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Of course they could, but there might be consequences. For example nobody might be willing to lend them money again in the future. Or there might be wars ("if y
by Tichy 15y ago
Of course they could, but there might be consequences. For example nobody might be willing to lend them money again in the future. Or there might be wars ("if you don't want to pay me what you owe me, I am going to take it by force").
Overall, who is going to guarantee a contract between states (like money lending)? There is no superpower that watches over them and punishes them if they do wrong, they have to fight it out among themselves somehow.
- yxhuvud 15y agoConsidering Greece has been in default for about half of its modern existence (since the early-mid 19th century) and still has been able to lend - I think the danger of not being able to lend is nil. Also note that most of the contracts is not between states but between citizens, banks and other companies. As for wars - forcing sovereign nations to pay debts in currencies they cannot pay is also a way to get wars. The post WWI war reparations and how they paved the way for Hitler[] is a good example of this. [] Godwin, but I do think the example is relevant.