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#. >>> PRESIDENT TRUMP IS TALKING
>>> PRESIDENT TRUMP IS TALKING ABOUT THE FACT THAT THE TRADE
ABOUT THE FACT THAT THE TRADE WAR WITH CHINA IS MAYBE GOING TO
WAR WITH CHINA IS MAYBE GOING TO GO AWAY, BUT THERE IS STILLY NO
GO AWAY, BUT THERE IS STILLY NO SIGN THAT IT IS GOING TO.
SIGN THAT IT IS GOING TO. THE TRADE WAR IS RAMPING UP OVER
THE TRADE WAR IS RAMPING UP OVER RARE EARTH MINERALS.
RARE EARTH MINERALS. >> CHINA WOULD LOVE TO MAKE A
>> CHINA WOULD LOVE TO MAKE A DEAL WITH US.
DEAL WITH US. WE HAD A DEAL AND THEY WROTE THE
WE HAD A DEAL AND THEY WROTE THE DEAL
DEAL -- THEY BROTKE THE DEAL.
-- THEY BROTKE THE DEAL. WE’RE TAKING IN BILLIONS IN
WE’RE TAKING IN BILLIONS IN TARIFFS.
TARIFFS. CHINA IS SUBSIDIZING PRODUCTS.
CHINA IS SUBSIDIZING PRODUCTS. THE TAXPAYER IS PAYING VERY
THE TAXPAYER IS PAYING VERY LITTLE OF IT.
LITTLE OF IT. IF YOU LOOK AT INFLATION AND
IF YOU LOOK AT INFLATION AND PRICING, IT HAS GONE UP VERY
PRICING, IT HAS GONE UP VERY LITTLE.
LITTLE. THE TARIFFS ARE HAVING A
THE TARIFFS ARE HAVING A DEVASTATING EFFECT ON CHINA.
DEVASTATING EFFECT ON CHINA. >> THE PRESIDENT’S COMMENTS
>> THE PRESIDENT’S COMMENTS COMING TO US AS CHINA IS
COMING TO US AS CHINA IS PREPARING TO PULL OUT A MAJOR
PREPARING TO PULL OUT A MAJOR CARD IN THE BATTLE BETWEEN THE
CARD IN THE BATTLE BETWEEN THE TWO ECONOMIC SUPER POWERS.
TWO ECONOMIC SUPER POWERS. BEIJING SIGNALING THAT THIS
BEIJING SIGNALING THAT THIS COULD CUT OFF ACCESS TO RARE
COULD CUT OFF ACCESS TO RARE EARTH MINERALS TO THE U.S.
EARTH MINERALS TO THE U.S. MARKETPLACE AS A POSSIBLE
MARKETPLACE AS A POSSIBLE RETALIATORY MEASURE.
RETALIATORY MEASURE. DURING A RECENT VISIT TO A
DURING A RECENT VISIT TO A MINING FACTOR, XI JINPING RAMPED
MINING FACTOR, XI JINPING RAMPED UP HIS RHETORIC SAYING WE ARE
UP HIS RHETORIC SAYING WE ARE NOW EMBARKING ON A NEW LONG
NOW EMBARKING ON A NEW LONG MARCH AND WE MUST START ALL OVER
MARCH AND WE MUST START ALL OVER AGAIN.
AGAIN. IF SOME COUNTRY BUYS RARE EARTH
IF SOME COUNTRY BUYS RARE EARTH ELEMENTS AND USES THEM AGAINST
ELEMENTS AND USES THEM AGAINST CHINESE INTERESTS, WE WILL STOP
CHINESE INTERESTS, WE WILL STOP THAT TRADE.
THAT TRADE. AND CHINA’S BIGGEST NEWSPAPER
AND CHINA’S BIGGEST NEWSPAPER RAN A COMMENTARY THIS WEEK
RAN A COMMENTARY THIS WEEK READING DON’T SAY WE DIDN’T WARN
READING DON’T SAY WE DIDN’T WARN YOU.
YOU. NOW, RARE EARTH MINERALS ARE A
NOW, RARE EARTH MINERALS ARE A SET OF 17 ELEMENTS, RELATIVELY
SET OF 17 ELEMENTS, RELATIVELY ABUNDANT IN THE EARTH’S CRUST.
ABUNDANT IN THE EARTH’S CRUST. BUT MINEABLE DEPOSITS ARE
BUT MINEABLE DEPOSITS ARE ACTUALLY HARD TO FIND.
ACTUALLY HARD TO FIND. AND THEY ARE VITAL TO ALL SORTS
AND THEY ARE VITAL TO ALL SORTS OF ITEMS FROM CELLPHONES TO
OF ITEMS FROM CELLPHONES TO HEADPHONES, CARS, ELECTRIC
HEADPHONES, CARS, ELECTRIC BATTERIES.
BATTERIES. MEDICAL EQUIPMENT LIKE MRI AND
MEDICAL EQUIPMENT LIKE MRI AND X-RAYS, DEFENSE AND EXPLORATION,
X-RAYS, DEFENSE AND EXPLORATION, SPACE SHUTTLES AND GUIDED
SPACE SHUTTLES AND GUIDED MISSILES.
MISSILES. AND HERE IS WHERE CHINA’S POWER
AND HERE IS WHERE CHINA’S POWER IN THIS AREA COMES INTO FOCUS.
IN THIS AREA COMES INTO FOCUS. OF THE WORLDWIDE RESERVES, CHINA
OF THE WORLDWIDE RESERVES, CHINA HOLDS 44 METRIC TONS OF RARE
HOLDS 44 METRIC TONS OF RARE EARTH ELEMENTS THEIR MINING
EARTH ELEMENTS THEIR MINING OUTPUT ADDED MORE THAN 100 TONS
OUTPUT ADDED MORE THAN 100 TONS OVER THE LAST FEW YEARS.
OVER THE LAST FEW YEARS. THE UNITED STATES ON THE OTHER
THE UNITED STATES ON THE OTHER END SORT OF AT THE BOTTOM OF
END SORT OF AT THE BOTTOM OF THIS LIST, 1.4 METRIC -- MILLION
THIS LIST, 1.4 METRIC -- MILLION METRIC TONS.
METRIC TONS. LET’S TALK ABOUT THIS MORE WITH
LET’S TALK ABOUT THIS MORE WITH JAKE WARD.
JAKE WARD. JAKE
JAKE JAKE, WHY DOES CHINA DOMINATE
JAKE, WHY DOES CHINA DOMINATE THE MARKET?
THE MARKET? >> THEY DECIDED MORE THAN A
>> THEY DECIDED MORE THAN A DECADE AGO THAT IT WAS A
DECADE AGO THAT IT WAS A STRATEGIC ASSET HAVING ALL THESE
STRATEGIC ASSET HAVING ALL THESE RARE EARTH MINERALS THEY KNEW
RARE EARTH MINERALS THEY KNEW WOULD PUT THEM IN A DOMINANT
WOULD PUT THEM IN A DOMINANT POSITION TO GOVERN THE
POSITION TO GOVERN THE MANUFACTURE OF EVERYTHING FROM
MANUFACTURE OF EVERYTHING FROM MISSILE TECHNOLOGY, GUIDANCE
MISSILE TECHNOLOGY, GUIDANCE SYSTEMS AND MAGNETS TO THE TOUCH
SYSTEMS AND MAGNETS TO THE TOUCH SCREENS THAT WE USE ON YOU ARE
SCREENS THAT WE USE ON YOU ARE ON iPHONE.
ON iPHONE. THEY KNEW THAT THEY WOULD BE IN
THEY KNEW THAT THEY WOULD BE IN CHARGE OF ALL OF THAT.
CHARGE OF ALL OF THAT. SO NOT ONLY HAVE THEY MADE AN
SO NOT ONLY HAVE THEY MADE AN INCREDIBLE USE OF THEIR OWN
INCREDIBLE USE OF THEIR OWN INTERNAL RESERVES, THEY HAVE
INTERNAL RESERVES, THEY HAVE MADE INVESTMENTS FROM PLACES
MADE INVESTMENTS FROM PLACES FROM AUSTRALIA TO BOY LIVE I
FROM AUSTRALIA TO BOY LIVE I CAN’T, -- BOLIVIA, SO THEY ARE
CAN’T, -- BOLIVIA, SO THEY ARE JUST SORT OF GOT OUT AHEAD OF
JUST SORT OF GOT OUT AHEAD OF THE GAME AND DECIDED THAT THIS
THE GAME AND DECIDED THAT THIS WAS GOING TO BE A PRIORITY FOR
WAS GOING TO BE A PRIORITY FOR THEM.
THEM. >> SO WHAT DOES IT LOOKS LIKE IF
>> SO WHAT DOES IT LOOKS LIKE IF CHINA DECIDES IT IS INTO THENOOT
CHINA DECIDES IT IS INTO THENOOT THE RAY EARTH MINERALS WITH THE
THE RAY EARTH MINERALS WITH THE UNITED STATES?
UNITED STATES? >> IT IS A HUGE PROBLEM FOR A
>> IT IS A HUGE PROBLEM FOR A COUPLE REASONS.
COUPLE REASONS. FIRST ISRE EARTH MINERALS WITH T
FIRST ISRE EARTH MINERALS WITH T UNITED STATES?
UNITED STATES? >> IT IS A HUGE PROBLEM FOR A
>> IT IS A HUGE PROBLEM FOR A COUPLE REASONS.
COUPLE REASONS. FIRST IS WE CAN’T GET THEM IN
FIRST IS WE CAN’T GET THEM IN YOU’RE PRODUCTS IF THEY CUT THEM
YOU’RE PRODUCTS IF THEY CUT THEM OFF.
OFF. NOT DONLONLY DO WE MAKE OUR PROP
NOT DONLONLY DO WE MAKE OUR PROP JUKTS
JUKTS -- PRODUCTS GET MADE IN CHINA,
-- PRODUCTS GET MADE IN CHINA, WE BRING IT TO THE UNITED STATES
WE BRING IT TO THE UNITED STATES AND THEN WE HAVE TO SEND IT BACK
AND THEN WE HAVE TO SEND IT BACK TO THEM TO HAVE IT RECYCLED AND
TO THEM TO HAVE IT RECYCLED AND DISPOSED OF.
DISPOSED OF. SO THAT IS A BIG PROBLEM.
SO THAT IS A BIG PROBLEM. IF THEY CUT IT OFF ON, WE COULD
IF THEY CUT IT OFF ON, WE COULD IN THEORY GET IT OUT OF OUR OWN
IN THEORY GET IT OUT OF OUR OWN SOIL.
SOIL. CALIFORNIA WHERE I AM HAS
CALIFORNIA WHERE I AM HAS ENORMOUS
ENORMOUS ENORMOUS --
ENORMOUS -- >> BUT ONLY ONE MINE IN
>> BUT ONLY ONE MINE IN CALIFORNIA AND THAT HAS TO SEND
CALIFORNIA AND THAT HAS TO SEND ALL ITS STUFF TO CHINA.
ALL ITS STUFF TO CHINA. >> THAT’S RIGHT.
>> THAT’S RIGHT. IT HAS TO SEND EVERYTHING TO
IT HAS TO SEND EVERYTHING TO CHINA TO DO THE PROCESSING.
CHINA TO DO THE PROCESSING. AND THE REASON IS OUR VIRN
AND THE REASON IS OUR VIRN AMOUNT ATVIRN
AMOUNT ATVIRN ENVIRONMENTAL STANDARDS ARE
ENVIRONMENTAL STANDARDS ARE HIGHER THAN CHINA.
HIGHER THAN CHINA. SO WE DON’T ABIDE BY THOSE
SO WE DON’T ABIDE BY THOSE STANDARDS.
STANDARDS. WE WON’T POISON OUR CROP LANDS
WE WON’T POISON OUR CROP LANDS THE WAY THAT CHINA HAS BEEN
THE WAY THAT CHINA HAS BEEN WILLING TO.
WILLING TO. AND THAT IS WHY PART OF THEY
AND THAT IS WHY PART OF THEY HAVE BECOME THE WORLD LEADER.
HAVE BECOME THE WORLD LEADER. SO WE WOULD HAVE TO FIGURE OUT
SO WE WOULD HAVE TO FIGURE OUT HOW TO GET IT OUT OF THE EARTH
HOW TO GET IT OUT OF THE EARTH WITHOUT POISONING ALL OF THE
WITHOUT POISONING ALL OF THE COMMUNITIES AROUND THE MINES IN
COMMUNITIES AROUND THE MINES IN ORDER TO MAKE IT HAPPEN.
ORDER TO MAKE IT HAPPEN. >> SHOULD WE BE SITTING AROUND
>> SHOULD WE BE SITTING AROUND FIGURING OUT WAYS TO INCREASE
FIGURING OUT WAYS TO INCREASE AMERICAN SUPPLY AND PROCESSING
AMERICAN SUPPLY AND PROCESSING OF RARE EARTH MINERALS OR.
OF RARE EARTH MINERALS OR. >> HERE IS WHAT I WOULD SUGGEST.
>> HERE IS WHAT I WOULD SUGGEST. THIS IS WHAT I THINK WOULD BE A
THIS IS WHAT I THINK WOULD BE A REALLY GOOD START.
REALLY GOOD START. LET’S START RECYCLING THEM
LET’S START RECYCLING THEM OURSELVES.
OURSELVES. IF WE START THINKING OF AMERICAN
IF WE START THINKING OF AMERICAN CITIES AS A LOCALIZED RECYCLING
CITIES AS A LOCALIZED RECYCLING REGIME, YOU COULD CREATE AMAZING
REGIME, YOU COULD CREATE AMAZING INFRASTRUCTURE OUT OF
INFRASTRUCTURE OUT OF DISASSEMBLING THE PHONES AND CAR
DISASSEMBLING THE PHONES AND CAR BATTERIES, GET THOSE MINUTELE LE
BATTERIES, GET THOSE MINUTELE LE RAL MIFRN RALS AND REUSE THEM.
