[narvval]

That's an unrelated question isn't it? Of course a country can default on it's debts if they so choose.

I'm just describing the nature of the debt, and pointing out why countries' debts don't "cancel each other out" because it's a common misconception.

[ses1984]

My cynical view is that countries can do whatever they want and "freedom" only exists because it happens to be convenient and mutually beneficial (between government and people) for a particular period of time.