Surprise, Surprise - More Chinese Food Problems

MichaelK points us to yet another story about the poor quality (that's an understatement) of imported Chinese food.

Formaldehyde, illegal dyes, and industrial wax were found being used to make candy, pickles, crackers and seafood, it said, citing Han Yi, an official with the General Administration of Quality Supervision, Inspection and Quarantine, which is responsible for food safety.

“These are not isolated cases,” Han, director of the administration’s quality control and inspection department, was quoted as saying.

Han’s admission was significant because the administration has said in the past that safety violations were the work of a few rogue operators, a claim which is likely part of a strategy to protect China’s billions of dollars (euros) of food exports.

So have you written your congressman about Country of Origin Labeling? How much more are we willing to take? Do people really believe that crap coming from China is fit to eat? The safety of our food supply should be a matter of national security, but heaven forbid we do anything that would hurt the mythical principle of "free trade" - even if it leads to poisoning the American people...

Bayh Right To Restrict Chinese Food Imports But As Usual He's Inconsistent

Tuesday's JG had a story about Senator Evan Bayh discussing the idea of restricting the imports of Chinese food:

In a letter to FDA Commissioner Andrew von Eschenbach, Bayh said the FDA should consider restricting Chinese exports of food and medicine ingredients “until it can be established that its bulk ingredients meet U.S. health and safety standards.”

Of course Bayh voted against Country of Origin Labeling back in 2003 - this allows consumers to use their wallets to restrict Chinese imports by letting them know where their meat comes from. Although the bill passed, it has been delayed until 2008 by President Bush due to "cost concerns". Frankly I'm sick and tired of Bayh taking both sides of an issue. This isn't that difficult, you either think that consumers should know where their food comes from or you don't.

Another Bayh trade-related issue from the story:

Bayh, for instance, has called a hearing of the subcommittee he chairs to hear witnesses Wednesday discuss China’s artificial devaluation of its currency and its denial of market access to U.S. financial services.

Once again Bayh is coming around to the correct position but it's taken over a decade to get there. I suppose I should just be happy that he's actually sounding like a Democrat on this issue but I'm still pissed about the Iraq supplemental - I'm sure Bayh will vote to send the President a blank check on that bill as well...

China Begins its Buyout of the United States

Yesterday brought news that should alarm everyone in this country. CNN notes that China is investing $3 Billion in Blackstone - a US private equity firm. Why is this so alarming? Let's start by discussing our trade deficit.

This country has a $60 Billion/month trade deficit. That is just not some imaginary figure that has no consequences. It means that we are taking loans from countries like China for that amount every month. We give them treasury bills that are backed by the full faith and credit of the United States government. As the value of the dollar declines, at some point these countries will no longer want to take on more and more of our deficit - like any wise investor they will seek to diversify. These countries will begin to use that money to buy American companies and land - things that have real value.

This presents two problems, the first is quite obvious, namely that we're slowly selling our country's assets to foreign countries - and a Communist one at that. Second, once these countries start calling in our debt the government will be forced to pay off the debt and this could mean large tax increases and/or rapid inflation.

In 2005 China tried to buy the US oil company Unocal for $18.5 Billion but withdrew its offer after stiff political opposition. Now they're getting wiser. They're using these private equity firms to get their feet in the door while still only buying around 10% of the company.

This is only the beginning and the endpoint is quite clear. As I said before, these countries will not continue to take our debt. Since our country doesn't have the money to pay these loans off directly these countries will use our currency to "invest" in the United States. Of course "invest" is a euphemism for "buy" and you can probably guess who will lose in that scenario - the American worker and the middle class...