The Bow Tie: Fed Has Already Begun QE3 to Avoid ‘Egg on Their Face’

International investor Jim Rogers says that the Federal Reserve is secretly printing money to avoid “getting egg on their face again” after previous attempts to kick-start the faltering economy with more than $2 trillion of quantitative easing failed.

Since the downturn, the Federal Reserve has twice sought to spur the economy by buying assets like Treasury holdings or mortgage-backed securities held by banks, a monetary stimulus tool known as quantitative easing that pumps vast amounts of liquidity into the financial system to spur recovery.

Two previous rounds of quantitative easing (QE1 and QE2) pumped a collective $2.3 trillion into the economy and Fed officials say they remained poised to roll out a third round (QE3) if recovery doesn’t gain steam.

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