Treasury Spread: Going to Zero!

Today's spread is above, the lowest is over half a century. I wrote on this a week ago and now it has just gotten lower. Here is another view:

This is a problem because it implies a very low to negative growth rate world wide. Despite the fact that we are still facing significant inflation in food, clothing, autos, fuel. This will have a massive impact on such things as pension funds who have anticipated unrealistic returns, well in excess of 7%. The State and Local Pensions are now drastically underfunded with no potential for escape. That perhaps is the next economic bubble.