JP Morgan’s $10 Billion National Security Power Play

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JP Morgan’s huge investment in national security. Okay, they stated that they are going to directly invest $10 billion in companies that it deems critical to US national security. They’re saying this is part of an initiative to help protect the American economy as trade tensions with China escalate.

They said that they are putting together a $1.5 trillion facility in investments for companies deemed critical to national economic security and resiliency. And they’re going to do this over the next 10 years. That’s $10 billion of its own capital. They’re going to take stakes in companies such as defense contractors, mineral manufacturers, and artificial intelligence firms.

Jamie Dimon said, it’s been painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing, all of which are essential for our national security. Again, I’ve always had a problem with banks getting involved in any type of infrastructure.

I’ve had issues with banks being involved in oil and basically being invested in the various different processes, everything from oil storage to refining. You get into problems, you get into those Enron problems from time to time, but let’s take that and put that aside right now. Jamie Dymond, he also wrote an editorial in the Wall Street Journal.

He said his efforts will focus on four priority areas, supply chains and advanced manufacturing to strengthen the production of critical materials, pharmaceutical precursors, robotics and components such as semiconductors and rare earth elements, defense and aerospace to support innovation and scale production for modern deterrents, including drones, autonomous systems, next gen connectivity.

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energy independence and resilience to modernize the US grid and invest in reliable clean power, like battery storage to meet surge of demand, frontier and strategic technologies to accelerate breakthroughs in artificial intelligence, cybersecurity, quantum computing. And he gives some examples in his op-ed. You can take a look at the Wall Street Journal. This is the issue when it comes, because people sometimes with certain rare earth minerals and kind of boggles a mind to some degree that

various different rare earth minerals that we need for defense is almost entirely sourced from China. And people say to themselves, well, that’s dumb.

That’s dumb. That’s almost as dumb, equally as dumb as the European Union saying, hey, hey, yeah, we’re gonna, we’re gonna source, we’re gonna shut down all our nuclear power plants and we’re gonna source almost all of our energy from Russia while we are members of this organization called NATO, which is there to protect against Russia. Anyway, know, stupid is as stupid does is everywhere. What’s gonna need to happen?

in this situation, how I see this being structured, because China can dump a lot on the market and drive prices down. It’s probably they’re going to structure various different contracts with certain companies that JP Morgan is going to fund, they’re going to invest in, others are going to invest in, and they are going to get, they’re going to get a certain price.

for whatever they’re pulling out of the ground. Let me try to put it this way. Let’s say it’s lithium. I’ll just pull lithium out of it. Doesn’t make a difference. be cobalt, could be uranium, could be anything else. And we could say that, okay, we’re gonna source, start sourcing our lithium mining here in the United States and avoiding other places to get it. However, if I am going to make this investment, because this is a,

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national security concern, I have to be guaranteed, I have to be guaranteed a certain price for my lithium.

You’re basically gonna take the global, it’s gonna throw a bit of a monkey wrench into various different commodity, global commodity markets without a doubt. It’s gonna most certainly change the dynamic and it’s gonna be done based upon what? National security. I get this. I do. I understand this.

I do. This is different than the United States. I like this a hell of a lot better than the US government taking stakes in certain companies. I don’t like that at all. I get it. have it. We get national security. It’s an issue. If we’re saying that these materials that we need, that we’re now sourcing from all over the place, we want to do here. However, our extraction costs

are higher here in the United States for a myriad of different reasons. If I’m gonna put this mine in, if I’m going to extract these metals, I need to be guaranteed a certain price. And that has to be worked out and those contracts need to be put together. It’s not the most ideal, but again, as far as national security is concerned, I get this.

I understand this and without a doubt this announcement by JP Morgan and op-ed by Jamie Diamond was part of the negotiation, negotiating tactics that are going to be used by Donald Trump with China moving forward. Because then we could say, and it’s not just the United States, also our allies as well, we’re going to say, okay, this is what you’re

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where your costs are going to be. This is what we’re going to charge you for these certain rare earth minerals and you’re not going to have to worry about China. You’re not going to have to worry about embargoes or anything like that and we will guarantee you this price and then they’ll work the numbers out and figure it out and you know yeah you’re going to there’s going to be because of this okay because there’s going to be a limit on how much the United States, well you know that’s a thing as well.

You know, it just popped into my mind. know, I all of sudden popped into my mind was $50,000 toilets that the Pentagon buys. There better be limits for the taxpayers when it comes to this. There better be limits. I don’t want to have these companies. geez, you know, we got to charge more now. No, no. All of this needs to be worked out. And again, you can. And this is.

This is the cynic Markowski, okay, understanding how these people operate behind the scenes. This better be handled ahead of time, okay? We don’t wanna be paying ridiculous sums of money for rare earth minerals when we don’t have to. Company wants to say, okay, this is what our extraction cost is, okay, we will contract you out for all of it. Your entire mind, this is what we’re going to pay.

And that makes sense. You know, but coming back later on after the fact, and then you start bringing, you know, global supply chains into the mix. No, no, no, no, no, no, no, no, no. Okay. It’s almost like you’re buying an entire. Mine. Okay. We’re buying an entire mind. We’re buying it, you know, you want to put together a fact for pharmaceuticals. You want to put together precursors. Okay. There has to be a limit. And what the taxpayer is going to pay because again,

Who’s buying this stuff?

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taxpayers, but we’re gonna be buying these products. Again, I’m afraid of $50,000 toilets and overpriced lithium and pharmaceutical precursors as well. We shall see, we shall see. 1.5 trillion over the next 10 years. is, with that, this is a better alternative than the United States government owning parts of…

owning parts of the country. You want a contract to buy from private enterprise? Have at it. Watchdogonwallstreet.com