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Is Inflation Causing Soaring Fossil Fuel Prices Or Vice Versa Or Not At All?

By: GARKO

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. Oil could go up to $500/barrel and it still could not be solely responsible for inflation. 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. 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.
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.
Let’s say that all of a sudden a major Saudi field dried up in a day, the whole operation just went bone dry and oil surged to $300/barrel or higher. Would the correct response be to hike interest rates to combat inflation?
That would be nuts. Like kicking the cat because the car broke down.
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 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. That puts us all at total effect, unable to handle any thing or make any useful changes.
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 offering information for a nominal fee which car owners can use in their garage or wherever to put together a small assembly which infuses hydrogen into the fuel/air mixture that their vehicle runs on.
Using Water4Gas you can reasonably expect to increase your fuel economy by thirty to fifty percent or significantly more. With W4G gasoline is made usable so you can increase your fuel economy.
It also helps reduce emissions significantly.Happy members number about 99%! Isn’t it your turn now?

Article Source: http://www.articlekingpro.com

Learn all there is to know about how to POWER YOUR CAR WITH WATER and lower gas consumption through hydrogen generation

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