America’s rising inflation has all but wiped out gains in US consumer spending, reports Bloomberg, pushing the world’s largest economy another step toward a recession.

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While purchases rose 0.4 percent in January, inflation climbed about 0.3 percent, the Commerce Department revealed today.

Meanwhile, the National Association of Purchasing Management’s index of business activity fell to 44.5 this month. Readings below 50 signal a contraction.

“The US is probably in a ,” says Andrew Mickey,” but I highly doubt it’s going to be the end-all, be-all one with a dollar collapse, $3,000 an ounce gold and 50% unemployment. But I think there is a much greater danger to your wealth than any Fed rate cut, inflation or slowly waning dollar value staring at us in 2008.”