They Are Getting Ready: “No Obvious Reason” For Why China Is Massively Boosting Stockpiles of Rice, Iron Ore, Precious Metals, Dry Milk

If there were ever a sign that something is amiss, this may very well be it.

United Nations agricultural experts are reporting confusion, after figures show that China imported 2.6 million tons of rice in 2012, substantially more than a four-fold increase over the 575,000 tons imported in 2011.

The confusion stems from the fact that there is no obvious reason for vastly increased imports, since there has been no rice shortage in China. The speculation is that Chinese importers are taking advantage of low international prices, but all that means is that China’s own vast supplies of domestically grown rice are being stockpiled.

Why would China suddenly be stockpiling millions of tons of rice for no apparent reason? 

Perhaps it’s related to China’s aggressive military buildup and war preparations in the Pacific and in central Asia.

If a 400% year-over-year increase in rice stockpiles isn’t enough to convince you the Chinese are preparing for a significant near-term event, consider that in Australia the country’s two major baby formula distributors have reported they are unable to keep up with demand for their dry milk formula products. Grocery stores throughout the country have been left empty of the essential infant staple as a result of bulk exports by the Chinese.

A surge in sales of one of Australia’s most popular brands of infant formula has led to an unusual sight for this wealthy nation: barren shelves in the baby aisle and even rationing of baby food in some leading retail outlets.

We’d be more apt to believe the Chinese were panic-buying baby formula had the Chinese milk scandal occurred recently. The problem is that it happened four years ago. Are we to believe the Chinese are just now realizing their baby food may be tainted?

In addition to the apparent build-up in food stocks, the Chinese are further diversifying their cash assets (denominated in US Dollars) into physical goods. In fact, in just a single month in 2012, the Chinese imported and stockpiled more gold than the entirety of the gold stored in the vaults of the European Central Bank (and did we mention they did this in one month?).

Their precious metals stockpiles have grown so quickly in recent years that Chinese official holdings remain a complete mystery to Western governments and it’s rumored that the People’s Republic may now be the second largest gold hoarding nation in the world, behind the United States.

We won’t know for sure until the official disclosure which will come when China is ready and not a moment earlier, but at the current run-rate of accumulation which is just shy of 1,000 tons per year, it is certainly within the realm of possibilities that China is now the second largest holder of gold in the world, surpassing Germany’s 3,395 tons and second only to the US.

But the Chinese aren’t just buying precious metals. They’re rapidly acquiring industrial metals as well.

Spot iron prices are up to an almost 15-month high at $153.90 per tonne. The rally in prices, which started in December 2012, is mainly due to China’s rebuilding of its stockpiles as the Asian giant gears to boost its economy, which in turn, could improve steel demand.

The official explanation, that China is preparing stockpiles in anticipation of an economic recovery, is quite amusing considering that just 8 months ago Reuters reported that China had an oversupply, so much so that their storage facilities had run out of room to store all the inventory!

When metals warehouses in top consumer China are so full that workers start stockpiling iron ore in granaries and copper in car parks, you know the global economy could be in trouble.

At Qingdao Port, home to one of China’s largest iron ore terminals, hundreds of mounds of iron ore, each as tall as a three-storey building, spill over into an area signposted “grains storage” and almost to the street.

Further south, some bonded warehouses in Shanghai are using carparks to store swollen copper stockpiles – another unusual phenomenon that bodes ill for global metal prices and raises questions about China’s ability to sustain its economic growth as the rest of the world falters.

Now, why would China be stockpiling even more iron (and setting 15 month price highs in the process) if they had massive amounts of excess inventory just last year?

Something tells us this has nothing to do with an economic recovery, or even economic theory in terms of popular mainstream analysis.

Why does China need four times as  much rice year-over-year? Why purchase more iron when you already have a huge surplus? Why buy gold when, as Federal Reserve Chairmen Ben Bernanke suggests, it is not real money? Why build massive cities capable of housing a million or more people, and then keep them empty?

It doesn’t add up. None of it makes any sense.

Unless the Chinese know something we haven’t been made privy to.

Is it possible, in a world where hundreds of trillions of dollars are owed, where the United States indirectly controls most of the globe’s oil reserves, and where super powers have built tens of thousands of nuclear weapons and spent hundreds of billions on weapons of war (real ones, not those pesky semi-automatic assault rifles), that the Chinese expect things to take a turn for the worse in the near future?

The Chinese are buying physical assets – and not just representations of those assets in the form of paper receipts – but the actual physical commodities. And they are storing them in-country. Perhaps they’ve determined that U.S. and European debt are a losing proposition and it’s only a matter of time before the financial, economic and monetary systems of the West undergo a complete collapse.

At best, what these signs indicate is that the People’s Republic of China is expecting the value of currencies ( they have trillions in Western currency reserves) will deteriorate with respect to physical commodities. They are stocking up ahead of the carnage and buying what they can before their savings are hyper-inflated away.

At worst, they may very well be getting ready for what geopolitical analyst Joel Skousen warned of in his documentary Strategic Relocation, where he argued that some time in the next decade the Chinese and Russians may team up against the United States in a thermo-nuclear showdown.

Hard to believe? Maybe.

But consider that China is taking measures now, in addition to their stockpiling, that suggest we are already in the opening salvos of World War III. They have already taken steps to map our entire national grid – that includes water, power, refining, commerce and transportation infrastructure. They’re directly involved in hacking government and commercial networks and are responsible for what has been called the greatest transfer of wealth in the history of the world. Militarily, the PRC has been developing technology like EMP weapons systems, capable of disabling our military fleets and the electrical infrastructure of the country as a whole, and has been caught red-handed manufacturing fake computer chips used in U.S. Navy weapons systems.

If you still doubt China’s intentions and expectations, look to other governments, including our own, for signs that someone, somewhere is planning for horrific worst-case scenarios:

• The Russians have scheduled 5,000 underground bunkers for completion this year.
• Europe rapidly designed, built and stocked the so-called Doomsday Seed Vault in Svalbard, Norway, which contains tens of thousands of varieties of seeds and is supposed to preserve them in the event of Armageddon style events like asteroid impacts or nuclear war.
• The United States government has been stockpiling tens of millions of emergency meals and other supplies and regionalizing their emergency distribution centers across the country (curiously, those supplies never made it to Hurricane Sandy victims)
• The government has purchased nearly 2 billion rounds of ammunition in the last few years.
• The Pentagon has been Actively War Gaming ‘Large Scale Economic Breakdown’ and ‘Civil Unrest’
• China recently made a call, through their Xinhua news agency, for the complete disarmament of the American population (Behind every blade of grass…)

Perhaps there’s a reason why former Congressman Roscoe Bartlett has warned, “those who can, should move their families out of the city.”

As Kyle Bass noted in a recent speech, “it’s just a question of when will this unravel and how will it unravel.”

Given how similar events have played out in history, we think you know how this ends.

It ends through war.

Governments around the world are stockpiling food, supplies, precious metals and arms, suggesting that there is foreknowledge of an impending event.

Should we be doing the same?

This article has been contributed by SHTF Plan. Visit www.SHTFplan.com for alternative news, commentary and preparedness info.