implication here  after last night's inflation numbers is that if there is absolutely any way the world can buffer its economy from the worst the euro zone can dish out, it will.

The Federal Reserve has already proved that it is willing to keep running the printing presses to keep the U.S. economy moving and the world awash in dollar liquidity . A third round of quantitative easing could be in store if things get bad.

It may not be necessary. If it is, it obviously runs the risk of rekindling inflationary forces here at home -- but those forces would only emerge after any growth crisis.

At this point, the European Union can dither or even force itself into an austerity-driven recession. The S&P 500 can handle it , especially if the Fed is willing to help out.

China was a bigger question mark, but now it looks like they have room to provide their own massive stimulus.

Beijing just announced that it is creating a $300 billion investment vehicle to look for opportunities in Europe and the United States. This will help keep the global wheels moving.

As I told Ken Rapoza for Forbes today, even the worst case scenario for Chinese growth might trim GDP expansion from above 9% to somewhere in the 7% range.

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