Hi Ken,

Regarding: "....  But the events can take
place in any setting whatsoever.  For instance, if the events represent some
sort of timing for stock trades, or ..., then the database host's internal
clock has no relevance."

You're absolutely right.

Regarding: "(Here I'm assuming that SQLite doesn't do leap seconds,)..... to
implement the date/time functions in a really correct way..."

Actually, POSIX standard defines UNIX time as specifically excluding leap
seconds. At the end of June or December, a proper Unix system will "relive"
the final second of the UTC day -- which can make for some funky time warps
for a few applications during those moments -- but for most systems, things
are made simpler -- one just pretends that the extra second never happened.

An alternative is to use specialized software to keep atomic time, TAI, or
it's cousin, the GPS epoch time, neither of which take heed of leap seconds.
To calculate very precise times in the past, then convert to ordinary time,
the software needs to have the 

http://en.wikipedia.org/wiki/Unix_epoch

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