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Antal Fekete challenges Barrick and solves the interest-rate 'conundrum'
9:55p ET Wednesday, August 15, 2007
Dear Friend of GATA and Gold:
Antal E. Fekete, the renowned hard-money economist, professor emeritus of Memorial University of Newfoundland, and speaker at GATA's Gold Rush 21 conference in the Yukon two years ago, has just issued some prodigious and compelling work.
First are two essays challenging Barrick Gold to defend its infamous gold hedging program sufficiently to dispel suspicions that the company long has been functioning as the agent of the central banks in suppressing the price of gold.
That is, Fekete is challenging Barrick to deny what the company actually PROCLAIMED in a filing in U.S. District Court in New Orleans in February 2003:
Fekete's challenge to Barrick begins with an essay titled "Peak Gold," which can be found at GoldSeek here:
It continues with an essay titled "Have Gold Bugs Been Barricked by U.S.?," which can be found at GoldSeek here:
But Fekete's most brilliant triumph ever may be his third essay, "Keeping Our Eyes Peeled for the Silver and Gold Basis," wherein he explains the great interest-rate "conundrum," the decline of interest rates amid an explosion of the worldwide money supply. It has been accomplished, Fekete says, with interest-rate derivatives, which are proxies for bonds, into which central banks herd much of the otherwise-inflationary money they have created.
Fekete's explanation of interest-rate derivatives and his formula for investors to defeat them can be found at GoldSeek here:
This is fairly complex stuff but if you want to be serious about what's going on you have to read it.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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