Trump 2.0 official thread

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RoastGooseHKer

Junior Member
Registered Member
AssassinsMace said:
Frankly China should go further and to the least also raise the price. Why should there be a reprieve for non-military US sectors in getting Chinese rare earths when the US is working to undermine China overall economically to stop China from having leverage in anything?

India is doing with Chinese rare earths what they’re also doing with Russian oil. It’s so cheap that they’re reselling it to the West where they can still turn a profit.

I like these kinds of moves where China is buying up the coffee from Brazil that would’ve been sold to the US. That way China helps partners and Americans are going to face higher prices from lower supply. Americans love their coffee.
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A smarter strategy would be to keep the rare earth price somewhat high for existing customers. But as soon as the US and others were ABOUT to finish their rare earth processing facilities, drop the price in sudden assault. It is how big companies drive small but rising competitors out of business.
 
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GulfLander

Colonel
Registered Member
South Korea’s presidential policy chief said the country’s $350 billion investment pledge as part of the US trade dealis largely structured as loan guarantees rather than direct capital injections, seeking to ease domestic concerns over the scale and risks of the agreement.

In a televised interview on Sunday, Senior Presidential Policy Director Kim Yong-beom said Seoul’s actual equity commitment would remain below 5%, emphasizing the initiative is designed to support commercially viable, pre-vetted US-based projects and not intended to provide unconditional financial support.

“The most accurate way to understand the $350 billion is as a credit guarantee ceiling,”
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SlothmanAllen

Senior Member
Registered Member
RoastGooseHKer said:
A smarter strategy would be to keep the rare earth price somewhat high for existing customers. But as soon as the US and others were ABOUT to finish their rare earth processing facilities, drop the price in sudden assault. It is how big companies drive small but rising competitors out of business.
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I think the reality is that any US production of these type of minerals will not be based on market fundamentals, but subsidized by the government because of their critical nature to military applications. Had they been doing thing for the last several decades China's production dominance wouldn't even be an issue for them now.

Way too much faith in the free-market has dominated most Western nations over the past ~40 years. I think you will see a trend away from that in the future, but it is going to take a long time to make any significant progress.
 
Temstar

Temstar

Brigadier
Registered Member
SlothmanAllen said:
I think the reality is that any US production of these type of minerals will not be based on market fundamentals, but subsidized by the government because of their critical nature to military applications. Had they been doing thing for the last several decades China's production dominance wouldn't even be an issue for them now.

Way too much faith in the free-market has dominated most Western nations over the past ~40 years. I think you will see a trend away from that in the future, but it is going to take a long time to make any significant progress.
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I don't think US is very good at doing industrial policy, for evidence of this all you have to do is look at the sorry state of Intel despite all that CHIPS act money going into their 14A node.

I rather doubt US can produce REE any time soon, all the noise recently seems to be Well Street type people using REE news as a play to push share prices up and down for day trading, rather than actual people getting down and doing the hard work of building up a refining industry.
 
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