When George Bush took office in 2001, the 10-year budget balance was projected to be at a surplus of 5.6 trillion dollars.

After three tax cuts, the bursting of the stock market bubble, the economic aftershocks of 9/11 and the Iraq war, the surplus is gone and the deficit is expected to grow to 5 trillion dollars over the next decade.

Domestic deficits are just one piece of the problem. The US is weighted down by a 500-billion dollar foreign trade deficit. If foreign confidence evaporates, it could lead to a dreaded severe economic fall.

Click one of the “listen” links to hear a conversation with former Secretary of Commerce Peter Peterson on tax cuts, deficits, dependence on foreign capital, and what the U.S. can do to avoid economic doom.

Guests:

Peter G. Peterson, former Secretary of Commerce, Chairman of the Council on Foreign Relations and founding President of the Concord Coalition, a bi-partisan group dedicated to educating citizens and politicans about the urgent need for fiscal responsibility

Jack Beatty, On Point news analyst.