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LC, the capacitor has an idling voltage of 13.8v or whatever the audio transformer and D10 feeds the Final and Driver.  The cap charges to 25 or so volts only on the positive peaks of the audio, which after going through the variable resistor, powers the TX buffer transistor.  When there is no audio to feed it, it drops the voltage to the TX buffer, to whatever you have it set for.  So, when you put audio into it, it goes to the maximum voltage, which is the same as it would be if you turn the variable up all the way.

Basically, I am modulating just the carrier envelope to each word or sound, and the Driver and Final modulate the audio onto this varying carrier.