Some analysts are indicating that there is some relationship, in a cause and effect sense, between peak oil and inflation but one wonders where they graduated from and if they took even basic courses in Economics there if that is what they actually think. It is like saying that an increase in car traffic in Los Angeles was responsible for a pedestrian being run over on Queens Blvd in Queens, NY. They are just two bad things that are disrelated. 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. Considering, though, that the American economy is in a deflation right now, the recent rise in oil prices cannot be attributed to inflation, at least in the U.S.

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, Oil just ran out unexpectedly and oil surged to $300. 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.

Ok, here is the central point to this section of the article? the Federal Reserve's 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 can't control the ups and downs of the economy as they claim that they can 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 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. 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.

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Using Water4Gas you can minimumly expect to lower your fuel consumption by thirty to fifty percent or significantly more. With W4G gasoline is made usable so you can lower your fuel consumption.

It also helps reduce emissions significantly.Happy members number about 99%! So how about you?