Peak Oil and the Inflation Lie: US government, Wall Street hide energy shortage and crisis with deceptive indicator

These nonsensensical statements have already become the basis for economic, political and financial decision-making across the country, as well as internationally.

It is a lie. Here is why.

Rising energy costs are inflation. You cannot have one without the other. Energy, and energy-related material, is the lifeblood of modern industrial life. When the cost of energy (including oil, natural gas, electricity, and the products made with petroleum, such as plastic) goes up, the cost of everything goes up. This is inflation. When energy is depleted, while the use and demand for energy continues to increase, the price of energy skyrockets. Inflation, again.

It is a fact that the world is in the early stages of Peak Oil and Gas---permanent shortage, and permanent depletion. The world oil peak occurred in November 2005, according to renowned scientists, geologists and industry experts.

It is therefore a fact, with permanent shortage with high, rising and insatiable world energy demand, that rising inflation is not only a problem now, but also a permanent condition.

Why are the authorities hiding this?

Core inflation hides the truth about energy crisis

Simply defined, inflation is the increase in the average level of prices. However, there many different methods by which inflation is measured, and selectively reported by US government (primarily, the Bureau of Labor Statistics), the Federal Reserve Bank, Wall Street analysts, economists, the corporate media, and the rest of the US government.

There are, however, many different definitions of inflation. In recent years, the Bureau of Labor Statistics and the Fed have selectively emphasized one version, core inflation. Core inflation is the statistic that excludes costs of energy and food.

Given the fact that 1) daily existence in modern life demands various forms of hydrocarbon energy, 2) a vast array of basic material is derived from hydrocarbons (such as plastic), and 3) food and food production depend on hydrocarbons (fertilizers, irrigation and pesticides, energy needed to run machinery, etc.), the exclusion of food and energy costs in the measure of inflation is, therefore, a lie.

The selective use of core inflation is a cover-up that is routinely assisted by corporate media that, knowingly and unwittingly, promotes the illusion of a “growing economy with inflation under control, or non-existent”.

Meanwhile, what is the truth? Consider these:

Inflation looms as oil prices soar

Oil and gas project costs reach new highs

Gas costs $1,000 more annually than in 2001

The price of every form of energy (oil, gas, electricity) is going through the roof, as are other costs of everyday survival: health care, housing, and education.

In The Peak Oil crisis: alarms are sounding (May 17, 2007), Tom Whipple of the Falls Church News-Press writes:

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