In light of the new injection of money proposed by the Biden administration, this time "for the development of infrastructure", I decided to dig up fresh information about, what happens to this very infrastructure.
And I started digging, of course, to the site of the "American Society of Civil Engineers" (ASGI, American Society of Civil Engineers). There just in March a fresh report on the state of infrastructure was released.
According to this report, due to chronic underfunding, the state of infrastructure is rapidly deteriorating. Because it's easier to paint on time, how to deal with rust later. And it's easier to patch up a small crack right away., because then it begins to increase rapidly - because sopromat, that's why!
And if Trump in the year before last and last year announced the amount of 2+ trillion dollars, which need to be allocated for the repair and renovation of infrastructure, and Biden says, what to highlight 3 trillion, then the ASGI report speaks of the minimum required amount already in 6 trillions over the next ten years.
That is, the amounts, planned for allocation by Biden, already declared insufficient.
At the same time, they are already fixing underfunding
- for the repair of bridges - 125 billions of dollars;
- on the road - 435 billions of dollars;
- for transit systems - 176 billions of dollars.
And so on.
The situation in the USA is as follows, what the federal government owns and operates less 10% infrastructure facilities. The rest are on the balance sheet of the states, municipalities or privately owned.
Concerning, so as not to give money to places directly, the federal government has allowed regional authorities to issue their own debt under the "BAB" program (Build America Bonds). Debentures, interest paid by the federal government (and the interest on such securities, who have already started to print, from 7% and higher).
That is, they did not come up with anything better, how to try to get into debt again, only at the local level. And debts will be inflated by municipal, and the burden will be on the federal budget. Nothing else, as a distortion of macroeconomic indicators, I can't name it.
Yet again, there are practically no people willing to buy Treasuries with a near-zero rate of return (the data of the last trades clearly show this). AND raising the rate in the context of the ongoing economic crisis is going against your own monetarist dogmas. Therefore, the issuance of other debt obligations with high interest rates without raising the government bond rate is also a kind of swindle..
However, the rapid growth of interest on American debt obligations is natural. Risks have risen (realistically, and not according to the ratings of controlled politicized agencies), the threat of hyperinflation looms - and only a significant increase in profitability can compensate for the first and second.
And so we somehow smoothly moved from infrastructure problems to financial difficulties.. But, basically, this is natural, if the American elites try to solve any problems in the same way - by printing money and / or borrowing.
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Alexander Rogers
