News Reporter Bridget Brown States Gold is ‘Backed by Nothing’

Russ Sanderlin

A video surfaced today, quickly pulled by YouTube shows a media reporter stating that gold is backed by nothing and that the dollar is safer because it is backed by the American government.Here is a great reason that you should do your own research and not accept what the media spoon feeds you. I present this glaring example of misinformation as this reporter claims that gold is not backed by anything, but the US dollar is a pillar of stability because it is backed by the US government. There was a time that the dollar bill used to represent a unit of gold. Once the Federal Reserve came in and replaced our money with fiat currency, this monopoly money is now backed by nothing. It cane be created out of thin air with a flick of wrist and a print press. Gold however, is finite and it must be mined.

This news report came out of CTV of Canada which is the most popular news network in Canada based on the number of viewers.  We shared the YouTube video on the Liberty Maxim Facebook page this morning, but it was pulled by this afternoon. NaturalNews.com managed to get a copy to post on their website which you can see here:

Bridget states “…so no matter what is happening to the American economy, something like the U.S. dollar is backed by the Federal Reserve. That’s gonna be around a year from now.”

Gold on the other hand has performed better in history, and has been the longest standing common unit of currency for thousands of years. It has been on this planet since it’s creation, and will be here long after this economy collapses from the masses relying so heavily on a piece of paper that can be devalued over night.

Gold to Move 'Above $2,000 in Coming Months': UBS

Gold's recent sell-off belies its long term attractiveness and investors should avoid the panic and stay faithful to the precious metal, Dominic Schnider, Commodities expert at UBS Wealth Management told CNBC Thursday.

"The structural problems still remain and Greece is really going to call for higher prices and higher demand.

So we are looking at $2,000 and above in some of the months to come," Schnider said.

He dismissed notions that the gold bubble was close to bursting but cautioned that investors should expect more falls in the short term.

"In the short term you might see some further downside in the price but the demand side is still there," he said.

Gold has lost much of its sheen in recent days as part of a wider metals sell off and the strength of the US dollar in the face of stock market volatility over wider macro-economic woes.

An arrest in the rise of the metal saw a number of commentators claiming that the gold sell-off could see the price of the precious metal plummet to below the $1,500 level.

Marc Faber, author of the Gloom Boom, and Doom Report, told CNBC earlier this week that he would not be surprised if a 40 percent price correction occurred, causing gold to bottom out at $1,100 to $1,200.

Schnider added that gold would remain a safe haven because market volatility was so sharp but an increased desire by investors for liquidity could hamper its revival to the upside.

"If there is a liquidity crunch then even gold is going to have difficulty holding off and then cash is king. Gold is being driven weaker because of investors' desire for more liquidity," Schnider said.

Hampering another rally in gold prices is the strength of the dollar trade, but Schnider said demand for the dollar would be short term.

"It's all about the fear trade and risk aversion is shooting up and gold should be supportive on the one hand but if you seek liquidity it's all about the U.S. dollar. The dollar strength is just short term because the structural story remains unpleasant," Schneider said.

Tightening the Noose: France Bans Cash Sales of Gold/Silver over $600

A couple of weeks ago our report that some Austrian banks had begun restricting the sale of gold and silver to 15,000 Euro (~$20,000 USD) reportedly because of money laundering issues was met with disbelief by many readers of financial news and information web sites. As we mentioned in that commentary, it is our view that governments, namely in Western nations, are making it more difficult for individuals to make gold purchases, as well as to do so anonymously.

It looks like this trend of restricting the peoples’ ability to acquire assets of real monetary value is expanding. If a recent report from France is accurate, and based on the French governments official web site it looks like it is, then as of September 1, 2011, anyone attempting to sell or purchase ferrous or non-ferrous metals, which includes gold and silver, will be required to pay for their purchase via a credit card or bank wire transfer if it exceeds 450€ (~ $600 USD):

Here is the applicable French law via www.legifrance.gouv.fr and translated into English by Google Translate:

Article L112-6
Amended by Law n ° 2011-900 of July 29, 2011 – art. 51 (V)

I. Can be made in cash payment of a debt greater than an amount fixed by decree, taking into account the place of tax residence of the debtor and the professional purpose of the operation or not.

In addition a monthly fixed by decree, the payment of salaries and wages is subject to the prohibition contained in the preceding paragraph and shall be made by check or by transfer to a bank or postal account or account held by a payment institution.

Any transaction on the retail purchase of ferrous and non ferrous is made by crossed check, bank or postal transfer or by credit card, not the total amount of the transaction may not exceed a ceiling set by decree. Failure to comply with this requirement is punishable by a ticket for the fifth class.

II.-I Notwithstanding, the costs of the department conceded that exceed the sum of 450 euros must be paid by bank transfer.

III.-The preceding provisions shall not apply:

a) For payments made by persons who are incapable of binding themselves by a check or other payment, as well as those who have no deposit account;

b) For payments made between individuals not acting for business purposes;

c) paying the expenses of the state and other public figures.

According to independent reports the law was passed to curb the illegal sale of stolen metals like copper, steel, etc. Given the rampant rise in thefts of these metals from telephone poles, construction sites and businesses here in the United States, we can certainly see this as a reasonable assessment for why the French passed this law.

However, the fact that no exception was made for gold and silver simply cannot be ignored. The new law effectively makes it illegal to purchase even a single Troy ounce of gold or around 18 ounces of silver in cash.

Looking at a single incident, for example the identification requirements in some major US cities like Houston, TX if you want to trade bullion, or the aforementioned restrictions in Austria, could be construed as coincidence or no big deal. But the most recent example in France suggests that what we have here is not a coincidence, but rather, a pattern. If there truly is a behind-the-scenes push to keep gold out of the hands of the people, then it would likely be done through indirect means and we commoners would be none the wiser.

How long before the US Congress, as a result of the rise in metals thefts here in the United States, uses this same excuse as a pretext to follow in the footsteps of the French?

Strike that question. That can’t happen in America.

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