The “Record” Dow Industrial Index Measured in a Real Currency

The Dow Industrial Index, main stream media’s favorite gauge to trumpet the heraldic news of economic recovery that they keep insisting is upon us, has hit 22,000, a very lofty level. But that is 22,000 in US federal reserve notes, a form of debt. What if we were to look at the exalted Dow 30 in a different currency? Such as gold, the oldest and most stable currency in history? Behold, the Dow 30 measured in gold:

Hmmmm, doesn’t quite look like a new record high to me! It actually looks like a dead cat bounce about ready to roll over to the South Side of Chicago! Like Leroy Brown!

Keep in mind that what you measure something against (here gold rather than the familiar US paper dollar) can put a whole new spin on things. “Nothing to see here, folks! Move along now and go buy some more stocks!”