Dear Editor,

Rising prices warn the Reserve Bank that the economy is over-heating and in need of an interest rate rise. Peak oil, when it bites, will cause the price of everything to rise in proportion to its transport and petrochemical components.

Presumably, we are to trust that a bunch of economists will be smart enough to recognise the difference; the same economists who waited for the Stern report before grudgingly conceding that global warming warranted action. Comfortable? Yes. Relaxed? Get real.

Regards,
Carl Sparre
Eastwood