photoshopping reality
When the press, public relations firms, government officials and political campaigns distort reality, twist the facts, apply filters like those used in PhotoShop to changes images, that is photoshopping reality. Closely associated with spin, perception management, marketing and propaganda.
When Secretary of State Colin Powell showed photographs to the UN proving the existence of chemical warfare plants, he was photoshopping reality. Also, President George W. Bush's infamous comment to FEMA chief Michael D. Brown while the latter was botching the federal response to Hurricane Katrina: "Brownie, you're doing a heck of a job."