Mainstream Media Recovery Hoax

By Greg Hunter’s USAWatchdog.com 

USA Today’s headline Monday in the “Money” section of the newspaper read “Will fragile U.S. economy shatter?”  This story should have come with an apology to readers for reporting a so-called “recovery” for a couple of years now that was, in reality, nothing more than bottom bouncing.  And even though the story talked about “worrying signs” and people taking jobs “for half the pay,” the writers still would not let go of the “recovery” theme.  Monday’s story said, “When the job market began to crack in April, most economists said they weren’t worried about the recovery. They’re worried now.  As the recovery slows, optimism is giving way to caution, with undercurrents of something darker.”  (Click here for the complete USA Today story reprinted from The Tennessean.)  Really, it all turned to crap in just three months? 

In April, USA Today reported, “As the recovery finally puts down what appear to be stronger roots, it faces one big force (pent up demand) that could strengthen and reinforce it — and an even bigger one (spending cuts and tax increases at the beginning of next year) that threatens to derail it.”  (Click here for the complete USA Today story.)  What kind of whack-a-doodle reporting is this?  The recovery was finally putting down “stronger roots,” and three months later, the economy is “fragile” and might “shatter”?  How about it’s been bad all along, and the reporting is mostly a cheerleading job that gives people a false picture of what is really happening.  

Any cub reporter could have come up with sources that countered the “recovery” story.  I have done this many times on USAWatchdog.com in just the last few months.  (For example, here, here, here and here)  It’s not just the USA Today newspaper (which I am a daily subscriber); it’s the entire mainstream media (MSM) that spins the economic numbers.  The reporting should have been trying to ascertain if the so-called “recovery” was indeed real.  Instead, I think the MSM pushes a rosy “recovery” story just to make us think things were getting better, and that it was safe to go out and spend money.  The MSM was doing its part to help the economy, which is NOT its job.   I guess repeatedly pushing a “recovery” story, even if the facts do not support it, is good for business and advertising.  This makes me sick.  

I really feel today’s MSM thinks it is wrong to question the government.  It reports government numbers without a peep about accounting gimmicks that make the data look better than reality.  For example, “official” unemployment is 8.2%, but if it were computed the way Bureau of Labor Statistics (BLS) did it in 1994 and earlier, the rate would be more nearly 23%.  (See Shadowstats.com).  Heck, if you just reported the most severe BLS numbers, we’d still have nearly 15% unemployed and underemployed Americans.  Where’s the recovery?  Oh, that’s right, it’s a “jobless recovery.” 

How many times have we heard that housing was “at the bottom” in the last few years?  In a recent interview with Yale Professor Robert Shiller (Case-Shiller Home Price Index), he told me we were in “the 4th inning” of the crisis.  This has been going on for 5 years and, apparently, Dr. Shiller thinks we have a long way to go before it’s over.  He’s one of the first experts to predict the housing meltdown in the first place!  (Click here to see the complete Shiller interview.)  

What about the Libor rate rigging scandal?  Libor (London Inter-Bank Offered Rate) is a key interest rate where up to $800 trillion of transactions are based globally.  This is huge!  The MSM appears to be giving this a great big yawn?  Best-selling author and investment banker James Rickards says, “This is the greatest fraud and greatest potential liability in history.” Rickards thinks rate rigging banks could be on the hook for “$2.5 trillion,” and “The potential damages could destroy the banking system.”  (Click here to hear more from this Wall Street insider.)  You’d think this might be, at least, as important as the Colorado “Batman” massacre.  It only could affect–everyone, if Libor lawsuits caused a world-wide banking meltdown.    

The data seems to be getting worse even with the government spin.  Now, the Federal Reserve is strongly hinting at more stimulus (money printing).  Last week, Fed Chief Ben Bernanke was publicly wondering if there is, a sustained recovery going on in the labor market, or are we stuck in the mud?”  I’ll go with the same thing the facts and honest reporting should have been saying all along, “stuck in the mud.”  The economy is in real trouble, but you wouldn’t have known it from what you read or heard in the MSM.  It’s all been a mainstream media recovery hoax.  As a journalist, I think that’s the biggest fraud of all.   

Comments
  1. Mitch Bupp

    another piece of evidence pointing to our economy being a ponzi!

    just think of the accumulated deflation of real spending power and wealth from the Bureau of Lies and Spin? According to John Williams at Shadowstats.com a graph shows just how much real buying power the people have lost. I see that real people have been short changed through inflation by 50 percent since the mid 1980s.

    Like many I never understood the cumulative effect of inflation on income and wealth the way I do today. Our economy is a bubble-based economy where the search for profits blows up bubbles until they burst then the money just moves into a new bubble.

    Thanks for another on spot report

  2. jmattingly

    Don’t you think this is to keep the
    picture rosey for O’s re-election.
    The MSM loves him.

    • Greg

      jmattingly,
      Yes, and Republicans would do the same thing.
      Greg

      • joe

        While I agree that the Republicans would do the same thing, we all know the MSM would definitely not be towing the line for the Republicans like they have historically done for the Democrats. The MSM is most definitely partisan (Pravda want-to-bes)…hence, your story regarding US News (another arm of the DNC).

        An independent thinking media AND term limits for Washington politicians would do wonders for our country…

  3. PatriotRider

    Greg:

    Trillions in government spending, openly fradulent banking practices with no consequences, top to bottom financial corruption of “too big to fail” banks and public institutions, fraudlent MSM reporting in order to skew the public psychology towards a belief that the economy is in “recovery” so that people spend money they don’t have in order to perpetuate the illusion of recovery, coordinated global actions by so called “independent” central banks, QE1, QE2, Twist, QE3 soon…and the grand result…a minor pause in a downward slide towards the edge of a fiscal cliff.

    The end game here is not good. In fact it is going to be horiffic for the majority of most populations around the world. What happens when we truly plunge over the cliff is anyones guess, but one thing for sure, it is going to get very ugly. I completely agree with Duncan from your previous post, that civilization as we curretly know it will not survive in it’s current form.

    I am a professional architect by training, but for the past several years have been accummulating the knowledge, allocating my personal capital and in some cases purchasing equipment to be able to create “things” that people will need in a free market when it all goes to hell. My profession has been slowly dying on the vine since 2007, and I expect it to go into full hibernation in the next few years. When this next leg downward fully engages, I will be prepared to do what is necessary to preserve my life by alternate means. I suggest everyone else start doing the same.

    Time is running short.

    • Greg

      PatriotRider,
      Thank you for your analysis and comment!
      Greg

  4. jay

    Greg.
    Just this morning i was listening to the tv news saying ben was comming out with a new plan to jump start the economy. It must be easy to report the facts when you see the lies ahead of lies. Ben can only print money. As always thanks for the truth.

    • Greg

      Thank you Jay. I agree.
      Greg

  5. art barnes

    Greg, nice writing, your mainstay in my mind, not to take away your interviewing skills. Isn’t it a shame that modern day journalism cares more about their advertising revenues than “nothing but the facts”? Mark my word Greg & bloggers, sooner or latter the MSM will become irrelevant by their slanted reporting, they are slowly digging their own grave. This old world has a way of making history no matter how MSM tries to spin it. In reality, everything, including social culture, has its breaking point and our economy will be no exception. Once again Greg, superior article.

    • Greg

      Art,
      Thank you for your kind words and support.
      Greg

  6. Chuck Allen

    Hi Greg,

    As usual you have the truth nailed down.

    The MSM has been complicit in defrauding the U.S. public for decades. There have been so many indicators along the way, since World War II; when President Eisenhower warned us about the military industrial complex. Our stealthy weapons can be used against us to put down any act Obama deems a problem (no MSM concern expressed here).

    Senator Joe McCarthy tried to expose the communist infiltration of our government, and was ostracized by the MSM. President Nixon took us off the gold standard, allowing the “FED” to print the United States into oblivion. President Johnson created the welfare system (MSM full of joy for a totally government dependent underclass); and by the way don’t deride anybody receiving welfare, the MSM will tear you apart.

    There are too many examples to cite here. However, as bad as the MSM has been over the last six plus decades, they could not have ignored so much without the direction of our government. Presidents, as bad as they may be, are nothing compared to congress. Presidents come and go but senators and representatives stay for life, because we allow it.

    In my opinion the MSM is just a outlet for the U.S. government. Think about this:

    It took over 135,000 troops to subdue Iraq.
    It took only 535 in congress to subdue the United States.

    • Greg

      Thank you Chuck, G. Johnson, Droid-X and Karel.
      Greg

    • George Too

      So, you think McCarthy is someone to be admired. This damages your credibility? Anything that you said that had merit goes into the crapper when you said that. If a quarter of the people McCarthy accused had been communist, we would have been out voted in the 1960’s.

      • JEFFREY

        … Chuck you are so , “RIGHT” about McCarthy and we need to thank GOD for AMERICANS like this ! ! ! People like George don’t have the capability to see what is going on right under our AMERICAN noses ! A TRUTHER in Greg to give us that, “EYE” …

  7. g.johnson

    stuck in the mud? that would be nice. but methinks sinking in qicksand gets a little closer to the gist.

    look, we all know that the system is fubar. at least those of us who take the time to explore current events on an “off the reservation” basis. we all know who owns the media and what that means for the msm agenda. karl marx may have been right, in his day, when he said “religion is the opiate of the masses” but today, nothing keeps the masses listless and unroused like the mainstream media.

    quantative easing? we all know as well that the easing is for the very rich and the creation of more ersatz momey does little to benefit the likes of you and i. 20,000 people a day lose their homes and their pensions while a few hundred (those who made the losing happen) receive 7-8-9 figure bonuses thanks to this wonderful “easement”. just wondering here, what would happen if instead of giving out a couple trillion to the big boys, the fed just sent a check for say, $25,000 to very adult citizen. it would cost about the same, but you have to think that the “stimulus” part would actually have some teeth. if venders didn’t go apenuts raising prices, the cash would flow…for awhile, but it would eventually come back to the fact that those dollars were created in debt and no dollars were created to cover the debt. if the fed were gone, and the government took back control of the money system and spent, rather that leant the money into being, such a stimulus (one time only) could actually turn things around.

    well that, and gitmo for the bad guys. :-)

  8. droidX-G

    Greg, The MSM = Presstitutes…defined as those who pervert the news for money or political zealotry

  9. Karel Kok

    85% of journalist are Democrats.

    It’s all about getting barry reelected.

    When Reagan and Bush were president all we got were stories about

    the “homeless”. When was the last time TV did a story about

    the “homeless’? It’s been awhile.

  10. Tham

    Greg: I really enjoy all the great reporting you’ve done and are doing. Keep it up.

    In my view, though, the MSM has been pushing this “recovery” scenario as part of its on-going effort to elect and re-elect Barack Obama, period. If this had been a Republican administration (and I’m no lover of them either), the “cub reporters” would have been digging for bad news all along. This, on top of what you are correct in pointing out regarding media just shoveling out government statistics, really portrays a false picture.

    • Greg

      Thank you Tham and welcome to the comment section!!!
      Greg

  11. SilverBull

    At least Fox tries to go there, but still doesn’t tell anyone what they need to hear. More and more people are waking up and getting info from the web. Nothing really matters as nothing we can do about it. Only thing to do is “GGG” Gold Guns & Garden.

  12. Mike B.

    As always Greg, your reporting is right on target. There was no recovery and you have said this for a long time. I’m grateful that we have your website to offset the MSM spin-masters.

    • Greg

      Thank you Mike B.
      Greg

  13. steve s

    Greg: Obama’s paradox. False statistics from the govt and/or the media to show growth and recovery to boost re-election odds and then can’t get the fed to stimulate. Tell the truth, look impotent but get the stimulus he needs and the inflation he can’t stand. Hard to have it both ways. As always thanks for your honesty and the wisdom of the old guard (people like Jim Sinclair and Richard Russell). May God help us all.

  14. Russ

    Greg, it’s OK to admit you only get USA Today to line your bird cage, we won’t hold it against you, it’s about all that rag is good for. I was watching yesterdays episode of Capital Account on RT.com and Bob English was on from zerohedge talking about Bernanke’s alternatives to Libor, sounds almost like a “the devil you know” scenario. On the brighter side it sounds like Ron Paul’s audit the fed bill passed the House. Looking forward to see how that goes.

    • Greg

      Thanks Russ and LM.
      Greg

  15. Liquid Motion

    Greg,

    Do you ever get the feeling that we (intelligent people who see the govt bs), will ever be told the truth ?

    It is blatant propaganda, but unfortunately the masses of sheep are growing less intelligent by the day as they continue to graze on government pastures.

    What purpose does the government serve (& the FED for that matter). They are not acting in the interests of the people anymore (doubt that they ever were) and are solely there to ensure that BIGGER govt. has more control over the elitist corporations who have world dominance (including the BANKS).

    Blind Freddy can see where this is headed.

    Our freedoms will slowly but surely be removed. What is perceived to be a freedom …may be by choice only….and those choices will be limited.

    We are therefore in a no win situation. The powerful get elected by the sheer numbers who themselves are totally reliant on the system. The system works until the government cannot be trusted. A major mis-deed will need to be uncovered so that all and sundry become aware of the immoral attitudes,lies and distortions, theft and skullduggery that is the Government and its appendages. But one cannot hold one’s breath for an eternity.

    Our lives are entrusted to them, to ensure that liberties and rights are maintained. Civility is proper…but it is meant to be a two way street. Good citizen is met with a government that has integrity.

    I feel nauseous at the thought of the governments actions and even more so with the knowledge that it can and possibly will have destabilising effects on peoples’ state of mind, after all they are playing mind games. The whole meaning of life loses it essence and
    deteriorates to meaningless existence behind the veil of a servant of the state. With greater insight one could conceive that that was the governments plan after all. Obedient slaves without threat.

    Take care good man, you do a tremendous service.

  16. Paul

    Greg -

    “Jump starting” the economy brings an analogy to mind. When your vehicle’s battery is weak and you’re stranded you will need a jump-start to get it running and get you home. But – and here’s the kicker – the fault isn’t fixed – something has failed and until the issue is resolved you’ll soon be needing another jump-start and then another.

    Until the root cause is addressed you’ll be paying for tow trucks to rescue you or bothering fellow motorists for a “boost”.

    • Greg

      Good stuff from both of your guys Brian and Paul!!
      Greg

  17. Brian

    Hi Greg,

    I caught you on Coast with John B Wells the other night, that was a good show.

    Putting the pieces of the puzzle together is not too hard at all. We have a system that flat out admits fraud is a vital lubricant keeping the gears from grinding down and we have a main stream media that is clownishly avoiding truthfully reporting on the reality of what is going on here……….the picture is simple, it is a confidence game and only a confidence game.

    I find it scary that it has gone this far, and that it can actually go even further. The realization of how much crap we as americans are putting up with to get to this point is disturbing……….kinda makes me understand how the good german folks could actually live down the road from an extermination camp during WWII and carry on as normal even as the bombs were falling like raindrops……….it is amazing what can happen when people just turn away and refuse to take an honest look at what is going on around them.

  18. josh

    i cannot for the life of me understand how any financial “expert” can claim that this is the bottom of the housing market. even if you ignore all the foreclosures that haven’t happened yet, there is no getting around the interest rate issue. simply put, when interest rates go up, housing prices go down. period. we currently have the lowest mortgage rates in history. the only way that housing prices have bottomed is if mortgage rates never go up. the fed just keeps digging this ditch deeper…

    here’s a chart illustrating my point:
    http://seattlebubble.com/blog/wp-content/uploads/2010/02/USA-Home-Price_1950-2009-real.png

    • Greg

      Yes Josh, I agree with your logic completely. We just hit another all-time low for the 30-year mortgage at 3.49%. What happens when rates normalize and gop back to 6% or heavean forbid 7%? Yes, Yes, Yes, a thousand times Yes–housing prices WILL go down. Thank you for the comment and link!
      Greg

  19. Al Martin

    God Bless you. That’s all I can say is God Bless you! Keep up the awesome work!

    • Greg

      Al Martin,
      Thank you for your comment, support and blessings. I’ll take all God’s Blessings I can get.
      Greg

  20. John

    Hey Greg,

    Great point. Your right on about the MSM and the lies they spread. God how fair the media has fallen from their responsibilities. And of course, The White House and both parties don’t want that to change. The modern Democratic and Republican parties both take turns destroying this great county.

    There is a little known speech given by President Kennedy on April 27, 1961. You can find the speech online at the JFK Library. I think you should post it for your followers, it’s that powerful. It talks about the presses responsibilities to keep the public well informed and current in all affairs. Imagine this words being spoken by a president today.

    Here are a few quotes:

    “The very word “secrecy” is repugnant in a free and open society; and we are as a people inherently and historically opposed to secret societies, to secret oaths and to secret proceedings. We decided long ago that the dangers of excessive and unwarranted concealment of pertinent facts far outweighed the dangers which are cited to justify it. Even today, there is little value in opposing the threat of a closed society by imitating its arbitrary restrictions. Even today, there is little value in insuring the survival of our nation if our traditions do not survive with it. And there is very grave danger that an announced need for increased security will be seized upon by those anxious to expand its meaning to the very limits of official censorship and concealment. That I do not intend to permit to the extent that it is in my control. And no official of my Administration, whether his rank is high or low, civilian or military, should interpret my words here tonight as an excuse to censor the news, to stifle dissent, to cover up our mistakes or to withhold from the press and the public the facts they deserve to know.”

    “No President should fear public scrutiny of his program. For from that scrutiny comes understanding; and from that understanding comes support or opposition. And both are necessary. I am not asking your newspapers to support the Administration, but I am asking your help in the tremendous task of informing and alerting the American people. For I have complete confidence in the response and dedication of our citizens whenever they are fully informed.”

    “I not only could not stifle controversy among your readers–I welcome it. This Administration intends to be candid about its errors; for as a wise man once said: “An error does not become a mistake until you refuse to correct it.” We intend to accept full responsibility for our errors; and we expect you to point them out when we miss them.”

    “Without debate, without criticism, no Administration and no country can succeed–and no republic can survive. That is why the Athenian lawmaker Solon decreed it a crime for any citizen to shrink from controversy. And that is why our press was protected by the First Amendment– the only business in America specifically protected by the Constitution- -not primarily to amuse and entertain, not to emphasize the trivial and the sentimental, not to simply “give the public what it wants”–but to inform, to arouse, to reflect, to state our dangers and our opportunities, to indicate our crises and our choices, to lead, mold, educate and sometimes even anger public opinion.”

    It’s a real great speech, everyone should know about it.

  21. Sharon McConville

    The economy is struggling to revive but most of the jobs are part time jobs. Many of us are employed by two or three employers just to make their monthly nut. The job market has not returned to normal. I believe it will be 5 years to get back to normal if then. But life as we know it has changed. One good thing that has happened is that most of us are saving every extra dime we make and are not spending money without a lot of thought about it. The old adage by a relative of mine who used to say, “Do you really need it or do you just want to spend money”? A good adage to keep in mind. We have a long way to go and I sure hope this election we get some people in office who can add and subtract. Because the idiots in there now skipped math completely…

    • Greg

      Thank you Sharon for the real world reporting.
      Greg

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