We face a crisis in currency stability. Foreign central banks are purchasing Treasuries to maintain their own GDP levels by maintaining Sales to the United States. Truth states that the U.S. Trade deficit cannot be resolved by increase of American Exports. American industry must make the switch to provision of primary Goods for the domestic market. This will reemploy American labor, and is the only means to truly stabilize the Dollar. American Public and Consumer debt will decrease under this alteration.
Government policy must be directed to this end, before the American Peso becomes reality. The Author proposes an immediate Import tax of 10% on all Imports, Parts and whole Products, collected by State Sales tax assessment agencies--for 2% of total revenues collected. The tax on Parts for Assembly will be collected by the IRS, where the whole Product was sold to American Consumer.
Such Tax will not violate Our Trade agreements, as it is assessed across the Board, and can be attributed as an Infrastructure Access tax. All of Our major trading partners will perceive the necessity of this restraint, and few will criticize; Dollar viability remains a higher viability factor than short-term loss of Imports. American Imports will not decline rapidly, as American Consumers are too addicted to Imports, and American industry will take time to change over to domestic production. This taxation will reduce States' indebtedness as well as reduce the Federal deficit remarkedly. The Author would desire this taxation be implemented 01/01/2005, but should be on the books by 03/01/2005. Simple statement of Intent would stabilize the Dollar in the interum. lgl