China Forcing Rare Earth Factories Into China

So many things happening at once!  Hard to keep up.  The EU/US invasion of Libya is a success, sort of, we shall see if holding it is as dangerous as holding Afghanistan and Iraq.  Stealing the oil will be a piece of global warming cake!  We need to consume more oil, of course, that is, the elites need to steal more oil profits while telling us it is killing us, burning this oil.  So they have to tax that, too.  For themselves.  Meanwhile, the Chinese Dragon continues cheerfully with the stupendous 50 Year Program of moving all US and EU industries to Chinese control.  And we can’t stop them at all.

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The US is so accustomed to pushing around various nations, we have forgotten that some are bigger or smarter or both and if this is combined with possession of nuclear weapons and a strong military, we can’t push these countries around at all.  So far, the main country we can no longer push around happens to be nuclear-armed China that scores, by far, the highest in all international education exams and pumps out more scientists and capitalists in raw numbers due to its huge population size and culture.  It is overwhelming the EU, US and dying Japan.

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As we look at history and the world today, it is quite remarkable that the most dynamic modern manufacturing economies on earth happen to be exactly where communist rebellions succeeded and then collapsed.  One would surmise, looking at this quite dispassionately, that there is a very strong connection between going communist and then turning capitalist.  Since these were all once either colonial countries subjected to foreign domination or dead empires that lost their heads in rebellions and wars, the fact that the modern capitalist cultures thrive precisely there the most is ironic in the extreme.

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One of the key elements of all of these communist revolutions was to expand education beyond the doors of the elites and to armies of illiterate, oppressed peasants.  This, in turn, destroyed the communist dictators due to people being able to think and read and calculate things.  On the other hand, the wellspring of a massive capitalist revival grew out of the bed of universal education, hyper-striving to prove superiority of the communist system and the communist bureaucracy itself, unbelievably.  Yes, the State system set up by communists is perfect for capitalists to thrive!

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China is a prime example of this.  The two heads of China are both intellectuals, not populists.  They don’t talk like they are fake Texan cowboys who happened to go to all the elite schools in the Eastern US, for example. They are openly ‘elitist’ in that they rose to the top via intelligence and clear ideology.  They can think. And act.  And figure out the obvious.  This ‘figure out the obvious’ is the troubling part for the US elites who live in a fantasy world of their own creation so they can’t see anything rearing up right in front of them.  They want to ignore reality and do a superb job of this.

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Meanwhile, China plays international trade hardball.  Unlike the fantastical, foolish US elites, the Chinese know from 3,000 years of history, trade deficits means a collapse of their civilization.  For eons, China always strove for trade surplus or if not that, then they shut down entirely and don’t trade at all.  Right now, the leaders are very much happy with world trade since they are winning the battles, hands down.  Here is the latest news about serious victories in this arena, one scheme that doesn’t surprise me even slightly:  Chasing Rare Earths, Foreign Companies Expand in China – NYTimes.com

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Now, corporate executives say, it is using its near monopoly on certain raw materials — in particular, scarce metals vital to products like hybrid cars, cellphones and energy-efficient light bulbs — to make it difficult for foreign high-tech manufacturers to build or expand factories anywhere except China. Companies that continue making their products outside the country must contend with tighter supplies and much higher prices for the materials because of steep taxes and other export controls imposed by China over the last two years…

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…China’s tactics on rare earths probably violate global trade rules, according to governments and business groups around the world…China mines more than 90 percent of the world’s rare earths, and accounted for 60 percent of the world’s consumption by tonnage early this year.

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But if factories continue to move to China at their current rate, China will represent 70 percent of global consumption by early next year, said Constantine Karayannopoulos, the chief executive of Neo Material Technologies, a Canadian company that is one of the largest processors in China of raw rare earths.

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I have written about this in the past, more than once.  Obviously, this was a great plan for China and it screws the EU, Japan and the US totally.  And it was easy to see it developing and there is no way of stopping it.  True, the EU and Japan can howl to international bodies but really, what good does that for us?  They both export these rare-earth goods to the US every bit as much as China!

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We get NOTHING.  The plan for the EU and Japan is to export things to the US and get out of economic distress this way while relying entirely on the US to pay for stealing oil, enforcing markets for them and fighting the Chinese.  This insane plan cannot happen.  It is doomed.  There is no way in hell, it can run for even another 20 years.  Long before this, the US itself will be in full revolt due to cutting social services while denuding the country of all industries and all jobs for our fit youth who are traditional factory workers.

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The US is alarmed that this non-ally, a country we hope to intimidate, will hold three quarters of the world’s battery making powers, for example, not to mention, manufacturing of solar panels.  The Chinese swore they would dominate the solar market back when they brought over my father several times to establish solar energy research institutes beginning with the end of Mao’s life.  Way back then, when Nixon first went to China, this rose up as a topic of greatest interest to the Chinese negotiating with Kissinger.

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The real war here is manufacturing: the US is increasingly unable to access technology, systems and infrastructure to grow any further as an industrial power.  We sent all of that over mainly to Asia and increasingly, to China.  And it will not go home again since this depends on an educated public who works hard.  And of all cities on earth, Shanghai is #1 in this regard and I do say, one of the authors of the 50 Year Plan happened to be from that city.  He was an enthusiastic Maoist in his high school years and by age 30, a total global trader and capitalist.

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The US and Japan are engaged in a mighty struggle with Mother Nature and aren’t doing so hot.  The US has been devastated by a series of powerful hurricanes and the Gulf oil spill and Detroit being annihilated.   Like Japan, now we are seeing earthquakes more and more and I observe the earth every day for many years via IRIS Seismic Monitor - and trust me, the number of quakes across the US is most unusual!

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And so I look right now and…just a short while ago, there was a 7.0 quake in Peru.  The several 9.0+ quakes this decade seems to me to be all part of something bigger, namely, we are definitely seeing an upsurge in major quakes.  Back in the 1960’s when the majority of nuclear power plants were being proposed in the US, it was relatively quiet so designers believed there was little danger from major quakes, even in California!

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This insane idea was due to not understanding the nature of earthquakes and how tectonic plates move.  Since 1975, it has become obvious, the earth is not set in stone, it changes radically over the eons as does the climate (this doesn’t stop people from wanting to keep that static, too!).  Here is more news about the Port Anna nuclear plant that should scare us to death;  Quake sensors removed around Virginia nuke plant due to budget cuts | The Raw Story

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In February, Dominion Virginia Power confirmed its commitment to add a third reactor to the plant…Institute for Policy Studies (IPS) Senior Scholar Bob Alvarez told the Project on Government Oversight (POGO) that the North Anna plant was built to withstand a 5.9-6.1 quake.

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Dr. Alvarez is the Father of Tectonic Plate Movement.  He is obviously alarmed about this information.  Even with this terrible information, the DVP wants to imitate Japan and have multiple nuclear reactors next to each other.  It seems that the recent earthquake which had an epicenter very close to this plant, nearly reached its upper limit for stress!  YIKES.

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Here is a case of ‘obvious danger’ and stupidity that should be attended to immediately.  That is, this dangerous thing must be dismantled before Mother Nature sends up a hurricane, too.  Alas, this is happening in the next 48 hours!  Too late.  Perhaps the plant will survive the hurricane, too.  But then, it might not.  We don’t know.  We do know that Mother Nature can wreck a nuclear power plant with one hand tied behind her back.

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The nightmare in Japan continues with no end in sight and I fear, there is no end except for the Nuclear Dragon to triumph and rule over a land denuded of all humans in this part of Japan:  Potent radiation leak halts water decontamination operations at Fukushima plant for the umpteenth time.  The news is always the same so people slowly learn to ignore it and go around, living in a fantasy world.  Just as we ignore the fact that the communist capitalists are winning the trade and intellectual wars.

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Not all Japanese intellectuals are ignoring the obvious.  Here is one brave professor willing to wonder about the truth and he fears what he sees just like I fear this…it is nearly impossible to stop the pollution of the entire planet by Fukushima Now Radiating Everyone: ‘Unspeakable’ Reality ‘Will Impact All Of Humanity’ – YouTube

Over two decades ago, the Japanese nuclear power companies tried to bribe a distant prefecture to take up all the nuclear wastes.  The people there bravely fought back but some facilities were built despite this due to bribes.  Now, one Hokkaido town agonizes over permanent radioactive waste disposal, ‘nuclear money’ – The Mainichi Daily News

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Construction plans for a storage center in Horonobe were abandoned due to opposition from local residents and surrounding communities, and the town, the prefecture of Hokkaido and business operators eventually signed an accord that banned the introduction of radioactive materials. Today, Horonobe is the location of the “Horonobe Underground Research Center,” where the Japan Atomic Energy Agency conducts research on disposal techniques…The above-mentioned accord forbids the selling or lend-leasing of the Underground Research Center to operators of permanent waste disposal businesses. Nevertheless, the Nuclear Waste Management Organization of Japan (NUMO), which conducts such operations, mentioned in a business report last year that “joint research at the Underground Research Center is being considered.” (The remark was deleted after protests from civic groups.)

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The temporary facility presently stores 1,457 vitrified rods of high-level nuclear waste. The storage building itself is of concrete, and a former high-ranking official of the municipal government comments: “If a disaster or a terrorist incident happens here, the damage will be incomparably worse than in Fukushima. Even for temporary storage, an underground facility is needed. If it’s the best thing for our country, we’re resigned to our village being the final disposal site.”

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There is no ‘research’ going on there except one in human relations.  That is, they are seeing how much stuff they can sneak into there while defying public opinion.  We know future disposal plans will include information from the difficulties in dumping stuff in this remote village.  Then, it will succeed.  The waste will ‘vanish’—sort of, of course.  It never vanishes, it HIDES.  Even the fanciest waste disposal place on earth in Norway is a matter about hiding the Nuclear Dragon, not eliminating it.

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One thing that can’t be hidden anymore is the looming bankruptcy of Japan!  This week, Japan’s Credit Rating Cut by Moody’s.  Meanwhile, the Japan gov’t unveils 100 billion U.S. dollar program to counter yen’s strength

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The JBIC, according to the government, will make provisions for up to 70 percent of the financing, with private banks providing the rest, and if the entire fund is utilized the finance ministry predicts private funds to the tune of 4 trillion yen (52 billion U. S. dollars) will be converted into U.S. dollars.

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“I hope this will help to address the one-sided strength of the yen,”‘ Finance Minister Yoshihiko Noda told reporters earlier Wednesday, while continuing his rhetoric on not ruling out another direct foray into the currency markets. He also said the special program could be extended for longer than the initial one year.

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Just as ZIRP borrowing is forever, so is the trade imbalance.  The entire reason we stupidly set up the floating fiat currency regime was, it would supposedly balance trade.  Instead, the Japanese discovered, if they held US trade dollars in their FOREX holdings and buy US national debt, they could keep the yen cheap so the trade flow would be mainly one way, entirely and continuously in Japan’s favor.

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So they did this.  They have to restrain the value of the yen because it SHOULD rise.  They openly and deliberately manipulate the value of the yen and nakedly do this.  Up until 2008, they pretended to be all innocent and unknowing how this works but now the mask is dropped.  They want to have perpetual trade imbalances with the US and will do anything to continue this including openly manipulating the yen in this fashion.

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So…the communist Chinese tease the US and Japan when they whine about the yuan being held down.  The games being played are rapidly coming to an end since we see more and more desperate ZIRP borrowing by the deepest in debt governments, namely Japan and the US both seeing debt degraded by the experts so neither is AAA anymore and…this changes nothing, the interest rates don’t rise on either debt load since this is all about trade imbalances, not national debts!

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THAT is what is collapsing since the US can’t buy imports forever if we are constantly seeing our own jobs vanish.  This has an end point long before we reach null or the Chinese attain infinity.

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6 Comments

Filed under .money matters, energy, Free Trade

6 responses to “China Forcing Rare Earth Factories Into China

  1. Alex Yam

    You just gotta love the way the crap kept on spewing out from Asia’s #1 leaking radioactive toilet known as Japan.

    For some strange reason the Japanese (and some EU countries) claimed China violated some “Trade Rules” when China decided to stop getting ripped off over rare earths.

    The reason these countries don’t mine rare earth themselves is because the overall mining cost (including environmental cost) is extremely high, they know this but they want us to sell rare earth to them dirt cheap, when we don’t even have enough for ourselves.

    By their logic China should demand the EU to sell their diamonds for $0.50 per kg.

  2. The US is alarmed that this non-ally, a country we hope to intimidate, will hold three quarters of the world’s battery making powers, for example, not to mention, manufacturing of solar panels. The Chinese swore they would dominate the solar market back when they brought over my father several times to establish solar energy research institutes beginning with the end of Mao’s life. Way back then, when Nixon first went to China, this rose up as a topic of greatest interest to the Chinese negotiating with Kissinger.EMS

    @Elaine

    Very interesting. Just this past Friday, in a special session at the State Capitol, Boss Hogg Barbour sold another bogus bill of goods to the poorest state in the Union by providing loans to these solar panel factories that are fleeing Silicon Valley.

    He also pledged loans to Ingalls Shipyard in Pascagoula, Miss. Ingalls is owned by Northrup Grumman Corp.and hardly needs loans from Mississippi taxpayers, The biggest scam so far has been his funding, along with shady venure capitalists, of the “biomass scam,” aka Kior Corporation.

    Boss Hogg is providing funding to Yari Shamir’s Israeli Aerospace Industries which promises to build its killer drones at a facility in Columbus.

    Like the proverbial Lemmings to the sea, Barbour’s legions are following him over the clift.

    Your comments, please.

    http://packet-media.com/2011/09/01/link-helps-land-another-industrial-giant/

  3. Urban Roman

    Dupree, you are a resident of Miss.?

    Interesting historical note:

    http://www.imdb.com/title/tt0078607/

    “Boss Hogg” of Dukes of Hazzard fame, probably got his name from this Texas Governor:

    http://en.wikipedia.org/wiki/Jim_Hogg

    Lots of colorful history in Texas…

    Anywho, in response to you link, declarative statements like this: “Calisolar is a solar energy company that manufactures silicone.” just irritate and annoy me.

    And if the US of A really knew what it was doing, and what is going to be necessary in our not too distant future, solar projects would have subsidies on the order of oil companies. And that’s saying a lot. How many industries can conduct their own _wars_?

  4. Dupree, you are a resident of Miss.?>/i>~Urban Roman

    Yes ! But from the Old School where we learned that Silicon(Si) is a natural occurring element.

  5. And, too, there was Amos Hogg who was the Mayor of Bugtussle on the old Beverly Hillbillies.

    Amos Hogg was very sensitive to his Hogg surname. Amos was famous for plagarizing old Abraham Lincoln one liners when running for Mayor of Bugtussle. Jed and the clan didn’t have a clue that they were borrowed from Old Abe..

  6. Dupree

    In one particular “Hillbilly” episode, Amos Hogg went to Beverly Hills to borrow money from the Clampetts to coverup for some embezzlement scheme that he had done as Mayor of Bug Tussle.

    So, Haley Barbour’s “Boss Hogg” sobriquet is more than likely linked to Amos Hogg, the Mayor of Bug Tussle, than to former Governor Hogg of Texas.

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