the media is an observer not a participant in government

I haven't read Moldbug, so maybe you mean something else by this than what it sounds like, but I don't think I know of anyone with an interest in politics who'd agree with this statement as written. Pretty much everybody thinks that the media has a huge influence on government, up to the point of often determining what decisions the government can make, and which politicians grow popular or fall out of favor. There's a reason why it's called the fourth estate.