China's Next Big Rare Earth Move

There is now a very serious and new potential secondary catalyst: China withdrawing from the WTO. You are receiving this email because you subscribed to Outsider Club. [Click here]( to manage your e-mail preferences. [Outsider Club logo] China's Next Big Rare Earth Move [Gerardo Del Real Photo] By [Gerardo Del Real]( Written Jun. 03, 2019 For at least the last two years, I’ve explained that confidence in governments is dying around the world, that central bankers are losing control, that global growth is slowing, that the next financial crisis would come as a result of a bond blowup, and that China would be the largest beneficiary of this crisis as a bond market blowup has the potential to cause institutions to fall, power to shift, and a realignment of the financial pecking order. It is curious and alarming that all of those themes seem to now be playing out on the global stage simultaneously. The simultaneous part is important because tossing around one live grenade can easily lead to an unpleasant accident, but tossing around multiple live grenades at the same time almost ensures an unpleasant accident. You all know I believe volatility is here to stay and that volatility will be a major catalyst that sends gold and commodities into a historic bull market. [china us bonds] [$1 Stock Set to Soar $8 in the Weeks Ahead]( Get the stock market’s biggest bang for your buck… Every $1 share you buy of this small mining company could make you $8. This company is in a unique position to supply an extremely rare resource. And shares are poised to soar on runaway demand from America’s biggest defense technologies — jets, submarines, aircraft carriers, and missiles. How many $1 shares will you be holding when this stock takes off? [Click here to watch my new video.]( There is now a very serious and new potential secondary catalyst: China withdrawing from the WTO. While U.S. bond holdings are a weapon, they are not what will lead China to withdraw from the WTO, but it will be the death blow in the long run. China has always had leverage with rare earths pricing. It has flexed that leverage by charging much less for rare earths in China than it does for rare earths outside of China, forcing manufacturers (think high-tech, not industrial) to set up shop in China while China picks off the technology, reverse engineers it, and uses it for its own purposes. [china battery materials] [BREAKING: Third Energy Supercycle Is Now Here]( I’ve been waiting on this explosive opportunity for the last decade. And now I can say, with 100% certainty, that it’s finally here. You see, there’s a supercycle now forming in the energy space. It’s happened only two times in history. And each time it generated life-altering gains like 130,400%. Now, we’re on the cusp of [the THIRD historic energy supercycle](, with similar upside potential. It all starts on July 14, or possibly sooner. [Click here for full details.]( It did this in 2012 when the WTO intervened and put a halt to the practice. I remember those days clearly because of the mania surrounding critical metals, specifically rare earths. What if China decides to withdraw from the WTO? Deciding it is no longer beneficial or even necessary for it to advance its goals. It’s easy to speculate on the next move. [China has a dominant stranglehold on the rare earths market.]( The U.S. relies on China for about 80% of its rare earths. It’s why Europe is in such a rush to establish an independent supply chain. It’s why Leading Edge Materials has always been an important company in Europe’s development — even if the market (for now) doesn’t get it. It’s not hard to imagine a scenario where China pulls out of the WTO and immediately decides to slash rare earth prices within China to 1/5th or 1/10th of the rare earth prices outside of China. [china new silk road] [He Predicted 2008. Now He Has an “Urgent Warning” for 2019...]( In early 2008, while most advisors told investors to stay in the markets, Mr. James Dines led his readers safely out of housing-related stocks and into gold and silver stocks. While the overwhelming majority of Americans saw their nest eggs disappear, Mr. Dines' readers thrived. No broker, consul, advisor, news editor, or journalist we know of even comes close to matching his track record. As Susan Valenta of Idaho wrote: “Way back in 2004 - 2005, you were the only person who stuck his neck out far enough to correctly predict 'The Coming Real-Estate Crash...' For those of us who want to learn to fish and not just be fed dinner, please continue to write as much as possible in every issue of The Dines Letter. Thank you.” —Susan Valenta, Idaho And now Mr. Dines is once again telling investors to be prepared... in fact, he’s just issued an [urgent warning for 2019.]( The move would bankrupt outside rare earth competition — remember Molycorp? No? Google what happened to it — and force manufacturing giants (think high-tech, not industrial revolution manufacturing) that require large amounts of rare earths to move operations to China. I’ve mentioned that it is eerie how all these events that I’ve cautioned about are playing out simultaneously. Remember the Belt and Road initiative I wrote about over a year ago? That project may very well be the fire to the match that allows China this course of action. The Belt and Road initiative is not just a massive infrastructure project, it is China’s shot across the bow to implement the Renminbi as the world’s dominant currency within the next three decades. Maybe sooner. Take a second and look at the graphic below to grasp the breadth of scope of the Belt and Road initiative. Yahoo recently reported that according to a Silk Road Vision and Actions document from 2015, China’s official stance is that “financial integration is an important underpinning for implementing the Belt and Road Initiative. We should deepen financial cooperation, and make more efforts in building a currency stability system, investment and financing system and credit information system in Asia.” It also hopes to “support the efforts of governments of the countries along the Belt and Road and their companies and financial institutions with good credit-rating to issue Renminbi bonds in China.” Indeed it does. The biggest threat to the U.S. from the Belt and Road initiative is that it involves over 100 countries. Countries that are having infrastructure, ports, bridges, and technology developed by China. Countries that, in the future, could look to China for credit instead of the U.S. As I said earlier, Chinese ownership of U.S. bonds will not be the enabler of China pulling out of the WTO, they’ll be the death blow... later. Decades from now. In the meantime, China curiously decided to sell the most U.S. treasuries in nearly two and a half years. China sold $20.45 billion in treasuries in March, the most since October 2016, following $1.08 billion in purchases the month before. Many speculate that China may sell its U.S. debt in retaliation for increased tariffs on $200 billion of its exports to the United States. The selling was a subtle reminder of Chinese options. I actually believe that China will continue to accumulate U.S. bonds over the next decade or so, adding to its arsenal. It’ll do so while hedging with gold purchases (among other instruments... yes, even Bitcoin) until the time comes for the endgame. Let’s assume that this project achieves its aim and spreads Chinese influence to over 100 countries. Decades pass and the U.S. deficit finally begins to affect credit ratings as more and more states go bankrupt. Now imagine that countries that once looked to the safe haven that is the dollar in times of crisis begin to question the sustainability of the dollar as it currently stands. Remember that graph I showed you where China holds 7% of total outstanding treasuries? Imagine in that time of doubt or a crisis, a seller (hi China) that floods the market with cheap treasuries until all confidence in the U.S. bond market is gone. Checkmate. That’s how you play the long game and China is playing. The U.S. better hope that it has addressed its infrastructure needs, its health care needs, and the host of critical issues that face us right now, because it’s not going to get easier. To your wealth, [gerardo-sig] Gerardo Del Real Editor, [Junior Mining Monthly]( and [Junior Mining Trader](. For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through [Outsider Club](, [Junior Mining Monthly](, and [Junior Mining Trader](. For more about Gerardo, check out his [editor page](. *Follow Outsider Club on [Facebook]( and [Twitter](. Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [The Clock Is Ticking On America’s Nuclear Dependence]( [Major Shifts in Cannabis Trends]( [First Pot Takes NASDAQ, Then the World!]( [33% Was Taken From You. Here's How to Get It Back.]( [In the Facial Recognition Debate, I Side with Democracy]( --------------------------------------------------------------- This email was sent to {EMAIL}. 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