By David Forest, editor, Strategic Investor

David Forest

We got a shocking development on Capitol Hill last Wednesday.

A group of senators sent a letter to President Biden. They all but begged the President for a favor. One that could shake America literally to its foundations.

The group included former presidential candidate Elizabeth Warren. Here’s her signature on the letter.

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You won’t believe what she asked for.

Warren and her fellow senators want President Biden to re-activate an obscure piece of legislation. It dates to 1950, when America was just emerging from World War II.

It’s called The Defense Production Act. Back in the 1950s, it helped prop up supply of America’s most important resources.

Warren opened her odd request by talking about the war in Ukraine. She cited “Russia’s unprovoked invasion” and “efforts to build a strong international coalition” against Vladimir Putin.

To do that, she said, America needs energy.

This Legislation Calls for More Tech Metals

The thrust of the letter is energy independence. Warren and the other senators want to break America free from energy imports – be it from Russia, China, or closer to home.

To do that, they said, we need more local supply. Especially when it comes to “green energy metals.”

I’ve talked a lot about green metals. I call these “hard tech.” They’re commodities (and thus inflation-protected)… but they’re also intimately tied to the biggest tech trends around the world.

Electric vehicles, 5G, advanced defense systems, clean energy – they all rely on hard tech. Without the metals, nothing works.

Hard tech is exactly where Warren wants to focus. And she wants to use the obscure 1950s Defense Production Act to do it.

The Act allows the government to spur metals production. The president can order support for mining projects.

During his term, President Trump made The Defense Production Act a go-to. He invoked it more times than any other modern president.

In 2017, for example, President Trump used the Act to order materials for aerospace. He cited a “shortfall in the space industrial base” and told the industry to do something about it.

The Act creates a direct channel for funding. The government can unleash millions or even billions of dollars on metals it deems strategic.

It could also help push through new mining projects. Regulators can prioritize a project and help cut the red tape in getting it up and running.

A Huge Opportunity for Hard Tech… and Investors

Government support for tech metals touches off massive bull markets. In the 1950s, America started buying uranium. Prospectors grabbed overnight millions when they made huge uranium finds backed by government cash.

More recently, government support for battery metal vanadium shot stocks higher in 2017 and 2018. Readers of my International Speculator advisory rode some of those vanadium stocks from under $0.40 to nearly $2.00.

That’s about a 400% gain. And it might be peanuts compared to what’s coming.

If Elizabeth Warren gets her way – and uses President Trump’s favorite tool to do it – all bets are off. There’s nearly no limit to the cash potentially unleashed on American hard tech.

Nickel, cobalt, lithium, vanadium, uranium – all will benefit. Even precious metals like silver could get a lift. That hard tech drives new energy systems like solar panels.

It might even benefit oil and gas. Some of the senators signing on to last week’s letter reportedly wondered whether the government should support conventional energy.

The war in Ukraine is a wakeup call. No one wants to be caught in the lurch when it comes to energy. American officials watched Europe’s recent energy crisis – and they’re scrambling to avoid something similar.

An Energy Revolution Is Coming

We know what that means: nearly unlimited funds opening for all the basic materials an energy revolution needs. This could be one of the biggest trends for the coming years.

Even better, it’s a natural hedge against inflation. Commodities aren’t made in factories. You have to get them wherever they’re naturally found.

That’s an intrinsic limit on supply. Meaning, as inflation hits, hard tech goes up. It keeps pace with the rising costs of living. Often, hard tech goes up faster – helping us profit from inflation.

Protection plus profits. Exactly what investors need today.

Keep walking the path,

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David Forest
Editor, Strategic Investor

P.S. If you want more ways to protect your portfolio, wealth, and family from inflation… check out my briefing right here. I lay out several strategies to play inflation.