U.S. Senators Urge Obama to Block Unfair Chinese Mining Rare Earth Elements
U.S. Senators warn of China’s failure to fairly trade hoarded rare earth elements and urge Obama to block mining investment
According to U.S. Senators Charles Schumer, Debbie Stabenow, Robert Casey and Sheldon Whitehouse, China has been hoarding rare earth elements extracted both domestically and abroad, thus sending international costs of such elements through the roof. The Senators argue that China’s mining practices are anticompetitive and unfair, restricting export on their supply of rare earth elements while hoarding supplies extracted internationally.
"China also prohibits foreign investors from mining rare earths and from participating in rare-earth smelting and separation projects except in joint ventures with Chinese firms," notes the group of Senators in documents submitted to President Obama, Secretary of the Treasury, and Secretary of the Interior.
The Senators go so far as accusing China of using their “monopoly as a retaliation tactic against other countries.” China currently controls more than 90 percent of the rare earth element market, and in light of Obama's continued partnership with China for the pursuit of clean energy technologies, it is uncertain how the president will respond to such a requests.
Basically, by hoarding rare earth elements, China is able to control the price points of such goods by limiting supply. An example of the effect this can have comes from Sydor Optics, a company specializing in lenses for 3D applications based in Rochester, New York. In just a short period of time, the rare earth element compounds utilized in their operations rose from $8.50 per pound to $45 per pound. That kind of price hike is enough to put most companies out of business.
Fears also come from the U.S.’s proposal to increase electric vehicle production. Rare earth elements are key to manufacturing battery and other components for electric vehicles and other clean technologies. China’s stranglehold on rare earth elements could restrict the ability to cost-effectively move to implement clean tech projects and infrastructure development.
In the military sector, the limited supply of rare earth elements has also slowed production of weapons systems.
What the group of Senators propose to the Obama administration is to impose actions to restrict Chinese mining projects both within the United States and abroad in an attempt to send a clear message to China that the country must play fair in the international trading of rare earth elements, as access to such goods is crucial to the advancement of both technology and society as a whole.
Amschel Rothschild’s famous quote (and the scariest damn thing I have ever heard), states, “give me control of a nation’s money supply, and I care not who makes its laws.” Rothschild’s family dynasty created and controlled international banking for centuries. However, let us not forget that money is simply paper—no longer backed by any gold standard—and its value is now solely determined by society’s faith in it. When money loses its value—as we have seen time and again as economically downtrodden nations are forced to devalue their currency—then tangible resources, such as rare earth elements, are what hold value. China is essentially pulling the same stunt that the U.S. Federal Reserve and the international banking system have done for years, but instead of using print and coin money to play the world like fools, they are simply using actual mined resources. Smart… yet, scary.