Will Italy default on its debt?

[Vertigo-X]

darkknightkryta said:

AstroMaSSi said:

darkknightkryta said:
I wonder when all the counties in the world will realize they're all in debt and just wipe everything clean.

I think someone else could become nervous... Banks, trusts, traders put money on the table to finance the debt. Everything is connected at the end, so to cancel the debt seems to me very difficult.

Yeah but let's be realistic, no government is ever going to pay back their debts.  Start clean and do things right.

How about they just commit to austerity measures to reduce their costs and have every lender freeze interest rates for current loans. This way they'd get some money back and the financial system wouldn't collapse. As long as flow of hard products like food continues, the world shouldn't slip into panic.