I agree Saturn, but even there downward pressures are exerted by consumers. When oil hit $US 147 in 2008 people I know who commute from the central coast to Sydney began making big adjustments because they HAD to (worked more from home, caught the train, car-pooled). As my family grows we pay more attention to grocery specials arriving in the letterbox, shopping smarter (I picked up some nice pants retail price $179 for $40 last weekend)... where I live there's a plethora of butchers/fruit & vegetable shops to keep prices honest. There's a lot of fat we can lose from our waistlines, quite literally, if interest rates rise and debt service consumes more of our income, full-time work isn't there for both parents etc. Your comments about government cash injections are very valid though. In a debate between inflationist Marc Faber and Mike Shedlock a while back, they agreed on almost all points except how far governments can/will go in this regard.
