The Democrat Downgrade: Reality and Repercussions - By Kevin D. Williamson

http://www.nationalreview.com/exchequer/272257/democrat-downgrade-reality-and-repercussions

The thing that has not been sufficiently understood,  I think, is this: The United States is not on a downgrade watch because the markets fear we won’t raise the debt ceiling in time to avoid a default; the United States is on a downgrade watch because the markets believe the debt-ceiling debate presents the last real opportunity for the government to enact a meaningful fiscal-reform program before it is well and truly too late to avoid a national crisis. The credit agencies, wisely or not, aren’t worried about the short-term political fight leading to an immediate default, but about the near- to medium-term fiscal situation, which is plainly unsustainable.

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