"This process has been messy, it has taken far too long," President Obama said. "I've been concerned about the impact it has had on business confidence, consumer confidence and the economy as a whole over the last month. Nevertheless, the leaders of both parties have found their way toward compromise and I want to thank them for that."

The easiest way to look at the new two part compromise devised by President Obama and Senate leaders is to divide it into the "we're going to cut trillions of dollars out of the budget" plan and the "But we're also going to keep borrowing money" plan.

The government debt ceiling currently stands at 14.3 trillion dollars. If the new deal passes, the government must cut 2.4 trillion dollars out of the budget over the next ten years. Congress will also have to organize a committee to figure out how to cut more than 1.5 trillion dollars by November, and then vote on that cut by Christmas.

But at the same time the government will get to borrow 400 billion dollars immediately so it can pay it's bills, with the possibility of another borrowed 500 billion if Congress gives the OK. The Treasury will also get to keep borrowing money until 2013, after the presidential election.

No one denies a government shutdown would be a hard blow to the struggling economy. Fortunately, as soon as the announcement of the new plan hit the airwaves, there was an instant rise in financial markets overseas.