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Prednisone and high blood sugar

I have been on 40mg prednisone for 2 months. For the past month my blood sugar has been up and down to say the least. I have read that the prednisone can cause type 2 diabetes. Does anyone have an idea of how long and how high to let your blood sugar go until the doc needs to be called? My highs run around 180 most of the time.
 
This issue really, really concerns me since the whole reason I was told to lose weight (in 2008) was because I was pre-diabetic with borderline high glucose levels. I did that. I lost the weight and immediately started having gut issues. So now, I'm going to get type II diabetes anyway?
 
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