The Latest Gold Fraud Bombshell: Canada’s Only Bullion Bank Gold Vault Is Practically Empty

From ZeroHedge:

Continuing on the trail of exposing what is rapidly becoming one of the largest frauds in commodity markets history is the most recent interview by Eric King with GATA’s Adrian Douglas, Harvey Orgen (who recently testified before the CFTC hearing) and his son, Lenny, in which the two discuss their visit to the only bullion bank vault in Canada, that of ScotiaMocatta, located at 40 King Street West in Toronto, and find the vault is practically empty. This is a relevant segue to a class action lawsuit filed against Morgan Stanley, which was settled out of court, in which it was alleged that Morgan Stanley told clients it was selling them precious metals that they would own in full and that the company would store, yet even despite charging storage fees was not in actual possession of the bullion. It appears that this kind of lack of physical holdings by all who claim to have gold in storage, is pervasive as the actual gold globally is held primarily in paper or electronic form. Lenny Organ who was the person to enter the vault of ScotiaMocatta, says “What shocked me was how little gold and silver they actually had.” Lenny describes exactly how much (or little as the case may be) silver was available – roughly 60,000 ounces. As for gold – 210 400 oz bars, 4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of gold nugget form, which Adrian Douglas calculates as being $100 million worth, which is just one tenth of what the Royal Mint of Canada sold in 2008, or over $1 billion worth of gold. As Orgen concludes: “The game ends when the people who own all these paper obligations say enough and take physical delivery, and that’s when the mess will occur.”

Also note the interesting detour into what Stephan Spicer of the Central Fund Of Canada, said regarding his friend at a major bank, who wanted access to his 15,000 oz of silver, and had to wait 6-8 weeks for its to be flown in from Hong Kong.

It is funny that central bankers thought they could take the ponzi mentality of infinite dilution of all assets coupled with infinite debt issuance, as they have done to fiat money, and apply it to gold, in essence piling leverage upon leverage. They underestimated gold holders’ willingness to be diluted into perpetuity – when the realization that gold owned is just 1% of what is physically deliverable, you will see the biggest bank run in history.

Link to full Eric King interview.


Border patrol arrests man for crossing street

From Raw Story:

The town of Derby Line, Vermont, may be one of the most unusual places in North America. Running right through it is the Canadian border, on the other side of which is the village of Rock Island, Quebec.

To the average visitor, the two towns appear to be one. In fact, the towns are so integrated that the border runs right through a public library — a convenient venue for extradition hearings.

For years Canadian visitors to Derby Line often didn’t notice the little US Customs booth on the side of the town’s main street — and ended up getting a dressing-down from a border guard when they inadvertently entered the United States.

But for the residents of Derby Line, crossing back and forth between the US and Canada unfettered had been no big deal for years.

But last year, gates went up at the major crossings in the town, “as part of added security measures,” reports WCAX. And now, at least one resident of Derby Line has been arrested for doing what he had been doing for years — crossing into Canada for a bite to eat.

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Former Mexican foreign minister calls for ‘North American union’, unified currency

From Raw Story:

Prolific Mexican politician and intellectual Jorge Castañeda believes that a greater North American community — a “North American Union” — with economies tied together under a European Union-style system, complete with open borders and a unified currency, is the wave of the future.

In a new interview with Web site, Castañeda, Mexico’s foreign minister from 2000-2003 and a global distinguished professor of politics at New York University, said that with nearly 11 percent of Mexicans living in the United States, he has stopped seeing his nation as a Latin American country.

“Well, my sense is that we’re moving closer and closer to forms of economic integration with the United States and Canada and conceivably Central America and Caribbean could become part of that in the coming years,” he said. “I don’t see Mexico as a Latin American country. Too much of trade, investment, tourism, immigration, remittances, absolutely everything is concentrated exclusively with the United States. So, Mexico has to be part of a North American community, a North American union, which at some point probably should include some type of monetary union along European lines with a free flow of labor, with energy being on the table, etc.”

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Joint Statement from Obama and Harper

From The Wall Street Journal:

Joint statement by President Barack Obama of the United States of America and Prime Minister Stephen Harper of Canada on accelerating economic recovery and job creation.

President Barack Obama and Prime Minister Stephen Harper today discussed common approaches to accelerating economic recovery, in North America and globally.

Unprecedented fiscal stimulus in both countries has helped to stabilize demand and avert deeper levels of economic contraction and job loss, but it is important to remain vigilant. They agreed to work with other countries at the upcoming Pittsburgh Summit to lay the foundation for balanced and sustainable growth and to further the reform of financial regulations and international institutions to reflect the realities of the global economy.

The Leaders agreed that economic integration is a fundamental source of strength for both economies, that open trade and investment are essential for competitiveness and sustainable growth in North America and globally.

They expressed satisfaction with the productive ministerial dialogue put in place since the President’s visit to Ottawa in February on promoting a secure and efficient border, to contribute equally to North American security and prosperity.


The Prime Minister and the President reviewed progress to date on the U.S.-Canada Clean Energy Dialogue launched during President Obama’s visit to Ottawa. They agreed that the report to leaders presented by ministers (see attached Annex) represents an important path forward for pursuing our shared objectives of environmental protection and secure energy supply in a balanced and effective manner.

With respect to climate change, they reaffirmed that given the high degree of integration between the Canadian and U.S. economies and energy markets, they should cooperate closely as they develop their respective approaches. They reiterated the urgency of taking aggressive action to combat climate change and reaffirmed their commitment towards a comprehensive and effective international agreement that puts the world on a clean energy pathway.


The Leaders reviewed developments on a number of shared foreign policy priorities, including Afghanistan, Pakistan, Iran, Middle East Peace, and the Americas.

In particular, they reiterated their shared commitment to helping the Afghan government prevent Afghanistan from again becoming a base for terrorism and they restated U.S. and Canadian support for the peaceful restoration of democratic and constitutional order in Honduras and called on all parties to accept the San José Accord.

The Leaders agreed to work closely together in the coming months on the critical issue of nuclear security and non-proliferation, particularly in promoting concrete outcomes at the Nuclear Security Summit in Washington in April.

Canadian teams scramble as U.S. bans NHL charter flights

I don’t follow sports but this is somewhat interesting. I especially like this quote: “Mr. Baird said the dispute ‘shows the power of anti-free-trade Democrats in the Congress’ and cautioned his government will respond in kind.”

From The National Post (Canada):

OTTAWA — Canada’s six NHL teams are scrambling to find alternative travel arrangements south of the border after the U.S. Department of Transportation banned Air Canada’s charter fleet from flying between U.S. cities.

In a furious exchange with the Obama administration over the mid-August ruling, Canada has launched its own investigation and will soon close its skies to U.S. sports team charters in retaliation, warns Transport Minister John Baird.

The sticking point is an eight-year-old exemption that had allowed sports and celebrity charters to make several pit stops in American cities. Under existing open skies agreements, regular Canadian airline flights can only visit one U.S. city before returning.

NHL Deputy Commissioner Bill Daly warns the charter ban will create a complicated “patchwork” of travel that could “wreck havoc” with the oncoming hockey schedule, including early league games in Europe, as teams scramble to book flights under the new rules.

“It’s potentially a very significant impact,” Mr. Daly said Friday. “It’s crazy and very destabilizing to our business. We’re operating on a long-standing interpretation and for it to change overnight on the eve of our season is creating a huge problem for us.”

Air Canada executive vice president Duncan Dee predicted the ruling will create “chaos” for teams shuttling across the border. “It’s extremely messy for both American and Canadian teams,” he said. It was a unilateral action imposed without consultation or Air Canada being able to defend itself. It’s obvious the U.S. Department of Transportation doesn’t watch hockey.”

The Air Canada charters fly under the Jetz label.

Mr. Baird said the dispute “shows the power of anti-free-trade Democrats in the Congress” and cautioned his government will respond in kind.

“We’ve already directed the Canadian Transportation Agency to launch a formal inquiry and the next step will be a direction to the CTA to immediately prohibit charter flights by U.S. carriers under season-long contracts with professional sports teams with multiple stops in Canada,” he said in an interview.

The ruling also side-swipes musicians and other artists on tour.

The matter was pushed by the U.S. Air Line Pilots Association. It had demanded an investigation of passenger lists on the NHL flights, which found a few examples of injured players, personal trainers and team owners boarding the charter south of the border and departing at another U.S. city in a technical violation of the agreement.

Despite the small number of passengers involved, the American side ruled it was enough to shut down an arrangement negotiated eight years ago during the George W. Bush presidency.

The Anaheim Ducks have pulled back from an Air Canada contract and there are concerns existing clients like the Boston Bruins and NBA Milwaukee Bucks will follow suit.

Air Canada says it still hopes Mr. Baird’s hard-line response will force a resolution by the time NHL season starts next month.

Former Air Canada president Montie Brewer says the Jetz charters are the only way to fly for teams that must reach their destinations without fail. Each charter plane comes with its own on-board mechanic and has exclusive access to private terminals regular airlines cannot use.

Hate-speech law violates Charter rights, tribunal rules

From The Globe and Mail:

Susan Krashinsky

From Thursday’s Globe and Mail Last updated on Thursday, Sep. 03, 2009 03:07AM EDT

A federal law governing hate speech violates Canadians’ charter rights to freedom of expression, the Canadian Human Rights Tribunal has ruled.

The development could give more ammunition to those who complain that the Canadian Human Rights Commission, which refers cases to the tribunal, is engaging in censorship by attempting to restrict what people say on the Internet.

The decision, released in Ottawa Wednesday, also seems to call into question whether the tribunal should be involved at all in policing online content through Section 13 of the Canadian Human Rights Act.

“This case raises questions about the substance of the law itself,” said Michael Geist, a University of Ottawa law professor who holds the Canada Research Chair in Internet and E-commerce Law. “This will only build the momentum for another examination of how we approach this.”

At issue was a complaint lodged with the tribunal against Marc Lemire, webmaster of Ottawa lawyer Richard Warman alleged that the messages posted on the site were discriminatory and exposed minority groups to “hatred and contempt,” key language under Section 13 of the law.

Mr. Lemire responded by requesting that the law be “declared inoperative” because it is inconsistent with the Charter of Rights and Freedoms. Tribunal member Athanasios Hadjis agreed. He wrote in the ruling that the law was originally intended to be “remedial, preventative and conciliatory in nature,” rather than a means to hand out penalties.

Section 13 defines it as “discriminatory” for an individual or group “to communicate telephonically or to cause to be so communicated … any matter that is likely to expose a person or persons to hatred or contempt” based on characteristics such as race, religion, sexual orientation, and so on.

Advocates call the law a necessary control on hate speech in an age where the Internet makes the spread of messages easier and faster. Opponents say it’s censorship and has no place in a free society.

The tribunal’s decision, which will likely be appealed, is not binding beyond Mr. Lemire’s case. However, it moves the debate forward, said University of Windsor law professor Richard Moon.

“It creates a new situation in which all the different legal and political actors have to think about what their response is,” Prof. Moon said.

In 2008, Prof. Moon wrote a report for the CHRC about the role of Section 13 in the Internet age that said the law should be repealed. He wrote that Internet use means that “any attempt to exclude all racial or other prejudice from the public discourse would require extraordinary intervention by the state.”

But Mr. Warman, who brought the case, disagrees.

“There is no unlimited right to speech,” he said. “The fact is, this was a hate website and it attracted hate.”

Mr. Warman cited postings by a visitor to that, in a separate case, the tribunal called “as vile as one can imagine and not only discriminatory, but threatening to the victims.”

Mr. Lemire said webmasters are not responsible for content on message boards.

“It’s not for the state to … decide what beliefs we can have,” he said. “People shouldn’t be put through a six-year-long hearing even if they’re Nazis, even if they’re communists, even if they’re racists.”

Bernie Farber, the CEO of the Canadian Jewish Congress, said all hate speech is a potential trigger.

“Racist war, from the ethnic cleansing in Cambodia, to the Balkans, to Darfur, to the Holocaust, did not start in a vacuum,” he said.

“Hateful words do have an effect. … The Internet cannot and should not be a wild frontier where anything goes.”

Is the Bank of Montreal (Canada’s 4th Largest Bank) About to Crash?

This is an interesting article, and if the premise is correct, it could mean trouble for Canada’s economy.

From Washington’s Blog:

Dan Amos – who called the crash of Lehman and other giants beforehand – says that a major bank is lying about its ability to pay shareholder dividends, has been gaming its books, and is about to crash.

Amos doesn’t say which bank he’s talking about, but gives the following hint:

[It has] a 192 year old history and 37,000 employees . . .

A quick Google search reveals that this can only be the Bank of Montreal, also known as BMO Financial Group.

Stock Gum Shoe – a website devoted to guessing at the companies hinted at in stock tips – confirms that Amos was talking about Bank of Montreal.

This is newsworthy because the Canadian banks have widely been seen as the world’s safest and most stable banks. Indeed, the Bank of Montreal was listed as the 33rd safest bank in the world by Global Finance (see page 2).

Amos says that the Bank of Montreal won’t be able to pay the promised $1.5 billion dividend scheduled later this year, which will precipitate a crash in BMO’s stock by December.

Note: I am not an investment advisor and this should not be taken as investment advice.

Read it here: