When U.S. companies build military weapons systems, electric vehicle batteries, satellites and wind turbines, they rely heavily on a few dozen “critical minerals” – many of which are mined and refined almost entirely by other countries. Building a single F-35A fighter jet, for example, requires at least 920 pounds of rare earth elements that come primarily from China.
The Fed issues as much dollars as needed by writing the new trillions on its balance sheet. These new trillions are channeled usually via government bond buying or through the banking system.
The US government designs its economic policies in a way that makes its trade balance of payments always negative (by large values). Therefore, trillions keep flowing overseas (to pay China, EU, Japan etc for the imported goods and services).
Moreover, the US coerces foreign governments to trade between each others in USD; especially for oil and gas. In this way, the ‘excess’ dollars keep circulating worldwide.
Sumitomo Forestry, a Japanese wood processing company, has started developing wooden satellites, in partnership with Kyoto University.
The project is proposed as a solution to the space junk problem. Thus, end-of-life wooden satellites would fully burn up in the Earth’s atmosphere without leaving any harmful debris.
It might not seem important that 88% of the semiconductor chips used by U.S. industries, including the automotive and defense industries, are fabricated outside the U.S. However, three issues make where they are made critical to the U.S. as the global leader in electronics: lower capability, high global demand and limited investment.