“New York University economist Nouriel Roubini writes tonight that the supposedly civilized world is on the brink of financial collapse and long economic depression unless the government finance officals gathering in Washington this weekend quickly implement a sweeping program of reflation,” notes GATA (the Gold Anti Trust Action Committee)

While I think Rubini’s diagnosis of the real estate glut is right, I don’t believe his program is correct from an Austrian point of view. It would be hugely inflationary, which would be good for precious metals, I think.  On the other hand, of course, the G-7 meeting could produce some kind of agreement on gold-backed currency. That would lead to a loss of interest in gold.