China’s decades-long growth miracle drove the biggest global commodities boom in a generation. Despite China’s GDP slowing in recent years, its impact, particularly in Africa, is wide-ranging and growing…
On his recent trip to Morocco, Aaron noticed a prevailing economic theme in the northern African nation: China’s widespread presence. China’s investment in Morocco continues to grow and reflects its broader Belt and Road Initiative (BRI) strategy to deepen economic ties with Africa. In 2016, Morocco joined the Belt and Road Initiative, further facilitating cooperation in the manufacturing, logistics, and technology sectors with China…
Not coincidentally, Morocco’s trade with China has surged over 500% in the last decade. Examples of increased economic activity between the two nations are everywhere within Morocco. China has invested heavily in the construction of the Mohammed VI Tangier Tech City, a $10 billion project launched in 2017. This ambitious project is designed to be a hub for Chinese companies looking to invest in Morocco and the broader African market.
China’s BYD, the world’s largest EV car maker, recently surpassed Tesla and signed an agreement in 2017 to open an electric vehicle factory in Morocco. The list of China’s growing influence in the country is long…
It’s worth noting that Morocco holds the largest phosphorus reserves in the world. The country has about 70-75% of the global phosphorus resource. These vast reserves are mainly located in the Western Sahara region, making Morocco a key player in the global phosphorus market, which is essential for fertilizer production. Additionally, and just as important for China, phosphorus is a key component in the production of lithium iron phosphate (LiFePO4) batteries, a popular type of electric vehicle (EV) battery known for its stability, safety, and long lifespan. These batteries use phosphate-based cathodes, offering a cost-effective and reliable alternative to other lithium-ion battery chemistries, especially in lower-cost EV models.
Morocco’s Tanger Port is a key piece of infrastructure for China as it ships over 7 million containers annually — that’s more volume than Canada’s three largest ports, combined! The key for China is that Morocco has a critical maritime trade route to the European market, as it has been a longtime ally of the bloc’s.
No Place like Nevada for Gold Mining
While China is the largest gold-producing nation in the world, Nevada is the largest gold-producing state in the U.S. Routinely ranked as one of the world’s most attractive mining destinations, Nevada has become a global superpower for gold mining, having produced nearly a quarter billion ounces of gold in the last 200 years…
Nevada is the largest gold producer in the United States, accounting for around 75-80% of total U.S. gold production. If it were a country, Nevada would rank among the top gold producers globally.
Gold mining in Nevada dates back to the mid-1800s, starting with the discovery of the Comstock Lode in 1859, which led to a rush of miners to the area. Gold mining is still one of the largest generators of wealth in Nevada.
The Stock Market is Sending Recession Signals
Although the bond market suggests credit markets are doing well and there is little risk of a major default or credit event, the equity markets suggest we are at or near a recession.
The unemployment rate has ticked up to 4.2% in the U.S. – higher than the Federal Reserve expected at this point in the year.
Moreover, the major stock indices have shown increasing volatility over the last 6 to 8 weeks, with a massive correction in early August followed by a 10% rally (S&P) over the following 30-40 days.
If job growth continues to slow, the Fed is widely anticipated to cut interest rates. Time will tell if a series of rate cuts will be enough to prevent a hard landing for the U.S. economy. Michael Gayed gives us his take in a recent sit-down. You can enjoy the full conversation by clicking HERE.
