Murdoch Media Misdirection

By Greg Hunter’s USAWatchdog.com 

Yesterday, there was a UK hearing featuring father and son executives Rupert and James Murdoch over alleged phone hacking.  The spectacle was covered wall-to-wall by most cable news outlets.  Channel surfing, I realized that at one point, CNN, HLN, FOX News, FOX Business, MSNBC, CNBC and Bloomberg were all running the testimony.  The coverage was highlighted by a disgruntled protester attempting to hit the senior Murdoch with some sort of foam pie.  The phone hacking saga is all over the internet too.  Even the FBI is investigating whether or not News Corp. employees did illegal information gathering on victims’ families of 9/11.  I guess the FBI is all through investigating the crimes of mortgage fraud, securities fraud of sour mortgage debt that was packed into Fannie and Freddie, ratings fraud and foreclosure fraud.  I don’t remember seeing a single indictment of a major Wall Street banker that caused the multi-trillion dollar meltdown of the economy.  Oh well, must not be anything there.  It’s all one big unfortunate accident that will be funded by tax payers for decades.

In the face of a new monumental financial meltdown on both sides of the Atlantic, I find the Murdoch story nothing more than a mainstream media misdirection of the nation’s real problems.  This story is just a tawdry tale of a fall from grace of one of the world’s biggest media moguls.  For nearly 100% of the people, it will not matter what happens to the Murdoch Empire, but the effects of debt implosions and debt ceiling defaults will dramatically change the lives of most—especially in America.

After flipping through the above mentioned channels, I turned to C-SPAN and listened to debate on the “cut, cap and balance” bill (HR 2560).  It is basically a Republican plan to cut spending and move toward a balanced budget amendment for the federal government.   It was passed yesterday mostly along party lines, but not before some rigorous and partisan debate.  Both sides accused the other of “killing jobs.”  Republicans say the nation has a “spending problem, not a revenue problem.”  The Democrats say spending cuts in Medicare and Social Security are just “slash and burn politics.”  Many Democrats in the House have vowed not to cut spending and, likewise, the majority of House Republicans have promised not to raise taxes.  The best line came from one Congressman who said something like, “Bees can’t make honey and sting at the same time, and we are just 435 stingers.”

I think both sides agree that a debt default will be a disaster.  Interest rates would spike, meaning mortgage and credit card payments would follow.  Inflation would also jump, meaning even more increases to food and energy prices.   I think both parties are quietly calculating which party will get most of the blame if the worst happens?  I hope my gut is way off, but both parties will share the blame because they both got us to where we are now.

There is no way the Republican sponsored “cut, cap and balance” bill will make it through the Democratically controlled Senate.  Obama’s veto pen won’t even get close to it, but yesterday’s debate was not totally meaningless.  What I got out of watching it was how far apart the Democrats and Republicans in the House of Representatives really are.  They might as well have been debating across the Grand Canyon, instead of the aisle on the floor of Congress.

There is some hope for a bi-partisan agreement over in the Senate, and even the President likes the proposal.  Bloomberg reported yesterday, “President Barack Obama embraced a $3.7 trillion debt-cutting plan by a bipartisan group of senators that would combine tax increases and spending cuts, saying it could offer a way out of the congressional deadlock over raising the U.S. borrowing limit. “We now are seeing the potential for a bipartisan consensus,” Obama said today at the White House. He called the proposal by the so-called Gang of Six “broadly consistent” with what he has sought and “a very significant step” in so far fruitless negotiations between Republicans and Democrats over boosting the nation’s $14.3 trillion borrowing authority before a threatened default on Aug 2.”  (Click here for the complete Bloomberg story.) 

Just like a bill that comes from the House has to have Senate approval, a bill from the Senate has to have House approval.  Good luck on getting something with both tax increases and spending cuts through the House of Representatives.  Even if a bill is passed in both houses of Congress, it will be very difficult to get something done to avoid the August 2nd default deadline.  If the country actually defaults, the problems of Mr. Murdoch will seem trivial.

Comments
  1. Christine

    All this fooling around by the Congress (as well as the FBI, as you point out at the top of the article) is making me sick to my stomach. Our country is imploding and many millions of American lives hang in the balance while these jackasses fumble around trying to find a way to not look like jackasses in the next election cycle so they can still get million$ from their corrupt corporate sponsors and elitist cronies. It’s really simple: compromise by raising taxes on the wealthiest 2% and significantly cut spending. Nobody in the middle class is going to “win” anyway. Raising the debt ceiling is just a stop-gap measure to buy us a little more time before it all goes to hell. And why didn’t they get serious about handling this critical issue until the 11th hour? Nobody can make me believe they didn’t know this was on the horizon. Oh, yeah, they had to spend all that time talking about what kind of light bulbs we would be allowed to use in our homes. Talk about irresponsible….

  2. Sandy

    You’re right Greg, much of our attention is being diverted so the real crooks can stay in the shadows. Just like police, firemen, and teachers are made to look like the bad guys over their salaries, congressmen and senators take home huge salaries with benefits separate from the rest of us. All the while the real criminals continue creating more havoc in the economy. Why isn’t the FBI investigating the continuation of the robo-signing controversy?

    As far as the Debt limit debate is concerned, it’s like watching a game of Texas hold ‘em. When it comes down to the wire someone will blink and the limit will be increased. Our society loves drama, it’s what sells news.

    • Greg

      Thank you Sandy and Brian.
      Greg

  3. brian

    Ultimately it is we the people who line up at the trough and drink the glop that the media and our “elected” royalty toss our way. It is our lack of involvement which “they” encourage, and our apathy and disinterest that allows these complete morons to lord their moronic interests and simplistic exploits over us. As long as we remain motionless on the floor they will continue to come by between drinks and have their way with us until the party is over.

  4. Baja Bryan

    Mainstream media has become a complete joke. Much like all the clowns in Washington engaging in political theater. Members of the House and Senate might as well all be wearing giant clown shoes, multi-colored baggy pants and red rubber noses while riding minature bicycles. It’s all a giant clown show at a time when accountability and initiative are paramount.

    • Greg

      Thank you Bryan, Frank and Sam.
      Greg

  5. Frank Brady

    The U.S. government’s immediate default is the best possible outcome among the array of unsatisfactory choices.

    Yes, interest rates will rise and there will be terrible dislocations. However, given the by now obvious collusion between the political and banking establishments (if such a distinction can be made given TARP, the Bailouts, QE1, QE2, stock market manipulation, etc.), raising the debt ceiling will only allow more debt and make the inevitable collapse even more disruptive and painful.

    It may be better for the U.S. to “eat its peas” now rather than later.

    Frank

  6. Sam

    Dear Greg,

    Last week, I quit satellite television, and decided to stick to radio and the Internet for news. Why? Because, if I had turned on “Your World With Neil Cavuto,” and had seen more “news” stories such as the Murdoch case, I would have yelled at the television what my Mother is found of saying: “What does that have to do with the tea in China?”

    Indeed, what do these “bread & circus” (as I continue to call them) “news” stories have to do with anything? Okay, so Congress is divided. Blame the people, for they weren’t “angry” enough in 2010, they returned the usual suspects back to office. The people got what they wanted, they will get what they deserve: possible default.

    At least, because of all the indecision, a lot is going up in price, including (happily), gold and silver.

  7. Jerry

    Thanks Greg for reminding us of whats really important, and whats not. Mainstream media smokescreens seem to run interference right on schedule. I also see another debt ceiling increase after all the theatrics, putting the looming financial disaster on hold for yet another QE-3 money printing party for the we will spend now, you the people will pay later junkies in our government.

    • Greg

      Jerry,
      Pay we will–more for everything except housing that it still headed down.
      Greg

      • james

        i look for property taxes to double if not triple. the few people will pay more for the many.

        • Greg

          Thank you James and Mike.
          Greg

  8. g.johnson

    wow, the democrat and republican parties at odds on policy. imagine that.
    same danse macabre they have been performing for the american audience for over a hundred years. maybe over two hundred years while the crowd looks on in wonder unable to comprehend the joke.

    imagine, if you will, that you have spent you life living a lie. a lie foisted upon you since birth. a lie constantly reinforced by the constant babble of one authoritarian institution after another told over and over for the simple reason that these “authoritarians” need you to believe it in order for them to keep their power over you intact.

    imagine if you will that the lie was “the united states of america is a free and sovereign nation comprised of free and sovereign states made up of free and sovereign individuals and that the sovereignty is insured by a government of the people, by the people and for the people.” imagine that the lie was incessantly reinforce with jingoistic phrases like “land of the free, home of the brave”, liberty and justice for all”, “your vote counts”….and my two personal favorites “america, love it or leave it” and (i paraphrase) “uncle sam needs you… to to go die so that american will remain free.”

    imagine that one day a new lie emerged from the old rendering the old lie moot. imagine that the new lie was “you have lived beyond you means for too long and as a result, america owes a debt that cannot be repaid, we can no longer afford liberty and now you must suffer.”

    would you accept the new lie as you did the old?

  9. Diane Carol Mark

    Greg,
    Let’s see, if we take $3.7 trillion over 10 years, that equals a reduction of $370 billion per year–not an amount that will account for too much factoring in inflation. Next, let’s consider the logic of a proposal that reduces taxes and cuts spending. Reducing taxes equals less payments toward the debt, (and interest on the debt) and that equals greater debt. Spending cuts would need to be significant to reduce the future debt to be funded, but do nothing to the existing $14 trillion in debt. So, it would be likely that the debt would continue to grow and if we add the NEW $2 trillion in debt, there you have it. A monster pie.

    I’m not a mathematician, but I did graduate from the university. What happened to our congress and president? I’m sure they know how to balance a checkbook and calculate simple math (as above).

    Something’s fishy and anyone thinking about this can figure it out.

    And, what about psychology? Our congress is giving the world the impression that to be movers and shakers, we can’t do it without credit. This isn’t very bright, is it?

    :) Diane

    • Greg

      Diane,
      The math of all this stinks and it spells trouble deal or no deal.
      Greg

  10. Steve

    Greg, do you really think there is a “bipartisan” conflict? I’m thinking the two sides have been told to put up the ruse that there’s a conflict but will be told within the next two weeks when to drop the charade.

    • Greg

      Steve,
      I think this is a real fight and it is the unofficial beginning of the 2012 Presidential campaign, but you could be right too. Thank you for the comment.
      Greg

  11. David Conrad

    Hi Greg,

    It’s like the old guy once said … News organizations are in the business first to make money, and then subsequently to report the news. It is amazing that the Murdoch saga was about all we saw reported yesterday … guess there was a buck in it for the news guys. Wish there were more bucks for the rest of us.

    Keep up the good work!

    • Greg

      David,
      Thank you for your comment and support my friend!
      Greg

  12. Mitch Bupp

    Glad to catch you this morning on Brad and Britt in the Morning on WZTK today. Wow, where to start. There has been no serious investigation into mortgage fraud and I don’t expect any.

    I heard you briefly talk about the dollar losing status as the world reserve currency. I am just beginning to understand how deeply our economy depends on this and I would bet that most people don’t really understand what it means let alone what it means to their pocketbook.

    Thanks for your insight and concise reporting…..

    • Greg

      Thank you Mitch fore your comments and support!!!
      Greg

  13. Robert

    Greg,
    I am of the opinion that all of the horrible things that are going to occur ( rising interest rates, increased mortgage rates, higher food and fuel costs, higher unemployment, etc. )if the debt ceiling is not raised, will occur anyway at some point in the future. The only difference is if it is done in somewhat of a structured manner by making hard choices now or it occurs as a calamitous collapse of the entire system down the road.
    For years I believed we (America) could find a way forward without making hard choices or sacrifices. We won’t. The word “unsustainable” is thrown around so much lately that it has lost meaning. Social Security, Medicare and Medicaid will not exist in a few years as it does now. Period. Anyone with a basic understanding of mathematics can see this.
    So if we increase the debt ceiling by a couple of trillion dollars now, what do the debt ceiling talks look like eighteen months from now? What will universal healthcare do to the nationl debt? What will two years of 10,000 baby boomers retiring everyday do to the national debt?
    If you’re an American and you’re not deeply concerned about the future of our country, you’re just not paying attention.

    • Greg

      Robert,
      Yes all the bad stuff is going to occur anyway, but it is much worse than in 2008. The bankers transferred much of the risk to the government (taxpayers) and thus imperiling the credit rating and the dollar. Thank you for the comment.
      Greg

  14. Art Barnes

    The American people have lost their will, simply put, the dog won’t hunt any longer. The elite really did know what they were doing when they just brougt out bowl after bowl every day and gave it to the hounds. These are not the Americans I grew up with, the social engineering experiment has worked for the elite making them a lathargic bunch of “can’t we all just get along” little puppies. Well, that’s were we are at, don’t expect anything else from the masses except when the next bowl coming out again.

    • Greg

      Art,
      Amen brother.
      Greg

  15. M SMITH

    Greg, again I ran up on this web site where the utube videos disclose so much dirt on the U.S. treasury act that passed in 1934 (EST)by congress & what has happen since then it makes me wonder why we are still even a nation! We are not a nation of laws for all any more, so that makes use no better than any other third worlds nation in my eyes.

    If the US Gov can use the war on drugs to plant dope on property because someone very rich owns it & there no prior activity to support any said search of said property except the assets seized is worth billions to the treasury kitty to fund more black operations on our own people & others world wide, it’s not lawfully. Brain washing has been transfered from concerned counties many of times, the time stealing a nations wealth went down when paper money could be used to replace that of the treasures of tonnes of of gold & slaves!The taking was the weapons tecs who could build bigger bombs, faster shotting guns. Now we build ever thing by low paying jobs & unions high paying job where unions get away with half ass work & the low paid get pennies for the hard, good work they do! Never has the working class been more brain washed & used.

    A man called today, a newbe in precious metals buying & got scammed by paying way above spot for off brand .999 fine silver rounds when silver hit $49 he jumped in & broke his neck as he thought & wanted my advice on ASE’s & S.AF. 1 oz Gold Krugerrand at 1730 a oz,in mint state MS60! I almost did not answer. I was working other important stuff. I gave in and help the boy because I knew his parents & they were good folks. He reminds me of my State Rep & members of congress, they don’t crap about real life, it was all gave to them & soon they will learn a lesson only once & no one in these times will many give them a second chance! Just another day in paradise! Good work again, if want the link to the Full History of ESF, I will be glad to share. PEACE Brother!

    • Greg

      Yes M Smith please post it anytime. Thank you from us all.
      Greg

  16. M SMITH

    Sorry I did not proof read because I am tired & PEE off at peoples lazy habits of calling on me only when they screw up or need help! Thanks again Greg for what you put up with! I don’t want your job, but as alway glad to add my two cents!
    MLS

  17. Mike Rounds

    Just wanted to express my apreciation for your web site. Great stuff!

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