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For example, the so-called Swiss dinar continued to retain value in Kurdish Iraq even after its legal tender status was withdrawn by its issuer, Iraq's central government.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:
“Yet whatever gains I had, these I have come to regard as loss because of Christ. More than that, I regard everything as loss because of the surpassing value of knowing Christ Jesus my Lord. For his sake I have suffered the loss of all things, and I regard them as rubbish, in order that I may gain Christ and be found in him, not having a righteousness of my own that comes from the law, but one that comes through faith in Christ, the righteousness from God based on faith.”
—Bible: New Testament, Philippians 3:7-9.
“I have never worked for fame or praise, and shall not feel their loss as I otherwise would. I have never for a moment lost sight of the humble life I was born to, its small environments, and the consequently little right I had to expect much of myself, and shall have the less to censure, or upbraid myself with for the failures I must see myself make.”
—Clara Barton (1821–1912)
“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)