What is the relationship between the increasing price of gas at the pump and inflation?



This is a simple supply demand issue. Supply drops, demand rises, prices rise. And this has nothing to do with inflation.

Oil has the unfortunate advantage over mankind in that we can find oil into just about everything. Pills to plastics, most of everything in your present environment has oil has a key ingredient. Here is something that will make the point abundantly clear. Go walk around your house and tell me how much of what you have in that home would not be there were it not for some form of plastic! It is like a funny old scene from a very odd flick from the 1970s called Kentucky Fried Movie which was a lot like SNL on steroids and in that short bit from the film a narrator is telling a housewife what her life would be like without zinc oxide and everything falls apart and goes to hell! That is the same thing with petroleum

Ok, we confronted that fact, now let's confront this one.

It is time to wake up and smell the stench. We are not in times of stagflation or inflation. What we are experiencing now is deflation! What is deflation? The money still buys what it did before but consumers have less cash. Consumers and producers who are in debt, such as mortgagors, suffer because as their (money) income drops, their (money) payments remain constant. Even the Federal Reserve, with their whole illegal bag of tricks can't pull the economy out of a deflation because many of the tools of monetary policy become ineffective as inflation drops below zero (deflation). Deflation may set off a deflationary spiral where businesses slow or stop investing, because the investment risk is perceived as higher than just letting the money appreciate due to deflation. (The deflationary spiral is the opposite of the hyper-inflationary spiral.) Similarly, in deflation consumers have an incentive to delay consumption, which may contribute to the deflationary spiral.

How does Deflation Become Obfuscated?

The dissonant convergence of weak dollar, high oil prices, unemployment, the rapid drop in housing prices, people walking away from their homes and international arbitrage is far out of the power of the Federal Reserve to control. Bernanke will find it impossible to inflate out of this mess.

How does one survive under such circumstances? The easiest one to remedy is getting raped at the gas pump. That turns out to be the easiest one to solve because of a new solution.

is providing information for a nominal fee which consumers can use at home to put together a small gizmo which infuses hydrogen into the gasoline/air mixture that their car runs on.

The process makes smaller particles out of the ones that the system burns as fuel. So it is able to use much more of it.

With WATER4GAS you can minimumly expect to increase your MPG by 30-50% or even more. With W4G gasoline is made consumable so you can increase your MPG.

It also helps to lower emissions significantly.

This information has been purchased by over 9000 people already and happy members number about 99%! So how about you?