Why does it seem like major establishment news outlets come out with the exact same talking points so often? This time, the mainstream media in both the United States and in the UK are placing blame for an economic collapse that hasn’t even happened yet on the Tea Party movement and on opponents of the Federal Reserve. Of course it is completely and totally ridiculous to even think for a moment that the Tea Party could be responsible for our current financial problems. The Tea Party is still basically brand new, and even though they gained a a number of seats in Congress during this past election, they still have far, far less power than the establishment Democrats or the establishment Republicans. The notion that the Tea Party could be responsible for plunging the entire globe into a devastating economic depression is absolutely hilarious. But that is exactly what some major mainstream media outlets are actually suggesting.
Just consider the following examples….
*Time Magazine ran an article on November 10th with this headline: “Will Sarah Palin and the Tea Party Cause Hyperinflation?” In that article we find gems such as the following….
“Before the Tea Party, inflation is rising slowly. But in the first year the Tea Party or a group with similar views wins the Presidency or takes over Congress, whamm-o. Inflation doubles, and keeps going up.”
According to the Time Magazine article, the Federal Reserve is not going to cause hyper-inflation. Instead, the real threat to our economy would be if someone lowers our taxes….
Turns outs that it is very unlikely the Fed would cause hyper-inflation. That’s why near zero interest rates and the Fed’s early efforts to drive down long-term interest rates have done little to boost inflation. The real threat of inflation comes from tax policy, namely lower taxes. Lower taxes and the government will have a harder time paying back its debt. Investors run from our bonds and currency. Inflation ensues.
“The Fed is well aware that its policies could have profound inflation consequences,” says Leeper. “Where as the Tea Party is not thinking that at all.”
*But Time Magazine is not alone. In “Post-Tea-Party Nation” New York Times columnist David Frum blasts Tea Party politicians as idiots who do not understand the most basic things about economics….
Too often, conservatives dupe themselves. They wrap themselves in closed information systems based upon pretend information.
*Even the mainstream media in the UK is openly attacking the Tea Party movement. In an article from the 13th of November entitled “How the Tea Party is brewing up trouble for the world’s currencies”, Edmund Conway of the Telegraph seemed absolutely horrified that the Tea Party movement may disrupt the delicate consensus among both major political parties in the United States that “free trade”, globalization and the Federal Reserve are all wonderful things….
The Republicans used to be the party of the Washington Consensus, of free trade and deregulation – in short, supporting Globalisation III. No longer: a recent Pew Research Center report found that the Republican party is now more anti-free trade than the Democrats. Many of the Tea Party’s leading voices want an abolition of the Federal Reserve. The message from the mid-terms was that these voices can no longer safely be ignored. And if the US itself can’t work out a plan to overhaul the international economy, what hope is there for the rest of us?
*But perhaps the most blatant attempt to link the Tea Party movement and opponents of the Federal Reserve to the coming economic collapse happened on MSNBC on election night. That night, when MSNBC anchors should have been covering election results, they actually spent an extended amount of time discussing how Rand Paul could single-handedly cause a massive worldwide economic depression….