The Financial Times broke the news: read here.
Finance ministers from the world’s leading economies ripped up their support for fiscal stimulus on Saturday, recognising that financial market concerns over sovereign debt had forced a much greater focus on deficit reduction.This is a big deal. Fiscal policies must be cleaned up to restore integrity to Sovereign balance sheets. The trouble is these are contractionary policies being implemented while substantial deflationary pressures still exist.
Fiscal restraint also requires responsible politicians risk the ire of the public and loss of elections. Modern politicians rather assiduously avoid that kind of thing.
This may cause a setback in Gold too.