Trump's Treasure Trove Government Stakes in Key Industries

• The Trump administration has strategically invested in over ten companies, primarily in critical minerals and chip manufacturing, to bolster domestic supply chains.
• These investments often involve equity stakes, price floors, and agreements to purchase future output, aiming to reduce reliance on foreign entities like China.
• Notable investments include MP Materials, Intel, Lithium Americas, and U.S. Steel, with the government securing governance stakes in some cases.
• These actions mark a significant shift towards strategic government intervention, reminiscent of wartime measures but with the aim of fostering long-term national economic and security interests.

A Pirate's Life for Strategic Investments

Savvy? Seems the winds of change are blowin' through the halls of power. Aye, even a pirate like meself, Captain Jack Sparrow, can see that the Trump administration's been burrying treasure...or rather, investin' heavily in companies, eh? More than a few, mind you! At least 10 by my count, and I'm not always known for bein' precise, unless it involves rum. They're dabbling in everything from critical minerals, shiny trinkets the world desires, to chipmakers, those little gizmos that make the world go 'round. All this, supposedly, to build a domestic supply chain and tell China to 'parley' somewhere else. "Why is the rum always gone?" Well, perhaps they're tryin' to ensure the same doesn't happen with our essential resources.

Golden Shares and Governance Stakes

Now, I've seen my fair share of 'golden shares' and power grabs on the high seas. But this U.S. Steel business takes the biscuit. President Trump snagged himself a 'golden share' as part of a deal with Nippon Steel. Not an economic stake, mind you, but a say in how things are run. He can veto decisions about closing plants, changing the name, or even movin' the whole operation. It's like havin' the final say on whether to bury the treasure or spend it all on... well, more treasure. Speaking of treasure, if you want to know more about how markets can make the riches, here is an article on Japanese Stocks Soar to Record Highs After Landmark Election

From Mountain Pass to the Pentagon's Purse

MP Materials, eh? Operates the only commercial rare earth mine in the U.S. Sounds like a hidden cove filled with precious gems! The Defense Department's gotten itself involved, strikin' a deal that includes an equity stake, a price floor (always a good thing when negotiatin' a trade), and an agreement to buy future output. Seems the Pentagon wants a piece of the action, a 15% stake they say! That's more than I usually share of me plunder... unless, of course, I'm plannin' somethin' devious.

Chips, Lithium, and Other Shiny Baubles

Intel's in the mix too. The Commerce Department bought a 10% stake, usin' funds from the CHIPS Act. Seems they're serious about securin' the chip supply. Then there's Lithium Americas, diggin' for lithium in Nevada. The Department of Energy's even deferred debt service in exchange for a small equity stake. 'Tis a tangled web they weave, indeed! It's all about that "national purpose", so they say. Keeps the taxpayers happy while they're at it.

Startups and Nuclear Reactors

And what's this? Startups with no revenue? Risky business, even for a pirate like meself. Trilogy Metals, USA Rare Earth... They're all gettin' a slice of the government pie. And then there's Westinghouse, dealin' in nuclear reactors. The government might become an 8% shareholder if things go well. Sounds like they're plannin' for the long haul, or perhaps just tryin' to avoid another "Pearl Harbor" of resources as they so eloquantly imply.

Defense, Lasers, and Rocket Motors

Vulcan Elements is buildin' a magnet facility, with a hefty loan from the Pentagon. XLight is developin' lasers, and L3Harris is spinnin' off its missile business with a $1 billion investment from the government. It seems the Trump administration is not only building treasure, it is trying to secure the path it takes to its shores. This all sounds mighty ambitious, even for a world where the compass doesn't point North, but to what we desire.