ShadowLiberal wrote:A few problems with your hypothetical Banedon.
1) Who's going to invade Greece? Russia? They have no need to, nor does anyone else. Plus it would be cheaper to just buy any resources Greece has that they wanted.
2) The one thing that big governments can always find more money for is the military.
3) Is Greece a member of NATO? If so then there's another reason why they don't need to worry about the unlikely event of a military invasion.
Let's assume that the invader is a bunch of aliens who crash landed somewhere in Greece with technological capabilities roughly on par with whatever the Greek armies are fielding, and NATO isn't intervening
If the government can always find money for the military, how are they going to do it? The obvious way is to reduce public spending, but after that they still have to find money to pay their solders + increase military production. They won't have reduced spending then will they? They still have to pay, they just need to pay for different things. In fact if I'm not mistaken it's historically the case that government spending increases during wartime, see e.g. US government debt during WW2.
So if Greece needs to pay, they need to borrow. Except of course Greece can't increase borrowing because nobody is willing to lend them money. Right?