I have been pondering lately about whether the high interst rates that the Reserve Bank is imposing is actually a defacto oil tax. At least in Australia it appears that the inflation that is at the forefront of the RBA's thinking, is almost entirely attributable to the rising oil price. The Reserves response has been to tighten rates which effectively imposes higher "taxation" out there in consumer land, the ultimate demand centre of the economy.

Now I know I'm out on a limb with this theory, and interest rates are a blunt instrument. But they could just be part of the stick which eventually discourages people from making unsustainable living arrangements that are designed and built upon the assumption of chaep abundant oil flowing forever.