No it isn't. How much of that debt is double counted?
How do you compute the sum of all assets?
If you're using household debt, use household assets. If you're using corporate debt, use corporate assets. If you're using government debt, use government assets.
What do you think would happen to the price of those assets when everyone tried to realize their "value" by selling?
You let me know when that "happens".
The Dow-to-gold ratio has stayed constant between 3 and 5 over most of the 20th century.
Considering that gold was fixed at $20.67 an ounce until 1933 and then fixed at $35 an ounce until 1971, that ratio is kinda useless until the price of gold was floated. And most of the 20th Century would be more than 50 years. And that's not even the case.
It traded above this range during the 3 secular bull markets of that century, and below that range in the secular bear markets that followed.
I don't suppose you have a nifty little chart that shows this ratio?
Having said all that, I make the following claims:
Just so long as you stopped claiming "Gold beats paper over the long haul every time".
You have to copy and paste that link into your browser address for it to work.
