The kink in the curve and the velocity equation

That five year low point in the curve should not be there. Government agencies, unbundled with Fed accounts would deliver a properly sloped Treasury curve.

Economics in one lesson, kinked curve means bad velocity equation means low productivity means paying ten year rate rather than five year means this is a known known, the right to coin cost.  Fair traded, this should be distributed back and expensed, rather than accumulated. It is now accounting fraud to say otherwise, we can bill the ice melters in our accounts and sue them later.

The solution is to unbundle the Y for G in MV=PY. To understand this, go back to our Walmart store. The store manager wants to match customer payments times customer rate with goods sold at given price; the inventory counts match customer flow. Hence it is critical to keep stable queues, and that cost money, wealth spent on commutative operations, you actually have to congest your customers a bit to see their rates. MV=PY is the hologram effect, making prices work everywhere by keep relative velocities stable. The Y become the quants, items per basket or items per inventory space.  Remember, we should be homomorhic between distribution models, the quants for inventory and customer baskets having high mutual entropy.

Cost:
A quarter point down and a quarter point up, or a quarter point for the long and medium spectral points, now gone. We all should have one single fee, right to coin fee, of a half point on every tax dollar transaction. My plan says that the net past due is 4T, half of the 8T default recovered by fixing MV=PY. The nominal past due, 8T, has to be expensed fairly. That is 35 years, two contracts and we get to half point, white noise inflation. But we all have smart cards that understand this. It is the monopoly wedge from the government tax dollar and still competes with private currencies just fine.