Thursday, February 26, 2015

Responding to hypothetical crises: "what happened to the rare earths crisis?"

Instapundit appropriately and sarcastically responds: "shockingly, markets." From MIT's Tech Review:

Demand appears to have fallen mainly because companies stockpiled these materials in anticipation of shortages, says Hatch. As it turned out, China’s lower export quotas—which were deemed unfair by the World Trade Organization—didn’t constrain the world’s supply, and China recently stopped imposing those limits on rare earths. Hatch notes that while the prices for some rare earth materials remain above 2010 levels and could go up again, a price spike like the one seen in 2011 is unlikely.
As it turns out, net neutrality is another hypothetical crisis that American politicians have decided to take a different approach on: regulation. I predict the phrase "unintended consequences" is going to be used - that were very much and vocally predicted before hand (Reason).

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