Posted at 2:08 PM (CST) by & filed under Trader Dan Norcini.

Dear CIGAs,

Once again, as was the case in yesterday’s session, dip buyers were lurking beneath the market to take advantage of any setback in price to buy. Their buying took gold back into the plus column after the wee bit of Dollar strength emboldened the usual gold sellers. It sure seems to me that the gold bears are beginning to get a bit frustrated since the market is not behaving as they have come to expect. What appears to have changed is that the longs are standing their ground and are refusing to be stampeded out. Since it is panicked long liquidation that enables the bullion banks and their pals to rape and plunder the Comex gold buyers, any change in the stance of the bulls short circuits the perma-bear strategy. That is forcing those who hitch themselves to the bullion bank wagon to cover which in turn helps drive the price back off the session lows. So far this has occurred twice in the last two sessions. If this continues, overhead resistance is not going to hold and price is going to move higher. This kind of action is what I am accustomed to seeing in a market that is in a bullish posture so perhaps we are indeed seeing a change in the psychology of the bulls. That would confirm the reports of very large hedge fund and index fund purchases of gold. It also confirms that continued increase in open interest indicative of fresh buying coming in.

Activity is shifting to the August contract as the rollover intensifies before June goes into its delivery period. It will be interesting to see how that goes next month and whether or not we get another large set of stoppers and a drawdown in the Comex warehouse stocks, although I must say that I along with an increasing number of others who watch these things are convinced that the numbers being reported for both Gold and Silver stocks are as close to make believe as Cinderalla’s magic carriage or Dorothy’s ruby slippers.

One of the things I am noticing and I believe merits mention is the continued disappearing act of the US long bond. It is no coincidence that as the bond market disappears into the abyss that gold is steadily moving higher. Simply put – investors looking to protect their wealth are eschewing Treasuries and more and more favoring gold. And why shouldn’t they? The current Administration and its allies in the spendthrift Congress are creating Petri dishes full of healthy debt bacteria and providing them with everything favorable for cell division and multiplication. “Yo Paulie – ya need another couple trillion in debt?” “Sure thing Mickey – give me 3 trillion for the heck of it”. Would any investor in their right mind expect to protect or preserve their wealth by stashing it into long term US debt??? This is the reason that as the bonds sink, gold rises. The technical breakdown in the US long bond is a signal that the bull run in gold has begun in earnest. Until bonds find some kind of support on the charts, there really is no reason to sell gold. After all, what kind of safe haven is left particularly one that can protect you from the coming ravages of inflation?

Along this same line I should also note that crude oil (basis July) has broken out today into another new high for the year moving up to $63.45 as I write this. Once again the CCI (Continuous Commodity Index) is moving higher with unleaded gasoline approaching $1.90 at the wholesale level. It is now at the highest level since October of last year. Get ready for some more pain at the pump as driving season kicks off in earnest. Don’t worry however – now that Obama and the feds have taken over the car companies, we can all be happy and content squeezing our average sized family of 4.3 into a go cart that runs on a wind up rubber band and needs nothing but a giant sail to move it down the road. After all, what is $4.00 gasoline to those whose cars runs on the Energizer Bunny? Seriously, this move higher in the crude complex is noteworthy as the one saving grace for many unemployed Americans has been the relatively cheap cost of gasoline and energy. Once those begin to rise, cash strapped consumers are going to be caught in a vicious snare of rising food prices (see grains) and energy bills at a time in which many have turned to maxing out their credit cards in order to make ends meet while they look for new employment elsewhere.

I tell you something that is downright bizarre  – it is watching the British Pound shooting nearly straight up even after the fact that one of the rating agencies threatened to downgrade its sovereign debt. It just goes to show you how strongly the aversion to the US Dollar has become – traders are willing to buy just about anything rather than the Dollar!

Judging by the price action in the US Dollar, it sure looks like someone has sprayed a tank full of super-concentrated Round-Up on all those “Green shoots” that are supposedly sprouting up all over the place.

Technically, gold looks like it is setting up for a run at major resistance near $967-$970 basis June. All of the major moving averages, the 10, 20, 40, 50, and 100 day, are moving higher indicating the bullish trend in the market. Momentum needs to be watched as the Bears are going to fight in an attempt to hold it below the $967 mark.  They do not want a charge from hedge funds that would take it to $1,000 should bulls be able to muster sufficient force to propel price up through that last resistance level shown on the chart. The bullion banks are trying to soak up all the incoming bids once again. How does it feel to have these bastards using your TARP money to sell paper gold at the Comex?

Click chart to enlarge today’s hourly action in Gold in PDF format with commentary from Trader Dan Norcini


Posted at 7:00 PM (CST) by & filed under General Editorial.

Dear Friends,

Let’s first deal with my actions in the financing of my public company. I hope no stockholders get the wrong idea, but even though I intend to live to at least 108, should that expectation be wrong there is a key man insurance policy in place which, if triggered, would carry the company for at least 15 months by itself. That might be a unique method of financing so I’d rather prefer it does not occur.

There is also a written plan for succession. As far as “would I not care to finance goes,” that infers I would shoot myself in the foot, an unlikely event as I have never drawn a salary, have no options or warrants and am a substantial stockholder, the same as many of you are.

Stockholder Breakdown by USA vs. Canadian and Other

The offending news article of late says that 83% of our shareholders are American. That is simply not true. The reality is that 83% of the company’s “registered” shareholders are American. Registered stockholders are either paper certificate shareholders or direct registration stock holders. Registered shareholders make up less than 20% of the company’s total shareholders.

The correct figure, which the media did not fact check, is as follows:

43% of the company’s stockholders are in the US.

57% of the company’s stockholders are Canadian or other.

Therefore, the media’s assertion that 83% of the company’s shareholders are American is another glaring error caused by lack of fact checking.

Accounting Issues

Sarbanes Oxley has made efforts to accommodate corporations smaller than Cargill, IBM and GE but without much success.

You will note from the company’s Annual Statement on page 15 under “Management Discussion and Analysis” the comment, “that we have limited accounting personnel with the expertise in generally accepted accounting principles to enable effective segregation of duties over the transaction process with respect to financial reporting matters and internal controls over financial reporting.”

Following that comment, the remediation we have adopted is outlined. Keep in mind that this is management saying this as a product of Sarbanes Oxley models.

We have on staff a CPA in Toronto who is our CFO and a CPA (the Tanzanian equivalent) in Mwanza where our exploration office is located. We also have four full-time bookkeepers, three in Tanzania and one in the USA. We also have a consultant bookkeeper in the USA. The head of our accounting committee of the Board of Directors holds a CPA and a doctorate in accounting – a rare combination.

Out of a total full time employee roster numbering 53, which does not take into account casuals, six are full time on the accounting process. That seems reasonable to me.

In remediation of our interpretation of Sarbanes Oxley, accounting tasks are now being made as person specific as practical.

We are audited both in Tanzania and in Canada by one of the top four auditing firms internationally.

I call your attention to the signed Auditors letter on page #17 titled “Auditor’s Report to the Shareholders.”

You will note the letter is signed and you should read it to see exactly what it says.

The annual statement is available on our company’s home page at:

Why publish a hatchet article about a company?

1. You really believe the information you have been given or researched feeling you are destined to do the work of God. You assume that markets are no judges of worth as compared to your humble self being motivated to set that wrong as righted.

2. Unknowingly you are working on behalf of a short position usually revealed by a major increase in the reported short two weeks in advance of the article until publishing date when the increase stops.

3. Unknowingly you are working on behalf of a company with interest in acquiring the company or certain assets of the company in discussion of the article.

Posted at 6:46 PM (CST) by & filed under General Editorial.

Dear CIGAs,

With the Fed prepared to buy Treasuries, the US will not at this time face a failed auction. If they weren’t that would be the scenario we would now be facing.

The under-current of the utilization of quantitative easing is hyper inflationary because it is so dollar negative.

Remember hyperinflation is NOT an economic event, it is a currency event.

If you study market history you will see the glaring truth that the Weimar experience would not have happened if German debt markets were not used as a vehicle to heavily short the Weimar Mark.

It was the Weimar mark short sellers that created the Weimar hyperinflation just as the OTC derivative shorts will cream the US dollar with the unavoidable effect being hyperinflation.

I know of what I speak. About the above there is no doubt. There is no real argument to the contrary and you can count the number of those outside of our community on one hand who understand how hyperinflation is created.

Posted at 6:45 PM (CST) by & filed under In The News.

Dear CIGAs,

Gold is getting ready for a ballistic move upwards. Are you hedge funds in denial?




Jim Sinclair’s Commentary


1. Gold reacts as currency support for the dollar enters mid June to a slow decline (that is the official definition of a strong dollar policy, really).
2. End of 2nd week going into the beginning of the 3rd week of June Gold launches towards and this time through the neckline of the reverse head and shoulders formation.
3. Gold rises to $1224 where it hesitates.
4. The OTC derivative market takes on the dollar as short sellers into dollar support.
5. This OTC derivative currency short position builds.
6. It is the US dollar where Armstrong will get his WATERFALL.
7. The main selling takes place when Israel makes a major miscalculation.
8. Hyperinflation is always and will continue to be a currency event.
9. Hyperinflation will be a product of the upcoming massive OTC derivative short dollar raid.

Should I be correct in the gold price action going into late June, it will fit Armstrong’s criterion for a move to $5000.

Alf’s work permits an over-run of the gold price to $3500 in the major 3rd phase, indicating overruns into the major 5th.

Jim Sinclair’s Commentary

The Federal Reserve has no other option. They will continue Quantitative Easing.

The definition of Quantitative Easing is simple money printing.

Since the US will not (or cannot) consider a guarantee of Treasury Debt in gold at market related prices (lack of transferable supply) the Chinese central bank will continue their various efforts to diversify out of Treasury debt.

Those that feel the Chinese cannot diversify and think that the only way is via the open market for treasuries or dollars are so stupid it make me ill that they speak publicly.

China warns Federal Reserve over ‘printing money’
China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed’s direct purchase of US Treasury bonds.
By Ambrose Evans-Pritchard
Last Updated: 9:19PM BST 24 May 2009

Richard Fisher, president of the Dallas Federal Reserve Bank, said: "Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."

"I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States," he told the Wall Street Journal.

His recent trip to the Far East appears to have been a stark reminder that Asia’s "Confucian" culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.

Mr Fisher, the Fed’s leading hawk, was a fierce opponent of the original decision to buy Treasury debt, fearing that it would lead to a blurring of the line between fiscal and monetary policy – and could all too easily degenerate into Argentine-style financing of uncontrolled spending.

However, he agreed that the Fed was forced to take emergency action after the financial system "literally fell apart".


Jim Sinclair’s Commentary

Of course it will be settled. There is so much dirt in these type transaction that discovery, a civil suit procedure, would reveal much too much.

UBS, JPMorgan Drop Asset Seizure Appeal in Milan
By Elisa Martinuzzi and Sonia Sirletti

May 25 (Bloomberg) — UBS AG, Deutsche Bank AG, JPMorgan Chase & Co.and Depfa Bank Plc dropped an appeal against the seizure of 345 million euros ($482 million) of assets amid a probe into alleged fraud involving derivatives sold to the City of Milan, said two lawyers representing the banks.

The banks dropped the appeal at a hearing in Milan today. The prosecutor is considering a May 7 request by the securities firms to put up about 100 million euros of cash in total in exchange for having the assets returned, the lawyers said.

The police froze the banks’ stakes in Italian companies, real estate assets and current accounts. The City of Milan is suing the four banks after it lost money on derivatives it bought from the lenders in 2005. The banks earned about 101 million euros in what prosecutors call illicit profit for arranging the contracts.

“The banks probably didn’t want to run the risk of a ruling against them so early on in the case,” said Giampiero Biancolella, an attorney who’s not involved in the case. “Lawyers may be buying time to reach an agreement with Milan outside the courts.”

Officials for Deutsche Bank and Depfa declined to comment. The claims at issue will be discussed in the course of the investigation, said UBS’s lawyer Giuseppe Bana.


Jim Sinclair’s Commentary

Let’s hear another big round of applause for the Greenwich, CT OTC derivative manufacturers and distributors who have taken to screwing the widows, orphans, homeless, frail, sick and dying.

Society must have a safety net or there is no society, just a bunch of people with little excuse for being.

Crime is going to skyrocket in California. Keep in mind the many street people are prior residents when there used to be bughouses.

Governor plans to completely eliminate welfare for families
3:58 PM | May 21, 2009

Gov. Arnold Schwarzenegger is proposing to completely eliminate the state’s welfare program for families, medical insurance for low-income children and Cal Grants cash assistance to college and university students.

The proposals to sharply scale back the assistance that California provides to its neediest  residents came in testimony by the administration this afternoon at a joint legislative budget committee hearing. It followed comments by the governor earlier today that he would be withdrawing a proposal to help balance the budget with billions of dollars of borrowing and replacing it with program reductions.

The proposals would completely reshape the state’s social service network, transforming California from one of the country’s most generous states to one of the most tightfisted. The proposals are intended to help close a budget deficit estimated at $21.3 billion.


Jim Sinclair’s Commentary

What have I been most concerned about for over a year now, warning you time and time again?

The answer is UNFUNDED PENSION FUNDS and similar make believe payable social/business obligations workers have become dependent on.

The next two decades are going to see massive draining of the gene pool.

Look at what is hidden in the article below that is deserving of its own headline.

The Oxford-educated Mr. Fisher, an outspoken free-marketer and believer in the Schumpeterian process of "creative destruction," has been running a fervent campaign to alert Americans to the "very big hole" in unfunded pension and healthcare liabilities built up over the years by a careless political class.

"We at the Dallas Fed believe the total is over $99 trillion," he said in February.

China warns Federal Reserve over ‘printing money’
China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed’s direct purchase of US Treasury bonds.
By Ambrose Evans-Pritchard
Last Updated: 9:19PM BST 24 May 2009

Richard Fisher, president of the Dallas Federal Reserve Bank, said: "Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."

"I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States," he told the Wall Street Journal.

His recent trip to the Far East appears to have been a stark reminder that Asia’s "Confucian" culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.

Mr Fisher, the Fed’s leading hawk, was a fierce opponent of the original decision to buy Treasury debt, fearing that it would lead to a blurring of the line between fiscal and monetary policy – and could all too easily degenerate into Argentine-style financing of uncontrolled spending.

However, he agreed that the Fed was forced to take emergency action after the financial system "literally fell apart".


Jim Sinclair’s Commentary

Debt is totally out of hand and beyond control.

It is no longer just a possibility – it is now a reality. The Chinese are totally correct in demanding a guarantee.

Government debt swells as choices get harder
Carolyn Lochhead, Chronicle Washington Bureau
Sunday, May 24, 2009
(05-24) 04:00 PDT Washington

This year, the government is borrowing 50 cents of every dollar it spends. If that were just a blip caused by a historic financial crisis that necessitated a $787 billion fiscal stimulus and a $700 billion bank rescue in the space of about three months, there would be little cause for concern.

But it is not a blip. It is a relentless curve of red ink that will, within the decade, take U.S. debt levels to the record reached at the end of World War II, from 40 percent of the nation’s output now to 80 percent, and then rapidly thereafter into the realm of banana republics.

"We are accumulating a massive debt. We owe about half of that debt to foreigners, including the Chinese and others whose foreign policy is not always well aligned with ours," said Isabel Sawhill, a former Clinton administration budget official who now co-directs the Center on Children and Families at the Brookings Institution. "So we are really losing control of our economic destiny and possibly losing control of our foreign policy as well."


North Korea Claims to Conduct 2nd Nuclear Test


Published: May 24, 2009

SEOUL, South Korea — North Korea announced on Monday that it had successfully conducted its second nuclear test, defying international warnings and drastically raising the stakes in a global effort to get the recalcitrant Communist state to give up its nuclear weapons program.

The North’s official news agency, KCNA, said “The Democratic People’s Republic of Korea successfully conducted one more underground nuclear test on May 25 as part of the measures to bolster up its nuclear deterrent for self-defense in every way as requested by its scientists and technicians.”

The test was safely conducted “on a new higher level in terms of its explosive power and technology of its control,” the agency said. “The results of the test helped satisfactorily settle the scientific and technological problems arising in further increasing the power of nuclear weapons and steadily developing nuclear technology.”

Word of the test sent a shudder through Asian financial markets and clearly caught South Korea and the United States off guard. The news hit just as South Korea’s government and people were mourning the suicide of former President Roh Moo-hyun. And hours after the test was reported, South Korean state media reported that the North had fired a short-range missile.



Jim Sinclair’s Commentary

The real story here is the revision of the prior month. There was no so-called Green Shoot here ever this year.

U.S. home prices fell 18.7 percent on year in March: S&P
Tue May 26, 2009 9:33am EDT

NEW YORK (Reuters) – Prices of U.S. single-family homes in March fell 18.7 percent from a year earlier, while prices in the first quarter dropped at a record pace, according to the Standard & Poor’s/Case-Shiller Home Price Indices released on Tuesday.

On a month-over-month basis, the index of 20 metropolitan areas fell 2.2 percent in March from February, S&P said in a statement.

Price drops on both a month-over-month and year-over-year basis were worse than expectations based on a Reuters survey of economists.

The composite index of 10 metropolitan areas declined 2.1 percent in March from February for a 18.6 percent year-over-year drop.

"Declines in residential real estate continued at a steady pace into March," David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s, said in a statement.



Jim Sinclair’s Commentary

2,300,000 Pakistani are homeless and foodless.

This is not what wins the hearts and minds of the populous when all they see is US equipment and Pakistanis in US combat uniforms coming over the hill blowing everything in sight to ashes.

Sustainability is the key to this action, and you can wager there will not be much of that.

Pakistan battles for Swat capital, 2.38m uprooted
By Lehaz Ali – 1 day ago

PESHAWAR, Pakistan (AFP) — Pakistan’s military said Monday it was facing "stiff resistance" as it battled to wrest Swat valley out of Taliban hands, in an offensive that has now scattered 2.38 million terrified civilians.

Military spokesman Major General Athar Abbas warned it could take up to 10 days to regain control of Swat’s capital Mingora, as the punishing assault across three rugged northwest districts entered a fifth week.

A Taliban spokesman told AFP that firebrand commander Maulana Fazlullah had asked Taliban to stop battling in the key city, but said the insurgents would continue to fight for their vision of imposing a harsh brand of Islamic law.

"Maulana Fazlullah has directed all his mujahedeen to stop resistance in Mingora and its surroundings to avoid hardships to the people and losses to the civilian population," spokesman Muslim Khan said from an undisclosed location.

But he added: "We will fight for the enforcement of sharia law till the last drop of our blood."

Ground forces have been fighting street-by-street with Taliban fighters in Mingora, the business and administrative hub of the scenic Swat region which has been ripped apart by a two-year insurgency by the Islamist extremists.



Jim Sinclair’s Commentary

The price of gold is preparing for a ballistic move upwards.

I count this geometric up-move in price to appear in weeks, not months.

Trading here borders on a serious case of self destructive tendency.

Gold bugs at last have their perfect trinity
China has doubled its bullion reserves and left us in no doubt that it will spend more of its $40bn monthly surplus on hard assets rather than the toxic paper of Western democracies.
By Ambrose Evans-Pritchard
Last Updated: 9:36PM BST 23 May 2009

The world’s top hedge fund manager John Paulson has built a gold position of at least $5.5bn, the biggest such move since George Soros and Sir James Goldsmith bet on Newmont Mining in 1993.

Britain has become the first of the Anglo-Saxon "AAA" club to face a downgrade. As feared, the cancer of bank leverage is spreading to sovereign cores.

Gold prices tend to slide in late May and languish through the summer, because of the seasonal ups and downs of jewellery demand. The trader reflex would be to short gold at this stage after its $90 vault to $959 an ounce over the past month. They may think again this year.

Paulson & Co has bought $2.9bn in SPDR Gold Trust, the biggest of the gold exchange traded funds (ETFs), which now holds 1106 tonnes − three times the Brown-gutted reserves of the United Kingdom.

Mr Paulson has also built up a $2.3bn holding of Anglo Ashanti, Goldfields, Kinross Gold, and Market Vectors Gold Miners. The fact that he is launching a "Paulson Real Estate Recovery Fund", reversing the bet against sub-prime securities that made him rich, tells us all we need to know about his thinking. This is a liquidity-reflation play.

He may be wrong, of course. In his early fifties, he belongs to the baby-boom cohort most psychologically vulnerable to the 1970s "paradigm-error". And perhaps he has never lived in Japan.


Posted at 2:20 PM (CST) by & filed under Jim's Mailbox.

Dear Jim,

Are you saying that I should wait until sometime in June to buy gold?


Dear Arlen,

Absolutely not. We are in major #3 according to Alf.

The overrun price could be as high as $3500.

The low in June could be from higher levels than today.

Who cares about a few dollars when you might be looking at thousands of dollars of appreciation.

If you are a trader I can’t help you. Ask God, maybe he can shed some light.

Respectfully yours,

Posted at 10:00 AM (CST) by & filed under General Editorial.

Dear CIGAs,

Of all the items mentioned in the media’s article that was in poor form was their focus on a C$2,000.00 fine paid over a decade ago to the Western Canadian authorities concerning a public release made by my private, not public, company of which I was Chairman.

To best understand the motivation and intrigue with vast implications of this battle, I respectfully request you review the article, “The Men Who Moil For Gold.” This proxy contest personally cost me USD$5,000,000 with 21 attorneys and legal associates in four countries.

Click here to read the article “The Men Who Moil for Gold.”

The result, as in all proxy contests, was to put the company in play, resulting in quite a success.

Counsel prior to release cleared this document, but that is no guarantee that regulators would not decide it was untoward.

What I feel you need to know is that document was in the context of a viscous proxy contest between the private company Sutton Action Committee of which I was chairman and the public Sutton Resources Ltd. of which I remained director.

The event focused upon by the media article was the last item of the finalization of the proxy that included cancellation of seven lawsuits.

My dear departed wife was motivated to do something for the local Kahama district so an agreement was entered into with Barrick Gold for Barbara to finance the building of a USD$1,300,000 hospital at the Bulyanhulu with Barrick agreeing to maintain the hospital thereafter.

Below is a bronze placard that is in the hospital memorializing Barbara’s deep caring for the Tanzanian people.


This was but one of 18 significant projects Barbara and our daughter undertook with their own funds to recognize the warm welcome and hospitable attitude of the Tanzanian people.

Posted at 11:00 AM (CST) by & filed under General Editorial.

Dear CIGAs,

Because of my deep interest in Tanzania, the following article is for me a great honor.

Tanzanian President seeks US economic cooperation
Saturday 23 May 2009, by Konye Obaji Ori

President Kikwete has visited Silicon Valley to meet with technology giants (CISCO, IBM, Google) to discuss technology growth in Tanzania, he has visited Stanford University to discuss clean drinking water for rural Tanzania, and he has met with president Obama to discuss ways of improving development policy in the fields of health, education, and agriculture, and ways of solving some of the most pressing conflicts on the African continent. Reports claim that he is scheduled to visit international organizations and international financial institutions to discuss the way forward for Tanzania’s economy.

According to reports, the active Tanzanian leader was scheduled to discuss the proposed building of an Information Technology college at the University of Dodoma in Tanzania and the possible laying of a fibre-optic cable in Tanzania with Cisco and IBM. He also met with Google to find ways to speed up development and promote efficiency in Tanzania. In three months from now, Tanzania is expected to establish Seacom, the first of three undersea fiber optic cables which will connect East Africa with Europe.

President Kikwete who is a former military officer and an unswerving supporter of Tanzania’s founding president, Julius Nyerere, on Wednesday recieved an award in Los Angeles for his efforts to improve health on the African continent, and for pushing his administration into increasing the country’s health budget to 11 percent.

The Tanzanian president is the first African Head of State to visit the White House under President Obama’s regime. He sat with president Obama at the white House to discuss the Democratic Republic of the Congo, Darfur, Somalia, the current political situation in Kenya and the ongoing tension between mainland Tanzania and Zanzibar were discussed in the meeting.

Tanzania has not had the type of internal strife that has plagued many African countries, though it remains one of the poorest countries in the world, with many of its people living below the World Bank poverty line, it has had some success in wooing donors and investors. Unlike many African countries, whose potential wealth contrast with their actual poverty, Tanzania has few exportable minerals and a primitive agricultural system.

The Tanzanian President is however commended by observers as doing his bid to continue the good work started by his predecessor (former President, Mr. Benjamin Mkapa) who is credited by the IMF and World Bank as being the driving force behind Tanzania’s extensive economic liberalization, which contributed to the country’s economic growth as well as a considerable drop in inflatio