In his remarks at the White House earlier today, President Obama said his administration “knew from the outset” that the nation was at risk of a credit-rating downgrade even in the event that Congress reached an agreement to raise the debt ceiling. If that’s the case, they managed to act fairly shocked when late last week, Standard and Poor’s brought that risk into reality. Since then, Democratic lawmakers and operatives have been engaged in the rhetorical gymnastics of downplaying the significance of the downgrade, while simultaneously condemning the Tea Party for causing such a calamitous event.
In reality, “from the outset” of this debate, the president and his allies rarely even mentioned the prospect of a ratings downgrade. They refused to believe that anything less than a national default could convince financial observers that the United States is not seriously committed to solving its out-of-control debt problem.
Keep reading this post . . .