Mass Market Manipulation by Mega Media

(First published by Rockenomics on April 17th, 2011 at PinnacleDigest.com)


Huge government debt is not a problem…

....Inflation is under control…….

....... Central banks have it all under control…..

 ..........Charlie Sheen matters….

 ...............The rich don’t pay enough taxes….

 ....................Gold is in a bubble….

All of these statements are of course nonsense, but the mega media companies of Canada and the United States continue to propagandize this garbage and as expected it is working. The average person knows nothing about the tidal wave of debt and how it will destroy America when interest rates are forced up just to the long term average. From 1926 to 2010, the average interest rate on US Treasuries was 5.4%. Applying this rate to the US Debt would crush America. Nobody talks about that and nobody ever talks about the fact that all debts are supposed to be paid back. When is the last time you got an interest only loan with no requirement to ever pay back the principle?

Central bankers like Bernanke and Carney want everyone to believe that they can control the markets by simply adjusting interest rates, but reality suggests otherwise. They actually create the bubbles in the markets. The housing market in the US grew far too fast because of easy credit exacerbated by near zero interest rates and when that bubble burst in 2007, the entire financial world was affected. Where was Helicopter Ben to prevent that from happening? Not too many years ago, the irrational exuberance of Greenspan allowed the tech bubble to grow out of control. Anyone who believes Central Bankers make good decisions for the benefit of the average person has obviously been corrupted by the media moguls.

Unless you are actively looking for the bad news about the economy, such as Wal-Mart’s CEO telling of a huge inflation wave that will hit consumers this June, you will only hear of the Charlie Sheen nonsense and the royal wedding. Why is the People Magazine agenda always the top news story when there isn’t a major disaster to cover?  Why can’t all of that crap be relegated to the entertainment section? Are there really that many people drinking the kool-aid?

And how about this notion that rich don’t pay enough taxes. Watch the youtube video Eat the Rich if you need a reality check in that department. While I am not rich yet, making significantly less than 100k per year, I do live in a ritzy area. I chose to spend my money to live in a good neighborhood, and spend it I am – on TAXES. I just had a conversation with someone who pays 1/6 of the property tax I pay and she lives in the same community as I do. She gets all the same services from the city that I get plus she has bus service and municipal sewers. The reality is that the rich pay a far greater share of the taxes than what they get credit for.

Now, let’s all jump on the bandwagon about gold being in a bubble. After all it just another all-time high. Never mind the fact that most people don’t own any gold and never mind that junior gold stocks are still significantly below the levels they reached before the housing market crashed….If you are still with me, I do believe gold WILL be in a bubble some day, but that is a long, long time away. When junior exploration companies are 50 to 100 times their current values, then gold will be in a bubble and owning these stocks will be scary. But right now, they are still at bargain basement prices and don’t let any newspaper editor tell you otherwise. I am buying these with all the spare change I can find and before the gold bubble bursts, I just may be rich.

It’s said that 5 families control greater than 90% of the US media and without figuring it out, I would guess that less than 5 families control 99% of the Canadian media. These media mogul families will promote garbage on the front page until they see things that will benefit themselves. The inflation warning by the CEO of Wal-Mart was back page news but the commodities sell-off urged by Goldman Sachs last week made the front page. It is nothing if not fraudulent. Goldman stated that they recommended being underweight commodities for the next 3-6 months (sell now so Goldman and the media families can buy cheap) and overweight in 9-12 months (so you can buy it back at higher prices).

Ignore big media and use timely independent news sources. Not only will you be better informed, but you’ll also make better financial decisions.