Now that K Rudd has guaranteed all business and private bank...

Now that K Rudd has guaranteed all business and private bank deposits for 3 years (bless him) the logical DOM response should be to lift output by 50 %.

Up till this moment there was no real incentive to produce.

Why go to all the trouble of digging it up , sell it ,and put money into the bank only to lose the lot due to a bank collapse.
Up till this moment gold was safer left in the ground where it can't be stolen.

Any rational company had NO incentive to produce.

I'm sure DOM will do its bit to help recapitalise the banks and save them from their own folly.

Gold = money and it is safe to leave money in the bank