With the soaring price of oil leading to a spurt in the cost of everything, from food to consumer items, the scene is set for the inflation to climb. Buffeted by the sub-prime mortgage crisis for the past year, a slump in the housing market and rising inflation, US Federal Reserve Bank and Treasury Department chiefs are scrambling to defuse one crisis after another and keep recession at bay.
Recent history shows that when the US is in recession, the party in power in Washington loses. That's what happened to President Jimmy Carter, a Democrat, in 1980 and to George H.W. Bush, a Republican, in 1992.
A decline in oil price is a prerequisite for circumventing recession. And that's linked with excluding military action against Iran.
As it is, of the four topmost policymakers in Washington, Gates and Secretary of State Condoleezza Rice remain committed to pursuing diplomacy, with Vice President Dick Cheney favoring military strikes. Bush continues to display a split mind - a contrast to what happened in 2003, when Bush, Cheney and Defense Secretary Donald Rumsfeld were all for invading Iraq and ignored the ambivalent Secretary of State Colin Powell. Now, fearing a calamitous petroleum price hike caused by nervous oil traders,
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