...government spending rescued the headline as public construction rose 4.9% in Jan... thanks to a massive surge in infrastructure spending on Highway and Street improvements...Texas likely leading here and the this is a Republican deficit budget. But so far, the global down turn is keeping the ten year almost affordable as 2.6%. In my restructuring plan that yield is top end, my plan deflates before sending the ten year up as all significant government entities have Fed S/L accounts. There is always a tendency to favor lower prices when cash flow accounting.
Agencies will have larger reserves, to forestall Hurricanes and shutdowns, be prepared for regulation changes. Moving down the curve shaves a third off interest costs, a great idea when accompanied by tight budgeting. Cash flow accounting makes inflation adjustments and other currency guarantees obviously unproductive, no doubt about it.
The other components of my plan are deflationary, allowing the new central bank the option of direct inflation via bond burnings. The idea is to recover a bunch of planned ice meltings, and let millennials have the pleasure, they can jump on their diesel tractors and build piles of lithium..
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