Many analysts are pondering whether there is a cause and effect between peak oil and inflation. The answer is clearly no. 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. Oil is much like a currency but an international one and it cannot cause domestic inflation without more dollars being in circulation or more debt being established. Rising oil prices in general, for any reason cannot cause inflation either. However, rising oil prices could be a result of inflation. But given that the U.S. is in deflation right here right now, the recent rise in oil prices cannot be attributed to inflation, at least in the U.S.
Rising oil prices can be attributed to rising inflation in China, rising worldwide demand, and peak oil. That is something of a perfect storm and is out of the control of the central banks in America or the European Union to manage.
Suppose oil production in a large Saudi Arabia oil field halted tomorrow, Oil just ran out unexpectedly and oil surged to $300. Would the Fed try to fight this by raising interest rates to fend off inflation?
The idea of course is preposterous. Like trying to fix the steering because there is a problem with the car battery.
I don't know, you don't know, and the Fed does not know what to 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 fact, the Fed operates in such secrecy that we are not even allowed to know how much money is being printed at any time. That is a new development as they get more and more cloistered. That puts us all at total effect, unable to handle any thing or make any useful changes.
So since there is little that we can do big picture aside from call for the end of the Federal Reserve the question becomes what can we do as individuals to become more at cause over our own personal financial situations overall and as regards the price of gas.
WATER4GAS is sharing information at a low price which people can use at home to put together a small assembly which instills hydrogen into the fuel/air mixture that their vehicle runs on.
With WATER4GAS you can minimumly expect to lower your fuel consumption by 30-50% or significantly more. With W4G gasoline is made consumable so you can lower your fuel consumption.
It also helps make emissions significantly cleaner.The percentage of happy customers is about 99%! Isn’t it your turn now?