From a creditors’ point of view, which the European Union authorities have apparently adopted, a country that has accumulated too much debt must be punished, so as not to encourage “bad behavior.” But punishing an entire country for the past mistakes of some of its leaders, while morally satisfying to some, is hardly the basis for sound policy.
the fact is that Greece would not pay this debt, (if it left the euro and defaulted) as Argentina did not pay two-thirds of its foreign debt after its devaluation and default.
Comment by Adamantine:
This should be a warning to those who think the US will not default. Here we have some saying Greece should leave the euro so that it might steal from its creditors. This is the attitude of government. Only private people go to jail for stealing. Government may do no wrong. This pragmatism is devoid of a moral compass. On the prophetic side we should not expect Greece to leave the Euro or the EU.
It is core to the old Roman Empire.