According to the report by Reuters,
Standard & Poor’s on Monday revised its credit outlook on the United States government to stable from negative, citing Congress’s avoidance of the year-end 2012 “fiscal cliff” and the higher-than-expected tax receipts that followed.The latter part of the paragraph above regarding contraction of spending is particularly interesting, and may be why wingnuts don’t want to talk about this news. S&P doesn’t want austerity spending contraction because it would have a negative effect of the economy which is steadily growing and in turn increasing tax revenue.
Additionally, the ratings agency, the only one to have cut the United States from the coveted AAA status, said it does not expect the debate later in 2013 regarding a raising of the debt ceiling to result in “a sudden unplanned contraction in current spending – which could be disruptive – let along debt service.”
America’s deficit has been steadily declining, the treasury is reporting multiple months of surpluses this year already because the economy is substantially stronger, more people are working, and taxes on income above 400,000 dollars are up.
The bottom line is this disrupts the wingnut narrative about out of control spending that repugicans used as the reason for the downgrade in the first place.
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