They handed over printing on their currency to Brussels a generation earlier

In short -
Greece national debt was not consolidated when they joined the Euro and Greek govt. loans were simply converted to Euros based based on Exchange rate then and transferred to banks.

Euro then rose in value wrecking the arithmetic of paying back of interest + principle by Greek govt. When economy turned down servicing of this debt became impossible, leading to default.

Lesson for others
Your rulers and finance ministers should KNOW how economy/society functions and should not be ONLY lawyers writing laws to change economy/society laws hoping magically everybody will follow them and everything will fall in place.


We have been warning of this since April.(The recent bailout talks were a farce)

We are in a Sovereign Debt Crisis 2015-2017/20. More events ahead.

http://asian-defence-news.blogspot.com/2015/04/greek-default-nears.html

http://asian-defence-news.blogspot..com/2015/04/unstable-europe-not-good-for-global.html

Greek govt waited for citizens to go to bed while they put in capital controls Sunday night.

We are seeing the fall of socialism 
In 1989 Communist thinking failed.

So beware of Socialists selling you free/subsidized electricity, water, gas, wi-fi, education and health. 
They just borrow money to get elected today without thinking about who will repay the money in the future.