In recent months we've heard a lot about rare earth elements. Rare earths are comprised of 17 elements used in high tech applications such as laser guided weapons and hybrid car batteries. The elements are often referred to as "21st century gold."

Why such concern about rare earth metals? First and foremost China controls 97% of rare earth production. Now China has embarked on a new program of stockpiling rare earths, as reported in the Wall Street Journal. In China, the Ministry of Land and Resources is managing this new program. New storage facilities are being built and managed by the world's largest rare earth government controlled Baotou Steel Rare Earth (Group) Hi Tech Co. Chinese state media say the stockpile may total 100,000 metric tons. To make things worse, China has been restricting exports of rare earths.

In a bid for foreign investment, North Korea has created a dozen special zones, so reports a South Korean newspaper. The country needs hard currency, thanks to lack of trading relationships and an economy that redefines "troubled." Raw material and power shortages have constrained heavy industry in North Korea, which has traditionally been the mainstay of its economy.

The new zones will offer new opportunities for economic growth, though the North's past experiments with special economic zones haven't been terribly successful.

It was what thousands of parents of whiny kids were waiting for. Out of the blue, the Tickle-Me-Elmo floodgates are open and (among others) Wal-Mart Stores, Inc. (NYSE:WMT) makes oodles of TMX Elmo dolls available on the company's web site. From an, umm, "hidden cache." According to Heather, a TMX Elmo searcher in my office, she finally discovered an Elmo available "suddenly" from Fisher Price. Another warehouse abruptly appear out of the fog in El Segundo? (Do they have fog in El Segundo?)


All at once, eBay, Inc. (NASDAQ:EBAY) listings are everywhere, 22,446 results for my search for "TMX Elmo" and not just lots of results but falling prices. When I first checked around 10:45 a.m. there were dozens of listings closing around $5 or $10 over the suggested retail price of $39.99. 20 minutes later, when I was finishing up this piece? It was more like $5 or $10 under the suggested retail price. The Spanish version was going for a ridiculously cheap $26.55. Market floodage has commenced.

When Black Friday was approaching and customers were gearing up for their long wait in line to be one of the few, the proud, the early purchasers of TMX Elmo dolls, a few less festive souls whispered of "artificial shortages" and wondered if Mattel was purposely creating a frenzy over the toys. Most parents and eBay sellers accused them of a distinct lack of holiday spirit, and oh yeah, not enough capitalism.