The Blubber

Per The White House

As the "X-date" came closer, US President Joe Biden announced that the government had officially reached a bipartisan budget agreement which would be good news for "the American people." This came just a few days before the supposed X-date.

The X-date was reportedly the day when the US would have defaulted on its debt. Initially, the estimates were that a default could happen on June 1, just a few days after the now-reached agreement.

Per Biden's statement, he said that it was good news for "the American people" and explained how the agreements would prevent the worst possible crisis.

Biden: "And the agreement also represents a compromise, which means no one got everything they want. But that’s the responsibility of governing... And the — this is a deal that’s good news for, I believe you’ll see, for the American people."

He also enumerated the potential scenarios that could happen should the first-ever default happen. Here's what he explains would happen.

• Economic recession
• Retirement accounts devastation
• Loss of millions of jobs

Biden: "That agreement now goes to the United States House and to the Senate. And I strongly urge both — both chambers to pass that agreement."

This came shortly after Joe Biden and Kevin McCarthy, the Republican speaker of the House tentatively agreed to raise the US federal government's debt ceiling of $31.4 trillion. McCarthy also shared the news on Twitter, saying that he spoke to the President, and the two had agreed.

This came reportedly as a result of a 90-minute phone call between Biden and McCarthy that took place on Saturday evening. The deal is expected to raise the debt limit for two years.

The debt limit agreement also involves a decrease in IRS funding by $20 billion over ten years. On top of that, the age range of work requirements for the Supplemental Nutrition Assistance Program would also increase from a maximum of 49 to 54.

See flow at unusualwhales.com/flow.

Other News:

• BIDEN, MCCARTHY HAVE REACHED A DEBT-LIMIT DEAL IN PRINCIPLE
• The debt limit agreement decreases IRS funding by $20 billion over 10 years

Resources:

The White House