IT'S HERE! IT'S HERE!!!!

[supersuds]

Gansky, nickel isn't one of the rare earths, and the while the Chinese do currently <span style="text-decoration: underline;">produce</span> 97% of rare earths, by dint of their willingness to ignore environmental matters, they only control about 37% of the world's rare earth <span style="text-decoration: underline;">deposits</span>. There's a big opportunity for other countries to ramp up rare earth production if it is in their interest; Molycorp is doing that in California now. As with so many other things the Chinese cost advantage is a problem.

I agree with your concerns about Africa. One can see parallels  with the Japanese"Greater Asian Co-Prosperity Sphere" of the 1930s.

http://en.wikipedia.org/wiki/Rare_earth_element

 

[gansky1]

   I know nickel isn't a rare-earth, just trying to illustrate the point about China's growing dominance in the mineral markets. It's interesting that they are able to control so much of the market and are buying into mines all over the world and their influence even in South America is ballooning too. It's not unusual for industrialized countries to seek out raw materials all over the world but backed by our IOU's, their money has brought about their transformation so fast. Cheap, inexhaustible labor makes their cost advantage almost unbeatable. China and India will be fascinating to watch in the coming decades if they can sustain the levels of growth they must to maintain their new standard of living. I read a brief article the other day that China's economy is more of a "ponzi scheme" than meets the eye, an interesting theory, we'll see.

 

[jetcone]

Oh I am seeing cracks already in China

Greg I think you told me workers are demanding larger wages. And so the government is just closing the costal factories and moving them inland to the farming districts where people will work for less. Foul the nest and move west as my Dad used to say.

 

I hope China does not implode back to poverty, I hope its people benefit for the long haul from the new transitions. They need a lesson in European history, Rome wasn't built in a Day.

 

Also the central government has never valued the average everyday Chinese in the street. My perception is our government used to do that but doesn't now however but I could have blinders on.

 

Li Na stated on NPR yesterday she fought the government for better wage relations, they were taking 95% of (her) women's tennis earnings and she pushed them down to  12% and now that she has won the French Open she has real bargaining power and she hopes other young girls will take up the racket too.

 

Education Education Education, can't say or do that enough!

 

[supersuds]

Ha

Hadn't heard that about Li Na. Funny.

 

Demographically, the Chinese are facing a severe problem due to the longstanding one-child policy. Like the Japanese, they're facing a future in which suddenly everyone is old and there may not be enough young people to maintain the economy's momentum. We shall see.

 

[iheartmaytag]

The Chinese

are also facing problems due to the one child policy where they selectively aborted the females so they would have a male aire.  Unfortunately when they did that they eliminated the females for the males to carry on the family name with.

 

Often the great solutions are shortsighted.