>Besides, inflation these days comes from surging
>demand of commodities, mostly from Asia, and pretty
>stable demand for same in developped countries.
>The end result is an imbalance in supply/demand, and
>surging prices that result from it.
>
>Trichet could jack up ECB rate to 10%, and it would
>still make no difference at all in the price of oil, wheat,
>corn, copper, iron ore, etc, etc, etc...

Right, that makes sense.

I guess another issue is that in Europe we have the problem of some 
"states" needing more interest and some needing less interest.

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