List of potential defaulters goes something like Greece, Spain, Portugal, Italy...er...UK. We are in the speculators sites again. Short term (ie this week) sterling is falling becuase of election etc long term there's already been a significant devalustion since 2006/7 and the state of our finances and unclear committments to how we deal with our debt makes this unlikely ti improve. If the Euro itself wasn't in a bit of a turmoil Sterling would have fallen even further.