In recent years, the international situation has been treacherous, and security risks have increased. The Ukraine crisis is protracted, and the game between NATO and Russia is also heating up from time to time, and the UK is even clamoring for a state of war. On the other hand, although the new round of Palestinian-Israeli conflict has eased temporarily, the friction between Israel and Iran is very likely to escalate, after all, the madness of the Israeli right wing is difficult for even the United States to predict. So far, the "P5" of the "P5" of the United Nations has been deeply or shallow involved in geopolitical conflicts, and only China is still standing on the shore and watching. But we are not leisurely "watching the fire from the other side", but preparing for a rainy day.
Recently, Andreas Steno Larsen, chief strategist of Nordea Financial Investments, mentioned on social media that "China is preparing for a big thing", and that China is hoarding everything from copper, oil, nickel to iron ore as a preparation for the currency devaluation. The currency depreciation mentioned here is most likely talking about the depreciation of the US dollar, what will be the impact of the depreciation of the US dollar?
You can look at the current soaring gold price, the theory is that the price of gold and the dollar index are inversely proportional, and the trend of gold soaring is enough to show the outside world's expectations for the dollar. Once the depreciation of the US dollar, the global reserve currency, accelerates, it will drive a bull market in the global commodity market, and commodity prices will naturally soar when supply exceeds demand. Combined with the context and the currency currently used to buy bulk commodities, it shows that it is implying that the dollar is going to depreciate, and China has a large amount of dollar foreign exchange in its hands, and while the dollar in its hand is still very valuable, it quickly hoards a large number of commodities such as industrial raw material concentrates, grain and energy, otherwise when the dollar depreciates and the price of commodities rises, it will be a big loss, and it is normal to hoard goods. What's more, the United States has recently begun to threaten sanctions to cut off some Chinese banks from the global financial system.
In fact, all along, China's various infrastructure projects, investments, and various strategic projects abroad are for the sake of a single resource, focusing on investing in the extraction and export of bulk commodities, and returning this to the Chinese industry, except for the share required for production, the rest is a strategic reserve. The economist above looks at the problem more superficially, China has always had bottom-line thinking, and in recent years, it has been frantically hoarding food, energy, raw materials and other commodities, in addition to dealing with the big storm of dollar depreciation, in fact, it is also preparing to flip the table. The reason for this is that while China is hoarding commodities, it is also looking for supply chains that replace the United States and its allies and open up new strategic routes. For example, recently, China has canceled a large number of wheat orders from the United States and Australia. In addition, China has signed long-term energy agreements with Iran, Russia and other countries to ensure energy security. In addition, in order to avoid being stuck in the Strait of Malacca, China is rapidly opening up land corridors in South Asia and the Indochina Peninsula.
In the event of an emergency, in order to maintain the normal operation of society and production, it is necessary to maintain strategic reserves of grain, raw materials, and energy for at least two years. In this way, if the adversary cuts off the supply chain of offshore raw materials, the impact will not be great. The United States will certainly be hysterical if this harvest is not ideal. In the tense international situation, the phrase "digging deep holes, accumulating grain, and not seeking hegemony" is the true meaning.