Last Saturday, the President of the United States, Joe Biden, signed the deal between the White House and the Republicans that will allow him to raise the debt ceiling until 2025 and thus avoid going into receivership.

“We continue to build the strongest economy in the world,” the president wrote in a tweet, accompanied by a video of him signing the agreement in the Oval Office.

If this agreement could not be signed, the country would have been suspended on Monday. The debt ceiling is the money limit the US has to borrow money.

Joe Biden will pass the law on Saturday allowing raising the US debt limit to avoid a ‘default’

Speaking to the nation last night, the president noted that the default “would have been catastrophic” and “plunged the country into a recession.”

The deal to raise the debt ceiling in exchange for some caps on government spending was reached over the weekend in a against-the-clock negotiation between the White House and Republicans in the House of Commons, led by Kevin McCarthy.

The measure suspends the debt ceiling for the next two years, until after the November 2024 presidential election. In particular, it suspends the current debt limit of $31.4 trillion until January 1, 2025.

In return, the deal reached over the weekend between the White House and Republicans in the House of Commons includes caps on spending on congressional-funded programs in areas such as health, education, justice or environmental protection.