The Dow Priced in Ounces of Gold: Secular Bear Market Since '99

Seeking Alpha ^ | 3 August 2008 | Kirk Lindstrom

[Toddsterpatriot]

The issue is not dollar value relative to other currencies

You're the one who brought up foreign currencies. I'm glad you now realize it was a silly point.

but inflation pure and simple: it now takes many more dollars to buy the same asset than it took a year ago.

So what? $1,000,000 in reserves covers the same $$ amount of loans as it did a year ago.

A bank may have to add gold reserves or reduce gold reserves from time to time:so what?

You still haven't shown how gold reserves protect a bank from making bad loans. You still haven't shown how gold reserves would have prevented this mess.

[Toddsterpatriot]

Some day it will take 1 oz of gold to buy the dow.

Just not today. Ouch! Looks like over 14 ounces right now.