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That's what I thought. For the record, the monetary system in both theory and practice changed dramatically in this country just 70 short years ago. The nation was taken off the gold reserve. The dollar only remains as strong as the nation's strength is to dominate our world. After Sept. 11, 2001, it appears that the dollar can be weakened very substantially and very quickly.

I was composing this reply a few hours ago when I hit a mystery key on my computer and sent the whole thing to oblivion.

Look, anything, gold, the money of any nation, you name it, is worth exactly what others are willing to pay for it, no more and no less. Gold, schmold, it makes no difference except to maintain monetary discipline. Gold is certainly not a necessary adjunct to monetary stability.

The Euro, for example, is not backed by anything, not even a nation. As money goes it is pure hype and little else, but it has been gaining against the dollar for some time.

I for one think that is a very temporary situation, for many reasons, and the US Dollar will reestablish its value vis-a-vis the Euro within the near term.

But whatever its value at any moment it is purely reflective of the market in its endless chase of an elusive and ever disappearing equilibrium.

The "sword" has nothing to do with the value af any nations currency except indirectly, as a nation is perceived to be strong and enduring. But if that were the ONLY consideration the Euro would be 40 cents US, as Europe now stands exposed as totally inept militarily and politically.

But, just wait. Nature's balance will reassert itself, and quality will out.

But don't get hung up on gold. Gold has no more absolute intrinsic value than paper. It is all in the perception of others that value is found.

If the paper is not kited, it will be good. Gold can be debased too and often has been, and prople have been burned bad over the years.

I took issue with your assertion that the value of the dollar is somehow enforced by the sword. I still take issue with that. I think it is utter nonsense.

If the US Dollar has any value it is due to trust and faith in the sincerity and honor of the United States, as well as in it's strength. It is not a matter of "enforcement" by the sword.