Washington Mulls Stockpiling Rare Earths With China building up its strategic reserves of rare earth metals even as it crimps exports, a new piece of counter-China legislation on rare earths introduced to the U.S. Congress reflects the depths of Washington’s anxiety over the sector. China has been storing up supplies of rare earths for months, recently passing a tax that could help further fund the effort, in what analysts see as a bid by Beijing to further tighten its control over a market it already dominates.
The issue of whether the U.S. itself should start stockpiling on national defense grounds is one the biggest questions surrounding the global response to China’s tight control over rare earths, which are crucial for making magnets in wind turbines and polishing the glass in night-vision goggles.
The new bill, introduced Wednesday by Colorado Republic Rep. Mike Coffman, “Seeks to Curtail Dangerous Reliance on China for Critical Materials,” according to the press release.
I'm starting to accumulate sds calls . I'd like to get into TLT puts but having a problem as to when and if there is a potential for significant profit there. When qe2 ends in June the bond support ends so interest rates should rise with the price of tlt declining. So what's your take? Are you into this potential move.
Ironically there is a guy coming on CNBC in the next 1/2 hour who is taking the contrarian side of this trade so I'll get back after listening to his take on this trade.
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