How Long Does.It Take To Get A Defense Logistic Review Real Global Commodity Warfare – REEs or Rare Earth Elements

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Real Global Commodity Warfare – REEs or Rare Earth Elements

It is well-known by now, that the reason we won World War II is that we could out produce the Germans, and even though our technology was not as good, we had plenty of raw materials, lots of labor, and they were running out of everything. Perhaps you can understand why such raw materials are so important to our nation’s security. It also might help you understand how other nations might attempt to disrupt our flow of raw materials, in order to serve their political will, all the while knowing that we can’t do anything about it without them.

Interestingly enough, the Chinese sees international trade and war on the same line graph, simply at different ends, meaning trade negotiations are just a lesser version of war, and that if the differences can’t be worked out, the intensity and the move on that line graph towards war is the obvious next step. Well then, it’s hard to play global trade with someone that doesn’t see trade negotiations as a win-win Western style situation. Nevertheless, when push comes to shove, and another nation draws their sword against the United States, well?

Two can play at this game, and it seems MolyCorp is doing just that as outlined in the Denver Business Journal on March 9, 2011 with an article titled; “Molycorp’s $1.3B bid for Neo boosts processing capacity, China access,” by Mark Harden, New Media Editor – which stated:

“Colorado-based rare earths miner MolyCorp Molycorp Inc. Latest from The Business Journals Follow this company gains the ability to process what it mines, plus access to the China market, with its proposed $1.3 billion purchase of Canada’s Neo Material Technologies Inc., and ironically, the deal also could further America’s goal of greater independence from China’s near-monopoly on rare earths vital to technology and defense — but could involve processing U.S. rare earths in China.”

Indeed, the Wall Street Journal had slightly a different set of thoughts on the story; “Rare-Earth Deal Rings Alarm,” by James T. Areddy where he quoted the President of US Magnetic Material Association; “The US is already dangerously dependent on China” for rare earth magnetic materials for our weapons manufacturing, “this will only exacerbate the problem,” and thus, we will be increasing our national security by digging up the materials and being in possession of them alleviating extortion, but if we ship them to China for processing and some manufacturing is done there we have not really have solved the problem.

Interestingly enough, President Obama “unveiled a new proposal to spend $1 billion to create a national network of as many as 15 Institutes for Manufacturing Innovation around the country,” according to the Austin Business Journal, indeed this plan is in his proposed budget to Congress, which some say is DOA because of all the nonsensical socialist pork in the overall budget. Did China make a big mistake threatening us with cutting off our supply of rare Earth elements? Yes, and they were using extortion tactics to drive our technology into their country where the manufacturing could be done, and the technology stolen.

That’s just too dangerous with a communist nation which could easily resort back to a sense of strong nationalism, and do exactly what Hugo Chavez, and Evo morale is did in South America; begin nationalizing foreign assets, companies, factories, and production. Imagine what the United States could lose if that happened? Was it a wake-up call for America? It sure seemed to be? And perhaps, China needs to start thinking like the United States when it comes to fair in free trade.

They will do better in the long run, become a wealthier nation, and not have to deal with the obvious problems that go along with communism and revolutionary cycles when the people have had enough. If China wants to enjoy the abundance, and keep 1.3 billion people happy, the first thing they need to do is make sure that the United States and their other trading partners are also happy in the process.

They have a lot to lose if they keep playing games like this. Likewise, they have a lot to gain if they would stop trying to put the screws to us. Of course this article is not a threat, it’s just an observation, what China does, is their choice and their business, and whatever they do end up doing, well then we have some choices to make as well then don’t we? Please consider all this and think on.

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