b4atf, Yeah, I was joking, sort of...
The Chinese certainly don't need any help from us to further ruin their country.
Every Influenza virus strain known to mankind comes directly from a single province in SE China, due to the open city sewer systems. That is a well documented fact. And they eat Civet Cats which is the singular source of SARS in the whole world. So we've already got that from them, Thank You very much! And the Avian Flu is regenerated yearly in the bird flyway in Mongolia, which just happens to be where a lot of REM mining goes on.
Even though there was recently a big flap over 32 Chilean miners stuck underground and rescued, the Chinese lose more than 10,000 miners every year. That is why they now control 90% of the world supply of REM; because they're willing to throw away human lives to get it. And probably why we will never win in any contest over REM which must be mined before it can be consumed.
Even though the US economy is depressed, our problems are NOTHING compared to what the Chinese have to solve. They have gigantic domestic problems, way too many to list, so I don't see the Chinese making waves for us much longer, less they uptip their own canoe in the process.
So the story about the Chinese fishing boat ramming the Japanese Coast Guard vessel, thereby precipitating this, so called, "unofficial" REM embargo, makes perfect sense to me. Just like the Three Stooges comedy. It is an aberration and serendipitous in nature as it has brought to light an international trade imbalance problem. It is certainly important but it may not last. I suspect it is just a pre-election "invention" of the mass media.
However, from the investment perspective, I have finally caved in to the relentless bombardment of news surrounding Rare Earth Metals. So just last week I FINALLY decided to take a shot at something. But I haven't quite decided which way to go.
I am totally sold on the upside potential of commodities in general, given the falling dollar and planned US inflation policy target. But I am not too sure about REM, given all the current hype. This segment could become overcrowded very quickly.
And late last week there were major rumblings of how the market is currently over bought and a 30% correction is over due. So my guess is that over the next few weeks there will be good opportunity to get into the market at a sale price. The question is which metal, and what stock or fund to buy.
Today, Saturday, I am cruising IHub and thinking about uranium and the Obama administration's interest in reviving the nuclear industry for generating power. So that would get me away from the obvious problems associated with the Chinese. I am looking at Denison Mines as a domestic uranium producer. The stock is cheap at about $2.
However, I am also checking out REE, the new REMX etf, and MCP. They all seem very expensive and bloated due to the current hype about the Chinese. Not sure this will last long. But if I go for one of these I will probably opt for call options out to Jan2011. And REMX doesn't have options yet but is supposed to soon.
So meanwhile, I wait undecided, and do my DD.
Good Luck!
VV
