The propoganda is very real, and very frightening. A quote I will always remember is "Fascism comes in the form of anti-fascism." This isn't just propoganda spewed from the Neo-Cons and Corporatists. Take a look at particularily the student body of various universities. People will knee-jerkingly react to certain things in often an angry and hostile manner. It's easy to criticize the current administration and corporations. Why? Because there is generally consensual agreement amongst all parties...it's big business. Look at guys like Mike Malloy, Alan Colmes, Stephanie Miller, etc....that's the core of their shows...because only the perceived nuttiest could possibly disagree along those principles. It makes good business sense to openly criticize and attack something where there is general agreement.
Look at Alex Jones for instance. I use his stuff as a resource, but not as a singular primary source. Find anything, anywhere, where he criticizes anything Jewish. There aren't many people out there who would expressively define what makes up a Neo-Con and the background of such people who belong in that group......primarily, Zionist Jews(secular and non-secular alike) and Evangelical Christians. This is a topic that is angrily discouraged from being brought up. While at my university, I brought it up during a free discussion(we were discussing world politics and the like) just to see what the reaction would be. Sure enough, it was angrily refuted and I was denounced as a racist anti-semite. My statements were angrily refuted, but for the most part, there was nothing but gasps and mutters of racism.
However, that is not entirely the point. That was just an example. To find where the propaganda is coming from and what exactly it is affecting, you need to find the newly labeled "hot topics." Topics that most people do not want to calmly and rationally discuss. I don't think what is being discussed here can entirely be called propaganda in its truest form. Too many people know the score and that the administration is full of shit. Like Berzerker said, it's comical. Most folks don't take these Terrorist warnings seriously(though enough to make it work at least well enough).
In all likelyhood, folks don't really give a rats ass about what the administration and the corporations do because there is an SUV to pay off, the line of credit got extended on their credit cards, the malls are open, mortgages have to be paid. Unless you take one or more of these away, the American people won't do anything to force a change.