Financial ignorance from your TV: Gold may not be around next year

If you ever wonder why people today know so little about economics, consider this recent short snippet of video below from Canada’s CTV television network. A reporter is explaining to the audience about the difference between assets backed by gold and assets backed by the U.S. government:

Some investors aren’t confident with what gold is backed by or if it’s backed by anything at all, as compared to something like the U.S. dollar. Investors are comfortable that the U.S. dollar is backed by the American government, so no matter what is happening to the American economy, something like the U.S. dollar is backed by the Federal Reserve. That’s going to be around a year from now. That’s a much more comfortable investment for them.

So does that mean that gold isn’t going to be around a year from now — despite being the world’s reserve of value for centuries and centuries?

This woman is reporting financial news for a major television network, yet she doesn’t understand that the U.S. dollar is backed by absolutely nothing. Whether you’re a fan of investing in gold or not, it has long-term intrinsic worth. The U.S. dollar is only worth as much as the Federal Reserve can snooker you into believing it’s worth.

As long as you believe people such as this woman, you’re going to be surprised when the economy collapses. You’l look at the dollars in your pocket or bank account and wonder why they’re worthless. And you’ll wonder why everyone wants gold or silver as payment instead.