The Beginning Of The End
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Meet Your New Boss: Buying Large Employers Will Enable China To Dominate 1000s Of U.S. Communities

The United States - A Colony Of ChinaAre you ready for a future where China will employ millions of American workers and dominate thousands of small communities all over the United States?  Such a future would be unimaginable to many Americans, but the truth is that it is already starting to happen.  Chinese acquisition of U.S. businesses set a new all-time record last year, and it is on pace to absolutely shatter that record this year.  Meanwhile, China is voraciously gobbling up real estate and is establishing economic beachheads all over America.  If China continues to build economic power inside the United States, it will eventually become the dominant economic force in thousands of small communities all over the nation.  Just think about what the Smithfield Foods acquisition alone will mean.  Smithfield Foods is the largest pork producer and processor in the world.  It has facilities in 26 U.S. states and it employs tens of thousands of Americans.  It directly owns 460 farms and has contracts with approximately 2,100 others.  But now a Chinese company has bought it for $4.7 billion, and that means that the Chinese will now be the most important employer in dozens of rural communities all over America.  If you don’t think that this is important, you haven’t been paying much attention to what has been going on in the world.  Thanks in part to our massively bloated trade deficit with China, the Chinese have trillions of dollars to spend.  They are only just starting to exercise their economic muscles.

And it is important to keep in mind that there is often not much of a difference between “the Chinese government” and “Chinese corporations”.  In 2011, 43 percent of all profits in China were produced by companies that the Chinese government had a controlling interest in.  Americans are accustomed to thinking of “government” and “business” as being separate things, but in China they are often one and the same.  Even when there is a separation in ownership, the reality is that no major Chinese corporation is going to go against the authority and guidance of the Chinese government.  The relationship between government and business in China is much different than it is in the United States.

Over the past several years, Chinese companies have become increasingly aggressive.  Last year a Chinese company spent $2.6 billion to purchase AMC entertainment – one of the largest movie theater chains in the United States.  Now that Chinese company controls more movie ticket sales than anyone else in the world.  At the time, that was the largest acquisition of a U.S. firm by a Chinese company, but now the Smithfield Foods deal has greatly surpassed that.

But China is not just relying on acquisitions to expand its economic power.  The truth is that “economic beachheads” are being established all over America.  For example, Golden Dragon Precise Copper Tube Group, Inc. recently broke ground on a $100 million plant in Thomasville, Alabama.  I am sure that many of the residents of Thomasville, Alabama will be glad to have jobs, but it will also become yet another community that will now be heavily dependent on communist China.

And guess where else Chinese companies are putting down roots?

Detroit.

Yes, the poster child for the deindustrialization of America is being invaded by the Chinese.  The following comes from a recent CNBC article

Dozens of companies from China are putting down roots in Detroit, part of the country’s steady push into the American auto industry.

Chinese-owned companies are investing in American businesses and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers.

If you recently purchased an “American-made vehicle”, there is a really good chance that it has Chinese parts in it.

In fact, it is becoming harder and harder to get auto parts that are actually made in America by American companies.  A lot of those companies are dying off.  One example of this is a battery maker that had received $132 million from the federal government that was recently gobbled up by a huge Chinese corporation…

Industry analysts are hard-pressed to put a number on the Chinese suppliers operating in the United States. “We simply don’t know how many there are,” said David Andrea, an official with the Original Equipment Suppliers Association, a trade organization for auto parts makers.

In one of the more prominent deals, the Wanxiang Group bought most of the assets of the battery maker A123 Systems, which filed for bankruptcy last year despite receiving $132 million of $249 million in federal grants to build two factories in Michigan.

Congressional Republicans criticized the deal, saying A123’s technology could support military applications in China. Still, the buyout was approved this year by the Committee on Foreign Investment in the United States, a federal government panel.

China seems particularly interested in acquiring energy resources in the United States.  For example, did you know that China is actually mining for coal in the mountains of Tennessee?

Guizhou Gouchuang Energy Holdings Group spent 616 million dollars to acquire Triple H Coal Co. in Jacksboro, Tennessee.  At the time, that acquisition really didn’t make much news, but now a group of conservatives in Tennessee is trying to stop the Chinese from blowing up their mountains and taking their coal.  The following is from a Wall Street Journal article back in March…

The Tennessee Conservative Union began airing an ad Tuesday that says lawmakers have failed to protect the state’s scenic mountains and are allowing the “Chinese to destroy our mountains and take our coal…the same folks who hold our debt.”

But when it comes to our energy resources, China has been most interested in our oil and natural gas.  It is a complete and total mystery why the federal government would allow China to buy up our precious domestic sources of energy, but it is happening.  The following is a list of some of the oil and natural gas deals that China has been involved in during the last few years that was compiled by the Wall Street Journal

Colorado: Cnooc gained a one-third stake in 800,000 acres in northeast Colorado and southeast Wyoming in a $1.27 billion pact with Chesapeake Energy Corp.

Louisiana: Sinopec has a one-third interest in 265,000 acres in the Tuscaloosa Marine Shale after a broader $2.5-billion deal with Devon Energy.

Michigan: Sinopec gained a one-third interest in 350,000 acres in a larger $2.5 billion deal with Devon Energy.

Ohio: Sinopec acquired a one-third stake in Devon Energy’s 235,000 Utica Shale acres in a larger $2.5 billion deal.

Oklahoma: Sinopec has a one-third interest in 215,000 acres in a broader $2.5 billion deal with Devon Energy.

Texas: Cnooc acquired a one-third interest in Chesapeake Energy’s 600,000 acres in the Eagle Ford Shale in a $2.16-billion deal.

Wyoming: Cnooc has a one-third stake in 800,000 acres in northeast Colorado and southeast Wyoming after a $1.27 billion pact with Chesapeake Energy. Sinopec gained a one-third interest in Devon Energy’s 320,000 acres as part of a larger $2.5 billion deal.

Gulf of Mexico: Cnooc Ltd. separately acquired minority stakes in some of Statoil ASA’s leases as well as six of Nexen Inc.’s deep-water wells.

How could we be so stupid?

Sadly, as our politicians endlessly bicker China just continues to aggressively push ahead.

And pretty soon China may want to build entire cities in the United States just like they have been doing in other countries.  According to Bloomberg, right now China is actually building a city larger than Manhattan just outside of the capital of Belarus…

China is building an entire city in the forests near the Belarusian capital Minsk to create a manufacturing springboard between the European Union and Russia.

Belarusian President Aleksandr Lukashenko allotted an area 40 percent larger than Manhattan around Minsk’s international airport for the $5 billion development, which will include enough housing to accommodate 155,000 people, according to Chinese and Belarusian officials.

And this is actually already happening on a much smaller scale in this country.  For example, as I have written about previously, a Chinese company known as “Sino-Michigan Properties LLC” has purchased 200 acres of land near the little town of Milan, Michigan.  Their stated goal is to construct a “China City” that has artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens.

In other cases, large chunks of real estate in the middle of major U.S. cities are being gobbled up by Chinese “investors”.  Just check out what a Fortune article from a while back says has been happening in Toledo, Ohio…

In March 2011, Chinese investors paid $2.15 million cash for a restaurant complex on the Maumee River in Toledo, Ohio. Soon they put down another $3.8 million on 69 acres of newly decontaminated land in the city’s Marina District, promising to invest $200 million in a new residential-commercial development. That September, another Chinese firm spent $3 million for an aging hotel across a nearby bridge with a view of the minor league ballpark.

Are you starting to get the picture?

China is on the rise and America is in decline.  If you doubt this, just read the following list of facts which comes from one of my previous articles entitled “40 Ways That China Is Beating America“…

#1 As I mentioned above, when you total up all imports and exports of goods, China is now the number one trading nation on the entire planet.

#2 During 2012, we sold about 110 billion dollars worth of stuff to the Chinese, but they sold about 425 billion dollars worth of stuff to us.  That was the largest trade deficit that one nation has had with another nation in the history of the world.

#3 Overall, the U.S. has run a trade deficit with China over the past decade that comes to more than 2.3 trillion dollars.

#4 China now has the largest new car market in the entire world.

#5 China has more foreign currency reserves than anyone else on the planet.

#6 China is the number one gold producer in the world.

#7 China is also the number one gold importer in the world.

#8 The uniforms for the U.S. Olympic team were made in China.

#9 85 percent of all artificial Christmas trees are made in China.

#10 The new World Trade Center tower is going to include glass that has been imported from China.

#11 The new Martin Luther King memorial on the National Mall was made in China.

#12 One of the reasons it is so hard to export stuff to China is because of their tariffs.  According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.

#13 The Chinese economy has grown 7 times faster than the U.S. economy has over the past decade.

#14 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#15 The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.

#16 Overall, the United States has lost a total of more than 56,000 manufacturing facilities since 2001.

#17 According to the Economic Policy Institute, America is losing half a million jobs to China every single year.

#18 China now produces more than twice as many automobiles as the United States does.

#19 Since the auto industry bailout, approximately 70 percent of all GM vehicles have been built outside the United States.

#20 After being bailed out by U.S. taxpayers, General Motors is currently involved in 11 joint ventures with companies owned by the Chinese government.  The price for entering into many of these “joint ventures” was a transfer of “state of the art technology” from General Motors to the communist Chinese.

#21 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

#22 The United States has lost more than a quarter of all of its high-tech manufacturing jobs over the past ten years.

#23 China’s number one export to the U.S. is computer equipment, but the number one U.S. export to China is “scrap and trash”.

#24 The U.S. trade deficit with China is now more than 30 times larger than it was back in 1990.

#25 China now consumes more energy than the United States does.

#26 China is now the leading manufacturer of goods in the entire world.

#27 China uses more cement than the rest of the world combined.

#28 China is now the number one producer of wind and solar power on the entire globe.

#29 There are more pigs in China than in the next 43 pork producing nations combined.

#30 Today, China produces nearly twice as much beer as the United States does.

#31 Right now, China is producing more than three times as much coal as the United States does.

#33 China now produces 11 times as much steel as the United States does.

#34 China produces more than 90 percent of the global supply of rare earth elements.

#35 China is now the number one supplier of components that are critical to the operation of U.S. defense systems.

#36 A recent investigation by the U.S. Senate Committee on Armed Services found more than one million counterfeit Chinese parts in the Department of Defense supply chain.

#37 15 years ago, China was 14th in the world in published scientific research articles.  But now, China is expected to pass the United States and become number one very shortly.

#38 China now awards more doctoral degrees in engineering each year than the United States does.

#39 The average household debt load in the United States is 136% of average household income.  In China, the average household debt load is 17% of average household income.

#40 The Chinese have begun to buy up huge amounts of U.S. real estate.  In fact, Chinese citizens purchased one out of every ten homes that were sold in the state of California in 2011.

And what we have seen so far may just be the tip of the iceberg as far as Chinese “investment” in U.S. real estate is concerned.  The following is a brief excerpt from a Bloomberg article that was posted just last week

China is studying the possibility of investing a portion of its $3.4 trillion in foreign-exchange reserves in U.S. real estate, said two people with direct knowledge of the situation.

The State Administration of Foreign Exchange began the study after seeing signs of a recovery in the U.S. property market, said the people, who asked not to be identified as they weren’t authorized to speak publicly about the matter. China may acquire properties, invest in real estate funds or buy stakes in property companies, they said. The safety of the investments will be the top priority, said the people, who didn’t elaborate on a timetable or other details.

So what can we do about all of this?

Unfortunately, not a whole lot.  Both major political parties seem to be fully convinced that merging our economy with the economy of communist China is a great idea.  I would not expect major changes in our policies regarding China any time soon.

For now, I will just leave you with one piece of advice…

Learn to speak Chinese.  You might need it someday.

Is China Going To Dominate America?

They Are Going To Make It Nearly Impossible To Pass On A Farm Or A Business To Your Children

If you have a farm or a small business, would you like to pass it on to your children when you die?  Well, unless Congress does something, it is going to become much, much harder to do that starting next year.  Right now, there is a 5 million dollar estate tax exemption and anything above that is taxed at 35 percent.  But on January 1st, the exemption will go down to 1 million dollars and the tax rate will go up to 55 percent.  A lot of liberals are very excited about this, because they believe that the government will be soaking wealthy people like Warren Buffett and Bill Gates.  But the truth is that a lot of farms, ranches and small businesses will be absolutely devastated by this change in the tax law.  There are many farmers and ranchers out there today that do not make much money but are sitting on tracts of land that are worth millions of dollars.  According to the American Farm Bureau, approximately 97 percent of all farms and ranches in the United States would be subject to the estate tax if the exemption was reduced to just a million dollars.  That means that the children of these farmers and ranchers would be faced with a very cruel choice when it is time to inherit these farms and ranches.  Either they come up with enough money to pay the government about half of what the farm or ranch is worth, or they sell the farm or ranch that may have been in their family for generations.  Needless to say, most farm and ranch families do not have that kind of cash lying around.  Most of them are just barely making it from year to year.  So this change in the tax law is going to greatly accelerate the death of the family farm in America.  This is also going to devastate many family-owned small businesses.  Many small businesses don’t make much money, but they have buildings or land or assets worth millions of dollars.  Children that may have wanted to continue the family legacy will be forced to sell because of the massive tax bill that they get from Uncle Sam.  This is an insidious cruelty, and it shows just how broken our system has become.

The desire to leave the wealth that you have worked so hard to accumulate all your life to your children is something that is common to virtually all human societies.  We want to know that future generations will be taken care of.

It is simply immoral for the federal government to swoop in and tax farms, ranches and small businesses that were intended to be passed down from parents to their children at a 55 percent tax rate.

A lot of the people that are going to be affected by this change are not “wealthy” at all.  A recent Fox News report examined what this change in the law is going to mean for rancher Kevin Kester and his family…

Rancher Kevin Kester works dawn to dusk, drives a 12-year-old pick-up truck and earns less than a typical bureaucrat in Washington D.C., yet the federal government considers him rich enough to pay the estate tax — also known as the “death tax.”

Kester told Fox News that he has no doubt that his ranch will have to be sold when he dies just to pay the tax bill…

“There is no way financially my kids can pay what the IRS is going to demand from them nine months after death and keep this ranch intact for their generation and future generations,” said Kester, of the Bear Valley Ranch in Central California.

Two decades ago, Kester paid the IRS $2 million when he inherited a 22,000-acre cattle ranch from his grandfather. Come January, the tax burden on his children will be more than $13 million.

Reading that should make you angry.  Every single year, thousands upon thousands of farms, ranches and small businesses are going to be lost to the federal tax monster.

It is almost as if the federal government does not want income-producing assets to remain in the hands of the “little guy”.

What in the world are we supposed to do?

It isn’t as if all of those farmers and ranchers can go off to the big cities and find good jobs.  As I wrote about yesterday, our politicians are standing aside as millions of our good jobs are shipped out of the country.

The cold, hard truth is that our system does not work for average Americans any longer.  Those that roll out of bed every morning, work hard and never complain always seem to get the short end of the stick.

The people that are the backbone of America are the ones that the government is always the hardest on.

Unfortunately, we have gotten to a point where the government is searching for more “revenue” from anywhere it can because it desperately needs more money.  U.S. government finances are a complete and total mess and we are drowning in the biggest ocean of debt the world has ever seen.

We are more than 16 trillion dollars in debt and there are more than 100 million Americans that are enrolled in at least one welfare program.

Someday has to pay for all this.

Middle class Americans are already hit with dozens of different taxes each year, and you can be certain that our politicians will continue to invent ways to extract even more “revenue” out of us.

And of course our politicians will never stop their wild spending.  Despite all of the negotiations that have taken place over the past couple of years, our spending problems just continue to grow.  For example, the federal budget deficit for the month of October was $120 billion, which was more than 20 percent larger than the federal budget deficit for October 2011 was.

So what is the solution?

Well, Treasury Secretary Timothy Geithner now says that he wants to eliminate the debt ceiling entirely.  He says that we should just have no limit and that the federal government should just be able to go into debt as much as it wants.

In the end, all of this debt is going to absolutely crush us.  We have literally destroyed the future of America, and yet most of the country still seems clueless about all of this.  The blind are leading the blind, and we are headed straight for complete and utter disaster.

One day, when people look back on this period in American history, what do you think people are going to say about us?

The Family Farm Is Being Systematically Wiped Out Of Existence In America

An entire way of life is rapidly dying right in front of our eyes.  The family farm is being systematically wiped out of existence in America, and big agribusiness and the federal government both have blood all over their hands.  According to the U.S. Department of Agriculture, the number of farms in the United States has fallen from about 6.8 million in 1935 to only about 2 million today.  That doesn’t mean that there is less farming going on.  U.S. farms are producing more than ever.  But what it does mean is that farming is increasingly becoming dominated by the big boys.  The rules of the game have been tilted in favor of big agribusiness so dramatically that most small farmers find that they simply cannot compete anymore.  Back in 1900, about 39 percent of the U.S. population worked on farms.  At this point, only about 2 percent of all Americans now live on farms.  Big agribusiness, the food processing conglomerates, and big seed companies such as Monsanto completely dominate the industry.  Unless something dramatic is done, the family farm is going to continue to be wiped out of existence.  Unfortunately, it does not look like things are going to turn around any time soon.

The way that the farming industry is structured today, it is simply not economically feasible to operate a small family farm.  According to Farm Aid, every week approximately 330 farmers leave their land for good.

Many old timers are trying to hang on for as long as they can.  A very large percentage of family farmers are in their fifties, sixties or seventies at this point.  Today, only about 6 percent of all farmers are under the age of 35.

Most young people these days are not too eager to choose farming as a career.  A lot of young adults that grew up on family farms have decided that investing hundreds of thousands of dollars in a business that requires you to work 12 hours or more per day most of the year for very meager wages is simply not worth it.

In recent years, many family farmers have been forced to find second jobs in order to support their families.  Many farm families are constantly on the verge of financial ruin.  It is a really tough life for many of them.

Sadly, less than 25 percent of all farms in America bring in gross revenues in excess of $50,000.  The following comes from the EPA website….

It has been estimated that living expenses for the average farm family exceed $47,000 per year. Clearly, many farms that meet the U.S. Census’ definition would not produce sufficient income to meet farm family living expenses. In fact, fewer than 1 in 4 of the farms in this country produce gross revenues in excess of $50,000.

On top of everything else, the federal government and many state governments just keep endlessly piling more rules and regulations on to the backs of farmers.

Big agribusiness has the resources to deal with all of these regulations fairly well, but most family farms do not.

With each passing year, the farming industry becomes even more centralized.  If current trends continue, big agribusiness will eventually control nearly all of it.  The following is from the EPA website….

By 1997, a mere 46,000 of the two million farms in this country accounted for 50% of sales of agricultural products (USDA, 1997 Census of Agriculture data). That number was down from almost 62,000 in 1992.

In certain industries the amount of consolidation has been absolutely stunning.  For example, between 1970 and today the United States has lost 88 percent of its dairy farms.

Another factor that is shaping the farming business is the incredible power that the giant food processing conglomerates have accumulated.

Today, there are 10 corporations that control most of the things that Americans eat and drink on a daily basis.  If you doubt this, just check out this chart.

The giant food processing conglomerates have a massive amount of influence over how food is grown in the United States today.  Small farmers that try to go against the tide often have a very rough go of it.

That is also true when it comes to seeds.

For example, approximately 80 percent of all corn grown in the United States is grown using seeds that have been genetically modified by Monsanto.

If you want to try to defy companies such as Monsanto, you are playing a very dangerous game.  The predatory business practices of Monsanto have been well documented.  Monsanto has taken countless numbers of farmers to court, and they are absolutely ruthless.

Plus, it certainly does not help that there is a constant revolving door between Monsanto and federal government agencies.  If you doubt this, just check out the chart about Monsanto on this page.

Amazingly, in spite of all this there are still some small farmers that are able to overcome all of these obstacles and run successful businesses.

But that is where the federal government comes in.

In recent years, the federal government has become absolutely obsessed with going after small farmers.

For example, a recent Food Freedom News article detailed what the feds have been doing to Randy and Karen Sowers.  They were keeping their cash deposits under $10,000 so that they would not have to fill out a bunch of paperwork, and the federal government came down on them like a hurricane….

“Structuring,” explains Overlawyered.com, “is the federal criminal offense of splitting up bank deposits so as to keep them under a threshold such as $10,000 above which banks have to report transactions to the government.”

While being questioned, the Sowers were finally presented with a seizure order and advised that the feds had already emptied their bank account of $70,000.  The Dept. of Justice has since sued to keep $63,000 of the Sowers’ money, though they committed no crime other than maintaining their privacy.

Without funds, they will be unable to make purchases for the spring planting.

When a similar action was taken against Taylor’s Produce Stand last year, the feds seized $90,000, dropped the charges, and kept $45,000 of Taylor’s money.

Knowing that most farms operate on a very thin margin, such abuse of power wipes out a family’s income, and for a bonus, the feds enhance the monopoly power of Monsanto, Big Dairy and their supply chain.

At many other small farms across America, the feds have conducted military-style raids at the crack of dawn over the smallest infractions.

Some examples of this were detailed in a documentary entitled “Farmaggedon“.  The following is a short trailer for that film….

The sad truth is that the federal government has been using your tax money to go after small farmers in absolutely vicious ways.

For example, the feds raided one Amish farm at 5 AM one morning.

So what was the big crime that the feds were so concerned about?

Well, the Amish farm was selling raw milk.

Oh the horror!

The feds seem content to leave big agribusiness pretty much alone, but they are constantly going after small farms in hundreds of different ways.

Did you know that the Department of Labor is instituting new regulations that will ban children from doing many kinds of farm chores?

Just another way to kill off the family farm in America.

America is changing, and not for the better.

Just like the middle class, the family farm is heading for extinction.

Eventually, the big corporations and the federal government will have near total control over food production in America.

So what do you think about all of this?  Please feel free to post a comment with your thoughts below….

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