(Last Updated On: May 22, 2019)
Domestic Shortage is Artificial: Price of Rare Earth Minerals Plummeted Below Cost of Production Due to Chinese Dumping Under GATT/WTO.

The first casualty in the tariff skirmish with China is the truth. Rhetoric is spewing forth based on unfounded and ignorant assumptions about trade and tariffs. These always come from those in the middle, or their paid mouthpieces, who make massive profit by hosing down the rest of the producing and consuming nations who are victimized by the imbalance which comes from one sided trade deals.

The GATT/WTO, (General Agreement on Tariffs and Trade, and the World Trade Organization) rules allowed unfettered sub-standard quality Chinese goods to flow into our nation starting back in the early 90’s.  The result was the gutting of domestic production and the marketplace, similar to how we witnessed the domestic consumer electronics manufacturing base and markets plundered by Japan back in the 60’s/70’s.  We have steadily witnessed the wholesale plunder of our entire industrial base and markets since then.

Top Rare Earth Mineral Reserves by Country

The table below shows American reserves at 1.4 million tons based on mines in production. It does not include mothballed mines that can be restarted, nor undiscovered mineral deposits.

China. Reserves: 44 million MT. …
Brazil. Reserves: 22 million MT. …
Russia. Reserves: 18 million MT. …
India. Reserves: 6.9 million MT. …
Australia. Reserves: 3.4 million MT. …
Greenland. Reserves: 1.5 million MT. …
United States. Reserves: 1.4 million MT. …

The American production of many materials such as rare earth minerals suffered loss of production simply due to the fact that the domestic cost of that production stayed the same  or increased while the market price plummeted due to Chinese suppliers dumping and undercutting the American market.   Such was the case with so many domestically sourced finished products, and also materials like steel, aluminum, electronics, consumer goods, etc.

It is easy for China to plow the entire planet under when they have a billion impoverished slaves to throw at the labor portion of the cost structure. Labor is the single largest expense for the production of virtually any product, service, or material.

‘Free Trade’ is a myth as is a ‘Free Market’;  All markets have a cost associated with their creation and maintenance.

‘Free Enterprise’ and ‘Reciprocal Trade’ are paramount for free societies, yielding good for all involved, while so called ‘Free Trade’  is responsible for the type of economic displacement from wealthy nations to impoverished ones we are witnessing, while the imposition of stiff tariffs will correct it again. We, the American nation, virtually never suffered a shortage of any kind during the last century, before we engaged in ‘free trade’ with China and other impoverished 3rd world nations.

In the face of stiff tariffs (~25% to 40%) on Chinese materials and goods, any shortages we are likely to suffer will be very short lived. In the case of rare earth minerals, American producers will quickly open their mines back up and ramp the production up to meet market demand.

Trump’s tariffs on China will be undoing the damage done by GATT/WTO as a mandate of the globalist cabal running Babylon DC, which were implemented under the Clinton administration against the judgement and the will of the American people.

The GATT/WTO agreements were designed by globalists to drive the American Standard of Living and labor costs down to the same level as the rest of the world’s impoverished nations. It has about run its course domestically and elsewhere and is no longer politically viable.  That means a setback for the globalists, and it means China Inc. will have to deal with the realities of the fact that their free ride is now over.

Note: for more information about Sovereignty Project, see:

Political Pecking Order Part-3  – with commentary

Political Pecking Order Part-2  – with commentary

Political Pecking Order Part-1  – with commentary

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