Wednesday, May 21, 2008

Don't be dumb, learn some math!

Today we are going to learn math.
Traditionally if we add 7 to the number 1 you increase or rise the number 1 by 7 equaling a total of 8.

Now, in today's math we are going to show you how adding 5 to 1 actually lowers or reduces the number.

1+ 5 = 6
1+ 7 = 8

Because 7 adds more to the end number we can assume that the total has been reduced when we replace the 7 with 5.

This is the same with how inflation or government numbers are calculated.

We will say that the 7 represents last year and the 5 represents this year. Although we are still adding 5 to our original 1 + 7 we can say that we've actually decreased the number by 2. We decreased the number because of this equation:

1+7=8 (8 is now last year's number and the number 8 replaces the number 1 because that is our new start point)

* Before we go on we must let you know that the number 7 is now equal to zero. This is because if we use the +7 each time then it can be considered a constant; a non changing number. So any variation of the number 7 will either increase or decrease just as it would if we looked at a number line where zero is in the middle; any move to the left creates a negative and any move to the right creates a positive.

Continuing on:

remember: (8 is last year's number and the number 8 replaces the number 1 because that is our new starting point)

8+5=13 (now the number 13 actually equals -2. This is because we did not use the number 7 again, we used a number less than 7. And because we added a number less than 7 we get a negative.)

If we do this every year we will find it easy to say, "little to no inflation". Let's look at no inflation over a 10 year period. We'll be nice and start with the number 0 and use a typical +2 for standard inflation.

0+2=2
2+2=4
4+2=6
6+2=8
8+2=10
10+2=12
12+2=14
14+2=16
6+2=18
18+2=20

As you can see the middle number has remained the same. Therefore the end number has not increased. So now you can see if there isn't inflation you can rest assure that higher prices won't become reality.

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