“Blessed is the man unto whom the Lord imputeth not iniquity, and in whose spirit there is no guile.”
The psalmist extends the beatitude to those to whom the LORD does not count iniquity and who have no deceit in their spirit. The phrase "does not count iniquity" suggests that God's accounting has been changed: the debt has been cancelled. The reference to deceit in the spirit suggests that the blessed condition requires internal integrity. The beatitude emphasizes that true blessing consists not in external prosperity but in restoration of relationship with God. The verse suggests the psalmist has moved through repentance and experienced the joy of forgiveness.
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