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Glenn Beck to Fox News: These aren't the droids you're looking for...

December 14, 2009 4:38 pm ET by Brian Frederick

For those who haven't followed the controversy surrounding Glenn Beck's promoting of Goldline while suggesting on his show that people should buy gold because society might collapse, Jon Stewart summed it up nicely last week:

That's kind of a nice little feedback loop. Glenn Beck is paid by Goldline to drum up interest in gold, which increases in value in times of fear, an emotion reinforced nightly on Fox by Glenn Beck.

The relationship between Goldline, Beck and Fox News would actually make for a great, dare I say it, chalkboard diagram.

As the media began to pick up the story and question the relationship between Goldline and Beck, Fox News clarified the relationship this weekend. A senior executive at Fox News told the New York Times that Fox's legal department contacted "Beck's representatives," who "sent back word that he is not a paid spokesman." But according to the exec, it would be "problematic without question" if he was a paid spokesman.

And to make things even clearer, according to the Times, Fox released a statement outlining its official policy: "Fox News prohibits any on-air talent from endorsing products or serving as product spokesperson."

If you're wondering how what Beck does for Goldline is any different than that, you're not alone.

Goldline sponsors Beck's television program and his radio program, but the relationship doesn't end there. Beck's face appears on Goldline's website, where, until the relationship began to be questioned, he was listed as a "paid spokesman." Not so, said Beck's representatives to Fox News. These aren't the droids you're looking for.

On Friday's radio show, Beck used a preview for his Friday night television show to plug Goldline.

Here's our sponsor this half hour. Our sponsor this half hour is Goldline. Gold is something that I have invested in. I bought when it was about $300/oz and I've never done it for an investment. Don't listen to me for an investment advice. Please. I can tell you directions that I think, but I could be wrong. And have been in the past. Gold is something that I buy as an insurance policy. You don't put all your money into gold or anything like that. Because if the dollar falls apart and please watch tonight's show and I'll show you what's coming. If the dollar does fall apart, what do you have? Now you may not be able ot afford gold and for god's sake don't go and get into debt. I know they offer payment plans. Please don't. Please. Don't rack up any debt. But you have to have something of value as an insurance in case things go haywire.  For me and my family that's gold. You decide on your own. Call Goldline and find out all the options. Ask them how I buy gold, why I buy the gold that I buy. I buy the coins. I will tell you that that's a little off the deep end. But I'm off the deep end if I'm going to have an insurance program, I want an insurance program. Find out all about it. Go to goldline.com. Go to 866-Goldline. Full disclosure: Goldline is a sponsor. That's why I'm telling you this is a paid commercial. 1-866-Goldline.

Sure enough, on Friday night's program Beck essentially suggested that people better start buying gold because the country's about to fall apart. Beck first used a stoplight metaphor to explain how our economic system works. Green light means everyone buys stocks, yellow light means T-bills and red light means "Gold, Guns and God." Beck claimed we are at yellow for one of the few times in our history. But there are signs it all might fall apart:

Anybody who has a ton of money and they put their money where their mouth is, they don't feel comfortable where we're going. It is yellow.

And, by the way, you're seeing flashes of red. Gold is massively down in the last week, but it may zoom up again, it may not. But it's a warning sign of flashing red light, which we also rarely, if ever, see.

If that wasn't clear enough, Beck said: "The smart money is saying 'hunker down.'"

The same show, Beck employed another metaphor:

[A]s a country, it's like we've moved to California where it's the land of earthquakes. But we've never had earthquakes before, OK? If you're in Washington or if you're in New York and say to somebody, where is the safest place in your house besides under the table in an earthquake, a lot of people wouldn't know.

It's in the door frame, OK? You stand in the door frame. If you're from the west coast, you know that. Stand in the door frame. Why? It is the threshold. It is the place that is most secure for you.

The country has never had earthquakes, financial earthquakes like this. So, the door frame on this side is the stocks and T-bills.

I talked to this guy, and he said, "Glenn, I'm here. The door frame of insanity, really, is gold, God and guns, because you don't know what's on this side of the door, right? So you're standing here with the treasuries, and you're just hoping you're going to jump back out, but you really don't know. He said, for the first time, he doesn't know which way he's going and he has no idea. Nobody has ever thought about what's on this side of the door frame.

Does that make sense?

Uh, not exactly, but it's pretty clear you want us to consider buying gold.

Over the weekend, Beck posted an online video on his site responding to the controversy, asserting:

I wasn't aware that apparently was the most powerful man on the planet. I didn't know that by me suggesting to you to buy gold through a fine establishment like Goldline.com, 866-Goldline, that the global price of this trillion dollar industry, global industry, would actually start to wildly fluctuate.

Beck's obviously not going to seriously answer these questions. And by refusing to hold him accountable - again - Fox is allowing everyone to see who really runs the show.

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    • Author by epkklk851 (December 14, 2009 4:50 pm ET)
      5  
      The objection with his shilling for Goldline is that he is talking trash about the economy in the hopes of trashing the economy. If he succeeds, his gold will be worth a great deal more. If he doesn't, and the gold looses some/most of its value, he will still be a millionaire. He looses nothing, really. While his audience could loose a great deal. As someone said earlier, it is really hard to understand Becky because has the corporate schlong in his mouth.
      Report Abuse
      • Author by The_Cat (December 14, 2009 5:09 pm ET)
        6  
        Add to that the fact that the economy is improving, and six months from now gold is likely to be down, not up. He's encouraging people to consider buying gold at the top of the market, which is the worst place to buy unless a) you're in it for a very long haul, or b) you really want to lose some money fast.
        Report Abuse
        • Author by epkklk851 (December 14, 2009 7:05 pm ET)
             
          I'm waiting for the bubble to burst. My husband has always wanted a St. Gauden's Double Eagle. It's a very beautiful coin.
          Report Abuse
          • Author by The_Cat (December 14, 2009 7:53 pm ET)
               
            Since you say so, I went in search of it. The U.S. Mint says it will stop distributing them after 12/31/09, though, so I'm guessing you'd have to go through a coin dealer after that?

            Don't know much about numismatics, myself. I have a pocketful of arcade tokens I've collected since Pac-Man rejected my first quarter back in '82.
            Report Abuse
            • Author by epkklk851 (December 15, 2009 8:22 am ET)
                 
              My husband collected coins as a boy, he won an merit badge for his collection 40 years ago. So, I want an old coin from between 1907-1933. The new ones are 99.9% gold, versus 90%, for the old ones, so the cost is based on the weight and price of the current gold market. The 1907 coins didn't have "In God We Trust" on them, it wasn't required, which resulted in a change of the law. A 1933 Double Eagle recently sold for $7 million. But, ones from the 1920's are available from dealers at not much more than the price of the new coin. It'll be at least a year before I can even think of doing this.
              Report Abuse
    • Author by nerzog (December 14, 2009 5:06 pm ET)
      7  
      [http://latimesblogs.latimes.com/.a/6a00d8341c630a53ef0115710ff2b2970c-pi]

      It only works on the weak-minded... so everybody at FOX is a prime candidate.
      Report Abuse
      • Author by DAWUSS (December 14, 2009 6:08 pm ET)
           
        "The Galaxy is full of weak-minded fools."

        I might have gotten that quote wrong.
        Report Abuse
        • Author by killerstarfish (December 14, 2009 6:20 pm ET)
             
          "The Force can have a strong influence on the weak-minded."

          </nerd>
          Report Abuse
          • Author by captfoster2 (December 14, 2009 8:24 pm ET)
               
            "Right-wing fake outrage and fear can have a strong influence on the weak-minded"
            Report Abuse
      • Author by youcrackmeup (December 15, 2009 12:34 am ET)
           
        LOL... I have talked to many people that watch FOX news. It sounds like the people here would be the only ones to buy gold if they were told to. Because everyone I talked to that listen or watch Glenn Beck said they would make there own decisions and not base it off of what Glenn Beck has said or says. And this is almost the only place I have seen any issue with his advertising (you know that thing companies pay radio and TV to do). But since we are on the subject what about that nasty MSNBC that is owned by GE and stands to benefit directly from those advertisements for GE that air on MSNBC, lets talk about that to. WOW is that bad, must be all weak minded people there to.
        Report Abuse
    • Author by rwmacdonald2091 (December 14, 2009 5:08 pm ET)
      3  
      The relationship between Goldline, Beck and Fox News would actually make for a great, dare I say it, chalkboard diagram.

      Please NO MORE CHALKBOARD DIAGRAMS !!!!!!!!!!!!
      Report Abuse
    • Author by johnny_nyc (December 14, 2009 5:15 pm ET)
      2  
      Nobody is claiming Beck is causing the price of gold to fluctuate wildly.

      He's answering a question nobody is asking.

      Its all about conflict of interest and full disclosure.

      Either he is a paid spokesman for Goldline like they claim or he isn't.
      Report Abuse
    • Author by IRONY 101 (December 14, 2009 5:15 pm ET)
      3  
      I love the way Beck tells his listeners they should not go into debt to buy gold...but in the same breath mentions that they can buy gold on a payment plan. What a smarmy piece of you know what...
      Report Abuse
      • Author by DellDolly (December 14, 2009 5:55 pm ET)
        2  
        I believe he's saying despite the fact that they offer payment plans, don't utilize them.
        Report Abuse
        • Author by epkklk851 (December 14, 2009 6:03 pm ET)
             
          Yes, and he means it like he means it when he says if any of his followers does something violent, he will consider them kooks. Plausible deniability.
          Report Abuse
          • Author by bilbo_dies (December 14, 2009 7:51 pm ET)
               
            Beck:
            But I'm off the deep end

            Does that qualify him as a kook, also?

            Also, one of the few times I have heard him speak any kind of truth.
            Report Abuse
    • Author by dmhack (December 14, 2009 5:52 pm ET)
      1 1
      Becky's rep is walking a fine line when claiming he's not paid. Maybe he's not receiving a check, but I'd bet if someone dug a bit deeper they'd find that Becky is receiving some form of monetary compensation.
      Report Abuse
    • Author by caels (December 14, 2009 6:30 pm ET)
      2  
      There is a bit of a problem with his logic anyway.

      If you buy gold to hedge the risk of an "economic collapse" you are an idiot. You can buy gold to hedge moderate inflation, but we aren't going to see inflation of any substantial level anyway. The inflation rate is anticipated to be well below the target of 2.5% into 2012/2013 and once a real recovery happens the Fed will simply lower reserve requirements, increase reserves rates and convince banks to hold more reserves and contract the monetary base to maintain the target 2.5% inflation. There's no risk of inflation here.

      If you are anticipating a financial collapse the only thing we are looking at is a deflationary spiral. That's the reason the Federal Reserve try's to create inflation expectations in a crisis, to prevent deflation. In a deflationary spiral, Gold as a commodity will lose huge value just as much as any other commodity.

      Most people point to the Great Depression to counter this view because gold prices actually rose. The problem is that gold was directly tied to the money supply through a complicated commodity pricing / Treasury mechanism, but suffice to say their values were heavily intertwined. Since prices were deflating, paper money and, thus gold, was appreciating. Hence why banks run happened, money was appreciating and it was a safe asset. Now that gold is not fixed to money by the Treasury, one would expect it would deflate in value just like every other commodity.

      So, not only is his argument the financial system going to collapse incoherent; but his argument for investing in gold is equally ridiculous.
      Report Abuse
      • Author by youcrackmeup (December 15, 2009 1:02 am ET)
           
        Your so right. The Federal Reserve and government will take care of it. They have done such a good job managing our economy for the last 100 years why worry? And those banks they can be trusted not to loan against those reserves. That Federal Reserve has done exactly what we were told it was put in place for in 1913, you know to stop those darn recessions and make sure we would never see a depression. It just took them a while to get the hang of it. They have it under control now. And if that dollar crashes why worry? Your stereo system or whatever you barter for is worth the same amount as that precious metal we call Gold. I mean look we hardly had inflation back in the late 70's early 80's. Oh wait we did OK forget that one. Well gold did not go up then either (and we were off the Gold standard then) OH wait forget that one to because it did go up. Well, I will think of a country that has pulled this off somewhere. Meanwhile will you point one out for me so I can investigate it? I need a source that shows this will work. Just a bit worried I can not find any documentation showing where this has worked.
        Report Abuse
    • Author by newzhound (December 14, 2009 6:55 pm ET)
      2  
      "Stand in the door frame. Why?" - Glum Bleek

      Because the door will swing shut in the earthquake. The pain in your fingers will take your mind off the fact your home is falling down around your ears...
      Report Abuse
    • Author by thebewilderness (December 14, 2009 7:04 pm ET)
      4  
      Back in the day they called this sort of thing payola, and no one pretended that it wasn't vile corruption. Now they call it business as usual.
      Report Abuse
    • Author by highlyunlikely (December 14, 2009 7:16 pm ET)
      1  
      somehow I never realized just how insipid Beck is. Forced to watch, I'd yawn my way thru any edition of his program.
      Report Abuse
    • Author by 88ALLIN (December 14, 2009 10:45 pm ET)
         
      wHAT IS ANY DIFFERENT THAN THE FINANCIAL "EXPERTS" THESE NETWORKS KEEP TROTTING OUT SAYING EVERYTHING IS FINE , SPEND MONEY , INVEST IN THE STOCK MARKET AND DIVERSIFY YOUR 401 TO MAX OUT CURRENT MARKET EXPANSION ? SPONSORED BY E TRADE OR AN INVESTMENT FIRM SAYING HIRE ME AND GIVE ME YOUR MONEY ?
      Report Abuse
    • Author by betogrande (December 14, 2009 11:41 pm ET)
         
      Don't listen to me for investment advice, but you should invest in gold. I am not saying Obama hates white people, but Obama is a racist and hates white people. I am all about 9-11 or 9-12 or whatever and I support America, but it only took me a year to start hating the families of the victims of 9-11.
      Report Abuse
    • Author by cmj14300 (December 15, 2009 1:34 am ET)
         
      Maybe, just maybe, Goldline is covering airtime costs either on FOX or on the radio and thus Glenn is not actually being paid per say but the company is. That’s how most commercials are run. So Glenn probably isn’t a “paid sponsor” and just pocketing the money and going home.

      For example Goldline pays FOX news to have Glenn “read” their commercial instead of having one air during commercial breaks. Thus Goldline is paying FOX and not Glenn. Make sense?
      Report Abuse