For example, whether you invest in your government or not, your government will still be able to find funds for the war chest, by printing money if nothing else
That's a bit of a simplistic view of "government" as well, though. I mean, Greece's would certainly like to print some money right now :)
Yes, that's true, I also thought of the ECB hindering many national governments from doing this. But if Greece decided that it was time for war, they'd probably pull out of the euro project.
My point was that the economic model presented was too simplistic, that my model is also too simplistic doesn't distract from that point too much in my opinion.
That's a bit of a simplistic view of "government" as well, though. I mean, Greece's would certainly like to print some money right now :)