Above the Fold

Why We Need China for Some Goods to be “Made in America”

The Wall Street Journal recently highlighted a potentially sticky issue when it comes to trade disputes, economic dependence and all-around relations with our “frenemy” China — rare earth minerals. Rare earths, as they are often called, encompass a group of 17 metals and minerals used in the manufacture of a plethora of domestically made electronic devices, components, glass, magnets, ceramics and more. Global demand is growing as prices for rare earths came down after a 2010-2012 spike; research firm Global Market Insights Inc. sees the market growing at a CAGR of 9.7% to $20 billion in 2024. 

Why does all this matter? China controls the lion’s share of global rare earth production at 132,000 metric tons mined in 2019, compared with just 26,000 in the United States. Realizing the growing need, America is looking to bolster its supply chain; but as it stands now, we need China’s supply. Researchers caution that China could use rare earth control to counter some of the technological and trade restrictions the U.S. has imposed on the communist nation. There is potential (though unlikely) that China triggers a 1970s-style oil embargo that stopped the flow of oil into America and sent fuel prices soaring. 

Three Things 

1. Traditional Media Cashing in on Tech – Generally, search engines like Yahoo and Google have not directly paid news outlets for content. But a recent deal struck between Google and a few select global publishers could signal a change. The new partnership compensates the news organizations to license audio, video, images and stories featured on Google’s primary mobile app and in the Google News app. No deals have been announced for U.S. news outlets.
2. COVID’s Plastic Problem – With the rise in masks, face guards, to-go boxes, bags and other single-use items intended to keep us safe, environmentalists are warning of another grave virus symptom — plastics. Flexible or blended plastics, as well as bags, wraps and pouches, are among the most difficult to recycle. The meteoric jump in usage and waste could stress our nation’s landfills and ecosystems, and it’s unlikely that plastic use will decline any time soon. 
3. Sugar’s Quarter Was Really Sweet – Sugar prices are about to record their best three-month rally since 2016. The rally in crude oil (ethanal comes from a sugar crop) and some supply disruptions have helped drive the appreciation. Experts do caution that the back half of 2020 may be slightly more bitter as continued COVID-19 business closures could hurt demand for soft drinks and other sugary products at large venues like movie theaters and stadiums. 

Did You Know?

American as Apple Pie?

In the 19th and 20th centuries, apple pie became one of the many symbols of American culture and pride. A freshly baked apple pie was a feel-good food appreciated from sea to shining sea … unfortunately, neither apples or apple pie are actually American.

Even though they grow well in North America, apples, ironically, are native to Asia, and the first recorded recipe for apple pie was traced back to England. That said, most wouldn’t turn town a delicious slice, “à la mode” of course.