Eurozone day of reckoning

Mish discusses The Italian Job in a recent post.  In it he quotes Wolfgang Münchau of the Financial Times.  It's worth a read IMO because at some point Mish will be right in that some leader will eventually step up and campaign on the promise to default on all foreign debt.  Let's face it, once the debt gets so big there are only two reasons to continue making payments on it:
1) You want to appear to be well behaved so that you can qualify for even more loans in the future.  Those loans will be needed, after all, to make payments on the existing loans...
2) Your creditor will come and try to kill you if you don't.  You know, just like any other organized crime family would do if you stiffed them.  But this crime family would have tanks, subs, and perhaps even nukes.

While Mish will probably be correct about how it will happen, I will likely be correct about why it must happen and the root cause of it that a debt based economy is not a real economy.  In a debt based economy, he who goes into the most debt the quickest wins.  What do I mean by this?  Well, look at the US spend on weapons.  It's far far more than everyone else in the world.  Combined.  Why do we need all that?  The answer is simple: we know that one day the thin veil of civility will be pulled back from the collapsing debt Ponzi and nice words won't matter anymore.  It will be survival of the strongest.  Sadly for the rest of the world, the money they loaned to the US largely went into weapons development.  So the US has an out-sized military capability that we did not earn.  We essentially conned the rest of the world out of their fair share of military spending.  We have the expensive weapons, they have our fake green paper that we "paid" for it all with.  What a scam.  Or, as US officials would call it, "long standing official policy".

I am on record long ago saying that when the collapse happens we will find that Germany and France are even bigger PIIGS than the PIIGS.  It is going to fall onto the heads of the German people like the sword of Damocles got cut loose.  They are going to be absolutely shocked to see their own banks collapse simply because Italy and others defaulted on the loans made to them by their fellow German busisnessmen.  Instead of putting the blame where it belongs: on German industrialists who borrowed money in order to create factory capacity to build products for people who could only afford it using debt, the German people will blame Italy, Greece and anyone else whose economy collapses to the point where they declare default.  It was France and Germany who so badly wanted the EU but it had nothing to do with the reasons they said they wanted it.  It had everything to do with running out of credit worthy customers to sell to and using the scam of the Eurozone in order to reset everyone's credit to AAAA++++ even though the countries in question have a long history of soft default through inflation.  It was an obvious plan right from the start by elitists to steal decades worth of labor from common people who know nothing about history and very little about economics.