Government retrenchment is expansionary

When government is crowding itself out. We are talking about central government retrenchment, and here is my favorite chart:

These are the Treasury spreads over time.  They are dropping, they ten year yield.  This chart is two years old and ten year yields are now at three.  It means that there is not enough useful yield to support the existing government channel, state, federal and local.  Restructuring government will result in a more  productive relationship between levels of government and the economy.