This would had removed Germany as a very strong ally in the Cold War, also it would had been a genocide that would had put the Nazis to shame, given how it was drafted by a Jew it would also had caused many people to ponder if the "Nazis were right" and would make the US look like a monster.
It would also be a massive drain in resources, with the US having to pay and pay to keep the area stable.
The Soviet Union and Eastern Germany would had looked a lot better than Western Germany and in fact, it would had made the Soviets look extremelly merciful on Germany compared to what the Western Allies did. In the eyes of many it would make Communism and the USSR look better than the US and capitalism.
So my question to you is: Do you think that this plan, could had been enough to cause the US to lose the Cold War and have the USSR to raise as the only superpower or at least have communism remain capitalism as the leading world idelogy?