Over the past few months we have noted a gradual increase in news relating to inflation—but during the past month this gradual increase has accelerated steadily and has now taken on the appearance of a virtual flood.

If we watch the action in six important markets, then we must conclude that there is, indeed, cause for deep concern.

Perhaps the heart of our pro-gold thesis is this consideration: governments are inherently inefficient, they attempt to provide services far beyond their genuine fiscal ability and these trends result in deficit financing, growing debt levels and ultimate “watering” down of currency values.