The Debt Crisis is a Hoax

I would like to declare, once and for all, that I am a debt crisis denier. There is no such thing as a human caused debt crisis, it is a fabrication by socialists and communists who want to use the ‘crisis’ to force the downfall of our way of life and impose some kind of alternate economic system on us. Below are three key factors that these so-called economists have clearly forgotten in their analysis of the debt ‘crisis’:

There is no proof that ongoing deficits will cause national bankruptcies or the fall of national economies

I want to see final, empirical proof that debt will lead to the fall of a national economy. For example, they say that in Greece, the debt crisis will cause an increase in borrowing rates, which will start an uncontrollable spiral (some are calling them ‘feedback’ effects) that means it will never be able to pay off its debts and suffer an economic collapse as a result. They say this, but they are basis this on assumptions and hunches, rather than cold, hard facts. Maybe it has happened in other countries in the past, but that doesn’t mean it will happen today to Greece. The truth is that there is no absolute proof that Greece’s continued borrowing would directly lead to its default or economic collapse.

Economies go in natural cycles

We are currently in a ‘cooling’ phase, but next year we could just as likely be in a ‘warming’ phase - human caused debts have nothing to do with it. Economic downturns have been around as long as there has been an economy. Was the great depression a result of debt? No. Was the economic expansion in the 90’s and early 2000’s due to a lack of debt? No. Although there may seem to be some correlation between debt and economic strength today, history has not always followed this same pattern, therefore it is just a coincidence.

There is no consensus among economists

There are some out there who would have you believe that there is consensus among economists that a debt crisis that could lead to the fall of national economies. There is no consensus; there is ongoing debate about the effect of debts on the economy (see this respected article, which refers to David Hendry’s findings that debt may not be related to economic health measures). We have come up with a list of 500 businesspeople who do not believe that debts and the health of the economy are linked (some of them are even real economists who haven’t requested their names to be removed from the list).

I could go on, but I’m sure you can see that what you have been told about the debt ‘crisis’ is simply a fabrication, a socialist plot to replace our way of life. Unless more proof can be provided that debt indeed harms national economies, there is no reason to drastically change the way we are living our lives and running our countries.

It is true, however, that we should work towards a long-term solution to debts. I propose that by the year 2020, all countries in the world start working on a treaty to reduce national deficits. Of course, the standards would be entirely voluntary, and I would only support such a move if developing nations like China and India (sources of much of the increase in world deficits) also agreed to reductions. Anything else would put us at an economic disadvantage, and we can’t possibly give up our privileged place in the world and allow others to join us.