DEAR MR. KUDLOW,

Dear Mr. Kudlow,

While your current focus seem to focus on the plebeian costs of high energy prices, you fail to warn your listeners that it will make living in Suburbia a living hell for many and some should entertain the idea of getting a bad bid now rather than wait for a worse one next year.

“IF AMERICA WAS AS EFFICIENT AT MOVING PEOPLE AS IT IS WAS AT MOVING GOODS, GM would be at $100 and Toyota at $13!”

LEAVING SUBURBIA
Once people have ditched their Suburbans SUVs(an appropriate name if there ever was one!),insulated their homes, put a couple of solar panels on the roof top and living on a severely restrained budget, they are going to ask themselves; "NOW WHAT?" by then they are going to realize that their local municipal government will have to contend with tough BUDGET choices if they are not ALREADY SKIRTING WITH BANKRUPTCY. Gone will be the days of “free” bus service to school, new artificial turf and increased public security. Petty crime will increase probably as employment becomes scarce and budgets cut police coverage. Next the infrastructure will start to crumble. Water Mains, bridges and levies will be left neglected. People will take refuge back to higher density areas.

MOVING BACK TO THE CITY
AS they soon realize that suburbia is not so hot anymore, more Americans will try to move to localities which are geographically closer to work or at least with better access to public transport and services. The logical step in this exodus is to go back to an urban center that offers the services that Suburbia had to curtail.
The problem with cities is unionized employees. They are a force to contend with. Their leaders will come up with a series of statistics on REAL living costs increases ( not of the doctored US government issue which are tragically corrupt). Soon enough, there will be a resurgence of union demands and many cities will have to deal with.
This will be an exact copy of the end of the Vietnam War back in the 70s! Stagflation, war vets roaming the streets and graffiti galore!


THE FED TODAY:
A MERE SHADOW OF ITSELF
Twenty years ago, as a junior VP in an investment bank, I had the privilege of having a private lunch with a former Fed governor who had worked along side MR. Vockler. I remember to this day his admonishments: “ONLY the FED has the power to deliver a target price for either OIL or GOLD”. Today, we live in a very different world where the FED is but an extension of the Federal government and rarely goes against policy. THE US owes more than it has on the books. Bernanke is no Vockler. The former wants to last a term and just go on the circuit like Mr. Greenspan and build a nice nest egg composed mostly of Huans or Euro term deposits. Saving Wall Street is such a useless Endeavour because the flight of capital at this point cannot be stopped with low rates. It can only happen with HIGHER RATES! As we wait until the next FED meeting. It reminds me of the old star hoping that the attendance will increase if times only got better… They rarely do!


So a simple recipe: "Keep what makes you strong, reform what makes you ill and avoid backing losers"


WHAT IS WORTH SAVING IN AMERICA
World’s best example of a free market economy
World’s best example of movement of goods
Leadership position in High Technology, entertainment and communications
Access to the world best and brightest through Higher Education opportunities


WHAT AMERICA CAN NO LONGER AFFORD
- Espousing Sprawling suburbia as an ideal
- Obesity and Diabetes
- Ineffectual centralized government, Legislative (lobbyists interference and partisanship, Executive ( 4 yr agendas) and Judicial (tainted by partisan appointments)
- Massive trade, balance of payments and budget deficits
- Fiat Dollar
- A tax code that favors circumvention over fair share
- 38 MM people without access to Health care
- Tort law which undermines competitiveness
- Defense budgets fueled by generating perpetual paranoia
- Global military presence as if the USA still needs to retain image as the world cop


Anecdotal evidence from Town of Mounr-Royal, QUEBEC
-In 2003, we got rid of FOUR of our FIVE CARS. Public transport is great. Everybody in the house has access to taxis chits. I haven't found ONE car that is cheaper to own than UNLIMITED TAXI USE... why? Parking is the COST of ONE-WAY to downtown.

- Our house price has quadrupled in twelve years and a 4 minute walk puts us on a 8 MINUTE TRAIN RIDE to the financial and commercial center of the city. Our property taxes went up SIX fold in the same period… Whether oil goes to $200 or $50, I doubt the value of our house will change as the value of the train pass is set yearly. I would expect the same for residents of Brooklyn Heights.
- We have universal health care. Compared to Florida, we have less reported cases of gross negligence PER CAPITA yet we have more lawyers challenging the professionals without no limit awards. We do wait more to see a doctor but you can always get somebody on the phone 24 hours a day to deal with emergencies.

Finally Mr. Kudlow,

VOTING FOR REPUBLICANS THAT SELL YOU THEIR EVERYTHING FREE FOR THE BACKBONE RICH OF AMERICA AGENDA AND PUT YOUR NATION IN DEBT FOREVER IS ABOUT AS UNCONSCIONABLE AS YOUR PROMISE in 2003 TO THE PEOPLE THAT THERE ARE NET BENEFITS OF WAGING WAR AND SENDING YOUNG PEOPLE TO DO YOUR FIGHTING TO GET $35 A BARREL OIL...

Nice going!