Media Lies are Predictable

There used to be investigative reporters, what happened to them all? Reporters are just repeaters anymore. They don't have their own words they just tell you what someone else said. There is certainly no real analysis. I would like to use a couple of recent stories to demonstrate this fact.

Bloomberg - Fed Links Rates to Joblessness, Expands Bond Purchases. The Federal Reserve plans to continue buying bad mortgages and keeping interest rates low until unemployment drops below 6.5%. The lengthy (by today's standards) article basically just quotes different people and summarizes what they were told. It does end by pointing out that one of the members of the Federal Reserve doesn't see how buying the mortgages is helping the economy. Unfortunately, the reporter doesn't even bother getting an answer from Bernanke.

For the first time in history, interest rates are going to be artificially deflated until unemployment changes. Nobody seems to really ask why or how the two are related. Consider this, having the government hold bad mortgages does not cause one new house to be built, the amount of distressed and vacant housing is still too high. There is no need to build more houses in the United States. Lets look a little further. Is the Federal Reserve paying current market rate for these loans or a rate based on the original valuation. To buy it at the original valuation would be utter insanity as the mortgages are 40% under original valuation. I cannot believe the Federal Reserve would pay $1.00 for 60 cents. If they bought them at current value then the banks that sold them would have to show massive write downs; but, that is not happening. How come nobody is asking that question?

Now, lets go back a few posts to where the International Monetary Fund called for hyper-inflating all the currencies at once and then deflating them. If we hyper-inflate in unison and then pay off the debts instantaneously, it will be governments and central banks that will eliminate all their debt. You will not be able to pay off your debts as this occurs, it will be in milliseconds. What does the day after look like, well, the government and Federal Reserve will still own all the mortgages. They will have experienced debt forgiveness; but, you will still owe them. At that point they can easily reduce your mortgage by half and still make a profit. You will be happy too because you get to keep the house you could never afford.

Here is another article. Yahoo News - Reuters - U.S. should automatically register voters: Attorney General. You should be disturbed by the article. It says, "By coordinating existing databases, the government could register "every eligible voter in America" and ensure that registration did not lapse during a move, Holder said.". It also says that it would not require a national ID; but, it merely that is exactly what it does, it creates a format for identifying every eligible voter. To do that, the databases would have to give your age and nationality. Conservatives will love it because we will know that all voters are good Amaricans and liberals will love it because it ensures that all eligible can vote. Privacy advocates, well, they are nut jobs.