With the Indiana primary a day away the liberal media is franticly pushing the narrative that Ted Cruz is going to lose and Donald Trump is destined to be the nominee. “It's hard to think of Ted Cruz as a human being in the same week when Boehner called Lucifer,” smeared Nicolle Wallace on Bloomberg’s With All Due Respect. Co-host of the show John Heilemann declared Indiana was the end of line for Cruz, “this was the last stand for the Never Trump movement.”
That the establishment press despises New Media isn't exactly breaking news, but a lesser-known subset of that tension has just become more visible. As usual, an Old Media outlet is the smear merchant, and the New Media site has the upper hand on the truth.
Mainstream business journalists really despise the financial and economics blogs which puncture the insufferable "the economy is just fine" meme the financial wires have relentlessly foisted on us during the past seven years. When leading contrarian blog Zero Hedge had a recent fallout among its top authors, Bloomberg News sensed a chance to smear a site it has had to grudgingly recognize as a genuine competitor. Instead, the wire service committed the types of journalistic errors which explain why only six percent of Americans "say they have a lot of confidence in the media."
Venezuela's hyperinflationary economic crisis has gotten worse in one very important and apparently unprecedented sense than even the one seen in Weimar Germany in the 1920s. Yet the Associated Press and the New York Times apparently have no interest in telling their readers, listeners or viewers about it.
In the post-World War I German Weimar Republic, the situation became so out of control that people needed wheelbarrows to carry around the money they needed to pay for basic everyday purchases. A Bloomberg News story published early Wednesday morning, i.e., in plenty of time for the rest of the world's press to notice the story by now, has a similar "wheelbarrows" reference to Venezuela's crisis. But there's more. Venezuela doesn't even the money to pay to keep those wheelbarrows stocked with ever more worthless cash.
Just in time for tomorrow's first-quarter economic growth announcement from the government, Bloomberg Businessweek's Economics Editor is telling readers: "Don't Sweat America's Upcoming Microscopic GDP Growth."
Besides, Peter Coy writes, people need to get used to the supposedly inescapable fact that "Normal growth for the U.S. economy is just a lot lower than it used to be." Americans shouldn't worry, even if tomorrow's GDP figure shows a small contraction (perhaps indicating that Mr. Coy has been tipped to the fact that it will be). The key, the glib Mr. Coy contends, is to understand that "Happiness is all a matter of lowering expectations."
Today's stories at the business wires covering this morning's disastrous durable goods report from the Census Bureau ranged from good to absolutely horrid. March orders only increased by a seasonally adjusted 0.8 percent, less than half of the 1.7 percent to 2.0 percent increase that was expected. Additionally, February's originally reported decline of 2.8 percent was revised down to -3.1 percent.
Victoria Stilwell's dispatch at Bloomberg News earned a B-minus. Lucia Mutikani's writeup at Reuters rated a C-minus. As usual, the coverage at the Associated Press, aka the Administration's Press, delivered by Martin Crutsinger, the nation's unofficial "Worst Economics Writer," brought up the rear and earned an "F."
In another blow to the U.S. and worldwide economy, chipmaker Intel announced today that it is reducing its worldwide workforce by 12,000 people, a cut of 11 percent.
Of course, there are tech-related reasons why the company made the move, most notably the shift by some users to tablets and smartphones, where the company's market penetration has been weak and almost non-existent, respectively, as their everyday "computing" devices. But the press is completely ignoring why so many users of aging PCs are holding out against buying a new one until their current units die: they don't have the money to replace them. Why? Because economic growth throughout the world, including the U.S., has been stagnant and is showing signs of getting weaker — possibly much weaker.
The government reported this morning that seasonally adjusted March housing starts and building permits fell by 8.8 percent and 7.7 percent, respectively, far worse declines than analysts and economists predicted.
After the report, the business wires at least communicated the facts accurately, but continued to insist almost to the point of editorializing that there's no reason to be worried about the long-term direction of housing market or the overall economy.
Today's report from the government on retail sales was awful — "unexpectedly" so, according to both Bloomberg and Reuters. Following on the heels of a 0.4 percent seasonally adjusted decline in January and a flat February, March sales fell by 0.3 percent.
Two of the three main U.S. business wire services blamed the American people, not the worst post-recession economy since World War II during the Obama administration — an economy which is clearly weakening even further — for these results.
In a variation on a popular saying in real estate — "The three most important factors are location, location and location" — the State of Connecticut, since Democrat Dannel Malloy became Governor five years ago, has employed three strategies to balance its budget: raising taxes, raising taxes, and raising taxes.
The Nutmeg State's next planned round of tax increases includes a proposal pushed by the eponymously named Senate President Martin Looney to tax Yale University's $25.6 billion endowment. The headline at Bloomberg News's coverage of the proposal last Wednesday absurdly described the state as "cash-strapped," and didn't even try to explain how the state has gotten to this desperate point.
For the past month, the conventional wisdom about the U.S. economy has been that consumer spending and "(not really) robust" job growth will continue to prop up the economy, even as weaknesses in manufacturing, trade and other areas continue to present problems. President Obama bragged in early March that the economy is "pretty darned good now."
Today, the first of those two pillars got pulled. The countless press reports during the past 4-1/2 weeks which reassured readers that consumer spending started off the year strong — conveniently during the peak presidential primary season — are now rubbish. Today, we learned that January's originally reported 0.5 percent spike, revised down to 0.1 percent, was almost entirely fictional, and that February was also weak. Despite the disappointing news, most press reports found some "expert" who, with little genuine basis, expects a rebound.
If we had today's establishment press covering America just before the Revolution, few would have learned of Patrick Henry's "Give me liberty or give me to death!" If they had been covering the Revolutionary War itself, there would have been a blackout on Nathan Hale's "I only regret that I have but one life to lose for my country."
Today's establishment press does anything and everything it can to keep important statements by people it despises out of the news. Thus, despite regularly perusing media outlets on a daily basis, it is intensely frustrating that I only learned about Israeli Prime Minister Benjamin Netanyahu's unforgettable five-word fundamental truth about Islamic terrorism by reading an Investor's Business Daily editorial.
Ridicule by media critics has apparently made some headway against the business press's annoying habit of describing bad news about the economy as having occurred "unexpectedly." Now they seem to be reserving the "U-word" for unexpected improvements, which haven't been seen very much during the past seven-plus years.
Instead, reacting to today's bad news from the National Association of Realtors, which reported that seasonally adjusted existing homes sales dropped by 7.1 percent in February, Bloomberg News said that they "dropped more than forecast." Reuters opened with "U.S. home resales fell sharply," saving specific comparisons to forecasts for a much later paragraph. The Associated Press, which rarely even recognizes the existence of such forecasts, stuck to that posture. AP and Bloomberg both deliberately ignored a red flag about the overall health of the economy the realtors' group included in its narrative. Reuters grudgingly cited worries about the economy as "potentially troubling."