I know I’ve been beating this drum for many months [for instance: HERE, HERE and HERE], but push has finally come to shove. Here, in the simplest terms possible, is the dilemma facing oil and gas prices.

Given that interest rates are close to zero and must remain near zero out of necessity…

…and the dramatic increase in oil and gas prices since last April’s crash would result in at least a 40%+ YoY increase……and CPI is very positively correlated with YoY increases in gas prices…

…and interest rates are very positively correlated with CPI……will politicians and central bankers allow oil/gas prices to remain at these levels?