[Gimp] How do I delesect the background?

I'm talking about the rectangular box around the whole image:

http://puu.sh/6pc3


I want to select just the presidential badge, but if I go to select the badge by using the Rectangle-select tool, and click "move" it moves the whole white background. I watched a tutorial and it showed me how to make the background transparent, but I'm not sure if I did it right, since the background is suppose to be checkered.

Gimp is pissing me off at the moment, and I feel like getting photoshop. Also, is there a way to select the image by itself? Like by using the contagion tool or something? Like I said, I can't move the badge without moving the whole white background. Any help is appreciated.