Friday, 31 March 2017

The Full Story on BCIMC and its Crimes Against Canadians and The English Family


Would the BC Securities Commission overlook the crimes of a Corporation it has invested $20 Million dollars in? We have already detailed how the BC Securities Commission has tried its best to have a certain case scrubbed from the public record here Case-43449-BC Court-of-Appeal The Missing File.html. We have detailed how the BC Securities Commission operates unlawfully in complete conflict of interest here Conflicts-of-Interest-and-Sham-That-is-Compliance.
 We have posted numerous pieces of evidence in regards to our own experiences of criminal behavior at the hands of the BC Securities, such as this brief overview of what has transpired in our case  Be Fraud Aware - 5 Reasons the BC Securities Commission Is A Sham.

Now we will look at how the BC Securities Commission is the Financial Regulator that oversees the BC Investment Management Corporation (BCIMC). The BCSC invested $20 Million in BCIMC, the BCIMC stole $200 Million in property from the BC public for its funds as we will demonstrate. Will the BC Government attempt to squash the legal case against them for this crime? We will find out on BC election day..

The BCIMC is based in Victoria BC according to its financial reporting page.

Source -
https://www.bcimc.com/publications/pdf/Inventory/Investment%20Inventory%202016%20-%20Final.pdf

The BCIMC has $120 Billion in Funds according to its financial page,

Source -
http://www.bcimc.com/investments/assetmix.asp

The BCSC oversees the regulation of financial securities investments in BC.
 Considering all we have documented regarding the BCSC it should come as no surprise then that the BC Securities Commission has $20 Million Dollars invested with the BCIMC. See below for details


 The BCIMC is an organization whose past members have used it as a vehicle to rob Canadian citizens of their land. Although we have posted on this subject before the following is the horrific true story of Jack English in full with details of how to collect a $250K reward and contact Mr. English.

 Preface -
We are offering a substantial cash reward ($250,000) for insider/whistleblower information leading to the arrest and conviction of the parties responsible and the return of our property which is valued at over 100 million dollars.

We already have had an anonymous call from an unnamed BCIMC employee who said that everything that
has been said in our Blog and website is correct and the employees at BCIMC support us and they hope that our property will be returned to us. The caller said that Bob Pearce, CEO of BCIMC
and Robert De Trois Maison, Legal Counsel, were both incompetent and corrupt and should be fired. And a year later they were both removed.

So we believe that the ordinary workers in the government know that what has been done to us is criminal, but they are afraid of losing their jobs or their lives if they speak out publicly.
 
Our toll free number for tips is 1-888-286-5745.
We are now suing the BC Government in the BC Suprene Court for the return of our property and for damages and compensation. They have responded by having no less than six government paid lawyers
attempting to stop our case before any evidence can be heard.
 
We expect that the government will put in a corrupt Judge on our case who will throw out our case and hit us with huge costs awards to financially annihilate us and terrify any others from daring to challenge their criminal government.
 
The government is very afraid that if the truth of what they did to us was to come out it would very likely topple the present government which we believe is the most corrupt government n the history of Canada.
Thanks again.
 
J.D. English.


 
Jack English & Kids, Pacific Rim Resort, 2008: Before BCIMC Terror Attack/Theft.
I purchased the Pacific Rim Resort in 1984. It’s 214 acres with 2100 feet of white
sand beach on Cox Bay that straddles the Pacific Rim #4 Highway with 114 acres
and 600 campsites on the western, Open Pacific, side and 100 acres and 600
campsites on the eastern, Inlet, side. It’s one of the most desirable and popular
tourist resort locations in Canada. Prime Minister Trudeau vacationed here this
summer with his family. Cox Bay Beach is known as “The Hawaii of Canada”.

I owned and operated this campground for 30 years, 1984 to Sept. 2013, when
my children and I were escorted off our property by the RCMP & “BCIMC”.
This was after the British Columbia Government, through their rogue Crown
Corporation, British Columbia Investment Management Corporation (“BCIMC”),
the B.C. Civil Service Pension Fund, managed to steal our property on the west
side of the highway by way of a criminally coordinated and influenced BC
Supreme Court proceeding.
During the court proceedings our house, resort office and store, and staff
quarters were all arsoned; our access bridge was destroyed by BC Hydro in a
criminal break and enter trespass in August 2010; our water pumphouse was
vandalized; our sewer was illegally cut off and permits stalled by the District of
Tofino by Braden Smith, Administrator, and John Fraser, Mayor who drafted
and passed an illegal retroactive Development Cost Bylaw they called the “Get
Jack Bylaw” and attempted to criminally levy over 5 million dollars against us
for services that were installed 40 years previously (they have their Pensions
with BCIMC and both have been rewarded by BCIMC with high paying
positions); telephone death threats were made to our mortgage broker; our
lawyers and the lender’s lawyer Stephen Wilson (who BCIMC rewarded by
making a BC Supreme Court Master at a salary of $250,000 a year) and our
appraiser were all compromised and “taken care of” by BCIMC for carrying out
a rigged court hearing; and multiple murder attempts were made on my life.
Clearly our business was attacked and destroyed by agents of BCIMC so as to
allow them to steal our property through a fraudulently influenced court sale
with intent to deceive the court.

We had refused to sell to BCIMC when “Double Agent”, Mike Nissley, of CBRE,
Atlanta told us that we had no choice. He told us “Everyone has their price” and
then he called me over Christmas 2012 to tell me that he was controlling the
upcoming court sale hearing to make sure our property would be sold to BCIMC
for 10% of its appraised value and our lawyer and the lender’s lawyer and our
expert witness now all worked for him! This was clearly a calculated criminal
attack, a coordinated conspiracy against us by Michael Nissley, BCIMC, and the
Government of British Columbia which was designed to take our property from
us by force and to criminally subvert the court process. These are RICO crimes
and Mike Nissley, BCIMC and CBRE were clearly violating the US Foreign Corrupt
Practices Act.
 
My children and I were put out on the street, homeless and penniless, even
though the lender had committed to extend our financing and we had over 300
buyers lined up to purchase our approved 99 year RV Site leases at $99,000
each. Later we were told by Levi Martin, Shaman of the Tofino Tla-O-Qui-Aht
Band, that the BC Government Treaty Negotiators told him in 2010 that “We’ll
give you the English property, but you have to keep it a secret or the price will
go up”. It appears that BCIMC , CBRE and the BC Government think they are
“above the law”. BCIMC can smash, burn, bribe, extort, threaten, attempt to
murder us, and deceive the Courts to take our property. The local RCMP did
nothing to investigate or stop them!
 
 
 
Half way through BCIMC’s 5 year siege of crime, terror and deception carried
out against us by unseen enemies, as well as clearly paid off enemies, attacking
us and using deception and abuse of the law, we found help: a lawyer who
promised to stop the fraudulent court process being used against us and to get
new financing to pay the lender who started this illegal foreclosure. The lender,
Paradigm Mortgage Corporation (Mission Creek Mortgage Ltd.) of Kelowna, had
given us a written signed loan extension in June 2008 which we accepted, but
they refused to honour. The lawyer was Mr. Greg Harney from Victoria. He said
he would take our case and “kick the shit out of Mission Creek” for “$10,000 up
front and two RV Sites near the beach”.
But, soon after he took over our case he changed his mind and refused to do the
court case that he said he’d do for us (“Lender Liability and Improvident
Realization”) and he never found us the “White Man Financing” he said he’d
arrange (his words). Instead, what he did was first to coerce us with threats,
demands and insults to sell out to BCIMC for 10-15% of our appraised value.

Then, when that didn’t work and we refused to give in and insisted that he
honour his original agreement, he emailed us a mind boggling account of
$1,122,952 in order to terrorize us and force us into doing as he demanded on
behalf of BCIMC.

When I complained about Harney’s criminal extortion tactics to B.C. Law Society
President, Gordon Turriff, Harney replied by suing us. He yelled at me and
threatened to get a judgment over the other part of our property on the east
side of the highway, which had no mortgage, and to sell it. (Three guesses to
who???). Lawyer, Greg Harney, turned out to be, like Mike Nissley of CBRE, who
posed for two years as our Leasing Agent, just the latest criminal working for
BCIMC, betraying our family, pretending he worked for us. We later discovered
that the mortgage broker Harney said would refinance us, Greg Martel, was
 
 
 
closely linked to the Victoria Lindsay Buziak drug murder case.

Picture - Greg Harney


 

Picture - Lindsay Buziak with Jason Zailo (with knife) and Greg Martel (Harney’s “Friend”)

This murder was tied into money laundering and cocaine trafficking in Victoria
and Calgary, in which cities, coincidentally, Greg Harney ran his “dual” law
practice. Reputable Lawyers have told us that the work Harney actually did for
us was only worth around $20-30,000! Harney reduced his bill to $536,224 and
brought us before Master Keighley (BCIMC Pension) in Victoria who gave
Harney a massive Judgment of $252,000! We appealed to another BCIMC
Pension Judge, Keith Bracken, and then to the BC Court of Appeal. Then we
discovered that Harney had filed a fraudulent altered backdated legal bill two
weeks before the first hearing in order to win the case.
 We reported this crime to the RCMP who refused to investigate and to the BC Court of Appeal who made a corrupt decision and actually lied in their Judgment, saying that the parties were served with Harney’s fake bill when they weren’t, in order to allow
Harney to steal the last of our land to hand it to BCIMC. We have complained to
the Canadian Judicial Council and we are seeking leave to appeal in the Supreme
Court of Canada stating that the Court of Appeal cannot ignore Harney’s crimes.
 
All this has been done in order to steal the English Family’s land, home and
business and then “launder” this criminal transaction by trying to “shadow flip”
it again, at a vastly increased price, to the Federal Government of Canada or to
“Leadon Investments Inc.” and have the Government of Canada, under the  
authority of Queen’s legal representative, the Governor General, “treaty” this
“criminally acquired stolen property” to the Tla-O-Qui-Aht First Nations Band.


However, the local First Nations have also had their daughters and sisters
disappear as “Missing Women” such as my long time friend, Moses Martin’s
Niece, Lisa Marie Young, who went missing in 2002 and is presumed to have
been murdered as well by criminal psychopaths, perhaps at the infamous
Piggy’s Palace Night Club at Pickton’s Farm in Coquitlam, B.C.
 
We’re appealing to United States law enforcement authorities to investigate our
 
 
criminal allegations and bring the guilty parties to justice as the Premier of B.C.,
Christy Clark, and Prime Minister of Canada, Justin Trudeau, have both refused
for months and years to acknowledge our hand delivered, faxed, emailed and
mailed pleas for a full investigation of these charges. The key players in these
crimes are US agents such as Michael Nissley of CBRE Atlanta Georgia who was
BCIMC’s secret double agent in directing many, if not all of the indictable crimes
committed against us. And now, perhaps, Mr. Jiaming Li of Scarsdale, New York,
apparently the owner of Leadon Investments Inc., who’s buying BCIMC’s “Silver
Birch Hotel and Resorts” chain for 1 billion dollars which may include our stolen
Resort properties as well, a serious criminal offence involving a US resident.

Our massive Resort fire and vandalism losses total over a million dollars. Lloyds
Insurance never covered us and left our family business and two kids with no
home, no income, and no running water or flush toilet for over three years.
Lloyds never covered our losses.
 
 

 
 They acted in bad faith and caused massive harm and losses. Did they collude and assist BCIMC to destroy our business and
thereby to steal our property?


Picture - Michael Nissley


 
 
Picture - Premier Gordon Campbell, US Police mugshot 2010.


We’ve been reliably informed that Gordon Campbell is the Premier who ordered
the takedown of Pacific Rim Resort by BCIMC and the corrupt shadow flipping of
our stolen property to the Federal Government Treaty Commission by his
minions David Emerson (CAI, of Farris & Company) and Tracy McVicar (CAI
Private Equity) in Vancouver or perhaps to Leadon Investments Inc. (Jiaming Li).
There is a $1 Million Dollar reward outstanding for the conviction of the parties
responsible for the crimes against the Pacific Rim Resort from 2009 – 2017
leading to the return of the stolen Pacific Rim Resort properties and
compensation to their rightful owners (the English Family).
Gordon Campbell was made High Commissioner for B.C. in the United Kingdom
and resides in London not far from the Queen. Below is a photo of Gordon
Campbell with Prime Minister, Justin Trudeau and his children in London doing a
“High Five” with him, a man convicted in the USA of serious criminal offences.



Picture - PM Justin Trudeau w/ Family and Gordon Campbell ex BC Premier


 
Picture - Doug Pearce Former BCIMC CEO
Gordon Campbell was also the Commissioner of Police in Vancouver and is said
by confidential sources to have attended some of Pickton’s Piggy’s Palace drug
rave parties. He’s also reported by an investigator to have been the one who
ordered the attacks on, and theft of, our Family’s Pacific Rim Resort property.
Recent BC Freedom of Information documents confirm that the BC Ministry of
Aboriginal Affairs, Stephen Winn, Treaty Negotiator, and the Municipality of
Tofino were actively plotting the secret takeover of our Family’s Pacific Rim
Resort Campground properties since 2008 as shown in numerous government
emails and documents now in our possession. This is a major international cross
border conspiracy involving Canadian and US government and private agents in
many counts of fraud, bribery, theft, arson, vandalism, threats, obstruction of
justice, attempted murder and other RICO/FCPA crimes to steal our property.


 
Picture - Dave Pickton/Piggy’s Palace

 
Picture - English Family Home Arsoned - 2010


Picture - Resort Office/Store-Firebombed 2013


Picture - Cox Bay Beach, the Hawaii of Canada
 
 
See the following for more on this story.
 
www.bcimc.info www.cuabcimc.blogspsot.ca www.gregharney.blogspot.ca
 


  We question how the BC Securities Commission can own 'securities' in an organization that commits these types of criminal offences and still claim it has any legal integrity whatsoever?

 How can the BC Government and the BC Judicial System continue to allow these blatant crimes against the Canadian people to happen?

 As always more to come..

 

 

 
 
 
 



Wednesday, 29 March 2017

BCSC, BCIMC, Pepsi Co, Coca Cola Co and Conflict of Interest


UPDATED April 26/18

(The bcIMC has changed its abbreviation and website. It is no longer bcIMC, it is now known as www.bci.ca or BCI although its full name is still BC Investment Management Corporation.. Most or all of the links related to the bcIMC are now broken as a result and will not work. We can be contacted for more info at bk1092003@yahoo.ca.)



We apologize for the typo however BCIMC is BC Investment Management Corporation not Insurance and Mortgage Corporation as previously reported.

 We have previously reported on the links between the BC Securities Commission and the BCIMC  in the following articles.
How-Are-BC-Securities-Commission-and Barrick Gold Connected?.html

The BC Securities Commission Holds $20 Million dollars of BCIMC 'securities'.
BCSC-Holds-BCIMC-Securities-Does-BCSC Know The Meaning of Words Like 'Conflict of Interest'?.html


 The BCIMC is an investment fund that has dozens of institutional investors as well as holding government pension funds for BC Govt employees. The BCIMC has investments in hundreds if not thousands of financial securities in all segments of the market.
 See the 2016 list of holdings for BCIMC here.
https://www.bcimc.com/publications/pdf/Inventory/Investment%20Inventory%202016%20-%20Final.pdf

 We are especially interested to note the BCIMC hold a significant amount of shares in both Coca Cola and Pepsi Co.

 BCIMC's stake in Coca Cola is $100 Million Dollars

 BCIMC's stake in Pepsi Co is even more at $145 Million dollars.


 Our now defunct company U-Go Brands and its SuperDrop line of beverage products stood an excellent chance of going head to head with global giants such as Coca Cola.

 How can the BCSC claim a fair regulatory environment and say their is no biased against us when they literally have money invested in Corporations such as the BCIMC who own hundreds of millions of dollars worth of shares in competing companies? Was this a factor involved in ensuring SuperDrop and U-Go Brands never saw the light of day?

 See how the BCSC owns BCIMC 'Securities' from BCSCs 2016 Corporate Report.



 Is this not contrary to the rule of law as well as the stated purpose of the BCSC?

  Certainly the BCSC does nothing to promote a fair market, in fact it activly assists in racketering on a global scale.

 Of course Christy Clark is aware of this and yet has done nothing.
 Welcome to Vancouver BC - New Jack City
http://bcsecuritiescommissionasham.blogspot.ca/2016/12/verse-one-701-west-georgia-epicentre-of.html

As always much more to come..

Sunday, 26 March 2017

"Wolves Are In Charge of the Henhouse"



 The following exerts are from articles regarding the issues of deceit and predatory finance in Canada's banking industry. These issues are just starting to come to light as the cracks continue to build on the dam. CBC first began to explore the issue of whether or not your 'Securities Commission' protects you some time ago as we reported here http://bcsecuritiescommissionasham.blogspot.ca/2016/06/does-your-provincial-securities.html.


The following exert is from the latest CBC 'Go Public' report which documents the unethical practices of TD Bank.

                                                   ***************************

Financial advisers also admit deceit 

TD employees tell Go Public the pressure to deceive customers extends beyond front-line staff to workers handling wealth management.
'I have invested clients' savings into funds which were not suitable, because of the ... pressure.'- TD financial adviser 
"We do it because our jobs are at stake," said one financial adviser in Ontario.
She admits she acted in her own interest rather than that of her clients after being put on a Performance Improvement Plan — a program that involves coaching and could result in termination of employment — because she wasn't meeting her sales targets.
"I have invested clients' savings into funds which were not suitable, because of the SR [sales revenue] pressure," she said. "That's very difficult to admit. I didn't do this lightly."

'I was forced to lie to customers'




A former TD financial adviser in Calgary says he would downplay the risk of products that gave him a big boost towards his quarterly goal.
"I was forced to lie to customers, just to meet the sales revenue targets," he said.


"I was always asked by my managers to attach unnecessary products or services to the original sale just to increase the sales points — and not care if the customer can afford it or not."

A financial adviser who worked for six years in Nanaimo, B.C., before quitting says "people eventually snap, or lose all sense of themselves and do anything to close sales."
"I have had multiple conversations with branch and district managers. These conversations led to my being asked if I was still the right fit for the job."

Source- http://www.cbc.ca/news/business/td-bank-employees-admit-to-breaking-law-1.4016569

                                                     **************************

  This issue goes deeper then is yet understood by most Canadians, as we have previously reported when the banks (the big five in particular) own and control the regulators through various means they will call the shots.
 For evidence of these claims see below.
http://bcsecuritiescommissionasham.blogspot.ca/2016/06/bc-securites-commission-owned-by-banks.html

 'Compliance' is simply a Regulatory code word so to speak for cash payments, until the regulators such as the IIROC, the BCSC, the OSC etc. are held accountable to the rule of law and not to themselves in their own sham of a 'court' (Tribunal) we will see nothing change.

 For more on the subject see the following exert from Wolf Street below.

                                                     ***************************

How Solid are Canada’s Big Banks?

“Wolves are in charge of the hen house.”

By Peter Diekmeyer, Sprott Money:

The World Economic Forum consistently ranks Canada’s banks among the world’s safest. Competent regulators have overseen stress tests, tightened lending standards and delinquency rates are low. Demographics are good and the country’s diversified economy is backed by a treasure of oil, wood, gold and other natural resources.
So the experts say.
Institutional investors, relying on the work of Jeremy Rudin, Canada’s chief bank regulator, agree. In fact, Canadian financials accounted for 35.5% of the market capitalization of the benchmark exchange (NBF February).
However this fa├žade hides major uncertainties. Key concerns stand out, which if unaddressed, could spark solvency and liquidity issues in one or more of Canada’s Big Six banks.
The fragilities can be seen in an IMF report, which calculated that Canada’s financial sector accounted for a stunning 500% of GDP in 2012. Today, the assets of the Big Six banks alone are more than double the size of the country’s economy.
Each (RBC, CIBC, Scotiabank, BMO, TD and National Bank) have been designated “systemically important,” which in turn, due to sheer size and interconnectedness, suggests that they are almost certainly “too big to fail.” That means the collapse of any one Big Bank would threaten to trigger systemic implosion.
More ominously, if Canada’s financial system, arguably the world’s best, is riddled with pores, what does that say about the US, the UK, and Japan? Let alone Italy and Spain? Yet signs of fragility are everywhere. Consider:
Complacency following “secret” $114 billion bailout
A quick review of key metrics suggests Canada’s banking sector, which, on the surface, having largely escaped the 2008 financial crisis, has thus learned little from it.


As David Macdonald demonstrated in a paper for the Canadian Center for Policy Alternatives, Canada’s Big Banks benefited from nearly $114 billion in cash, liquidity, and other bailout help from both local and US sources following the financial crisis.
“Three of Canada’s banks – CIBC, BMO, and Scotiabank – were at some point under water,” Macdonald writes. “With government support exceeding the value of the company.”
Sadly, details were largely kept secret, Macdonald says, hidden in footnotes and legalese, where even the term “bailout” was shunned. Reforms that could have strengthened the system were thus avoided and the Canadian public remains largely unaware of the dangers.
(A Canadian Bankers Association spokesperson denied that any Canadian bank was bailed out or was in danger of failing, but conceded that the Canada Mortgage Housing Corporation (“Canada’s Fannie Mae”) bought up $69 billion worth of assets and that the Bank of Canada advanced additional liquidity funding).

“Canada’s Fannie Mae” piles on risk amidst residential real estate bubble

In March, the Economist magazine calculated that Canadian residential housing is 112% overvalued relative to rents and 46% overvalued relative to incomes. Even Canadian bank economists, enablers of previous excesses, now describe average Toronto prices, which surged 23% last year to CAD $727,000, as a bubble.
Canadian banks have lent into much of the excesses and “Canada’s Fannie Mae” (the CMHC) has guaranteed more than $500 billion in mortgages; almost as much as the US GSEs did relative to GDP prior to the 2008 crisis.
Canadian banks have never seen a major real estate implosion
Because Canadian real estate prices never collapsed during the 2008 financial crisis to the degree they did in the US and the UK (let alone Japan), regulators, investors and analysts are totally unprepared for any such eventuality.
As noted above, there are no indications that any Canadian regulatory body such as OSFI or any financial institution has had a Japan style scenario gamed out by independent risk experts. This even though some Canadian demographic trends, particularly with regards to workforce aging and retirements for the coming decade are roughly similar to what Japan’s were, at the peak of its bubble.
Canadians are in record debt
Worse, Canadians are in debt up to their eyeballs. According to Statistics Canada the ratio of household credit market debt (this excludes government, financial and business debts) reached a record 166.9% of disposable income in the third quarter of 2016. That was up from 166.4% in the second quarter.
Inflated asset prices currently keep those debts under the rug. However asset price levels are temporary; debts linger.

Wolves are in charge of the hen house

Another dangerous sign stems from the fact that all key stakeholders that facilitated the 2008 bubbles and ensuing crisis escaped unnoticed. That means the wolves remain in charge of the hen house.
For example, as Macdonald notes in his paper, Gordon Nixon, CEO of RBC, Canada’s largest bank during the crisis, took in CAD $9.6 million in compensation in 2008, and $12.1 million in 2009.
Canadian bank CEOs and directors now figure that they’ll be bailed out and collect their bonuses, no matter what risks they take.
Bank CEOs aren’t alone in escaping blame for running the system into the ground in 2008. Most Canadians wouldn’t recognize David Dodge either. However, as governor of the Bank of Canada, he fostered the easy-money policies which facilitated the debt and asset bubbles that led to the ensuing troubles..

 For the full article please see below,
http://wolfstreet.com/2017/03/23/how-solid-are-canadas-big-banks/

                                                 ****************************

 As always much more to come..








Thursday, 23 March 2017

BC FREEDOM - UNSEAT CHRISTY



 The following link is to the website of Brian Thiesen who has been working to expose the criminal behavior of the BC Government for some time. He will be running as an Independent in the Westside Riding where Christy Clark 'resides'. We certainly welcome the efforts of Mr. Thiesen to start cleaning up this province.


On Smart Meters
https://bc-freedom.com/2017/03/12/former-nsa-confirms-no-surge-protection-smart-meters-god-send-for-hackers/

Chinese Money and its effects on BC.
https://bc-freedom.com/2017/01/03/chinese-new-year-and-bc-real-estate-the-year-of-the-yuan/


Your Pensions and Future.
https://bc-freedom.com/2016/12/13/are-you-already-obsolete-what-will-this-do-to-your-pension/

Monday, 20 March 2017

San Francisco School Of Economics - Money And Banking Professor Fekete On Barrick Gold And Market Manipulation

More on the subject that is the Barrick Gold fraud.
The following is an interesting independent look at Barrick Gold in 2009 by San Francisco School of Economics, Professor of Money and Banking, Antal E. Fekete. It offers further insight in how Barrick Gold uses hedges to manipulate the price of Gold.

                                             ********************************


HAS BARRICK BEEN BARRICKED BY THE U.S.?
 
 
Antal E. Fekete
 
 
Professor of Money and Banking

San Francisco School of Economics
 
According to an announcement dated September 8, 2009, Barrick is going to throw into the

dustbin its long-standing hedge policy, and pay for buying back its hedge-book by diluting the

value of its common stocks through issuing more than 81 million new shares, or about 10

percent of the outstanding. The so-called hedges of Barrick have been thoroughly discredited

and will soon be history. So-called, because the long-term forward sales contracts in question

that the parvenu gold miner has invented and flaunted are not proper hedges and never have

been. They are a fraud. They are naked short positions pretending to be balanced by gold ore

reserves in the moon (or on this earth which, for hedging purposes, is practically the same

thing). Part of the newsworthy story, of course, is the fact that the hedge book of Barrick has

been increasingly under water for some nine years now, threatening the unfriendly giant with

drowning.

Within 24 hours another hasty announcement was made to the effect that the company,

instead of issuing 81 million new shares, will in fact issue 94.4 million, that may be raised to

109 million if the demand justifies it, for a total value of $4 billion — the biggest primary

equity offering in Canadian history according to the local media. The hike was explained by

“strong investor demand”. The market, however, put a big question mark to that “forwardlooking

statement” of the company in marking down Barrick shares 6.85% on the same day to

$36.61, the greatest percentage loss among the leading gold mining shares on the day.
 
Incidentally, in doing this the market has put a lower value on the Barrick stock than the



company did. Barrick is offering its new issue at the price of $36.95 per share.

The $1.9 billion that Barrick is hoping to raise through this dilution maneuver to

eliminate all of its fixed-price gold contracts falls far short of its goal of buying back its

hedges. The liability represented by Barrick’s once flaunted forward sale contracts has been
 
carried off balance sheet so far. These fixed-price gold contracts have a negative value of $5.6



billion, that will be charged to earnings in the third quarter. This negative value will almost

certainly increase during the next 12-month period Barrick gave itself to get out of the

quicksand. The announcement itself is a virtual guarantee of that: Barrick will have to

compete in the gold market with China, Russia, India, Brazil, and other countries (not to

mention other gold mines in dire need to de-hedge) for a diminishing amount of gold

available for cash delivery, to the tune of 9.5 million ounces in today’s strained gold markets.

The big unknown question is whether Barrick will be able to buy back its hedges fast

enough to stop the continuing hemorrhage. Barrick is racing against the clock. Gold is still

available for cash delivery, but in what quantities? and for how long? 9.5 million ounces is an

awful lot of gold to buy in today’s anemic gold markets with supplies drying up fast. With the

threat of the last contango and of permanent backwardation hanging overhead like Damocles’

sword, Barrick’s plan appears to be a pipe dream that will never be fulfilled. I may be in a

minority of one on this one, but Barrick’s future is anything but rosy. 9.5 million ounces is a

lot more gold than Barrick is able to produce in an entire year in the best of circumstances.

Even if Barrick were to sell not one ounce of gold in the open market for a whole year, but

deliver every ounce it extracts from the bowels of the earth to its hedge books, and even if we

accept the most optimistic assumptions of the company to increase its annual production as

realistic, there is still a shortfall of at least 1.5 million ounces. I submit that Barrick could not

survive if it was to suspend its sales of new gold in the open market for a whole year, while

facing the extra cost of forcing up production quotas. No lender in its right mind would

finance such a crazy plan. Creditors of Barrick would be all too happy to put the unfriendly

giant on the block, and sell Barrick’s stellar resources to the highest bidders, who would be

able to manage them in a saner and more responsible manner than present managers have.

Barrick’s managers were given the right advice twelve years ago that, at the end of the road

they have chosen, lies ruin and misery. They had all the time to change course. But even at the

last major announcement on “hedging” in 2006, when Barrick announced its new policy to lift

a part of its hedges, the then CEO Greg Wilkins said at the Annual Shareholders Meeting that
 
Barrick will always retain ‘a reasonable’ amount of hedges as an ‘essential risk-management



tool’. According to Wilkins, it is supposed to ‘stabilize’ revenues, and it is supposed to satisfy

banks that finance Barrick’s projects.

Two years ago I issued a public challenge to the management of Barrick in my piece
 
Have Gold Bugs Been Barricked by the U.S.?” (see References below) as follows.




I demand an answer why Barrick ignored my recommendation in 1997 which I

personally presented to the then CFO Jamie Sokalsky. During those ten years my

worst fears have materialized. It turned out that the “hedging” policy of the

company was, as I had stated, deeply flawed. It was an unmitigated disaster of

the first magnitude. It resulted in horrendous losses to shareholders. It is not

clear why Jamie Sokalsky, widely rumored to be the author of Barrick’s “hedge

plan”, got rewarded with a promotion for executing a disastrous policy, and why

his new boss Greg Wilkins has stated in public that the company is standing by

its original hedging policy, albeit on a reduced scale. I categorically state that

Jamie Sokalsky had been thoroughly familiar with the alternative, what I called

the correct principles of hedging. He and I discussed the subject together at great

length, and he received from me a Memorandum that spelled it all out. This

Memorandum found its way into the book of the late Ferdinand Lips entitled
 
Gold Wars and can be seen there by any interested party.
I am disclosing it now for the first time that Barrick has ignored my challenge. Yet, as its

announcement of September 8 last proves, I was right all along. The “hedging” policy of

Barrick was so obviously insane, so much in conflict with any common business sense, that it

invited extensive speculation that Barrick was not really a profit-seeking business. It was just

a front set up and operated by the U.S. (and/or by other governments) in order to cap the gold

price. In other words, Barrick has been a partner to the greatest conspiracy in all history: to

throw dust into the eyes of the investing community making it believe the gold

demonetization fable. If the conspiracy theory is true, then the linchpin to cap the gold price

has been Barrick’s hedging policy. By aggressively selling gold forward at the expense of the

shareholders, the gold price could be kept in perpetual check — or so the script went. Just

make Barrick the world’s Number One gold producer, its hedging policy will frighten the

daylight out of any bullish speculator in gold. And we might as well admit that the conspiracy

has been rather successful, in so far as conspiracies can ever be successful.

In the article quoted above I made it clear that I was not a subscriber to the conspiracy

theory, although I reserved my right to change this opinion pending future evidence as they

become available. A major piece of evidence has just surfaced. Barrick has unceremoniously

discarded its long-cherished hedging policy, paying a heavy price in dragging the underwater

hedges into its badly punctured balance sheet that was no longer fooling anyone, and in

having to dilute the value of its outstanding shares.

Have I changed my mind about the validity of the conspiracy theory? Is it not an

appealing interpretation that a decision made by policymakers in the U.S. Treasury and the

Federal Reserve deemed that the cost of maintaining the gold cap at $1,000 is becoming too

high? The cap can no longer be defended in view of the world’s global credit crisis.

Subsequently Barrick was to be dumped and let to fend for itself in the rough waters after the

sinking of SS. Lehman. Barrick has received what it has so richly deserved: it has been

barricked by its partner in crime.

The supreme irony of this scenario would be hard to escape. This would not be the

first time that a creature of Peter Munk has been barricked by a government. There are some

older guys around still, like myself, who remember how the government of the Canadian

province of Nova Scotia has barricked Munk’s top line radio and hi-fi console manufacturing

business. At that time Peter Munk swore that he would never ever again accept a government

subsidy, nor would he participate in a conspiracy involving governments. It is all related in

Peter Munk’s approved biography in great detail (see References below).

Every business initiative of Peter Munk has ended as a fiasco and he went bankrupt in

consequence. After his radio and hi-fi business shipwrecked on the rocky coast of Nova

Scotia, his real estate enterprise in Egypt failed where he was to build luxury hotels in the

shadow of the great pyramids. His dabbling in oil fared no better. Rumors have it that he also

financed a franchise in Israel of Colonel Sanders’ and his boys to make pork chops “fingerlickin’

good” — that failed, too, although this could not be confirmed.

After an unbroken series of business failures Peter Munk has come to gold. Would

gold be kinder to him? There is hardly anybody alive who could appreciate gold’s value better

than he would. He owes his Holocaust survival to gold that was paid by his father to

Eichmann through Swiss intercession for their free passage from Hungary to Switzerland in

1944. Yet there is probably no one in the long line of failed gold mining executives who

misconstrued gold more thoroughly than Peter Munk has. Conspiracy or no conspiracy, Peter

Munk is an inveterate believer in the power of the U.S. government to manipulate the price of

gold. That is the secret of his downfall. Peter Munk’s gold business is no better than his other

businesses have been, only bigger.

I am still not committed to the conspiracy theory according to which Barrick has

allowed itself to be used by policymakers in the U.S. to cap the price of gold, although I must

admit that the circumstantial evidence has become a notch more circumstantial with this latest

announcement. To me it looks like the desperation of a passenger aboard the sinking Titanic

who has lost his life saver. I base my judgment on the timing. To make such an announcement

at a time when the gold price is challenging the $1000 level is a miscalculation of Babelian

proportions, not to say a suicidal dash to the exit. All this time was wasted, while the gold

price was under pressure, when exactly the same announcement would have been helpful to

Barrick — as it has to Newmont. It is too late now. I do not see how Barrick can remain a

viable business entity once it has lost its tether, real or imagined, tying it to the U.S. Treasury.

My sympathy is with the shareholders of Barrick, who are going to fare no better than those

of Lehmann Brothers. What people do not seem to understand is that gold locked up in ore is

one thing, and gold locked up in vaults is another. There are times, such as now, when their

values part company. Why? Because too many gold mines are just a conduit to make the

shareholder and his money part company. Remember Mark Twain having said that a gold

mine is a hole in the ground with a liar standing guard? Remember Bre-X? It is so much

easier to fool people than doing the back-breaking work of bringing up gold locked in the ores

deep underground.

Aaron Regent, the new President and CEO of Barrick, commented on the company’s

announcement as follows:

“The gold hedge-book has been a particular concern among our shareholders and the

broader market which we believe has obscured the many positive developments within

the company. As a result of today’s decision we have addressed that concern and

maintained our financial flexibility. With the industry’s largest production and

reserves, Barrick provides exceptional leverage to the gold price, which we expect will

be further enhanced as we build our new generation of low-cost mines.”

But leverage works both ways. In the case of Barrick it has always worked the other way. Mr.

Regent sounds as if the troubles of Barrick were now over as management has finally decided

to bite the bullet. They are not. The agony will last until the last vestiges of the nightmare of

“hedging” will be erased. Even in the optimistic appraisal of management it will take at least

one year. In reality, it will take much longer, as ever higher gold prices will frustrate efforts to

close the hedge-book for once and all. The fact is that the wolf is at the door and refuses to

leave. The problem of the hedge-book will keep resurfacing, until everybody will understand

that it is unmanageable. The cat is chasing its own tail.

The job cut out for Barrick is the job of Sysiphus. He was a king who betrayed Zeus’

secrets. As a punishment he was confined to Tartarus and made to roll up a boulder to the top

of the mountain only to see it falling back, and his travail would start all over again.

When everybody sees Barrick as the latter-day Sysiphus, the company will give up the

ghost, and the cheerful creditors will happily carve up the rich caracass, with former

shareholders looking on in dismay.
 
DISCLAIMER AND CONFLICTS
 
 
THE PUBLICATION OF THIS ARTICLE IS SOLELY FOR YOUR INFORMATION AND

ENTERTAINMENT. THE AUTHOR IS NOT SOLICITING ANY ACTION BASED UPON

IT, NOR IS HE SUGGESTING THAT IT REPRESENTS, UNDER ANY

CIRCUMSTANCES, A RECOMMENDATION TO BUY OR SELL ANY SECURITY. HE

HAS NO POSITION, LONG OR SHORT, IN BARRICK STOCK, NOR DOES HE INTEND

TO ACQUIRE ONE. THE CONTENTS OF THIS ARTICLE IS DERIVED FROM

INFORMATION AND SOURCES BELIEVED TO BE RELIABLE, BUT THE AUTHOR

MAKES NO REPRESENTATION THAT IT IS COMPLETE OR ERROR-FREE, AND IT

SHOULD NOT BE RELIED UPON AS SUCH.
 
References
 
 
Have Gold Bugs Been Barricked by the U.S.? www.gold-eagle.com/gold_digest, July 12,



2007.
 
Charles Davis, So Big It’s Brutal, Report on Business, The Globe and Mail: Toronto, June,



2006, p. 64.
 
Bob Landis, Readings from the Book of Barrick: A goldbug ponders the unthinkable,

www.goldensextant.com, May 12, 2002

Richard Rohmer, Golden Phoenix, the biography of Peter Munk, Key Porter Books, 1999

Antal E. Fekete, The Texas-Hedges of Barrick, www.professorfekete.com, May, 2002

Ferdinand Lips, Gold Wars, Will hedging kill the goose laying the golden egg? p. 161-167.



New York, FAME
 
Antal E. Fekete, To Barrick or to Be Barricked, That Is the Question, www.gold-eagle.com,



August 11, 2008
 
George Bush’s ’Heart of Darkness’ — Mineral Control of Africa, Executive Intelligence



Review, January 3, 1997, see in particular:
 
Barrick’s Barracudas
 
 
Inside Story: The Bush Gang and Barrick by Anton Chaitkin

George Bush’s 10 billion giveaway to Barrick by Karl Sonnenblick

Bush Abets Barrick’s Gold-digging, by Bail Billington



See also: http://american _almanac.tripod.com/bushgold.htm

September 9, 2009
 
Calendar of Events
 
 
University House, Australian National University, Canberra: first week of November, 2009
 
Peace and Progress through Prosperity: Gold Standard in the 21st Century
This is the first conference organized by the newly formed Gold Standard Institute.
 
For further information, e-mail: feketeaustralia@gmail.com ,

On the Gold Standard Institute, e-mail philipbarton@goldstandardinstitute.com



Martineum Academy, Szombathely, Hungary, in March 2010.

Stay tuned for further announcement.

Professor Fekete on DVD: Professionally produced DVD recording of the address
 
before the Economic Club of San Francisco on November 4, 2008, entitled The

Revisionist History of the Great Depression: Can It Happen Again? plus an interview

with Professor Fekete. It is available from www.Amazon.com and from the Club

www.economicclubsf.com at $14.95 each.



DVD’s of the Gold Standard University Sessions
 
Session 3 (Adam Smith’s Real Bills Doctrine and Its Relevance Today)

Session 4 (The Bond Market and the Markey Process Determining the Rate of



Interest)
 
Session 5 (A Primer on the Gold and Silver Basis)

Session 6 (Encore Session: The Great Depression)



are now available. For details how to order, see the announcement on
 
the website www.professorfekete.com .

 PDF Source -
http://www.professorfekete.com/articles%5CAEFHasBarrickBeenBarrickedByTheUS.pdf

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