Russia’s Resources

What does Russia have that America needs? [The Rude Awakening] May 24, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Russia’s Resources - I got a great question in the mailbag. - Does Russia really have much more than the US? - Let’s get into the weeds on this… interesting findings. [Patent #11,219,620: The Most Valuable Patent In History?]( I believe this could over time become the single most valuable patent in history. [That’s because this patent is just some of the exciting work being done by a company which is developing treatments for one of the biggest and most common diseases in America…]( A disease which impacts 54 million people, or about 26% of the adult population in America. Whatever you do, do not let this opportunity pass you by. [Click here now for the details.]( [Click Here To Learn More]( [Sean Ring] SEAN RING Happy Hump Day from a lovely Piedmont! I hope you enjoyed yesterday’s mailbag. There were so many interesting questions in it. I love when you write. Please continue to do so at feedback@rudeawakening.com. Today, I will answer one question from the mailbag - or rather half of it - as it’s big enough for one Rude and a critically important topic. Thanks to William S for asking! Without further ado, let’s get right into it. Baloney, Seanie! I just read your morning missive, “The Vacuum Tube in the Coal Mine.” At the end, you list 10 natural resources Russia has in abundance, but we do not in the U.S.: “Here are 10 natural resources that Russia has in abundance that are not as abundant in the United States: - Natural gas - Crude oil - Nickel - Palladium - Platinum - Diamonds - Timber - Rare earth elements - Vanadium - Cobalt” I call baloney on some of these, namely, natural gas, crude oil, and rare earth elements. We have natural gas in overflowing abundance. We still have lots of crude oil both within the contiguous US, offshore, and in and off the coast of Alaska. Similarly, we have large, known deposits of rare earth elements. We have timber in abundance. The problem is, like many things, federal and, in some instances, state regulations make it cost-prohibitive or outright prohibit our logging, energy, and mining industries from accessing them. I am not knowledgeable about the other items in your list, so will not comment. Perhaps you know if the situation is the same for those. William S William, never trust anyone blindly. Not even me. I will run through this list, one by one, because it’s that important. But I will add you’ve answered part of your question. The regulations on natural gas and oil are killing America’s capacity. Here we go: Natural Gas Here are the top 5 producers: - Russia: 48 trillion cubic meters (tcm). - Iran: 33.5 tcm. - Qatar: 24.7 tcm. Qatar is also the world's largest liquefied natural gas (LNG) exporter. - United States: 10.5 tcm. The development of shale gas resources, particularly in the Marcellus and Utica formations, has significantly contributed to the increase in U.S. reserves. - Saudi Arabia: 9.2 tcm. Russia has over 4x as much as the US. But the bigger problem for the US is that it doesn’t have enough ships (thanks to the dreaded Jones Act) to get the stuff around the coasts. From an earlier [Rude]( Not Enough Pipelines in the Northeast But it’s not entirely [New England’s] fault. Get this from the Yankee Institute: The main problem is that New England can’t get enough natural gas from the rest of the country. Demand for gas has climbed in recent years because it produces less carbon dioxide for each megawatt it generates, and in many instances, has been more economical than oil or coal. But resistance to natural gas infrastructure, specifically pipelines in New York, have left New England relying on oil for electricity and heat when the gas can’t flow fast enough. New York Governor Andrew Cuomo in 2016 used administrative maneuvering to block the proposed Constitution Pipeline, which would have brought gas from Pennsylvania into existing pipelines that supply New England. Several other gas projects were subsequently nixed or withdrawn because of obstacles created by New York state agencies. Cuomo ostensibly blocked the pipelines because of concerns about carbon dioxide emissions. But as today’s high use of oil and coal shows, constricting the flow of natural gas doesn’t entirely prevent emissions, and in fact, can push them higher. Cuomo’s crappy policies continue to haunt America. [New Biden Bucks Follow-Up Available Now]( Hey, it’s Jim Rickards. Since posting my original Biden Bucks presentation online, millions of people have viewed it. Snopes and the Associated Press have even attempted to “fact check” me and claim my warnings are false: Point being, my message has raised a storm and caused a lot of controversy. But in the time between my message and now, a lot of new developments have come to light. That’s why I’ve just released an update to my original prediction… one which will likely be even more controversial. [>> Click here now to access my new 2023 Biden Bucks follow-up](. [Click Here To Learn More]( Ships and Rail Shipping or railing LNG is much, much more expensive than pipelined gas. (Editor’s Note: This is why thinking Europe will pay for shipped US LNG in perpetuity is insanity.) And the Jones Act requires that all goods transported by water between U.S. ports be carried on ships constructed in the United States that fly the U.S. flag are owned by U.S. citizens and crewed by U.S. citizens and U.S. permanent residents. Here’s a scary stat: there’s only one Jones Act-compliant LNG ship being built at the moment, and it won’t be done until 2023. The rest of the world’s LNG fleet was built abroad. So not only does the US have much less natural gas than Russia, it can’t ship the stuff around the country. Crude Oil Here is a list of the top countries by proven [oil reserves as of 2023]( - Venezuela - 302 million barrels - Venezuela has the largest proven oil reserves, but much is heavy or extra-heavy crude oil. - Saudi Arabia - Saudi Arabia's reserves are primarily light and medium crude grades. - Iran - Canada - Canada's reserves are primarily in the form of oil sands, which are a type of heavy oil. - Iraq - Russia (106 million barrels) - Kuwait - United Arab Emirates - Libya - United States (47.1 billion barrels) The U.S. has a mix of light and heavy crude but has significant light oil production from shale formations. The US is indeed the world’s largest producer but doesn’t have the world’s largest reserves. But the bigger problem is that most of the US’s crude is light. Heavy crude is required for fuel oil, marine oil, asphalt, and lubricants. Nickel Here’s a list of countries with [significant nickel reserves]( according to the data up until 2021. Please note these reserves include both laterite and sulfide ore types: - Indonesia - Indonesia is one of the world's largest producers and exporters of nickel. As of 2020, the nickel reserves in Indonesia were estimated to be around 21 million metric tons. - Australia - approximately 19 million metric tons - Brazil - around 16 million metric tons - Russia - approximately 6.9 million metric tons - Cuba - 5.5 million metric tons - Philippines - 4.8 million metric tons The US doesn’t have significant nickel deposits at all. Without nickel, you can’t make stainless steel, some alloys, or batteries. Palladium Palladium, a precious metal primarily used in the automotive industry for catalytic converters, is mined in a few countries worldwide. The production of palladium often comes as a byproduct of mining for other metals, especially nickel and platinum. Here are the top countries in terms of [palladium production as of 2022](. Please note this one is production, not deposits: - Russia - 88 metric tons - Russia is the largest producer of palladium. The Norilsk Nickel company in Russia is the world's leading palladium producer. - South Africa - 80 metric tons - South Africa is the second-largest palladium producer. The Bushveld Igneous Complex in South Africa contains some of the richest ore deposits in the world, including significant quantities of palladium. - Canada - 15 mt - Canada is also a significant palladium producer, particularly from mines in the Sudbury Basin in Ontario and the Lac des Iles mine in western Ontario, among others. - United States - 12 mt - The U.S. contributes to global palladium production, specifically the Stillwater and East Boulder mines in Montana. - Zimbabwe - 11 mt - Zimbabwe also produces a significant amount of palladium, primarily from the Great Dyke region. Platinum Here are the top countries in terms of platinum production (again, not deposits) as of 2021: - South Africa - 130,000 kg in total - South Africa has the world's largest platinum reserves and is the largest producer, contributing to over 70% of the world's production. Most of the production comes from the Bushveld Igneous Complex, estimated to contain around 63,000 metric tons of platinum. - Russia - 22,000 kg - Russia is the second-largest producer of platinum, with Norilsk Nickel being the largest Russian producer. The company extracts platinum as a by-product of nickel and copper mining. - Zimbabwe - 15,000 kg - Zimbabwe is also a significant producer of platinum, mainly from the Great Dyke region, a geological feature rich in metals. - Canada - 7,400 kg In Canada, platinum is often produced as a by-product of nickel mining, particularly in the Sudbury region of Ontario. - United States - 3,600 kg - The United States produces some platinum, mainly from the Stillwater mine in Montana. Wrap Up We’re already running long on this Rude, so I’ll wrap it up here. Tomorrow, I’ll tackle 6 through 10 on our resource list. Have a wonderful day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( In Case You Missed It… Jim’s Mailbag [Sean Ring] SEAN RING Dear Reader, Good morning from a summer-like Northern Italy. Today’s issue is long, so I’ll keep my intro short. William S, I’m dedicating tomorrow’s entire Rude to your question, because it’s essential, and I can flesh out more of the topic. In today’s Rude, we see there are plenty of “Jims” who wrote in! First Things First Please ask Sean to explain how he went through JFK security and boarded with two bottles of Scotch. It seems to me that they would have to go in checked baggage or be confiscated. Jim C. Hi Jim! Any traveler entering the United States (and most other countries, as I recall) can buy two bottles of alcohol in Duty-Free and bring them through. Duty-Free shopping comes after you check in your bags and before you get to your gate. My mistake was putting the bottles in my carry-on bag, and that’s why security went through my bag. They don’t get confiscated, though I could see by the look in her eyes that my security checker was sorely tempted to take them! Our Politicians Help Themselves, Not the Citizenry "The great Austrian economist Murray Rothbard didn’t think the Fed should exist, let alone be charged with such an important task. By manipulating the money supply and interest rates, Rothbard believed that the Federal Reserve interfered with the market's natural ability to price goods and services, consequently contributing to boom-bust cycles." Our corrupt politicians are constantly interfering with the market's natural ability to "price goods and services." So, while the Fed may have a bigger hammer, politicians are constantly hammering to help themselves and their cronies that keep them in power. They're all in the kitchen. Jim T. Hi Jim, Yes. Yes. And yes. I don’t have much to add to that other than saying the free ride may end soon - especially if we see a few more hikes in quick succession. Dollars and Deficits Every time I read an educational piece, it just raises questions that sit unresolved in my brain until I trip over that thought again. So I kind of understand what you are writing about, as I have seen it before. But there are some basics that I don’t understand, so I am going to choose one. You wrote: On the one hand, the global economic community demands an ample supply of reserve currency for international trade and financial transactions. This means the country issuing the reserve currency (the US, in today’s case) would need to run large trade deficits, essentially supplying the world with its money. Why does it follow that we need to run a large trade deficit? Can’t the USA hold the currency of other countries in exchange for US Dollars? Or, is that simply going to break down because of the floating nature (severe deflation by money printing) of the other countries' currency? Couldn’t the USA demand that the other countries' currency be backed up by that country's natural resources or other assets? This could be like a USA Belt & Road. Possibly giving more USD away but getting something in return. I know I’m not smart enough to think up something new, so the question becomes are we doing this in some form already, or is it a non-starter for reasons I don’t yet understand? Jim T. Hi again! To do this as simply as possible, I’ll use bullet points. - Foreign country (FC) wants USD to trade with. How do they get it? - FC makes “stuff” that Americans want. - Americans buy the “stuff.” - FC gets the USD. The US imports loads of “stuff” in exchange for USD in the above scenario. In fact, it’s usually far more “stuff” than other countries buy from the US. A trade deficit is when imports are larger than exports. Below is the US trade deficit from the [Bureau of Economic Analysis]( [SJN] The US can and does hold the currencies of other countries. But you don’t want too much of that because those currencies are only helpful when buying that country’s stuff. A great example of a country having too much of another country’s currency but not wanting any of that country’s stuff is [Russia concerning India](. If the currency you’re holding breaks down by money printing (that’s inflation, by the way), it’s much worse. That’s because you can buy less and less of the other country’s stuff. The US wouldn’t demand any other country back up their currency with real stuff, like gold. If Switzerland did that, the entire world would dump their dollars for Swiss Francs. It’s far likelier the US would invade Switzerland than ask them to back their currency with gold. Remember, the US isn’t “giving away” dollars. It’s printing $100 for $0.17… but getting $100 worth of goods from foreign countries. That’s why it’s called the “exorbitant privilege.” [Over 62 And Collect Social Security? Take Action Immediately!]( [If you’re over the age of 62 and currently collect Social Security, you need to prepare now](. Because Biden has given our country the worst inflation in decades – and many warn things will only get worse from here. Worse yet, the Social Security check you receive now may not keep pace with inflation… [Which is why, if you don’t act now, you could fall behind in the months ahead](. Is your retirement at immediate risk? [Click here now to get the simple, step-by-step actions to survive inflation](. [Click Here To Learn More]( Oh, Henry! Sean, While I am not a fan of Kissinger, your lack of understanding of what was going on in the Vietnam War, I assume, is a function of your age. The NVA used Laos and Cambodia as sanctuaries to attack ARVN and American troops daily. Hell, the Ho Chi Minh trail ran through Laos and into Northern Cambodia. Without their presence in those two countries, they would have struggled to supply their troops in South VN and have lengthened the war even further. Lastly, there were communist forces in both countries: the Pathlet Lao and Khmer Rouge. While there was no formal declaration of "war" both countries fought internal battles against these forces, as well as the NVA, and to claim that our bombing these combatants was a "crime" ignores the fact that the whole region was at war. We fought in Vietnam for more than a decade and yet a state of war was never declared. Killing the bad guys before they kill you isn't a crime. Fighting a war for all the wrong reasons is a crime. Walter B. Walter, thanks for writing in. You make some excellent points. But we can call the “Domino Theory” a failure, as Southeast Asia didn’t become a communist hotbed after the US withdrawal. So your final sentence is the one that sticks with me the most. Just as a side note, this is what the [World Bank has to say about Vietnam]( whose economy is now growing faster than China’s: Thanks to its solid foundations, the [Vietnamese] economy has proven resilient through different crises. GDP growth is projected to ease to 6.3 percent in 2023, down from 8% in 2022, due to the moderation of domestic demand and exports. Vietnam's economic growth is expected to rebound to 6.5 percent in 2024 as domestic inflation could subside from 2024 onward. This will be further supported by the accelerating recovery of its main export markets (U.S., Eurozone, and China). Second Passport Sean, Can you explain how a second passport (Italian, I assume) allows one to move to Italy? How does one go about getting such a passport and why does a passport allow one to actually move to Italy? I’m naïve on this, can’t anyone just fly to Italy on a USA passport, let’s say, and buy a house? Thanks. Do you find Italy to be a simpler place and time? Very interested because I have thought about moving to Italy, but I doubt it will ever really happen. I’ve never even been there! Jim T. Hi Jim, To get a passport to any country, one must become a citizen first. There are a few ways of doing that. - One is by right of blood (in most European and Asian countries); - another is by birthright (the US); - citizenship by investment is another option (Caribbean and some European countries); - yet another is by naturalization (moving to the country and staying there for a set number of years); - and finally, by marriage (which I only recommend if you’re really, really sure). I got mine thanks to my paternal grandparents, who were Italian. It takes a while, and you’ve got to organize many documents, such as your birth certificate, marriage certificate, and your ancestors’ birth, marriage, and death certificates. Americans can buy a house in Italy, but crazily, that doesn’t guarantee a residence visa! That’s why I recommend having a good specialist lawyer guide you through the process. Italy is less consumer-oriented than the States, but it’s still got all the modern conveniences of the US. With better food and wine, I hasten to add! Come visit. You’ll love it. Wrap Up Lots of Jims wrote in, and I thank them for it. And thanks to Walter, as well! Have a wonderful day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. 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