Loan Modification

?This is the most difficult period of humanity that we?re going through today because governments have no control,? Taleb, 49, told a conference in Singapore today. ?Navigating the world is much harder than in the 1930s.?

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The global economy is facing ?big deflation,? though the risks of inflation are also increasing as governments print more money, Taleb told the conference organized by Bank of America- Merrill Lynch. Gold and copper may ?rally massively? as a result, he added.

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Gold, copper and other assets ?that China will like? are the best investment bets as currencies including the dollar and euro face pressures, Taleb said. The IMF expects the global economy to shrink 1.3 percent this year.

Gold, which jumped to a record $1,032.70 an ounce March 17, 2008, is up 3.6 percent this year. Copper for three-month delivery on the London Metal Exchange has surged 55 percent this year on speculation demand will rebound as the global economy recovers from its worst recession since World War II.

Commodity prices are also gaining amid signs that China?s 4 trillion yuan ($585 billion) stimulus package is beginning to work in Asia?s second-largest economy. Quarter-on-quarter growth improved significantly in the first three months of 2009, the Chinese central bank said yesterday, without giving figures.