China bans everything, but the one matter here is rare earth. So, you can effectively say China bans rare earth to these companies.
American Economics Thread
- Thread starter Bernard
- Start date
broadsword
Brigadier
Think of the way the EU gets its Russian gas now. Also, the two companies can get from other producing countries like Australia.
Only China has heavy rare earth. Australia Lynas factory in Malaysia might shut down this week.
The US will just use fences to get the product they need. Just like back in the Cold War they imported titanium metal from the Soviet Union to make the SR-71 claiming it was going to be used for golf clubs and the like. It will just increase costs and make things slightly more difficult for them.
China should avoid directly exporting the rare earths, and export only finished products, to make this even more expensive and cumbersome for them. It would mean the US would have to recycle products to get rare earths.
China should avoid directly exporting the rare earths, and export only finished products, to make this even more expensive and cumbersome for them. It would mean the US would have to recycle products to get rare earths.
This aspect is huge. I am surprised nobody is talking about it.
When trade war happened everyone was screaming this, but we managed without it. Now it happened people are not talking about it yet.
Q2 will be even lower because Fed will have to raise interest again as inflation has not cool down enough. This year US will be likely to go into recession.
While it is true that de-dollarization has started. Just understand that due to network effects, the sheer size of USD's dominance in global markets will take many years to erode.
There's quite a bit of time before Titanic sinks. Though to be fair, a few years goes by in a blink of an eye, and I'm not even 30.