It appears that China believes that we are on the verge of a major global crisis. “Why” you might ask? The communist Chinese government has always been very big into planning, and it appears that they have decided that now is the time to hoard food, gold and other commodities.
In recent days, the fact that China is completely cutting off U.S. agricultural imports has made headlines all over the globe. However, at the same time China is dramatically increasing the amount of food that it is importing from the rest of the world, resulting in a substantial surge in Chinese imports. The news reported yesterday that Chinese soybean imports in July were up 8 percent compared to last year.
China announcement off cutting off U.S. agricultural imports completely is going to be a "devastating blow" for U.S. farmers. The ripple effect will probably be felt by companies such as Deere, whose business is directly tied to farming in the Heartland.
China has also turned to other sources to supply their needs with substantial increase of wheat and soybean imports from Russia. This is yet another sign that Russia and China are drawing closer, which I have been watching closely.
Meanwhile, China is also hoarding gold. In fact, July was the eighth month in a row in which the Chinese increased their reserves buying nearly 10 tons of gold in July. Why is this significant?
The purchase is another signal from China that it's gearing up for a prolonged trade conflict with the US. Gold serves as a historic safe-haven investment, and its price typically rises when markets and other currencies see increased volatility or prolonged weakness.
Bloomberg also reported that Chinese commodity purchases of all types were very strong in July. Commodity purchases by China from soy to coal and crude oil gained significantly.
So why are the Chinese suddenly stocking up on everything?
The trade war between the United States and China is rapidly escalating and becoming a currency war. Events in the Middle East could erupt at any time, the global economy has been steadily slowing down, crops are failing all over the planet, and everywhere we look we seem to see rising political instability…even in China's own backyard.
The New York Post reports, “After eight weeks of huge Hong Kong street protests against Beijing's rule, the People's Republic is massing police and soldiers just across the border. Message: If the protesters don't quit, a bloodbath is coming.”
U.S. relations with China have already reached critical mass. Things appear to be headed down a difficult road that will impact all of us if there is no resolution.
The Bible clearly speaks of wars and rumors of wars as the prelude to what is known as The Last Days. Jesus clearly taught His disciples that those days would be turbulent ones.
Now is the time to examine your life and your relationship with Jesus Christ. He is the anchor in the middle of the storm and with the storm clouds I see on the horizon, I wouldn’t want to face it without Christ in my life.
So, I would suggest putting on your “spiritual” seat-belt as it could get rough in the near term. But then again, they simply remind me to be looking for the return of Jesus. How about you?
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