of relation to a context solely.”
—William James (1842–1910)
“Concord is just as idiotic as ever in relation to the spirits and their knockings. Most people here believe in a spiritual world ... in spirits which the very bullfrogs in our meadows would blackball. Their evil genius is seeing how low it can degrade them. The hooting of owls, the croaking of frogs, is celestial wisdom in comparison.”
—Henry David Thoreau (1817–1862)
“Even the poor student studies and is taught only political economy, while that economy of living which is synonymous with philosophy is not even sincerely professed in our colleges. The consequence is, that while he is reading Adam Smith, Ricardo, and Say, he runs his father in debt irretrievably.”
—Henry David Thoreau (1817–1862)