Your thread title implies that you have a problem with foreign nations investing the dollars they earn from free trade.
But I think that your real concern is Congress can't balance the budget. If this is your concern, it's a valid one.
If your concern is that foreigners are wisely investing dollars they earn from free trade, that's an entirely different concern. We would need some data on foreign ownership of real estate and foreign investment in US corporations to get the real magnitude of the issue on the table.
Which one of the above is your concen?
Foreign ownership of U.S. assets was around $12 trillion as of the latest annual IIP report of June 30, 2005:
Foreign-owned assets in the United States increased $1,739.3 billion to $11,537.0 billion with foreign direct investment in the United States valued at current cost, and they increased $1,846.0 billion to $12,515.0 billion with foreign direct investment in the United States valued at market value.
Foreign official assets in the United States increased $414.9 billion to $1,982.0 billion. The increase was largely attributable to net purchases of U.S. Treasury securities.
Foreign holdings of U.S. securities other than U.S. Treasury securities, excluding official holdings, increased $579.7 billion to $3,987.8 billion. Foreign holdings of U.S. stocks increased as a result of large price appreciation and modest net foreign purchases. Foreign holdings of U.S. bonds increased mostly as a result of net foreign purchases.
Foreign holdings of U.S. Treasury securities, excluding official holdings, increased $96.5 billion to $639.7 billion, mostly as a result of sizable net foreign purchases.
U.S. liabilities to private foreigners and international financial institutions reported by U.S. banks increased $383.5 billion, to $2,304.6 billion, mostly as a result of financial inflows of $322.6 billion.
Liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns increased $126.9 billion to $581.3 billion, mostly as a result of financial inflows of $124.4 billion.
Foreign direct investment in the United States valued at current cost increased $123.0 billion to $1,708.9 billion, mostly as a result of net financial inflows. At market value, foreign direct investment in the United States increased $229.7 billion to $2,686.9 billion, as a result of net financial inflows and price appreciation of owners’ equity resulting from an increase in U.S. stock prices.
U.S. currency held by foreigners increased $14.8 billion to $332.7 billion. (Excerpt from 2005 IIP News Release from the BEA)
To give an idea of the scale of $12 trillion, that's just a bit under one year's worth of GDP in these United States.
There's an interesting graph in this BEA document as to the rising extent of foreign ownership of U.S. assets.