President Obama, CFTC, SEC

I say, the SEC, CFTC, (complicit bullion suppressors to support Fiat money), JPM et al banks (bullion suppressors using naked short selling), and Barrick Gold (predatory major miner) are RICO-CLOWNS, in a planned conspiracy to defraud the American People as to Bullion and THE STRONG DOLLAR POLICY, (while, of course, president Obama pretends change and transparency, WHAT A CROCK!!)

I would like to know just how fraudulent you people really are.
So, 3rd investigation into the concentrated silver short futures on the NY CRIMEX goes on and on, with no results, yet the percent of market concetration and control, and manipulative short selling of gold and silver, IS OBVIOUS. But I understand that the manipulated down gold prices are good for THE STRONG DOLLAR policy, and hence, the government either DIRECTS OR ENCOURAGES futures manipulation, as part of the our new BHO totalitarian democracy. OK, I GOT THAT.

But Does the fraudulent participation by the government with the bullion banks, through the blind-eyed CFTC and SEC enforcement, also extend to the MAJOR MINORS?

Barrack represented to the public they were UN-HEDGED.

That is a FACT.

In order to be a member of the HUI (miner index) Barrack had to be UN-HEDGED. Meaning, they did not forward sale mine production, (as a hedge against falling prices). So, Barrack Gold represented that they were unhedged, NO, forward sales.

THAT IS A FACT.

Now, we learn that Barrack has been hedged along.

Miners cut their hedging positions by 9 percent quarter-on-quarter to 15.52 million ounces between October and December last year, it said. AngloGold Ashanti and Barrick Gold were the biggest de-hedgers.

So, THE GFMS confirms that Barrick Gold is still a MONSTER HEDGER.

THAT IS FACT.

Is the SEC and CFTC, going to prosecute or fine BARRICK GOLD for false and misleading statements regarding their hedge book, (which is estimated at 9 million ounces at 5 billion dollars in the RED, that it hides from its shareholders)?

Derrick Michael Reid
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March 12, 2009

Gold hedging falls 9 pct in Q4 08 - GFMS

LONDON, March 12 (Reuters) - The rate at which gold miners cut their hedging positions slowed again in the fourth quarter of 2008 and is expected to decline "markedly" in 2009, metals consultancy GFMS said in a quarterly report.

Miners cut their hedging positions by 9 percent quarter-on-quarter to 15.52 million ounces between October and December last year, it said. AngloGold Ashanti and Barrick Gold were the biggest de-hedgers.

Oh that’s interesting! "AngloGold Ashanti and Barrick Gold were the biggest de-hedgers".

From Barrick May 1, 2007 Quarterly Earnings Press release

Barrick Produces 2 Million Ounces of Gold at $313 Per Ounce; Corporate Gold Sales Contracts Fully Eliminated
As a result of Barrick's decision to eliminate its Corporate Gold Sales Contracts, the Company's net income was reduced by $557 million ($0.63 per share) on an after tax basis. Consequently, the Company reported a net loss of $159 million ($0.18 per share) and operating cash flow of $163 million ($0.19 per share). Excluding the impact of the elimination of the Corporate Gold Sales Contracts, adjusted earnings of $398 million ($0.45 per share) and adjusted operating cash flow of $727 million ($0.83 per share) compare to prior year adjusted results of $263 million ($0.33 per share) and $425 million ($0.54 per share), respectively.

"The Company's portfolio of mines had a strong start in 2007", said Greg Wilkins, President and CEO. "Going forward, our operating mines are completely unhedged, able to sell production at spot prices and thereby enjoy expanded margins in this strong gold price environment."

From their quarterly report the average investor would think that Barrick was unhedged…after all they use phrases like "fully eliminated" and "completely unhedged"! The only thing that was "complete" was that it was completely fraudulent to give the impression they were unhedged.
Was it clear to the average person that they had parked their toxic hedges in the undeveloped Pascua-Lama project? Hell no! Even the mining analysts were fooled….

A Buy recommendation has recently been issued to mining giant Barrick Gold Corporation (ABX) by Zacks senior mining industry analyst Paul Raman, CFA. Here's what his latest update had to say about it:

"Barrick is the largest gold mining company in the world. Profitability is increasing due to rising gold prices, an unhedged book and synergies from the Placer Dome acquisition. The company’s financials are solid. Profitability is increasing for Barrick. The company is fully leveraged to the rise in gold prices.

"The company’s hedge book has rolled off all of its hedges, and currently, none are in place. The company is completing the achievement of synergies from the Placer Dome acquisition. It is estimated that there is $200 million of cost cutting yet to be done.

Barrick has completely fooled many investors AND analysts into thinking that they were unhedged and now they are covering at $800-$900 per oz. GATA warned both Anglo and Barrick that hedging at $300-$400 was pure insanity unless they were part of the Cartel’s activity!

Cartel hedge honcho Goldman Sachs has completely covered their short position on the TOCOM and now Anglo and Barrick are scrambling to de-hedge…do you smell smoke?

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Barrick Gold, a modern Racketeer?

We all know who Barrick Gold is, the world's king in gold bullion production, having a monster hedge book of 9.5 million ounces. It is of general belief that hedging is good for developers to provide necessary funds to launch production, but not so good for the majors, having reserves, production, and cash flow, when well managed, offering the potential of increasing growth of the company within the current business cycle. On this basis, the hedge book at Barrack is unwarranted and could lead to billions in down stream losses and shareholder value ruination in the normal course of business. However, it appears that Barrick's gold business is not so normal.

Mr. C. Powell, of GATA fame, has recently indicated that the hedge position of Barrick could be use to acquire some 50 mil oz of Au in deep storage, and hence, improve Barrick's very long term outlook. I have been thinking along these lines as well for over a year now, and am so grateful to Mr. Powell for putting it in writing for all to consider. However, there is a twist, that should not go unrecognized.

Anyone recall Placer Dome, Homestake Mining, Pangea Goldfields, Pioneer Metals, Arequipa Resources, Sutton Resources, and others that are now gone? Competition in the gold industry has been destroyed in some measure, undeniably so. When a major, already in the driver seat, with reserves, production, cash flow, seeks to hedge further production for purposes of growth through acquisition, then what the major effectively does is MANIPULATE bullion price down on the short side of bullion, depressing competitors share value to their disadvantage, for Barrick's short term loss of value as well, during this hedge "dumping", for purposes of monopolizing the gold production industry by acquiring all competitors and all gold resources, on the cheap, and in doing this, BARRICK could be considered the roaming thugs of the gold mining community, and could possibly be CRIMINAL RACKETEERS, with predatory practices that must have limits, ala the anti-trust actions of the early 1900s. There is no difference between Standard Oil and Barrick, is there?. This might be the basis of the Blanchard anti-trust case against Barrick et al.

On moral grounds and fair-dealing principles only, no one should touch any major with a hedge position, especially the very biggest ones on the hunt for acquisitions. Dehedge your hedge book, then, ok, all is fair, but it aint. Personally, I wont support what I believe to be criminal racketeering. Our great country realized the down-falls of monopolies some 100 years ago, and yet, it seems, we forget these lessons, time and time again, and don’t remain vigilant to the evils of greed in corporate America and in the world. Lets all thank GATA and Mr. Powell, for attempting to keep the gold mining industry fair and competitive, and stop Barrick's apparent desire to become the world's ONLY gold producer and the gold industries' biggest criminal as a modern racketeer.

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