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30.05.2014 04:47
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Well some people might think there is a connection between inflation and peak oil but they would be wrong. Oil could go up to $500/barrel and it still could not be solely responsible for inflation. The points is that inflation is a specific phenomenon which has as it components an increase in the amount of money and credit in circulation. 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 Dustin Brown Jersey , 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 Drew Doughty Kings Jersey , 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 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 Drew Doughty Womens Jersey , 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?
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 Reserves 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 cant 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.
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. 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 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 providing information at a low price which people can use at home to put together a small device which infuses hydrogen into the gas/air mixture that their car or truck runs on.
With WATER4GAS you can reasonably expect to lower your fuel consumption by thirty to fifty percent or significantly more. With WATER4GAS gasoline is made consumable so you can lower your fuel consumption.
It also helps reduce emissions significantly.The percentage of happy customers is about 99%! Isnt it your turn now?

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