Links 6/25/09


  1. Gunther

    On Goldman’s fat tail risk
    "The short answer is they tend to make money."
    I want to add:
    If not, there is always the taxpayer to take the loss.

  2. D

    US / EU China Trade WTO Complaint

    Almost every major trading nation have such restraints (or have it denatured like Canada and energy / oil under NAFTA).

    What is interesting is this is a systematic effort to dilute what few natural resource cards China do have leverage on, like Lithium.

    Somebody, someone, is seeing red over future supplies of these resources.

    Parse the list: magnesium (lightweight laptop frames, etc.) bauxite (light weight components): both components are essential to reduce fuel consumption of vehicles, etc., rare earths —- stuff to make magnets (high output electric motors, superconductors, etc.).

    Antinomy — LEDs that will be a major energy saving enabler.

    Phosphorous — read agriculture —- critical to Chinese agriculture.

    If the Chinese were very clever, they would tax these finite resources very heavily in terms of production royalties (non-discriminatory and legal under WTO), or, put the process into a scretching halt by using the National Security exemption of WTO.

    Clearly, the US and EU do not want China to have a leg up on the most critical building blocks of the future — enablers of energy saving devices and equipment, and a secure domestic supply of a critical agricultural ingredient.

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