What does Inline object "Y offset" mean exactly?

Hi everyone,
I am confused about inline object y offset. What does it mean exactly? I looked it up on adobe help, here is what it says there.
Inline
Aligns the anchored object with the baseline of the insertion point. You can adjust the Y Offset to position the object above or below the baseline. This is the default type of anchored object. In earlier versions of InDesign, these objects were called inline graphics.
So.. is the baseline at the insertion point?  If the y offset is a negative number, does that mean the baseline move up? How come the object doesn't move ? like the adobe help say, "adjust the y offset to position the object above or below the baseline", doesn't it mean the baseline should stay and object moves accordingly? 
Thanks a lot!

The behavior of inlines is also tied to the leadingof the line in which they are located. When the line has autoleading specified, the inline starts withthe bottom edge on the baseline, and the leading for the entire line is adjusted to the height of the inline object. Changing the y offset in such cases would appear to make the inline object appear stationary while shifting the baseline up or down.Waht is happening is the "auto" amount of leading is being adjusted to compensate for the shift.
If the line in which the object is inserted uses a fixed leading, that leading is honored, and the inline object may cover part of the text above. Changing the offset will make the boject appear to move up or down realtive to the baseline, which will remain fixed by the assigned leading.
You might also find this discussion from the other day to be useful: http://forums.adobe.com/message/2722774#2722774

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