Trump's Plan to Bury China
Love him or hate him, President Trump isn’t one to run from criticism.
He embraces it.
Whether this is a positive or negative characteristic of his, well… that may just depend on whom you ask.
Unfortunately for his critics, he’s got one rather large advantage on his side: He does currently reside in the White House.
I know that thought doesn’t sit well with a vast majority of Americans, but it’s simply the reality of the situation.
And there’s one move he’s about to make that will cause an uproar from the public — at least, it will at first.
I’ll get to it in just a second, but the odd thing is… I’m not entirely sure he’s wrong this time.
But here’s the catch: It may not matter if he is!
First, let’s look at why he’s about to send Americans into a frenzy.
Our vulnerability to the critical and strategic resources today has widened to unfathomable levels.
Do you remember last week, when we talked about the incredible dependence we have on foreign imports for these commodities?
The Department of Defense has already identified our shortfalls on a number of materials.
Take just one example: germanium. The DoD uses this material for a variety of applications, from fiber optics and infrared optics to missile guidance and solar cells.
And with the U.S. producing a trivial amount of it, that means we have to rely on imports to satisfy 85% of our demand!
Of course, China is the world’s leading producer of it.
Again, this is just one example from a very, very long list.
I’ve read some reports that have called our mineral imports “out of control.”
I believe that’s a gross understatement.
Also keep something else in mind: This doesn’t include non-military use of these strategic resources.
Every single tech company on the planet needs to secure its own supply to sell you its newest smartphones, laptops… you name it. Think of any electronic product on the market today, and you can bet that company is just as dependent on China for materials as the Department of Defense.
In some cases, this brewing resource crisis extends beyond China...
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The future of electric vehicles certainly hangs in the balance, as companies like Tesla slowly realize the evil truth behind the world’s cobalt supply.
And the situation is prompting our president to take drastic measures.
Trump's Plan to Bury China
It really isn’t difficult to believe that China would use its dominance over these strategic minerals as a weapon.
After all, OPEC wielded its control over the world’s oil supply if it suited them.
My older readers remember all too clearly the oil embargo that OPEC placed on the United States (as well as several other nations) back in 1973.
The idea of spending endless hours in line for gasoline may be lost on younger generations, but it was a powerful weapon that drove oil prices 300% higher over a period of just six months.
And one of the reasons it was so effective against the United States was because we were growing more reliant on OPEC oil in the years leading up to that event.
Remember, U.S. oil production peaked in 1970 and had fallen nearly 12% up until the oil embargo.
In fact, it wasn’t until Alaska’s North Slope started ramping up production that the U.S. was able to lower its crude imports from OPEC.
So, when our president is told that there is a river of these strategic minerals nearly 1,000 miles wide buried beneath U.S. soil, it’s at least understandable why he’s interested in going after them.
The question is how far our president is willing to go.
At this point, he’s willing to have the U.S. Interior Department review a number of national monuments that are preserved under the Antiquities Act of 1906.
Right now, I can’t even imagine the blowback he would receive if he decided to revoke a national monument’s status.
But is this move really out of the question for him?
With more than $6 trillion worth of strategic resources left untapped… don’t be surprised when this situation explodes onto the main stage.
Until next time,
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
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