holding collateral against any potential default risk to other nations. Let's also recall that the purpose of Gold in the past was to facilitate trade between nations. In the absence of any other mechanism or product to exchange gold has served the purpose of payment to satisfy creditors. The alternative of course is the direct exchange of food, industrial commodities, energy or specialized services. In more modern times however fiat currencies have substituted for gold as the fluid to make the system work but as we are seeing cracks appear in exchange mechanisms a new interest in Gold has arisen. A country that can meet the capital needs of the market where trade is concerned by supplying alternative resources that are in demand does not need Gold as backing nor its collateral for external purchases and imports. In this case fiat suffices and it is accepted on face based on a nations resource strengths. Fiat in this case is more than adequate where a nation is not questioned regarding its solvency. The US itself is well endowed in the worlds most essential and demanded resources which include energy, food and minerals. All these it has available for export. In the case of Corn and Soy it may be the global leader. Its currency is thus not in doubt despite heavy indebtedness in the same way we question European solvency. The point though is that balancing trade between nations is of much greater significance than how a country exchanges goods and