Each year Congress shall pass a balanced budget for the coming year, before the end of the current fiscal year. Failure to do so will result in mandatory recall elections for all members of Congress. In such cases the previous year’s budget will continue until a new Congress can be formed and pass a budget.
No member of Congress that has had 2 mandatory recall elections may ever hold Federal public office again.
Deficit spending is not allowed except in times of a war declared by Congress, that war being fought on US soil, or in times of a national emergency declared by Congress. All deficit spending must go towards the applicable war or emergency. Any other increase in spending in such times is fraud and all members of Congress who vote for such increases will be personally held liable for that fraud.
Financing deficit spending will preferably occur by taking out a loan from a Sovereign Wealth Fund managed by the Treasury. 10% of all revenue, over and above that required for repayment of outstanding financing, must go to the Sovereign Wealth Fund in times where no applicable war or emergency is declared. The Sovereign Wealth Fund will keep the lesser of 50% of all funds, or $10 trillion indexed to inflation, in liquid assets. The remainder will be invested in public works projects and randomized short term micro-loans to Citizens.
If there are not enough funds available from the Sovereign Wealth Fund, a public bond auction open to all Citizens may be used. No such bonds may be purchased or transferred to non-Citizens or other legal entities which are not 100% Citizen owned.
In all cases, the deficit spending may not be financed by loans or issue of bonds exceeding 10 years duration for war, 3 years for emergency. Loans taken and bonds issued for this purpose may not be rolled over. They must be fully repaid within the applicable maximum years.
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