Gold coins and gold bars for the pass eight years have been going up consecutively compared to the US dollar. Meanwhile The Federal Reserve is trying all the tricks they can to try to save its insolvent central banking system. What is being witness is the slow death of anything over grown and centralized. The reason for this is fiat money, fractional reserve banking, and central banking is not sustainable and never will be. Naturally any institution that benefited the most from this system or depend on it will also be affected by its slow demise.

Physical Gold and any other assets that can hold wealth even when the economic situation is deteriorating is some of the best ways to protect yourself. Centralization is one of the results of central banking. With central banking comes the growth of government and the overly dependence on government. The reason for this is when governments can borrow at will the people within government are usually tempted to use the power to borrow to “solve” problems that governments have no business solving.

Also with a fiat system any money that is borrowed or created is a tax on everyone through inflation. The institutions that have been prosperous artificially because of easy credit or government subsidies will have to find a way to produce real profits or become insolvent. With the climate of looking to government for help and not looking how to become independent of it, I think a lot of overgrown and overly centralized companies will not adapt but like most central banks reach their slow demise.