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America’s Return to Resource Dominance

America’s Return to Resource Dominance

There’s a lot to complain about in this current political news cycle.

Congress is trapped in a stalemate over the debt ceiling. The Fed continues to pretend the financial sector is healthy — while trying to pawn off the FDIC bailout bill and appease big banks. The SEC is throwing cheap punches at cryptos, small banks, REITs, and anyone small enough to pick on.

But despite all this, there’s good reason to celebrate small market victories, especially in the resource space. Yes — it comes at a high cost from pork barrel legislation like the Inflation Reduction Act (IRA). I’m not going to pretend that all of that politically motivated spending makes any sense. But that’s not going to stop me from taking the opportunity to make the most of it.

If the money is going to be spent, we may as well enjoy its benefits.

All that loose cash is pulling major projects across the Atlantic. The Economist has called it, “an escalating arms race of corporate goodies.” But when that number is $400 billion, “goodies” is a gross understatement.

Europe is motivated to make America the first stop on their supply chain.

Companies like Northvolt are expanding production into America. The Sweden-based company is buying for not only their American business, but for their European operations as well.

Spain’s Iberdrola is following suit and has now expanded production to 25 states. They cite the IRA as one their primary motivations for the move.

It’s ironic that both of these companies have names that refer to the geographic location of their home country, and yet wasted no time in making America their primary source of materials once the economics were favorable.

The Economist has taken the impact of these changes very seriously. According to a headline article, they see this as America reclaiming its competitive advantage — and starting a new age of economic dominance. But what is a worrying loss for Sweden, Germany, France, and Spain can be a windfall for you.

A robust mining industry is as old as America itself — and I personally welcome its return. We paid for it, so let’s get our money’s worth. If you haven’t read your PRO report on how to profit from the return of American copper mining, that’s a great place to start.

John Carl
Profit Cycle Pro