Every passing day the Fed fails to act worsens inflation

Well, today and yesterday the US Federal Reserve had their meeting and once again they have failed to act against inflation. In fact, to hear the Fed say it, you'd think the Fed needs more evidence before they are convinced that inflation is really a problem. Yes, they acknowledge that there does appear to be some inflation but it's not enough the act on. How do they conclude this? Simple. They look at the cooked up numbers coming out of the Labor Department and conclude that their "seasonally adjusted" numbers indicate there really is very little to be concerned with. This in spite of rising oil, energy and food prices.

Of course, currency traders had a very different take on today's Fed action. The Euro took off like a rocket. I think currency traders are considerably more realistic. They see the Fed's inaction today as another instance of the Fed in denial. The question is: How much longer are currency traders going to wait until they finally give up on waiting for the Fed to do what is necessary to defend the US Dollar. If I were the Fed Chainman I wouldn't wait too long. He's liable to wake up one morning and find the US Dollar is under attack and nothing can be done to save it. It's time for Chainman Bernanke to pull his head out of the sand and come out of his own state of denial.