Durden: S&P Explains Why The "$2 Trillion Error" Is Irrelevant

via Zero Hedge

• Basically, as S&P says, "Our ratings are determined primarily using a 3-5 year time horizon.
• In essence all S&P did was point out what Zero Hedge and others have been saying: that a "deficit cutting" plan which is massively back end loaded and has about $20 billion in cuts over the next year is absolutely without credit or merit.
• Although prepare for an all out onslaught by the Treasury on S&P as a scapegoat
• The primary focus remained on the current level of debt, the trajectory of debt as a share of the economy, and the lack of apparent willingness of elected officials as a group to deal with the U.S. medium term fiscal outlook. None of these key factors was meaningfully affected by the assumption revisions to the assumed growth of discretionary outlays and thus had no impact on the rating decision.

What this ought to tell anyone is that there wasn't going to be a downgrade if the debt ceiling wasn't raised. The debt ceiling was raised and the downgrade took place anyway.  The reason why the downgrade took place is explained above.  But that won't stop the scapegoating and the political spin machine from shifting the blame for this failure.