Kicking Wrote........................
Solution is very simple to me, besides addressing the refinery capacity issues, encouraging alternative energies and the fight against terrorism ( not in the way it is currently done but through diplomacy and a whole different foreign policy distancing itself from Israel)
take the Fed Fund rate to 7% or thereabout, that will slow down the Chinese economy , crush inflation , weed out excess speculation (hedge funds) then watch th dollar rally and crude crash below $40
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Kicking,
I for one really think alot about what is most possible...and I think that a 7% number is probably a little below parity...
However...the number with respect to the daily oil flow requirements at the bottleneck cracking process is exactly what needs to be addressed...
Money will flock to US debt at 7 to 10 %....will enforce savings at home...and yes will create a recession...
However the recession will be healthy in the sense that the current economy has false legs that alleviated the $7 trillion 2000 fiasco...
The price has to be paid....somewhere sometime....and indeed this may be an optimal solution...not perfect...simply optimal...
I believe that you have the correct thinking about this...