WASHINGTON (Reuters) - Billionaire investor Warren Buffett said the U.S. economy has avoided a meltdown and appears on a slow path to recovery, but Congress must now deal with enormous amounts of debt that threaten to erode U.S. purchasing power.

In an opinion column published on Wednesday by the New York Times, Buffett wrote that he "resoundingly applauds" actions by the Federal Reserve and the Bush and Obama administrations to pump trillions of dollars into the financial system.

But the "gusher of federal money" has run up a high level of debt that could fuel inflation, he said.

"The United States economy is now out of the emergency room and appears to be on a slow path to recovery," Buffett wrote.

A friend called me and said that when he re-read the article I wrote on 29 March 2009, he is amazed about the "truth" I shared in the article "Make Market Cycles Work for You", published on 29 March 2009. Read the article below to find out what I wrote.

Make market cycles work for you 29 March 2009 Sunday Times

By Dennis Ng

Observing nature, we will notice cycles.

There are, for instance, four seasons, with the cold winter followed by blossoms in the spring. And just when everyone is having fun in the sun, it is good to be mindful that temperatures will drop as autumn approaches. Those who are not prepared with sufficient clothing might freeze when winter returns.

Similarly in the financial markets, there are market cycles where busts follow booms and vice versa. That is why the 'party' ended with a market crash last year, after global stock prices shot up by between 200 and 500 per cent in the last four years.

Global stock markets have been moving up and up since Mar 2009.....with the U.S. market closing down on Friday 14 Aug 2009 and China market also down, is this the start of a Long Awaited Correction?

Below information I extracted from investmentpostcards.com

A summary of the movements of major global stock markets for the past week, as well as various other measurement periods, is given in the table below.

The MSCI World Index (+0.1%) and MSCI Emerging Markets Index (unchanged) marked time last week, but are still showing solid year-to-date gains of +15.6% and +50.4% respectively. As weakness crept in towards the close of the week, the US and a number of other markets snapped a winning streak of four straight weeks. Emerging markets underperformed developed markets for the second week running since the beginning of May, indicating signs of risk appetite abating somewhat.