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FROM THIS EPISODE

A majority of the United States have budget gaps so large that closing them with cuts alone could seriously damage healthcare, public education and infrastructure. But politicians have sworn not to raise taxes. There's even talk about states going bankrupt. We hear about fiscal issues that could determine America's future. Also, a bombing at a Moscow's Domodedovo Airport kills dozens, and al-Jazeera has released documents which show Palestinian leaders taking different positions in private than they have in public when it comes to Israeli settlements. We hear from a veteran US negotiator.

Banner image: Angel Sequeira holds a sign during a rally against proposed budget cuts, with several union and community activist groups representing the disabled in front of California Governor Jerry Brown's office on January 10, 2011 in Los Angeles. Photo: Kevork Djansezian/Getty Images

Producers:
Gary Scott
Sonya Geis
Katie Cooper

Making News Bombing at Moscow Airport Kills Dozens 7 MIN, 47 SEC

The city of Moscow is under heightened security since a bombing killed at least 35 people at the Domodedovo Airport this afternoon. Moscow's other two airports are under a "high terror alert." Will Englund is there for the Washington Post.

Guests:
Will Englund, Washington Post

Main Topic Should States Declare Bankruptcy? 33 MIN, 58 SEC

The federal deficit is disturbing, but Washington can print money. The states have to balance their budgets, and the total of shortfalls around the country adds up to $82 billion. Nobody wants to raise taxes and even massive cuts, which threaten the sick, public schools and infrastructure, aren't likely to make up the differences. What about bankruptcy? Currently it's against the law, and even talking out loud might disrupt the municipal bond market. Forget about any federal bailout. The conservative movement sees a chance to shrink government once and for all. We hear which states are the worst off and how their decisions might shape the United States for years to come. 

Guests:
Matthew Murray, Professor of Economics, University of Tennessee
Bruce Cain, University of California Washington Center
Ray Long, Illinois Statehouse Reporter, Chicago Tribune
Emily Ramshaw, Assistant Managing Editor, Texas Tribune
John Weingart, Associate Director, Rutgers University's Eagleton Institute of Politics

Reporter's Notebook Documents from Peace Talks Cast Unflattering Light on Palestinians 9 MIN, 15 SEC

Arab news agency al-Jazeera has released what appear to be memos, e-mails and minutes from closed-door meetings revealing that the Palestinians have taken very different positions in private than they have in public. If "the Palestine Papers," are what they seem, they could have a major impact on future peace talks in the Middle East. Rob Malley was an aide to President Bill Clinton in his last effort at Middle East peace at Camp David in the year 2000.

Guests:
Robert Malley, International Crisis Group (@CrisisGroup)

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