Question by Alien Politican: The Biggest economic Bubble in the world is might pop.?
It’s the bubble you’ve probably never heard of: The rare earth bubble. No it’s nothing like the real estate bubble in character or proportion. And it may very well pop in the next year coming year or so. This isn’t something people hear about very often or ever at all, but it is going to potentially devastate the industries of western nations that depend on these rare elements.
China only has about 30 percent of the world’s rare earth metal deposits, but thanks to clever planning it today controls 97 percent of the world’s production of these scarce resources. Deposits of this family of 17 elements — vital to power electronics found in televisions, smart phones, electric vehicles, and a variety of other devices. The last remaining manufacturing capacity and industries in the west rely on these scarce resources E.G Lockheed martin, boeing, Rathion and etc i.e the industries china cannot compete with us in, are dependent on the Chinese for the resources!
In short the world is at China’s mercy for now when it comes to rare earth supply. And China’s biggest rare earth metal producer — the Inner Mongolia Baotou Steel Rare-Earth (Group) has announced that it is severing shipments to the U.S., Japan, and Europe for one month in an attempt to artificially inflate prices.
The news that China might withhold rare earth exports to other nations has renewed urgency in revitalizing the rare earth industry in 2012, more or so. Rare earth elements are vital in the production of hundreds of modern technologies. They can be found in cell phones, i-Pods, computer hard drives, green technologies, and critical military weapons systems to name a few. China produces over 95% of the world’s rare earth elements, and the country has been steadily cutting back its export allocations since 2006, causing the Western world to begin scrambling for alternatives.
IS ARE GOVERNMENT DOING ANYTHING?
no, not really. While governments and private companies seek out alternative sources, there is really no credible way to look at it. With all the fuss over rare earth elements by government officials and investors, it is important that decision makers have a basic understanding of the industry in order to promote good decision-making.
Do we really have a choice?
No, if China cuts off all exports of rare earth elements, we will no longer be able to manufacture modern day technology in the western world, – china will gain complete monoply power in the secondary sector. the Western world will be crippled by the collapse of available rare earth elements. Manufacturing of everything from computers and electronics to farm machinery will grind to a halt. Electronics will disappear from the shelves and prices for manufactured goods that depend on these rare elements will skyrocket, and the only alternative is to look to china to produce these – china will make the REE Available to only chinese industries. Yes REE are not all the same thing, but china holds monoply power over most of the important elements. So if you are thinking we still have the upper edge over china your wrong.
Don’t we have are own supply of REE?
Yes, we do. The U.S currently holds the second biggest reserves of REE, while starting up rare earth mining and processing operations outside of China will be beneficial, the current rare earth crisis is about more than a lack of diversified sources. It will take At least 15 years to get a kick start of in this, finding, mining, refining and processing is a huge procedure. We do not have the time to fill in the gap, while the supply of REE might stop next year.
Restarting the supply chain will take time, money and expertise, the latter of which is largely missing or in retirement status in the United States. While China’s expertise in the industry has grown, the United States seems to have lost or is losing most of a generation of scientists, engineers and academics in the field.
I just want to know your thoughts on this.
Can you suggest a method to stop this?
Do you have an alternative?
Is there a easier way?
What ever idea you want to discuss through it in, i want to know all the thoughts i can get.
Answer by chebrew2000
Sounds like the foundation for starting WWIII to me.
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