A Crashing Sector, Gold & The Fiscal Cliff

from KingWorldNews:
The Godfather of newsletter writers, Richard Russell, had a great deal to say about gold, the fiscal cliff, stocks, and a collapsing sector. Here is what Russell had in his latest report: “The US faces a one trillion dollar debt. How will the US get the money to pay off this frightening deficit? The Fed will buy mortgage-backed securities from the banks at the rate of $40 billion a month, thus re-liquifying the banks. The banks will then spend the money on Treasury bonds.”
“Thus, the Fed will accomplish a few things — the banks will be rendered more liquid, and the Dow and mortgage-backed securities will probably be lifted. But what happens when the banks are cleared of all their mortgage-backed securities? Maybe the Fed will buy straight mortgages, I don’t know, and I’m not sure that the Fed knows. Maybe the Fed just wants to sneak by the election, and later they’ll address the problems.
Meanwhile, the Fed will continue to talk up the economy. But I believe it’s the Transports that are telling us the real story regarding the US economy — and to put it politely, the Transport have been crashing. Question — could the real story about the US economy be that the US economy has been crashing too?
Russell continues @ KingWorldNews.com