But the Bank of England cannot create wealth. All it can do is transfer it, from savers to debtors. Every extra penny enjoyed by those whose mortgage rate is now lower than inflation is a penny not going into a savings account – and the full effects are only now becoming apparent.
As those in the pensions industry know, what is happening is nothing short of a crisis. Pension Corporation, an insurance firm, estimates that the hole blown in British company pension schemes by the first round of QE was £74 billion. Firms are legally obliged to make up this shortfall – so they will need to find £20 million a day of real cash to repair the damage.
Polistra was named after the original townsite of Manhattan (the one in Kansas). When I was growing up in Manhattan, I spent a lot of time exploring by foot, bike, and car. I discovered the ruins of an old mill along Wildcat Creek, and decided (inaccurately) that it was the remains of the original site of Polistra. Accurate or not, I've always liked the name, with its echoes of Poland (an under-appreciated friend of freedom) and stars. ==== The title icon is explained here. ==== Switchover: This 2007 entry marks a sharp change in worldview from neocon to pure populist. ===== The long illustrated story of Polistra's Dream is a time-travel fable, attempting to answer the dangerous revision of New Deal history propagated by Amity Shlaes. The Dream has 8 episodes, linked in a chain from the first. This entry explains the Shlaes connection.