Re: New chart - dow/gold vs. gold/constitutional dollar

> To begin with, there are two y-axes, one going from zero to about 50, the
> other going from 0% to 100%.  

I apparently completely forgot to do the y-axis labels. I might be able to
get a revised chart up tonight that is properly labeled.


> Does one axis pertain to one line and the other the other?

Yes. The left axis (0-40+) is for the Dow / Gold Ratio. The right axis
(0-100%) is for the percentage comparison of the market price of Gold to
the Constitutional Dollar from The Mint Act of 1792 taken from a previous
chart [ http://i1.tinypic.com/mjmy4l.gif ].


> Why is it relevant to superimpose them?

I did not think it would be relevant at all. However, it was a request. It
was therefore created to order. Once I saw the amazing correlation, I
added in a relevant historical tidbit.


> This is gold valued in "Constitutional Dollars"? 

It is the inverse of the price of gold times the specified weight. This
originally equaled 1 (100%). The line shows when & how the dollar has been
devalued.


> Since "Constitional Dollars" are valued at a fixed amount of gold in the
> Constitution, why would this be anything other than a straight horizontal
> line? 

Because the dollar is being devalued to nothingness, thus the line keeps
dropping.


> Sorry for being so dense, and thanks for bearing with me on this one.

No problem. I should have more precisely labeled the chart.


Viking Coder
____________
http://420000.e-gold.com