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It is worse than that.

In the original guidance that S&P gave, their target level of deficits for the USA was exactly what the real plan, without their mistake, was. So the government actually is achieving exactly what S&P wanted them to achieve.

For better or for worse I believe that the reason for S&P's downgrade is that they gave guidance of $4 trillion, they didn't see a $4 trillion deal, and they would be embarrassed if they failed to downgrade given how publicly they said that they would if they didn't see $4 trillion.



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