Raising the debt limit necessary to preserving our fiscal credibility

Recently we narrowly averted a disastrous government shutdown. I was pleased that we were able to set aside political games and settle on a compromise at the eleventh hour that kept our government running and our economic recovery on track.

Now it's time to refocus on the challenges that lie ahead in terms of addressing our long-term debt and deficits.

Americans have made it clear that they want the federal government to start cutting back. I could not agree more. I have made fiscal responsibility a centerpiece of my Senate service since the day I arrived and firmly believe that it is more than time to get our fiscal house in order.

First off, we have to get serious about the way our government spends money if we're going to get control of our debt and deficit. Since I arrived in Washington, I have never requested an earmark and have been working hard to eliminate waste, fraud and abuse in federal government contracting.

I've also introduced legislation with my Republican colleague Jeff Sessions, R-Ala., to cap spending in the short term, and with Bob Corker, R-Tenn., to cap spending in the long term (including defense spending). I co-sponsored legislation to require the Senate to include a responsible way to pay for legislation it passes and supported the initiative to create the Fiscal Commission, which recently issued a series of bipartisan recommendations on how to reduce the debt and deficit over the long-term.

And I recognize, like my Republican colleagues Senators Tom Coburn (R-Okla.) and Saxby Chambliss (R-Ga.) that we cannot fix our long-term debt problem by only cutting spending. The fact is, reining in discretionary spending is only one piece of a complicated puzzle. We must also address entitlement spending and the money we spend at the Pentagon, as well as how we collect revenue. If we stop giving away tax breaks to millionaires and multibillion-dollar corporations and start closing loopholes in our tax system, we could lower the overall tax rate and reduce our debt.

Unfortunately, we soon will have to vote to raise our nation's debt limit. Supporting this will be a bitter pill to swallow, but I fear the alternative will be far worse. Ultimately, not raising the debt ceiling does not mean that we've cut up the credit card, but rather that we will not have the cash to pay our nation's bills.

Every financial institution in this country -- including the small community banks in places like Cape Girardeau -- holds U.S. Treasury bonds and uses them to conduct routine transactions. If the federal government were to default on its debt obligations, these banks, and any other of the millions of entities that hold U.S. Treasury bonds, would go from holding one of the most secure, safest investments in the world to something worth pennies on the dollar. Interest rates would climb dramatically, America would no longer have fiscal credibility, and businesses would shrink under the weight of those higher interest rates. The collective effect would be a downward spiral that cripples our economy.

It is my hope that we can take steps in the next few weeks to address our debt in a meaningful way, before a vote on the debt limit is required. I'm hopeful my legislation to cap spending will be part of the discussion.

And while I understand a vote against raising the debt sends a message, one I have sent before, I think it would be a mistake for the greatest country on earth to actually make a decision to not pay its bills.

I remain committed to reining in government spending and working toward long-term comprehensive solutions to our fiscal problems, but I believe we can do that without putting our economy in jeopardy.

We have a difficult road ahead, and we need real, bipartisan solutions to our nation's complex fiscal problems. I have repeatedly worked across the aisle to reduce spending, even when my party leaders have opposed me. I hope politicians in both parties will do the same when it comes to our nation's credibility and our economic recovery.

Claire McCaskill represents Missouri in the U.S. Senate.