The point of no return.

We're importing inflation by the barrel load from the Middle East (with oil prices surging). But don't forget about China, who just lifted bank reserve requirements in yet another measure to slow down inflation.

But if they are really serious, they'll start strengthening their currency faster than the snail-like pace they have employed.

While that may cut down the overall amount of imports we get from China, these imported items will cost more. And we're already seeing more manufacturers pass price increases on to retailers.

Inflation is seeping into the U.S. economy from seemingly every direction. If the Fed doesn't raise rates soon, it may be too late to put a lid on inflation.