QE Is Destroying Wealth

"The failure of investors to learn from experience isn’t just an inconvenience – the constant misallocation of capital resulting from these speculative episodes is gradually destroying our nation’s economic potential for long-term growth and job creation. We measure our standard of living by the amount of output that an individual is able to command for a given amount of work. We measure our productivity by the amount that an individual is able to produce for a given amount of work. Over time, these two must go hand in hand. Policies that misallocate savings away from productive investment and toward unproductive speculation are the same policies that do long-term violence to our nation’s standard of living. Although the members of the Federal Reserve undoubtedly mean well, their actions are at the center of the assault."

--John Hussman, weekly market commentary (10-21-13)