The US Treasury has announced that about a dozen chiefs of major global investment banks are to powwow with Group of Seven finance ministers and central bankers on Friday.

The Treasury has refused to divulge to the public the names of the banks who are sending representatives to the dinner which, according to a Treasury spokesman, is “recognition this G7 is very focused on market conditions.”

According to Dow Jones MarketWatch, “the G7 government leaders want to have a “clear understanding” of the state of global economy, the state of U.S. economy and the state of financial markets, he added.

“One of the topics of conversation over foie gras and caviar on Friday is likely to be the Fed’s struggle against the toxic combination of rapidly accelerating deflation and soaring inflation all at the same time, ” says the Sovereign Society’s Eric Roseman.

“Coined ‘inverse stagflation,’ this decade presents a formidable policy challenge to central bankers.

“On the one hand, have been skyrocketing while the U.S. dollar has been hitting new lows. The dollar has plummeted as supplies for most foodstuffs, refined oil products, precious metals and several base metals hit chronically low levels.

“Yet simultaneously, deflation has re-emerged for the first time since the 2001 recession. And it’s slashing housing values, pummeling stock markets around the world and smashing bond markets (excluding T-bonds) to the basement. Plus, all risk-based securities are falling sharply amid a lingering credit squeeze.