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Oh, I think Fox News and The Onion converged quite a while ago, and then continued on past each other. It's pretty sad when the best way to tell the difference between the two is that the satirical one is at least a little bit believable. Satire doesn't really work without that, but somehow, Fox News does.
This isn't Fox News per se, it's a weblog offshoot called "The Fox Nation," which is like Fox on Tea Party crack. Compared to the TV channel, the regular FoxNews.com website is relatively evenhanded despite some moderate bias in tone and story selection, but the entire purpose of Fox Nation is to distort shamelessly. They don't even do any original writing -- they simply quote and link to an article on another site and put it underneath the most ludicrously misleading headline possible. Check out their homepage -- literally every single headline all the way down the page is totally blatant, nakedly partisan, race-baiting right-wing propaganda. It would be difficult to parody, honestly, the distortion is so severe. It's as if this Simpsons spoof got its own site.