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The United States says it will take "unprecedented actions" to ensure the supply of strategic elements and rare earths, as China mulls possible export controls for materials that are critical to modern technology.
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In December 2017, Trump called on the Department of Commerce and other US agencies to develop new sources of critical materials to reduce vulnerabilities to supply disruptions, especially from foreign sources.The US report calls for improving supplies "through investment and trade with America's allies," while streamlining the issuance of permits for mining in the United States, including on federal lands.
It also lists a plan to improve mapping and data collection to promote domestic exploration.
And to think only a few short decades ago we were going to war for oil...
(Score: 5, Interesting) by FatPhil on Thursday June 06 2019, @08:15AM (6 children)
Why? It's not because we have a huge supply of them ourselves. We had some - our north east was a great source of ores for the empire during Soviet times, but those are heavily depleted and polluted now. Simple - we're processing and manufacturing supplies that come from countries like ... nah, I'll let you guess ... ready? ... written it down? ... OK, here goes ... China! Microeconomics is just a set of equilibria - you try to push one thing, other things move to compensate, and you don't achieve what you originally intended. Congratulations, pat yourself on the back and award yourself and your economic advisors "I'm useless at the job I was appointed for" awards.
First:
Trump announces tariffs against China.
Next, almost simultaniously:
Chinese exports to the US drop by billions.
Chinese exports to Vietnam jump by billions.
Vietnamese exports to the US jump by billions.
Not just Vietnam - Taiwan too, and even Mexico. All told, pretty much all of the changes in the trade deficit are easily explicable this way.
Good for Vietnam, good for Taiwan, good for Mexico, and back to rare earths, good for Estonia. Good for the US's allies! Bad for efficiency, having extra middle-men in the loop. Who pays for that inefficiency? You know the answer to that, it's the same people who would have to pay the tariff if they insisted on not "cheating". (Handy hint to any Trumps reading - it's not China.)
Oh - look at the market prices for rare earths - they've not blipped at all. I mean in the time Gold changed +3% (on just rumours that a fed rate drop might be considered), vanadium and erbium, and the one beginning with pr that I can't spell, and molybdenum, and all the rest of them changed 0.00%. That's how much impact this blustering really has.
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 0) by Anonymous Coward on Thursday June 06 2019, @01:01PM (1 child)
You assume the purpose of the blustering isn't to create a narrative like "trade war suppresses stock prices". Then the people involved in the blustering can pump the market at will by "ending" it.
(Score: 2) by FatPhil on Friday June 07 2019, @10:30AM
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 0) by Anonymous Coward on Thursday June 06 2019, @02:59PM
Also, the quality of zerohedge has dropped by so much the last few years. Not just the comments but the articles are getting dumber and dumber.
(Score: 2) by Phoenix666 on Thursday June 06 2019, @03:27PM (2 children)
How does one come by a flat in Tallinn, as a non-Estonian? Out of curiosity.
Washington DC delenda est.
(Score: 0) by Anonymous Coward on Thursday June 06 2019, @10:31PM
Go for the hookers and cocaine and stay for... The hookers and cocaine. FatPhil amirite?
(Score: 2) by FatPhil on Friday June 07 2019, @10:21AM
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves