Trade War Phase of the Currency War and Rare Earths

Rare Earth Deposits & Mining / Rare Earth Exploration, Mining, Processing, & Uses

Date posted: 12/25/15

Henry Ledyard opines that the trade war phase of the destruction of the U.S. economy is apparently beginning to ramp up. This involves protectionist policies after the removal of the U.S. dollar as a reserve currency. This is what happened in the 1930s leading up to the Weimer Republic currency collapse. He expects that the Chinese government would halt exports or artificially raise the market price of rare earth metals used in high-end steel production. As China controls 95% of rare-earth production, they have a sufficient monopoly to pain U.S. producers. The flow in effect would be to the tech sector as rare-earth metals are also heavily used in many high-tech circuits, albeit in smaller quantities than steel production. The bottom has not yet been reached in rare-earth share prices. If you want to read about the possible gloom and doom, read on ...