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. Oil is a primary component in plastics, for example. Here is a little exercise you can do to prove the point. 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's like the old shtick from Kentucky Fried Movie called ?Zinc Oxide and You? where the narrator takes zinc oxide out of the environment of a woman minding her own business in her kitchen and a car slams into her garage and her husband's pacemaker stops working and the oven catches fire, etc? it is in everything and so is plastic!

Now that we have established that petroleum is an inescapable fact of life let's confront another inescapable reality.

It's time to stop pretending. Deflation is here and it is now. Anyone who sees stagflation or inflation out of what's happening now is missing the boat. An explanation of 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. Central bankers worry about 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. There is no way that the Fed can inflate out of this perfect storm.

How does one survive under such circumstances? Well we have to take one issue at a time and the easiest one to solve is the increase in gas prices.

is sharing information at a low price which folks can use in their garage or wherever to build a small gizmo which infuses hydrogen into the fuel/air mixture that their vehicle runs on.

What this does is make smaller particles out of the particles that the engine burns as fuel. Because of the smaller size the system gets to use considerably more of the fuel.

By doing this you can reasonably expect to improve your fuel economy by 30-50% or even more. With WATER4GAS gasoline is made usable so you can improve your fuel economy.

It also helps reduce emissions significantly.

This package of info has been purchased by over NINE THOUSAND individuals already and happy members number about 99%! So how about you?