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.
Since fuel is in literally everything, there is no escape. . Oil is a primary component in plastics, for example. Here is something that will make the point abundantly clear. Take a stroll around the house and note how many things have some kind of plastic in their makeup. Right, those things all have petroleum in them! 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. What is deflation? During deflation, while consumers can buy more with the same amount of money, they also have less access to money (e.g., as wages, debt, or the return realized on sales of their products) . 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 their tools in their arsenal are ineffective except in times of inflation. 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.
A Weak Dollar Is Masking Deflation!
We have a uniquely bad situation right now. We have deflation occurring with a dollar that is rapidly declining in value. That weak dollar, in conjunction with peak oil, has caught nearly everyone off guard to the point they are screaming about oil prices and bond bubbles, while missing the far more important deflationary forces of foreclosures, bankruptcies, and massive writedowns in credit.
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 providing information for a nominal fee which people can use at home to build a small device which infuses hydrogen into the gasoline/air mixture that their car or truck runs on.
The process makes bite sized particles out of the ones that the system uses as fuel. Because of the smaller size it is able to use considerably more of the fuel.
By doing this you can reasonably expect to improve your MPG by 30-50% or even more. With W4G gasoline is made consumable so you can improve your MPG.
It also helps to lower emissions significantly.
This package of info has been purchased by over 9000 people already and the percentage of happy customers is about 99%! So how about you?