Significant Monetary Easing and Devaluation of the Dollar is the Solution to the Most Serious Problem Facing the United States Economy; Loss of Manufacturing Must Be Addressed for Long-Term Recovery

    GURNEE, IL, October 04, 2011 /24-7PressRelease/ -- The United States economy has been in the doldrums for several years and has resulted in high unemployment. The American Dream is fading before our eyes. While the Republican line is that high debt is the problem this is at best a half-truth. Addressing the debt without addressing the underlying cause will lead to even more serious with the long-term prospects for our country.

Manufacturing is what built our country to greatness. We have lost the bulk of our manufacturing jobs and if we don't act quickly to restore these jobs the current downturn is nothing to what the future holds. Manufacturing has grown in Asia, Mexico and India. China has had phenomenal exponential growth in manufacturing. China recognized that keeping the Yuan artificially far below its actual value was the best way to permanently appropriate American jobs.

Innovation frequently occurs as a direct result of the manufacturing process. Loss of our manufacturing will also severely limit American innovation.

The cause of the massive loss of American Manufacturing is due to an overvalued Dollar. The Swiss have recently devalued the Swiss Franc due to high unemployment (3%) and they wanted to reduce the cost of their exports.

President Obama and Federal Reserve Chairman Bernacke have the power to bypass Congress and create significant reductions in unemployment and stimulate long-term growth in manufacturing by immediately beginning an aggressive program of monetary easing with subsequent Dollar devaluation. When faced with dollars that will become less valuable companies opt to spend the massive reserves they currently are holding. This holding of reserves is literally starving the recovery.

Creation of several trillion dollars in new money would allow the country to embark on a significant program of improving infrastructure, which is sorely needed for a robust economy in this century.

The immediate result would be a massive increase in the cost of imports, particularly oil. This would also drastically lower the cost of our foreign exports. American made products would become more affordable increasing domestic production and resulting in increased employment. The higher cost of oil would help reduce our dependency on foreign oil. Increasing offshore oil drilling and mining in protected areas and increasing the use of natural gas could offset some of the shortages. Increases natural gas usage would certainly improve the environment.Elimination or major decreases in oil taxes could soften the economic effects of higher oil prices.

Monetary easing would create trillions of dollars to pay down debt. The interest on debt is one of the major budget expenses. This additional capital would also allow our nation to address the poor performance of American students relative to those in other countries. A major program to improve results from are educational system is long past due. Twenty-first century jobs will require a higher level of education and knowledge than at any time in the past.

There is a definite risk of inflation with these actions but destruction of our manufacturing base is a much more serious problem at this time. The primary area of inflation would be for imported goods. This would lead to an increase in sales of American products. The stock market and home prices would probably recover as real property increases in value when there is a devaluation of the dollar.

The collapse of the Euro is imminent. The first step will be a Greek debt default leading to worldwide bank failures. Increased liquidity in the markets would help prevent collapse of financial institutions. The French and Germans will tire of supporting failing economies and departure from the Euro is likely.

While it is possible for Congress to enact a massive job bill exceeding President Obama's request it is unlikely. The current leadership in the House would rather see the U.S. enter a major depression the let President Obama have a major economic and job recovery occur during his watch. The dollar was already "devalued " when US debt lost the highest rating. This was due primarily to Congressional politics trumping national interest.

Dr Ira L Shapira is an author and section editor of Sleep and Health Journal, President of I HATE CPAP LLC, President Dato-TECH, and has a Dental Practice with his partner Dr Mark Amidei. He has recently formed Chicagoland Dental Sleep Medicine Associates. He is a Regent of ICCMO and its representative to the TMD Alliance, He was a founding and certified member of the Sleep Disorder Dental Society which became the American Academy of Dental Sleep Medicine, A founding member of DOSA the Dental Organization for Sleep Apnea. He is a Diplomate of the American Board of Dental Sleep Medicine, A Diplomat of the American Academy of Pain Management, a graduate of LVI. He is a former assistant professor at Rush Medical School's Sleep Service where he worked with Dr Rosalind Cartwright who is a founder of Sleep Medicine and Dental Sleep Medicine. Dr Shapira is a consultant to numerous sleep centers and teaches courses in Dental Sleep Medicine in his office to doctors from around the U.S. He is the Founder of I HATE CPAP LLC and http://www.ihatecpap.com Dr Shapira also holds several patents on methods and devices for the prophylactic minimally invasive early removal of wisdom teeth and collection of bone marrow and stem cells. Dr Shapira is a licensed general dentist in Illinois and Wisconsin.

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