When a panel of fiscal experts took the stage at The Concord Coalition’s annual Economic Patriots Dinner last week, nobody was expecting a lot of happy talk about the federal debt. But the immediate sense of urgency may have caught some listeners off-guard, with one panelist -- Robert Rubin, former Treasury secretary -- warning about a possible “implosion” if large numbers of investors suddenly lost confidence in the United States.
The panel members did not sound particularly optimistic that elected officials would take appropriate action anytime soon, although Sen. Kent Conrad did see a “glimmer of hope” that President Obama’s bipartisan fiscal commission could produce recommendations backed by the required 14 of its 18 members.
Conrad, chairman of the Senate Budget Committee, received Concord’s annual Paul E. Tsongas Economic Patriot Award at the dinner Tuesday in New York. Other panel members were Concord Co-Chairman Bob Kerrey and David Walker, CEO of the Comeback America Initiative. Peter G. Peterson, Concord’s founding president, served as moderator.
“We are on the cusp of real danger and real risk,” Conrad warned. He worried that the rapidly growing federal debt could at some point not only hurt economic growth but cause a “severe break” in the value of the dollar. Rubin echoed his concern.