I do not understand how the President's plan works. Someone please explain this?

In really simple terms, would you explain what Pres. Obama is thinking? LOL! What I mean is that I don't see how this works: "President Barack Obama said Friday Congress has a "unique opportunity to do something big" and stabilize the U.S. economy for decades by cutting deficits even as it raises the national debt limit." Stabilize by raising the national debt???