What do rare earth minerals, AI, and SpaceX have in common?
Answer: China and America can’t get enough of them…and they are the next phase of the global resource war.
Cue up: The presstitutes making a big deal of the United States making a preliminary agreement with Kenya involving the massive Mrima Hill rare earth and niobium deposit
It’s estimated to be worth roughly $62.4 billion.
Wall Street’s bought-and-paid for media presstitutes are portraying this as a victory for Washington over Beijing.
But that interpretation misses the larger picture.
And that is why critical minerals are rapidly becoming the new oil as a result of the sovereign debt crisis looming over governments around the world.
Ironically (or NOT) this agreement comes as China remains deeply entrenched throughout Kenya and East Africa.
In Case You Missed it…earlier this year, Kenya finalized a major trade agreement with China, granting duty-free access for most Kenyan exports.
In the meantime, China (as they are wont to do) continues to finance infrastructure projects, railways, highways, and industrial investments throughout the region.
As usual, the Presstitutes want to frame this as America defeating China.
However, the truth is that Kenya appears to be doing what every sovereign nation should do, playing both sides in pursuit of its own interests.
Can’t say that I blame them.
Rare Earth Minerals
We have been pounding the table over the fact that rare earths, niobium, lithium, graphite, copper, and nickel are essential for military systems, semiconductors, batteries, electric vehicles, telecommunications, artificial intelligence, and advanced manufacturing.
And the entire green energy agenda depends upon these materials.
Not surprisingly, every major power understands that whoever controls the supply chains controls the future.
And that is why competition for Africa’s mineral wealth (The New Oil) is intensifying.
So, from an investment standpoint you can play this scenario two ways.
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If you believe in the future of AI and companies like SpaceX, you can buy the companies that will supply the needs of the future, like data centers.
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Or, buy the stock of companies (like SpaceX and/or the latest hot AI stock) and take your chances they will eventually be profitable.
