After the Federal latest cut in interest rates at a quarter of one percent and inflation crepping upto near 4% , there is nothing left in America to make you richer !! So now if you keep $100 in a US bank today, one year later you'l get richer by 25 cents. By adding the interest and losing on account of inflation , your $100 of today will be worth around $96 by end of one year. Simply what does this mean to a comman man, instead of earning on interest you get broke within a year due to rising inflation or better known as REVERSE INFLATION .

With property valuations nose diving and interest rates close to zero , the chances of people keeping their jobs are also falling. The situation is such that in the US , close to 530,000 jobs in november' 08 alone has been shed, the fastest ever in last 3 decades. Statistics show , now nearly seven out of every 100 workers have got jobless since the big crash. With jobs drying up and prices starting to collapse, the US along-with other inter dependent economies are shrinking worldwide.

Though the treasury and the federal authorities have pumped in lots of cash into the system to plug-in impending bankruptcy , many more could follow that could keep the prices up for a while. But the threat of a prolonged slump is for real to happen as prices of most commodities from wood to metal is falling , besides crashing of oil from $147 to $45 is causing pain to manufacturers worldwide on how to maintain the priceline.

As real estate , commodities, food and fuel prices cool down, an era of shrinking prices, output and growth could set in and we could be heading for a " DEFLATION ", unless a spectacular economic run - up is chalked up through public trust in the central banks bailout plan.