or have they???? lol ... Most every paragraph contradicts itself .. of course the fed is doing a good job and will remain dillgent ensures our confidence, so fortunaetly no contradcition there.

If Buffet says its getting worse and housing prices continue tumbling, and India's inflation is at a 13-year high at 11.05 per cent, well above the target of 5.5 per cent. Russia's consumer prices have risen 15.1 per cent in the past year. Vietnam is seeing 25-per-cent inflation. And China's inflation rate has been running around 8 per cent. Total global inflation was rising at a 6.0-per-cent annual pace in May, and core inflation – which excludes the most volatile prices such as energy and food – was 3.5 per cent.

The only reason the US does not have rampant inflation is lack of demand ... especially given the US is devalued against every meaningful fiat currency.

It would seem safe to conclude that inflation is not driven in this case by demand, so increasing the cost of money (interest rate) is pointless. On the other hand reducing interest rates will further reduce the value of the US$ increasing inflation (who import everything but sound monetary polic) in the US and increasing the risk of a flight to quality.

Monetary policy is the soul cause of this inflation as they trim the countries value against other markets. US companies remain in serious trouble and the few good still produced will be much more expensive due to high commodity prices and increased transportation costs.

The feds have 2% points they can play when panic begins on the market. The liquidity crisis is not going to go away they are just deferring the inevitable and trying to manage its freefall ... IMO ... so far so good.

If anyone can give me any real reason that a substantial correction in the market is not inevitable ... please please share with me.

I can see no reason for hanging around and being decimated as the mega corrections occur and gold gets its rightful due. I will be holding gold based assets and hope the holding of gold does not become illegal as it did in the FDR era.

I remain ... very very scared

Orgy