"If ever there was a chart of the gross misallocation of capital caused by [Federal Reserve Money Printing], this has got to be it..."

http://www.zerohedge.com/news/2013-10-21/qes-gross-misallocation-capital

"Money put into the system would, in normal times multiply aggressively in use

(e.g. Fed to bank, bank to business, business to consumer, consumer to restaurateur, restaurateur to farmer, farmer back to bank etc etc.)

...However, as [Federal Reserve Money Printing (QE) since 2008/9 has] put artificial support under [financial, real estate and commodity markets], you get misallocation of capital and [diminishing] velocity of money.

The last time both were as low as this was 1965 (Nearly half a century ago)

One might even argue that as a consequence QE actually stifles economic growth [and] employment creation...

The trouble with that assessment (if correct) is that Ben does not believe that premise and neither does Janet.

(Quite the contrary) If the premise is potentially true that QE is actually a negative for the economy/savers etc. then more QE will not only not solve the problem, but exacerbate it.

It therefore becomes a negative feedback loop that we cannot get out of until the Fed has the nerve to stop QE no matter what the economic backdrop.

Under Janet Yellen that scenario is highly unlikely."