Why rulers aren't made of rubber.

Caitlyn is, what, 5' 9"? Our standards bureau sets a standard of measure with a physical device that is temperature controlled to reduce its changing due to temperature. What would happen if we changed the relation of a foot to inches from 12" per foot to 10" per foot today. Now she would be 6' 9", a foot taller than she was yesterday. Dumb, right. But no more dumb than what follows.

The administration and the media is celebrating the fact that our GDP grew by 3.5%.  This signifies that "the Stimulus is working", "we are backing away from the brink", "we can and have done it". But we used the dollar as a measure. You CANNOT use a variable measure to measure anything except to mislead a large group of people. If we use the purchasing power of the 2005 dollar as a standard we find that the GDP is DOWN from $13,324.6 at the same time (end of third quarter) in 2008 to $13,014 in 2009. That is down 2.3% not up 3.5%.

Why? This reflects the early stages of the inflation caused by the printing of un-backed money by the Fed. Check out "What is a dollar"
Admittedly it is up from $12,901.5 at the end of the second quarter. But even that is only less than 0.9% increase.

And in January 2010 the administration is still talking about the growth of our GDB,  Our advice is to subtract the inflation rate of January, which is 2.6%, from any of the glowing reports from the administration and the media.  Even though FOX is pretty good at being "Fair and Balanced" their economic reporting, except rarely, ignores the fact that the Federal Reserve continues to dilute the value of the dollar by increasing the supply without any real wealth being created and how it effects other economic news.

The lesson: WHEN YOU ARE TALKING ABOUT THE ECONOMY, YOU CANNOT USE THE RUBBER DOLLAR AS A MEASURE!!!!!