Why is China Stockpiling Commodities?

As 2020, The Year of Chaos winds down you need to start putting the pieces of the financial puzzle together looking into 2021, When Food Shortages Hit Home.

This isn’t the first time we’ve said you need to start to shift some of your assets into commodities.  In fact, go back and re-read our March newsletter (HERE) where we said, “…based on the economic damage from the ‘Kung-Flu Farce’ you should expect food shortages popping up all around the world.”

Cue up Why is China Stockpiling Commodities?

It’s no secret that China has been stockpiling gold and other precious metals over the last two decades.  This is in addition to them being the largest gold producing nation in the world.

Why?

They know paper money has a limited shelf life and they want to be in a key position to dictate the next dimension of global currencies, which will include Gold.

In other words, when the King Dollar loses its World Reserve Currency status, China will be waiting in the wings to take over.

The same reasoning is why China is also stockpiling almost every other commodity out there (Cough! Oil, Cough! Agricultural commodities, Cough! Silver and other Rare Earth Elements needed for Solar Energy, Cough! Cough!).

They know how food shortages are already showing up around the world.

Unfortunately, the Whores-Of-Babble-On Presstitutes are being told to keep a lid on it in order to keep panic from setting in.

If there’s a bright side to this it’s that commodity-based stocks are still cheap…especially when you compare them to the tech sector (hint! hint!).

And as much as we hate to admit it, China is the heir apparent to being the next world power.

They completely understand the Golden Rule.  “He that has the gold, makes the rules.”

That doesn’t mean we’re going to become like the Mel Gibson/Mad Max scenario – which, ironically the movie took place in 2021 – but it does explain why food prices at the grocery store are going up.

The good news is there’s a lot of money to be made owning commodity-based stocks.

See which ones we like in the September issue of “…In Plain English.”

It’s Not Just About Finance.

Mad max 2021 meme