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Krugman's main point against Murdoch is the fact that 9/11 mosque supporter Walid bin Talal "is not only the biggest non-Murdoch shareholder in Fox News’s parent company (he owns 7 percent of News Corporation)" but "the recipient of Murdoch mammoth investments in Saudi Arabia." If anything, that just goes to show that FOX is clearly not a public relations machine for their major supporter, as Krugman would undoubtedly want you to believe. Is it ironic that bin Talal owns that share of Newscorp? Sure. But it proves that Murdoch is not the "self-interested potentate" who is using his news business to provide cover for vast numbers of tea partying Americans.
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