Has the Fed ALREADY started QE3? Jim Rogers thinks so.
Despite no formal announcement from the Federal Reserve to date, veteran U.S. investor Jim Rogers firmly believes that the Fed has already launched a third round of quantitative easing, with America’s central bank secretly pumping money into the economy. According to Rogers, the proof is in the balance sheets: assets are building with no explanation as to where they are coming from.
But then why hasn’t the Federal Reserve officially announced this stimulus yet? Rogers suggests that Bernanke and co. may be reluctant to publicize QE3 because their first two attempts at quantitative easing, totaling $2 trillion, “did not work… They may just continue to do it without getting egg on their face again, but they are going to print money, they are all going to print money. It is the wrong thing to do, but that is all they know how to do.”
Other countries, including India, China and several in the Eurozone, also face similar financial crisis and faltering economic fates. Because of this, traditional “safe havens” like gold are becoming increasingly attractive.
Rogers stresses, “Unfortunately, all central banks know to do is to print money. You are going to see more money printing, more debasement of currency and, therefore, the price of gold will go much higher over the course of the decade.”jim rogers, qe3, quantitative easing