A debt cannot be cancelled, only defaulted. If greece defaults its debt, lenders suffer losses and those lenders are primary banks holding euros. So... yes.
Govts like to cheat their way out of their debts by hyperinflation. There is constant cycle of raping the general population by politicians - 1. start with cleen sheet 2. go into debt to max possible level 3. print your way out of the debt -> back to square 1. start with the clean sheet
You would think that with every cycle people learn something (to expect and prepare), but they dont. Mindless like livestock... :/
I agree with this post. Not sure it qualifies as exactly the same, but here in the U.S., the government here has "forgiven" debts from other countries that they owed us. Now it sounds good in principle, and if the government here wasn't in such self-caused financial distress here, it wouldn't be so bad. But when a government does something like that, not sure if everyone knows this, while technically not a default of the other party, the lender (in my example here, ultimately the citizens of the U.S.) is out the loaned money. A better solution, I think, would be to work with the countries owing the money, and work something out so they still pay back the debt, maybe at a lesser amount each month, or reduce the interest rate. Basically do what many companies do here, work with them and not totally write off the money unless as a last resort.
In my opinion, so many countries going to one common currency was a bad idea. Here is why. Now, all of those countries' economies is now tied together by a stronger bond. If one of them gets into financial trouble, let's use Greece as an example, then that has the very real potential to damage or possibly cripple any other country's economy that uses that same money item. While there are issues that so many countries going to the Euro solved, I think the potential cost is much higher than the potential savings.