As U.S. Federal Debt Breaks $12 Trillion, Group Launches Drive for Balanced Budget Amendment;
       By: Deficit Free
Posted: 2009-11-11 05:00:02
With the United States Federal debt rising above $12 trillion this week, and the U.S. Treasury auctioning off a record-setting $81 billion in debt this week alone, a nationwide grassroots group has launched its efforts for the enactment of a Balanced Budget Constitutional Amendment, (BBA). The new non-partisan organization, Deficit Free, is calling for Congress to refer to the states a Balanced Budget Amendment by July 4, 2013 and to balance the Federal budget by July 4, 2016 - the approximate time when Social Security falls into permanent deficit.

Tim Mooney, National Coordinator of Deficit Free said, "The national debt ($12 trillion) and the annual deficit ($1 trillion) has our economy on the brink of financial collapse. When Social Security moves from surplus to permanent deficit (2016), if our budget is not balanced, we are finished. We are calling for a balanced budget by July 4, 2013, and a balanced budget by July 4, 2016. This would be the best two birthday presents we could give to our country, and ourselves."

As evidence of impending financial threats caused by the Federal debt and deficit, Deficit Free points to the falling U.S. dollar, record-high gold prices, along with India's growing exchange of their foreign currency reserves into gold reserves, and China's recent discussions about limiting its purchasing of U.S. treasuries, fearing the U.S.'s inability to pay its debt.

Deficit Free has set out a six-point plan to get to a balanced budget amendment by July 4, 2013, available at website. The first step calls for the creation of a "Balanced Budget Congressional Member Caucus."

Mooney commented, "Our national leaders can no longer afford to expend time on Caucuses (more than 200) like the Bourbon Caucus, and the Ski & Snowboard Caucus, when there is no Balanced Budget Caucus. We are calling on our nation's leaders to start a 'Balanced Budget Caucus' to drive members of Congress to the reality that we must balance the books or face both economic ruin and a reversal of our liberties at the hands of foreign debt holders."

The fast-rising foreign holding of U.S. Treasury debt is of particular concern. In just the last 12 months, foreign held debt has increased by 28.8%, with U.S. debt to China increasing nearly 40% in just the last year.

FOREIGN DEBT As of As of $/1-Year %/1-Year
8/09 8/08 Increase Increase
China $797.1 $573.7 $223.4 +38.9%
Japan $731.0 $630.3 $100.7 +15.9%
United Kingdom $225.8 $82.5 $143.3 +173.6%
Oil Exporters $189.2 $169.6 $19.6 +11.5%
Caribbean Banking $180.2 $132.9 $47.3 +35.5%
Total Foreign Debt $3,448.8 $2,688.4 $760.4 +28.2%

"Our economy and our national security are at risk; our freedom is at risk. China, Oil Exporting Countries, Caribbean Banking Centers (thought to be holding billions in narco-terrorists deposits), could at any moment decide to hold the U.S. financially hostage with the threat to crash the dollar overnight. Increasingly, we OWE them...they OWN us," continued Mooney

DeficitFree.com is kicking off a grassroots movement to sign up voters in support of a Balanced Budget Amendment with the goal of reaching 5 million Americans, with a minimum of 5,000 in each Congressional district. It believes balancing the budget needs to be the defining issue in next year's Congressional mid-term elections and in the next presidential campaign, with the realistic goal of passing the Balanced Budget Amendment within the first six months of the next presidential term.

In 1996, the U.S. House passed the BBA. In 1997, the U.S. Senate came within one vote of passage. Congress subsequently passed balanced budgets for four straight years. When voter pressure for the BBA waned in 2001, Congress began to spend wildly again. Last year, Germany passed a Balanced Budget Amendment. It's an example to follow.

Mooney concluded, "While American families struggle to meet their monthly obligations, this Congress' 'plan' is to borrow $1 trillion or more every year for the next nine years to pay their bills. Besides the obvious problems with piling that kind of debt on our children and their children, foreigners won't loan the U.S. that amount of money much longer. Congress will not balance the budget until either:

1. Voters rise up from throughout America before there is a cataclysmic economic collapse, or
2. International organizations and foreign debt-holders demand balanced budgets after the U.S. has suffered a cataclysmic economic collapse.

With $3 billion to $4 billion being borrowed everyday, most from overseas (mostly from China), the choice is ours today, but it will be the choice of our foreign debt holders and international organizations tomorrow."
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