I am loath to call Matthew a liar. The problem lies in the translation difference between the original Hebrew and the Greek of the Septuagint. I suspect that Matthew either did not read Hebrew or had no access to a manuscript in Hebrew. It is common knowledge that Hebrew was a dying language at the time. However, Matthew was attempting to write his gospel using the Hebrew/Jewish literary tradition of haggadic midrash. He searched scripture for events that could be incorporated into his gospel and he thought that he had found one. It was also a very convenient way to refute the stories that were being told concerning the very questionable circumstances surrounding the birth of Jesus.
So... you don't want to call Matthew a liar, but then in your last sentence it looks like you are saying he completely invented the virgin birth story. Also, why are you OK with him simply yanking Isaiah 7:14 completely out of context?
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