Mike K

When Central Bankers Clash, Stock Markets Can Crash

I'm absolutely convinced world coordinated *aggressive* energy policy can do the job better of solving this 'supply side crisis' better than the blunt instrument of aggregrate demand destroying interest rate policy.

In other words, dropping a nuclear bomb onto developed economies will achieve the same thing as hiking: dropping aggregrate demand, thus lowering prices. Its a zero sum game guys... People suffer just the same thru lost jobs from declining economic activity from tight interest rate policy as they do thru inflationary moves.

Now if you fix the energy problem (which is doable if we divert our outrageous defense spending to alt. energy spending and subsidization), you fix the food problem at the same time, and end this cost push driver.