Some analysts are indicating that there is some relationship, in a cause and effect sense, between peak oil and inflation but one wonders where they graduated from and if they took even basic courses in Economics there if that is what they actually think. It is like saying that an increase in car traffic in Los Angeles was responsible for a pedestrian being run over on Queens Blvd in Queens, NY. They are just two bad things that are disrelated. Inflation is an increase in money supply and credit. Peak oil cannot cause that to happen. So while skyrocketing oil costs can certainly be a result of inflation it cannot be its cause. But given that the U.S. is in deflation right here right now, the current soaring price of oil is not the result of inflation either, at least not in America.
The more likely scenario is that the steeply and rapidly rising cost of oil is due to factors such as inflation in China, increased demand for oil in China, India and other countries and worries about peak oil. That is a nasty brew and there is no way for the Fed or the ECB to control it.
Suppose oil production in a large Saudi Arabia oil field halted tomorrow, the whole operation just went bone dry and oil surged to $300/barrel or higher. Would the Fed try to fight this by raising interest rates to fend off inflation?
That would be nuts. Like kicking the cat because the car broke down.
Ok, here is the central point to this section of the article… the Federal Reserve’s complete bag of tricks is based on inflating money. Since rising oil prices and deflation are major financial concerns well out of the hands of the central bank they have proven themselves to be a fraud that can’t control the ups and downs of the economy as they claim that they can and this is a clear and obvious reason why the Fed should be nuked and the power over the currency restored to Congress and the free market be allowed to correct itself.
If we allow for the Fed to continue to interfere and tinker and manipulate we will never know what is truly occurring in the economy and causing the trouble. In recent years the Fed has become so ultra secretive that now they don’t even allow us to know how much money that they are printing into circulation at any given time. This puts everyone who needs to know at a point of effect with as much chance of taking the correct action as a blindfolded kid has of sticking the damn pin in the bleepin donkey!
So now we have to ask what we can do as individuals in our own personal lives to better our own conditions as regards economic turmoil and the price of gas.
WATER4GAS is sharing information for a nominal fee which individuals can use at home to create a small device which instills hydrogen into the gasoline/air mixture that their vehicle runs on.
With WATER4GAS you can minimumly expect to lower your gas usage by thirty to fifty percent or even more. With WATER4GAS gasoline is made consumable so you can lower your gas usage.
It also helps make emissions significantly cleaner.The percentage of happy customers is about 99%! So how about you?