We were talking about rare earth shortages back in November 2009…. when no one else was. We were the “fools” buying element providers that could supply us with supply for years to come, said readers.
Turns out, we were right… again.
China turned off supply. And major news outlets around the world can’t get enough of the story. From The New York Times and Barron’s to The Wall Street Journal and CNBC, which once penned the rare earth phenomenon as an overrun, hype-fueled speculative bubble.
But they can call it whatever they will…
Fact is, these stocks are running… and running fast. And CNBC is finally learning that.
But, as major media will soon start reporting, it’s not just China that’s screwing us over.
As we report in today’s Wealth Daily…. The World Trade Organization is screwing us, too.
Just days after China announced it was cutting off rare earth exports to Japan, Europe, and the United States, the WTO said it needs another six months to rule on the rare earth complaint issued against China.
The move makes no sense.
Under the WTO’s own rules, a panel is supposed to publish its dispute ruling within six months of being set up; since it was set up in December 2009, we should have seen a ruling by May 2010.
But I guess it’s asking too much for an organization that promotes free trade and economic growth to promote free trade and economic growth…
For consumers and economies around the globe, the ban and additional six-month delay in ruling means the very materials vital for green development, high gadgetry for cars, electronics, and military equipment are on put on hold.
I wish I could sit on my behind and do nothing while the world waited for a decision, too. But I’d get fired.
On the other side of the WTO fight, China says restrictions on rare earth exports conform to WTO policy.
“Our restriction policy is in line with the WTO rule, and not just in the exports, but in the manufacturing as well,” said a China Ministry of Commerce spokesman.
