Greece needs not just to service existing debt but to borrow 10% of GDP this year. If they can manage their finances without that borrowing, they don't need to default. And defaulting doesn't help them borrow 10% of GDP this year.
Printing might if they defaulted and also left the Euro. That is just a roundabout way of cutting wages by a third or half, as Iceland did. They can cut public benefits and public employee wages by less and avoid the need.
It's all stupid. And clear. They may well engage in such stupid courses of action - financial acumen is not their government's leading characteristic. But none of it helps them.
Countries that decide to screw their creditors may, 10 to 15 years later, borrow again - if they aren't in a crisis, and have their budget more or less in order, and their economy is growing. If Greece had any of those things they wouldn't be considering default to start with.
It's a fools game...
Yeah, my guess is they will agree to all EU stipulations, get the EUrotopios, then do as they please.
yitbos