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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. Rising oil prices in general, for any reason cannot cause inflation either. However, rising oil prices could be a result of inflation. Considering, though, that the American economy is in a deflation 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 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?
The idea of course is preposterous. Like trying to fix the steering because there is a problem with the car battery.
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 as good a reason as any why the Fed should be abolished.
Only by getting rid of the Fed and checking the resultant answer would one know for sure what is really going on. 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 at a low price which folks can use at home to build a small device which instills hydrogen into the gasoline/air mixture that their car runs on.
With WATER4GAS you can minimumly expect to lower your gas consumption by thirty to fifty percent or even more. With W4G gasoline is made consumable so you can lower your gas consumption.
It also helps to lower emissions significantly.The percentage of happy customers is about 99%! So how about you?

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

Entrepreneur, songwriter, activist and consumer advocate, GARKO, says that waiting for the automobile companies to manufacture the car that runs on water is like Linus waiting for the "Great Pumpkin" and that you only need to know the best way to save on gas and that is to convert your engine to a hydrogen powered system right now at home! For a list of current gas prices in your neighborhood email garko@startlingdiscoveries.info

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