Oil is a finite commodity. Sooner or latter Western Governments will figure out that the oil market is not a free trading market. It is controlled by the Arabs or oil cos who have the surplus production. To continue to pay the so called free market price for oil will cause massive inflation. Foolish people like the reserve banks heads will chase this commodity inflation by putting up interest rates. Until they became totally bewildered that they have caused a deep recession but inflation continues to rise. This is now happening in the States. Rudd will not reduce the petrol excise as he believes that this will increase inflation same way as he believes not increasing pensions or Government spending will decrease inflation.Poor fool must be drinking with the most economic reckless person in Australia Glenn Stevens. He wants to hit his history books and learn that one cannot fight commodity inflation by increasing interest rates. It only adds to inflation. Well you know you can but it is reckless like trying to cut a loaf of bread with axe. You might chop the bread but it will split the table at the same time. The 1930's world depression was built in part on such silly thinking. Well at least some smart people are around as we have seen in the US Congress today
