Greece, Portugal, but...

quo vadis Pound?

Telegraph: Portugal downgrade knocks Euro as Merkel imposes IMF solution for Greece

Well, nothing new under the EURO sun, things go to plan.

The EURO, as installed, will not survive. The downgrading of Portugal is opening the shooting range; Portugal is wounded, blood stains everywhere; Spain, Ireland, Italy and others are holding their breath.

A report by UBS entitled "How to Break up a Monetary Union" has been circulating like wildfire in financial centres. "It is relatively clear that the euro does not work. That is to say, parts of the Euro area would have been better off (economically) if they had never joined," it said.

With Merkel's suicidal stubbornness following the Maastricht doctrines which in fact forbids any bail-out of any member EURO-Europe will break apart, currency-wise; don't forget this just follows its cause, as economy-wise the EURO members couldn't be any more different.

So what will it be like?

The allegedly "weak" ones will become ugly competitors to the ones that gave the strong ones. The weaks' cost of labour will be most competitive, their tourism will boom, whatever they can export will be inexpensive; their EURO debts will have to be written off, protectionism will come back.

How good will that be for our Pound?

Carpe diem!