Being untrained I find it hard to understand how the commonsense signals in the economy could be overruled by theory. It is harder to find a blunter instrument than interest rates to achieve control of inflation. Its is also harder to find one that has a greater impact on those that can least afford it.

(Discloser: I have no mortgage so I’m off to buy my third plasma. Hope the guy down the road with the 4 kids and $500,000 mortgage doesn’t mind not being able to afford steak tonight!).

How many recessions will we allow central banks to inflict on us with their delusional myth of managing the economy and managing the statistics before we asy “no more”?

World commodity prices rise, the statistics merely reflect the reality, so where is the logic in saying let us punish the people with debts and mortgages by raising interest rates in pursuit of irrelevent and nebulous statistics?

They did it in the 70s, 80s, 90s and now again.

What was achieved by those recessions except for misery and life long setbacks for people at the sharp end of the economic pain? Nothing.

House prices are much higher today than in the 70s, or 80s or 90s, as is the cost of most things meaning prices rose even after we copped our recessions we had to have.

So what was it for except justifiying public largesse be thrown at a bunch of idiotic bureaucrats who are still living in a socialist central planning fanatsy that they can pull leavers and everything will fit thewir models.

The idea of central bank intrerest rate controls is the last regulated socialist bastion yet to be dismantled and sooner it happens, the better. At least we may then avoid political recessions in the future.