World superpowers like America, Russia, China, and more have only one interest.
Dominance, CONTROL, and leverage, no matter what it takes to achieve it!
For example, when America invaded Iraq or supported Lybian rebels in Gaddafi’s murder, it was to protect the dollar’s status as the de facto currency for global oil trade.
Russia’s war in Ukraine is primarily about geopolitical dominance and control. And we could easily say the same about China’s threats to invade Taiwan at a moment’s notice.
But for China, their desire for control goes beyond Taiwan.
They’ve been quietly buying rights to rare earth elements that will be increasingly important in the global clean energy transition through the 2030s.
Why?
Because when you own it all…
You have more geopolitical leverage and no longer have to answer to anyone.
As U.S. Trade Representative Katherine Tai outlined in a recent CNBC interview…
China has a “dominant position” in the market that allows it to…
“Turn on the faucet and turn off the faucet” when it comes to rare earth supplies.
For example, during the pandemic, China set limits on their rare earth exports…
Cornering the market and causing the dreaded chip shortage that impacted a whopping 169 industries and dragged down the U.S. GDP by 1%.
In response to this shortage, The U.S. Department of Energy announced $28.35 million in funding for the advanced processing of rare earth metals. Last month, the Biden administration invested another $32 million to support the nation’s critical minerals supply chain. As such, companies like Texas Mineral Resources, MP Materials Corp, and Tronox Holdings could return up to 75% gains over the next 12 months.
Still, the joke writes itself, doesn’t it?
China’s investing billions for global dominance, while the Biden administration lags behind with a laughable fraction of what our geopolitical rivals have invested.
I don’t want to dwell much on brewing tensions between America, China, and Russia.
But I bring this up to let you know that this fight for global dominance involves trillions of dollars in investments.
If you’re well-positioned, you can grow your wealth as a wave of government cash flows into the energy and commodities markets over the next decade.