[upcountryhorseman]

The issue is not dollar value relative to other currencies
but inflation pure and simple: it now takes many more dollars to buy the same asset than it took a year ago.
A bank may have to add gold reserves or reduce gold reserves
from time to time:so what?

[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.