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

By: GARKO

Many analysts are pondering whether there is a cause and effect between peak oil and inflation. The answer is clearly no. 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. Peak oil cannot cause that to happen. 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 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.
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 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.
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 sharing information at a low price which car owners can use in their garage or wherever to create a small device which instills hydrogen into the fuel/air mixture that their vehicle runs on.
Using Water4Gas you can reasonably expect to reduce your gas consumption by thirty to fifty percent or even more. With W4G gasoline is made usable so you can reduce your gas consumption.
It also helps make emissions significantly cleaner.Happy members number about 99%! So how about you?

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

Songwriter, activist, consumer advocate and activist, GARKO, shows you increase your mpg and save gas and how to lower gas consumption through hydrogen generation which is the best of the inexpensive ways to save gas For a list of current gas prices in your neighborhood email garko@startlingdiscoveries.info

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