Last night, Fox News’ Glenn Beck spent a segment decrying the demise of the dollar — which he sees as imminent — and continually citing the threat of hyperinflation. Beck is so worried, in fact, that he advocated that the American people turn to gold as a sound investment against their government’s fiscal misdeeds.
Back in reality, the International Monetary Fund has actually warned that the United States “should have a second stimulus package ready just in case deflation becomes more evident,” while the percent change in the Consumer Price Index isn’t consistently above zero. But instead of relaying that information, CNBC’s Michelle Caruso-Cabrera — the same anchor who thinks tax havens prevent tyranny — took Beck’s tirade as the true indicator that the dollar’s six month slide in value is effectively over:
We’ve been talking about it ad nauseum here on CNBC, but, last night, Glenn Beck, the first eight minutes of his show — roll the tape — he spent decrying the demise of the dollar…Whenever we see any kind of economic trend permeate into the general media, doesn’t that almost tell you that it’s over?…Glenn Beck, contrary indicator!
On one hand, good for CNBC for calling out hyperinflation fearmongering. But is citing Glenn Beck really the best way to make that point? After all, Beck may have an ulterior motive for pumping inflation fears. A Color of Change-driven boycott has lost Beck’s show 80 advertisers, but one of the few sticking with him is Rosland Capital, a company that specializes in selling gold. And as Ryan Witt pointed out, Beck never notes his conflict of interest:
So Beck essentially scares his audience into believing that hyperinflation and economic collapse is a near sure thing and then advises them to buy gold to protect themselves. All along Beck never mentions that a gold-buying company happens to be one of his few remaining sponsors. Beck also never interviews other economists who believe that we are nowhere near the economic conditions necessary to see hyperinflation. Finally Beck also never informs his audience of the risks involved in buying gold. Gold has seen its price skyrocket with the economic troubles of the last few years and there is a real danger that the price of gold may actually decrease if the economy improves in the coming years. Quite simply if one buys gold high right now they may be forced to sell low later.
Witt added that “usually Glenn Beck’s show simply misinforms his audience on political grounds which is dangerous enough. Now however Beck is actually guiding his followers down a financial path that may cost them dearly.” Incidentally, Beck himself is a spokesman for Goldline International, another company that specializes in selling gold.