Re:        Chairman's Corner - Thursday, August 07, 2008
Title:     You Can Run, You Can Hide, But the Consequences of Financial Actions Will Hunt You Down
Author:    Jim Sinclair

Dear Friends,

1. The main play today is "verbal intervention" after the European Central Bank (ECB) left rates unchanged which is inherently bullish to the Euro. Statements made that softening economic conditions would be balanced with an inflation watch sent the technical analysis people (TAs) wild. Black Box stumbling over Black Box took the Euro down hard, with the US dollar appreciating in response.

2. The Federal Reserve pushed the panic button as the USDX ventured under .7200

3. The Federal Reserve sought assistance from other Central Banks because of what a drop below .7200 would mean.

4. The U.S.A. is producing more dollars than ever before in bailouts now proposed for manufacturing concerns which have gone well beyond financial entities.

5. The last three generations have three solid beliefs: There are no consequences; everything is due to them; and what is due to them is due today. This no consequences ideology is the basis of the lawlessness in the financial word which is subject to very little oversight and/or effective regulatory control. This desire to have everything without consequences has led to habits like Meth and Ecstasy.

6. This approach to life filters into markets.

7. The perception among the three generation financial children is that since the government has bailed out so many financial entities - and is now going to be pressured into bailing out manufacturing entities and their lending arms - all these problems are easily resolved because they always have been resolved in the past.

8. The perspective of the three generation financial children is that major manufacturing concerns will not default and financial entities' debts will all be covered by public money. As a result, all the serious credit and OTC derivative-related problems that could have trashed the world have been solved by government, avoiding any risk of a world economic collapse. What you are witnessing is technical analysis, now the mass mind of the mindless, taking temporary precedent over irrefutable fundamentals.

I have always taught everyone to use fundamentals first for direction and then Technical Analysis for the best possible answer you can get.

Conclusion:

a. The dollar is not the universal storehouse of value that Black Boxes make you think it is today.

b. Gold is a currency.

c. As Western economies all implode, the currency of choice - as in the 70s - will be gold.

d. Gold becomes the currency of choice when it appreciates faster than the slowest declining piece of worthless paper.

Therefore:

Investors do nothing but jump into that foxhole we have dug. Pull a rock over your head and peek out occasionally until the coast is clear.

For those up to their necks in margin, I suggest you call my dear old friend, Harry D. Schultz. However, be prepared to have your checkbook at the ready. Uncle Harry will not truck whiners. He has been around much too long to listen to emotions. If you are not willing to pay Harry his appropriate fee then call Jim Cramer.

For you margin players please do not call me because I reserve the right to tear into you for not listening to me regarding the use of margin. Pros simply do your thing.

Copyright � 2008 TANZANIAN ROYALTY EXPLORATION CORPORATION (TNX) All rights reserved. For more information visit our website at http://www.tanzanianroyaltyexploration.com/ or send email to info@tanzanianroyaltyexploration.com ..
Message sent on Thu Aug 7, 2008 at 3:46:32 PM Pacific Time

Tanzanian Royalty Exploration


	CODE : TRE
	ISIN : CA87600U1049

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Tanzanian Royalty Expl. is based in Canada.

Tanzanian Royalty Expl. holds various exploration projects in Tanzania.

Its main exploration properties are BIHARAMULO, SHINYANGA and KABANGA JV in Tanzania.

Tanzanian Royalty Expl. is listed in Germany and in United States of America. Its market capitalisation is US$ 49.0 millions as of today (€ 42.9 millions).

Its stock quote reached its highest recent level on August 13, 2010 at US$ 9.94, and its lowest recent point on December 15, 2017 at US$ 0.24.

Tanzanian Royalty Expl. has 122 437 228 shares outstanding.

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