House Democrat names Glenn Beck, Mike Huckabee in Goldline probe

By Daniel Tencer

Concerned that an "unholy alliance" has been formed between conservative pundits and disreputable gold dealers, a prominent House Democrat has announced hearings into the retail sale of gold.

Rep. Anthony Weiner released a statement Thursday that he plans to "discuss legislation that would regulate gold-selling companies, an industry [whose] relentless advertising is now staple of cable television."

The New York Democrat asserts that "Goldline employs several conservative pundits to act as shills for its precious metal business, including Glenn Beck, Mike Huckabee, Laura Ingraham, and Fred Thompson. By drumming up public fears during financially uncertain times, conservative pundits are able to drive a false narrative."

Weiner's statement continues: "Glenn Beck for example has dedicated entire segments of his program to explaining why the US money supply is destined for hyperinflation with Barack Obama as president. He will often promote the purchase of gold as the only safe investment alternative for consumers who want to safeguard their livelihoods. When the show cuts to commercial break, viewers are treated to an advertisement from Goldline."

Weiner notes that his office released a report earlier this year that found Goldline "grossly overcharges for their coins" and "plays off public fears of government takeover and has formed an unholy alliance with conservative pundits to drive a false narrative.

But not everyone agrees that Weiner's plan to investigate Goldline and possibly regulate gold retailers is an effort to protect consumers from disreputable dealers.

Some economists say the government has an incentive to keep investors away from gold and other assets because, they argue, growing demand for gold pushes out demand for government bonds -- and the government has to sell bonds to cover its growing deficits.

"Just as the government is trying to prevent people from investing in anything other than T-Bills by raising taxes on taxable interest and dividends to confiscatory levels, it's also trying to prevent you from parking your wealth in assets, like gold, that compete with the paper dollars issued by the Federal Reserve and the Treasury," writes Ira Stoll at The Future of Capitalism.

Stoll argues that "Mr. Weiner's regulatory push seems as much aimed at conservative journalists as at the gold-dealers."

The House Subcommittee on Commerce, Trade, and Consumer Protection will take up the matter this coming Thursday.