Thoughts, essays, and writings on Liberty. Written by the heirs of Patrick Henry.

“Sometimes it is said that man cannot be trusted with the governing of himself. Can he, then, be trusted with the government of others? Or have we found angels in the forms of kings to govern him? Let history answer this question.”     Thomas Jefferson,    First Inaugural Address

March 9, 2009

Dow — Feels Like 1966, Baby!

by Brad Warbiany

Is this a knock on the market, or a knock on the Federal Reserve and the inflationary track we’ve been on since the end of Breton Woods in 1971:

Dow Jones Industrial Average corrected for CPI inflation

I’m going to select “both”.

I’d love to recreate this graph and make the vertical access non-logarithmic. I think that would really show how far inflation has caused the two curves to diverge.

Hat Tip: The Big Picture


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2 Comments

  1. Brad,

    “I’d love to recreate this graph and make the vertical access non-logarithmic. I think that would really show how far inflation has caused the two curves to diverge.”

    Since the vertical data has no absolute meaning and the relative significance of one data point versus another is contained in their ratio, the existing logaritmic vertical scale is the most meaningful.

    Regards, Don

    Comment by Don Lloyd — March 9, 2009 @ 2:54 pm
  2. [...] Brad @ The Liberty Papers Related PostsPutting The Bailouts In [...]

    Pingback by Below The Beltway » Blog Archive » Dow Industrials: Partying Like It’s 1966 — March 9, 2009 @ 4:25 pm

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