Been following the story about Greece and the Eurozone countries in great strife. Not to mention the UK.

If governments go bust what will happen? If Greece, Spain and the UK all fell over what sort of financial armageddon would it cause?

unprecedented. think Zimbabwe?

Mainly massive debt defaults. In the case of the Eurozone Id expect to see expulsion from the currency.

Debt default would lead to huge increases in the cost of national borrowing meaning that government expenditure would not be able to be supported by borrowing, which in turn means massive cuts in public budget.

Collapsed/worthless currency would make imports extremely expensive, but exports competitive. Fewer imports usually means fall in standard of living though.

For the UK rather than default we are able to put up interest rates to keep our debt competitive and usually, through inflation, inflate the value of our debt away. Not so great for the population though as wage increases wont keep up with consumer price increases meaning a fall in standard of living.

That's what I thought, but Zmbabwe was already broken, so maybe not a true picture of the chaos here. Is it likely?

For the average person, your savings lose about two thirds of their value. That is why people should buy gold to get out of sterling.
The euro, sterling, the us dollar, all effectively bankrupt.

If your pension fund has bought a load of government debt in order to earn a nice safe rate of interest, then suddenly you're a whole load poorer.

Further down the line, your government will have to pay higher rates of interest on its borrowings. That cost will ultimately come from general taxation.

Fortunately, if you happen to be greek, the cost is borne by german tax payers….