The Canadian prime minister, Mark Carney, inspired a wave of enthusiastic nodding among the cosmopolitan crowd gathered in Davos last month when he took to the podium and proclaimed that the world order underwritten by the United States, which prevailed in the west throughout the postwar era, was over. The organizing principle that emerged from the ashes of the second world war, that interdependence would promote world peace by knitting nations' interests together in a drive for common security and prosperity, no longer works.
Historical examples of this kind of attack include the Stuxnet malware that targeted Iranian nuclear enrichment plants. The malware destroyed centrifuges in 2009 by causing them to spin at dangerous speeds while feeding false "normal" data to operators. Another example is the Industroyer attack by Russia against Ukraine's energy sector in 2016. Industroyer malware targeted Ukraine's power grid, using the grid's own industrial communication protocols to directly open circuit breakers and cut power to Kyiv.
Lagarde argued that Europe was vulnerable because of a dependency on third countries for our security and the supply of critical raw materials. She cited China's control of the supply of rare earth metals that are crucial in electric motors and wind turbines, as well as the choke point of power chips made by Nexperia in China that threatened to shut down production across the global car industry.
"It's scandalous that we don't have a rare earth strategic reserve," Siegel told CNBC's Squawk Box Monday, calling it a major security failure. "We let China monopolize 90% of refining rare earth materials. Where were we, realizing the importance of these?" Siegel urged the U.S. to build a rare earth stockpile similar to the Strategic Petroleum Reserve, which was created in 1975 after the Arab oil embargo left the country exposed to geopolitical blackmail.