China, Inc. ~ The Largest Financial Crime of the Last 25 Years, and It’s Not Over.

We watch China more closely since Donald Trump was elected President. Don’t think China, Inc., only includes the Chinese, because it also includes Americans with a penchant for avarice. Every day we learn more about how much America has been abused. It makes us angry. Please, don’t look away. We need full disclosure to even attempt putting our Humpty Dumpty country back together again. Giving up, surrender, it is not an option. We MUST clean up the mess.

I implore you to read the following. I’ve never written anything more important. It’s the biggest problem in our country. Someone like AOC comes on the scene, and yesterday she demanded action on student loan debt. Well, the entire budget for the Dept of Education is about 61 billion dollars (including student loans). The problem with China is about 500 billion in trade imbalance (which gives China the USD needed to purchase raw materials in an open market they desperately need to import), 200-500 billion in annual intel theft, about 40K dead Americans every year from fentanyl, ……… and today, hundreds of billions in outright fraud. If we fix the China problem, Student Loan Debt becomes easy.

Now, we understand why Candidate and now President Trump has been screaming about China.

We have to understand how China’s fraud has grown and become galactic. We need to know how and why Americans assisted in the corruption. We need to stop China.

We may have to do several articles on this because it’s more complicated than we ever imagined and it’s impossible to land in the middle of the storm without reference. Let’s start small and quickly work our way up. Stay with me, please.

BackgroundA Frame of Reference

Site Visits to Publicly Traded Companies Are Necessary for Confirmation of Representations Made by the Company. Investors must have accurate information.

A publicly traded company creates a series of financial statements to give investors a picture of where they stand. The financial statements are then audited by an accounting firm. These representations are published in a “prospectus” (which no one reads except people like me), kind of like a brochure, on thin paper, with small words, bad fonts, and lots of footnotes. It’s the duty of the brokerage firm or investment banking firm bringing a company public in an IPO to check the company’s representations with site visits or forensic accounting.

Months ago, I wrote a story about a progression of parties at the B&B where the staff, miraculously, over-performed. Laying in bed on Monday morning, my best corporate client demanded my presence, asap. Turned out, he expected reps from brokerage houses which owned about 40-50% of the company’s outstanding stock – the next day. The following day, they expected bond daddies from all over the world who held about 60% of the corporate “paper” or debt. My dear friend, the plant manager, had no idea how important the site visit was. As a former partner in a brokerage firm, trained to inspect property, plant, and equipment…. as well as the financials…… I knew was a big deal. It was a “do or die” two days, which would affect stock price, my friends, and the entire company. So, you have a personal anecdote, a visual, of lots of people running around, clipping trees, making pretty food, dressed in their Sunday best, trying to make a good impression, with ALL lights on and ALL equipment working. THAT’s a site visit.

American Investors Understand the Importance of Due Diligence and GAAP

SEC filings in the USA are serious, and if you misrepresent earnings or commit fraud, your executives end up on CNBC, or in front of a Congressional Committee, or they may land in jail. It’s serious in the USA.

It’s NOT so serious in other countries. The USA, for decades, was the most reliable country in which to do business, less than a 5% corruption expense (yes, we really do have studies for such things). Doing business in South America, I was shocked by my own naivety and our American innocence about the rest of the world and how they operate. The ever-present corruption in South America/Central America/Caribbean was calculated about 30% of expenses. Middlemen had to have their palms greased along the way. Shady payments and odd bank loans were commonplace. We have no grasp of how lucky we are in the USA, how reliable our banking and legal systems are, and how much it helps our GDP.

The Ethics Have Changed Within the USA

Way back when, if a broker advised clients to pour hundreds of millions of dollars into a company, they damn well knew whether or not the company was “as represented”. Any whiff of irregularity was a problem. The ethics of a new generation are not necessarily the same. I was trained in the 1980’s and our local site visit was in the mid-90’s before internet bubble, the Twin Towers coming down, Enron, and the Great Crash of ’08. In the OLDEN DAYS, we all followed the same rules.

Doing Business In Another Country – Expectations vs. Reality

Cashed out of the firm, married and a mom, living in obscurity in rural Mississippi, the world of portfolios and long-term airport parking was far away….. until I met Big T and we decided to build a pool. The tile was too expensive and I decided to become an importer to save money. The company took off from there. I’ve written many stories about importing, but there’s another part which is critical to understanding this whole spiderweb of a story and today’s monumental topic.

More than anything else, it’s about Judeo-Christian ethics in the USA versus ethics in other countries. We expect others to do business as we do, act honorably to develop MORE business, but they don’t. A quick profit is too tempting and the culture consistently promotes cheating on a first order…… because there is a never-ending stream of gullible Americans. Ya’ gotta check what you buy and babysit the order.

Big T and I intended to open a stone yard… just like many others did in the mid-2000’s. You’ve probably seen such businesses, granite and marble slabs, plumbing supplies, kitchen sinks, etc. Yet, mistakes within the first container made me see a problem in the supply chain which no one else was addressing. I ordered stone and might as well have received bikini tops and BIC razors. After a 30K loss, I was mad. Told my sad story to other stone yard owners, and they grimaced and nodded. We spent time commiserating about our similar problems. I decided “reliability” would be my focus. Somehow, I needed to FIX the trustworthiness problem and my clients could become my stone yard friends. If we couldn’t order with certainty, then none of us were safe.

Previously, other stone companies would send someone all the way to China/India/Brazil to approve the material for a container. They often bragged about Mr. XYZ who traveled the world in search of their perfect stone. Truth was, no one can be in all places at one time. It was inefficient. I loved to travel but had the B&B and Gunner was little. Taking off for 4 days to China was not an option and added $5K in expenses to the cost of each order. Plus, Chinese companies were incredibly sneaky about hiding problems while I was standing there. Broad Daylight! I also noticed my American competition would arrive to China, expecting a completed order, and the material was not as advertised, wasting more time, fighting over money/material at the last minute, and the American always lost. What to do?

Solving the Trustworthiness Problem of Overseas Orders

I decided to hire people overseas, fluent in their own language, well educated, well respected men in their communities, ……… and men with specific knowledge about the material I was buying. All of these men spent decades in the business and forgot more than I would ever know. They became my eyes and ears on the ground, and I valued their opinions and judgement dearly.

What I did, innocently, was send my trusted men into places to inspect materials before processing, to oversee the production process, supervise the loading and check for quality, BEFORE shipping. In other words, our guys were inspecting property, plant, and equipment + finished goods, insuring a smooth delivery. No one else in our industry offered a similar service. It worked. The reason I did it was because of past experience in the finance industry – which has nothing at all to do with stone. Pure happenstance. Gotta check before you buy.

Summary for Background: We understand doing business in foreign countries is tough because their culture does not do business as we do in the USA. We have a problem with ethics in the USA, Club Med prison sentences, and no serious repercussions. We understand Investment Banks who represent IPO’s, or brokerage houses, are supposed to do their due diligence to check property, plant, and equipment, and the SEC is supposed to guarantee GAAP procedures and investigate irregularities in corporate representations or a filed prospectus. Yet, …………………..

That’s not what happened on Wall Street with Chinese companies.

What happened in the USA between 2006 until today is economic warfare, pure and simple. It was intentional with malice aforethought. Americans were complicit because of their laziness and greed. Almost no due diligence has been done on Chinese companies which are publicly listed on the NYSE, and the financials are hidden from our SEC, or are easily faked by Chinese auditors who bought a franchise in Deloitte/Price Waterhouse, etc. Billions and billions of dollars has been bilked from US investors. The fraud and corruption are like nothing we’ve ever seen.

This story is the biggest worldwide financial crime of the last 25 years, and almost no one is listening.

“Dan” was a broker selling securities for publicly traded Chinese companies on the NYSE when he got wind of the fraud. Dan got mad, began to investigate, and turned into a short seller, investigating what he thought were fraudulent Chinese companies, and taking them down. Dan tried to get the attention of Senator Toomey, the SEC, Congress, and the media. No one wanted to burst the China bubble. Dan stars in a movie made about the story, “The China Hustle”, in 2018. Here’s the movie trailer….. hold onto your seat.

The movie/documentary is riveting (no wonder they made a movie about it) and about an hour and a half long. Here’s the summary for those who don’t have time: Grab a cup of coffee and a chair. You won’t believe what you’re about to read…………

Here we go:

Roth Capital was a small investment banking company on the west coast. They held terrific “investor conferences” with big name entertainment like Billy Idol, Sting.

Rodman and Renshaw was on the East Coast and a little more highbrow. General Wesley Clark, former NATO Commander, and Presidential Candidate was their CEO. He brought in speakers like former Presidents Bush and Clinton + Colin Powell. All in all Rodman and Renshaw = 40 companies brought to market = 31 billion USD. Assets are either gone, or almost worthless. As companies were exposed, their stock prices tanked and the Chinese company was delisted from the NYSE.

How did they do it? ………. it was easy.

After 2008 crash, everyone was looking for a way to recover, quickly. The USA and EU were dead but China’s economy was growing like a rocketship (allegedly). American Wall St types wanted an invitation to the party, but they couldn’t invest in China Companies on the NYSE……… until Roth Capital figured a way in via the back door.

Roth looked for older and inactive companies, like a mining company, mostly in Nevada, which still was a publicly traded company with NYSE listing (had a ticker symbol). Then, they did a reverse merger” with a Chinese company, didn’t matter if the sectors were different, and the new company emerged with a new name, maybe with the old ticker symbol or a maybe a new ticker symbol.

Between 2006-2012, 400 Chinese companies were listed on NYSE Stock, and about 80% were reverse mergers. Normally, for a US company, SEC filings are complex and watched closely. Audits and reporting are constant. Therefore, the US investor has confidence in the “prospectus” (balance sheets accounting GAAP representations) of a particular company. But the greed was HUGE and companies were audited by Deloitte/Coopers Lybrand/Price Waterhouse…… in China, which is nothing more than a franchise. From 2009-2010, most reverse merger companies rose 300-400% in value. Everyone wanted in the game….. the champagne flowed…… just don’t be looking for a chair when the music stops.

Everything was fine until an older stockbroker asked his son, who was working in China, to check out a particular company called Orient Paper, Inc. Dad was old school, gotta check it out before you buy…… that’s how we were trained. Dad was doing his due diligence. Well, what the son, Carson Block, learned was extraordinary. It was a paper company, but there was water everywhere in the factory. Half the equipment was broken, and there was no way in hell they were doing 100 million USD/year. The company listed 5 million in inventory on the books, which amounted to a rotting pile of cardboard, outside in the rain. Carson called his dad, asap. Carson also decided to write up a report about his findings and short the stock. Next morning, down 25%, by afternoon, down 55%. The company was a fraud.

Carson’s discovery was the very first ripple or WHIFF of irregularity. Of course, powerful people were angry and sent lawyers, guns, and money……. literally. Roth Capital sent lawyer Nussbaum from Loeb and Loeb, the super-lawyers, to smear young Carson. Yet, Carson was correct. The interview with Nussbaum, years later…….. is…. amazing=no due diligence, the auditor, a rented Deloitte shop “reviewed” docs from the management team and rubber stamped them. No one had any culpability for the false statements on balance sheets. No way to seek restitution against a Chinese company …. and the salesmen had to face the investors with bad news.

Dan was the founder of a little firm in Skippack, Pennsylvania. Dan was at an investor conference for Rodman and Renshaw on the east coast when the report about Orient Paper broke. He was stunned and went back home to discuss with his other partners. One partner sold 21 million dollars worth of shares in Orient Paper and he was furious, “Not As Represented”. He went on an African safari to think about it, came home, and decided to fight back. They became curious about the companies they were selling. They decided to go to China and check on China Green Agriculture. Rumor had it, Nestle was thinking of buying the company, and they were looking to cash in.

China Green Agriculture managed to do 100 million in revenue on paper…. but only had one truck driver. They videotaped the company for about a year and sent in a guy posing as a tea salesmen giving away samples of Chinese tea to figure out how many employees were there. The company was a fraud. Crocker Coulson was the guy on Wall St who pushed companies like China Green Ag., who claimed years later, paraphrasing, “We did a lot of effort/research to flag inconsistencies…. but there was no way to know what was happening”.

These Wall St firms did no background, because one visit was all they would have needed. 113 Million USD ~ Poof! Gone. Dan at Skippack went to the bigger investment banking firm and told them the problem, showed them his year-long research, on a pitch for the investment firms to HIRE him to do the due diligence…. but they threw him out and told him to keep quiet….. which turned Dan into a short seller and an activist to take fraudulent companies DOWN.

Dan and the others were convinced they were onto something bigger. He began to investigate company after company. The “filings” in China were mostly accurate, but enormously inflated earnings were represented in the USA. Dan couldn’t find Chinese auditors who were honest, because, as Dan said, “We can’t find auditors in China that will help us, because let me tell you something, if we do…..find those people…….. the government of China will kill ’em. I mean, they will take their ass out and shoot them in the fucking head.”

Is that who you want to buy Nike T-Shirts and Northface gear from? No, we’re definitely NOT in Kansas anymore.

Word got out and they began to unwind a spider web of deception, purposely funded and promoted by the Chinese government, assisted by Chinese police and bureaucrats. The scale of fraud was enormous and surprised the “smartest people in the room” on Wall Street. Somewhere between 20-50 BILLION dollars from USA investors, for companies that could be worthless. Mom and pop investors, mutual funds specializing in “emerging markets” became victims, even the pension fund of the NYTimes represented by VANGUARD was in on the deal.

Remember what I said at the top about brokers, old school fund managers being trained to inspect property, plant, and equipment? Well, we’re also trained to to look at patterns across multiple pieces of informations to spot trends. For instance, I can look at a couple’s checkbook and almost immediately spot a cheating spouse, and identify within a week, when they started the affair. Their patterns change. MANY short sellers, who are highly trained in forensic accounting can spot a pattern. Today, they look at companies to compare data across a wide spectrum to uncover problems. In this way, the short sellers become the champions of the fraud busters. They become another investigative arm – motivated by incredible profits.

The fraud was simple and could not be perpetrated without a blessing from Chinese bureaucrats, the CCP. A Chinese factory, a CEO who was willing to lie (who would never go to jail in China if caught and who could never be extradited to the USA for crimes), an auditor who was compliant, pre-packaged Chinese legal, and a compliant US investment bank who happened to find an old company in the USA who was still public, but inactive….. and the reverse merger was set.

Another canary in the coalmine began obscure postings on Yahoo chat boards under the name Alfred Little, very similar to the modern day QAnon. He turned out to be one of the few short seller “activists” left in China. He went after Silvercorp with a Chinese national “source”, who was eventually imprisoned and made Chinese Christmas lights for two years……… from prison. Silvercorp called local Chinese constabulary for assistance. Jon Karnes (the real Alfred Little), tried to get help from OUR Securities and Exchange Commission but the SEC bureaucrat in charge told him, “Our phones can’t even dial China.”

Carnes joined Dan, and surfer dude who understood the machinations of the fraud. They decided to keep going, unraveling Chinese companies, along with Carson Block the son of the stockbroker. Dan went as far as hiring a lobbyist and taking the information to Congress – so they would ACT and help Americans. He tried to speak at Congressional hearings, but was rebuffed. Now, hundreds of billions in fraud on Americans, and no one was listening.

As of this movie in 2018, the SEC only busted 1-2 of these companies. All the Chinese CEO’s got away with the money. Only one Taiwanese CEO went to jail in the USA. The little band of misfit short sellers, had taken down about 40-50 companies. Hundreds of companies were delisted as worthless stocks. Yet, over 100 Chinese companies remain, a little bit cleaner, with a market cap of over 1.1 TRILLION dollars, no way to verify if the accounting is real, and no way to investigate or sue them for wrongdoing. Heads or tails, the Chinese win.

The SEC, on this issue, was a farce and cannot protect USA investors. In China, it is not illegal to steal from a foreign company. The USA cannot compel a Chinese “Bernie Madoff” to come to the USA to testify. There’s no way to look at the real books of Chinese companies. If you go to China to meet with the bankers of Chinese companies, often, the bankers will change the books for the Chinese company.

Frustration grew. No one would listen, not Congress, the SEC, his Senator, not the Chinese authorities (who helped the crooked companies). So….. in real robber baron fashion, our misfits decided to steal their money back. Take…. from the thieves. First target was Tech Pro, a 2 billion dollar company. Dan flew to Hong Kong, gave a presentation to analysts on his research about Tech Pro, and drove the stock down 93.66% in two weeks.

Did Dan make money shorting the companies he investigated? Bet your a$$ he did. BUT he also outed the rats. And there are, still, so many rats. In fact, they call it Cockroach Theory. Kill one, but who knows what’s behind the walls?

Public pensions and retirement funds lost an estimated 14 billion…. but the real number is much higher. These folks were lucky to grab a chair when the music stopped. That 14 Billion alone makes China the biggest financial crime of the last 25yrs. There is no way to tell how many private investors were hit, but their stories are heartbreaking.

As Carson Block explains, “China is fundamentally a broken or a f$cked up system. The people who get to the top, get to the top by breaking rules. The little people who want to play by the rules get pushed to the bottom.” As explained earlier, there really is no legal system of any merit in China. A bad guy can always buy his way out of a problem. With no rules or repercussions, of course, our guys on Wall St would do the same thing.

It’s also why the reliability of the legal system in the USA is sooooooooooo important, and why our push for culpability with FBI/DOJ/CIA/State Dept is necessary. If we don’t fix it, and restore order, we become China.

It’s not just these 400 companies either, and this 50 billion (estimated) dollars, we know there is so much more fraud in China.

The credit buildup in China is nothing like we’ve ever seen before, their crash will hit everything. Over 40 Trillion in printed Yuan has been added to the system since 2008 (subject for another article).

Take for example, Alibaba. I joined Alibaba in 2004 as a member. When they went public on the NYSE, my jaw hit the floor. Why were they allowed to trade on the NYSE? In 2016, the SEC started an investigation into Alibaba’s accounting practices……. and Jack Ma is gone from the board….allegedly signed over all his interest and shares…. and not in jail. (Jack Ma’s downfall is the subject of another article)

Today, Roth Capital still has investor conferences with big name entertainment. Rodman and Renshaw were fined and lost their license, but emerged under a new name. The game continues. Remember, over 100 Chinese firms trade on the NYSE, with a market cap over 1.1 TRILLION dollars.

Concerning sidenote: —– Jay Clayton, a lawyer who worked on Alibaba’s IPO, was appointed as head of the SEC by President Trump. It’s interesting how a few guys brought this scandal to the surface. When President Trump started talking about China, it all started to come out. And we sure would like to dig into those 400 companies, most of which were based in Nevada, to find any possible connections to Harry Reid.

And look at Retired General Wesley Clark at the end of this movie. He’s shamed in this movie, barely “able to walk the streets” for his involvement. Yet, he still sits on the boards of 18 publicly held companies.

Here’s the whole movie, The China Hustle, with Spanish subtitles, but the movie is in English. Have fun!

I told ya’ it was good!

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89 thoughts on “China, Inc. ~ The Largest Financial Crime of the Last 25 Years, and It’s Not Over.

  1. Daughn, I want to put this out there gently….but you’re oversharing your personally-identifiable information. You need to decide whether you’re going to be in or out of the public sphere — because you’ll need to start aggressively burning things to stay out.

    If you’d like any advice or help either way, I’d be happy to do what I can…..but I’d hate for you to be surprised.

    Liked by 11 people

    1. As a further side note, I don’t believe that either of your businesses’ web presences serve you well as being either in or out. If configured as one or the other, there might be substantial room for improvement.

      Liked by 4 people

    2. Daughn, what cthulhu said.

      I get weirded out sometimes that I have too much information out there on this profile, and I try never to put anything personal out there.

      Liked by 2 people

        1. Unfortunately, we live in the Age of Taking Offense.

          There are plans in place, quite far along in their execution, to take down the First Amendment, just as there are to take down the Second.

          Think Molly Norris.

          I don’t want to be taken offline by people who are overly sensitive about their beliefs, whether by psy-op or by kinetic op. The knowledge I’ve accumulated is too valuable to the Awakening and to its aftermath, aside from whatever attachment I have to my dear old head.

          And think Red Flag laws, and Wolf’s recent musings on them. Sometimes the Anti-First Amendment and Anti-Second Amendment operations are combined in a way that leaves us guessing what was really being attacked.

          I also believe the Mockingbird clowns set up their preneurs (French for “takers”, which I’m using to refer to the fake entrepreneurs in Silicon Valley and elsewhere) like Brin, Schmidt, etc. at Goolag, Schmuckerberg at LifeLog (Fakebook,) Bozos, Musk, etc., to give themselves the SIGINT (signals intelligence) capabilities that in the Constitutional order were reserved to the Army (and its later offshoot, the NSA) to supplement their Soviet-enhanced HUMINT capabilities.

          Which makes me very suspicious of Project Dragonfly and of all of the AI projects now being touted by the preneurs and their shills. Suspicious that Mainland Chinese and Hong Kongers are the canaries in the coalmine, but the miners are US. Especially, at the moment, QAnons and Treepers.

          Liked by 2 people

        2. I got a cyberstalker at AoSHQ just because of my nic. Because I was unaware of OPSEC at the time, he was able to temporarily take control of my email, drop a keylogger on me, and access (for reading) my bank and credit accounts. When I shut down online access to my Discover account and forced a card reissue [they were last because they have a 100% financial protection guarantee from cyber], I asked when the last online access to my account had been — and they said it was the night previous…….I had no computers attached to the internet for the prior two weeks……

          As you might note, I’m continuing to use the nic. But I’ve also hardened-up, changed my email (the old one COULD NOT BE secured….), and become much more conscious about the information I put out there. I now have several emails, many not attached to my name. I prefer to use separate GPS devices instead of a cellphone. Ya-da, ya-da, ya-da…..

          It’s not fear…..it’s experience and situational awareness. Everyone could be smiling at you because they’re friendly…..or everyone could be smiling at you because you’re the mark.

          Liked by 3 people

    3. If the left wants to attack someone, they go after the cream at the top, people like Milo or Bill Mitchell.
      If they get all the way down to me, they’re scraping the bottom of the barrel.

      Liked by 4 people

      1. AND you have an inhouse lawyer to sue their a$$e$ off!!

        Not to mention a town that will not ask where the b….dies are b..ried. After they have lost their a$$e$.

        Liked by 1 person

      2. All it takes is one nut…..and, with the internet, he can be anywhere at all.

        Still, as Gail Combs notes, community is key. If I had the type of community here that you have there, it would not have proceeded as it did (my stalker was, in fact, in Silicon Valley).

        Like

      3. If you do find yourself in trouble, or attacked, or whatever, just PM for some advice on construction and deployment of info-nukes to acquire some BTFO.

        I suspect you’re sitting on all kinds of uranium. It’s all about HOW you set it off.

        Liked by 2 people

  2. As to the subject of the post, I’m a CPA in Silicon Valley. I could nitpick a lot of what Daughn said…..but the truth is that if you take a gallon of frozen ice cream and a gallon of frozen dogs**t, and exchange a teaspoon between the containers, you don’t have one container that you can 99% eat. And Chinese financial information in English is very, very similar to frozen dogs**t.

    Liked by 9 people

  3. Wow, Daugn, that’s really incredible! And it sounds like Wall Street and our congress is extremely culpable in all this fraud. I hope POTUS brings the whole thing down on their heads! SMH

    Liked by 12 people

    1. “… it sounds like Wall Street and our congress is extremely culpable in all this fraud…..”

      Remember the European Central Bankers came to the USA to set-up a central bank.

      Once it was set-up they FINANCED the Bolshevik Revolution.

      As G.Edward Griffin said, they took the rivers of wealth siphoned off Americans and INVESTED IT the DIVERSIFIED into Corporations. (A leveraged Buy-out means a BANK FINANCED THAT BUY_OUT with fairy dust money)

      The ‘Financial Institutions now CONTROL the international Corporations Comment Below

      Those same corporations ‘lobby’ (bribe} our Senators and Congressmen.

      https://theconservativetreehouse.com/2017/11/16/legislation-and-lobbyists/

      Is it any wonder that nothing is done when ALL the strings lead back to the SAME European Central Bankers??

      Liked by 12 people

  4. One of the unappreciated things that feeds into misunderstanding Chinese misappropriation, is that few people understand how manufacturing is done in the first place. People don’t understand BOMs, or kitting, or first op/second op, or MRP (and don’t even get me started on Kanban or ISO).

    Not understanding the basics means that your “partner” can spin you all sorts of fairy tales about the “operations”, and you have no way of knowing that they’re totally false.

    Some of the most noteworthy accounting frauds involved things like claiming salad oil inventory greater than one years’ world production.

    Liked by 13 people

  5. Thanks for this, Daughn…this is great work!

    And thanks for posting that movie, ‘The China Hustle’.
    I was totally unaware of that documentary!
    Methinks this film was intentionally not-promoted…and was intentionally kept hidden as much as possible.
    🤨😉

    China Cheats <— Can't be said enough.

    But 'cheating' is not a strong enough word for what the ChiComs have been doing.
    It's more like Organized Crime…because they operate like a crime syndicate — on a worldwide scale!

    Liked by 12 people

      1. That thing in Chinese culture about ‘saving face’ led us Westerners to think that the Chinese people were honorable and that this would carry over in doing business with them.

        But under Communism, that ‘saving face’ thing got redefined.
        That’s what commies do, isn’t it…they redefine things.
        It is now defined as How Well You Defeat the Westerners, namely the USA.

        And they are obviously free to do whatever-is-necessary to score a win against us.
        There is ‘dishonor’ in Not scoring a win against us.

        Our VSG knows this…and is doing battle in this high stakes game that the ChiComs are playing.

        I’ve noticed that he does things that make Xi lose face, and let’s him twist in the wind for awhile.
        Then…he comes back with praise and a little bit of a concession, to allow Xi to save face for awhile.

        If Xi continues to try and wait it out till the 2020 election…then I think our President will be absolutely merciless with him afterward.

        Liked by 13 people

        1. Merciless is the best word to describe my attitude towards these thieves. I picture a bunch of Chicom bigwigs being tossed into a pit of wolverines and honey badgers.

          Liked by 9 people

      2. Must be said.
        They’re all the same.
        As careful as I tried to be, still I was burned badly in India, and in Brazil.
        Don’t think there’s any restitution, or American Embassy coming to the rescue, either.
        And hiring atty’s overseas?
        No.
        Calling a strike in a factory or other methods (*&^%%&*) tend to work best.

        Liked by 4 people

  6. First of all – amazing. THIS IS BIG.

    All those companies in Nevada. OMG. Yes. Harry Reid.

    Such a SCAM.

    Were they going to use this crash? Were the Dems planning to use this at some point – say under Hillary?

    Also – Strzok’s wife at SEC. That bugs me.

    https://heavy.com/news/2017/12/melissa-hodgman-peter-strzok-wife-facebook-spouse/

    This tactic by the ChiCom party – it is just so EVIL. Could they have thought of this back in the 70’s? I wonder when they realized they could DO THIS.

    This needs a good “gate” name.

    #ChinaHustleGate
    #CHustleGate
    #ZHustleGate
    #ChiVadaGate
    #ChiComps

    Or we can call the companies in China “Paper Dragons”.

    #PaperDragonGate

    Liked by 12 people

    1. #ChinaCheaterGate…would spell it out for the low info people who wouldn’t understand what is meant by “Hustle”.

      And in our current topsy turvy world where good is held up as evil…and evil is held up as good…there are a lot of people who think that a “hustle” is a good thing that requires skill and cunning.
      😜😬😕

      The recent crackdown on Cheating in College Entrance requirements demonstrated that the word ‘cheat’ still carries the negative connotations that it should carry.

      Liked by 15 people

    2. Think of all the China factions in our government.

      -Sen. Reid/Nevada
      -Sen. ChiSpy/California
      -Pelosi/Newsome/Boxer?/Willie Brown/Sen. Kamalot/California
      -Clinton/Rodham/Arkansas
      -Nitty/Rezco/Daley/Jar-Jar Sphinx/Soebarkah/Big Mikel/Illinois
      -Sen. Corker/Tennessee
      -Kissinger/shuttle
      -Clown central casting/Virginia
      -Goolag/LifeLog/Twit/California
      -Bezos/Washington state
      -Mockingbird/BezosEast/DC
      -MockingbirdWest/California
      -“power couples”/DC
      -“beach friends”/California/Maryland

      Plus, semiprivate sector:

      -US Chamber of Commerce/New York
      -Warren Buffet/Nebraska
      -Soros/everywhere
      -plus probably every lobbying firm in the US who hadn’t already betrayed us to the Saudis
      -plus maybe even some who did

      That’s just a few off the top of my head. We need to work on a comprehensive list.

      Look how many are or were senators! Plus 2 presidents, plus a 3rd that could have plausibly made it. Plus 2 SecStates. Plus one female and one male who had the title “First Lady”.

      This is only the top (though perhaps not the very top.) It works its way down from here in a pyramid shape. It’s an army. As Diana West said of the Soviets and their employees and dupes in 1930s/1940s Washington, it’s an occupying force.

      This is even worse than what she showed of Soviet penetration of FDR’s administration in her book American Betrayal.

      It’s like we’re living on an isolated plantation in the Brazilian jungle, and it’s marabunta time!

      Liked by 13 people

        1. Wolfie,

          HER IS YOUR RED DIAPER BABY CONNECTION SPELLED OUT!

          “Armand Hammer’s family origination in then Russian Empire. After his father was imprisoned, he and his brothers took over the family business. Journeying to Soviet Russia in 1921…”
          *https://www.findagrave.com/memorial/1366/armand-hammer

          Roosevelt’s Lend-Lease Act: The Arm and Hammer / Hammer and Sickle Connection
          * https://justice4germans.wordpress.com/2013/07/02/roosevelts-lend-lease-act-the-arm-and-hammer-hammer-and-sickle-connection/

          Now, please meet Mr. Armand Hammer
          The millionaire industrialist, Armand Hammer played a key role in laying the foundations of Lend-Lease. As a dyed-in-the-wool collaborator of Lenin´s and Stalin’s in procuring Western, especially American, assistance in the industrialization of the USSR. In his well-sourced biography of Hammer, espionage expert Edward Jay Epstein describes the active role played by this interlocutor in nailing down Lend-Lease. Epstein notes that in November 1940 Armand Hammer met with FDR in the White House. He and the president discussed the idea of developing American military assistance to Britain, the Neutrality Act and Roosevelt’s campaign promises not to embroil the United States in the European war to the contrary. Roosevelt thereupon suggested to Hammer that he discuss this plan with Harry Hopkins. Hopkins twice traveled to New York City, Hammer´s base of operations, to discuss this idea with officials and businessmen there.”

          According to Wikipedia:

          Hammer was born in Manhattan, New York, to Russian-born Jewish immigrants Julius and Rose (Lipshitz) Hammer.[6][7] His father came to the United States from Odessa in the Russian Empire (today Ukraine) in 1875, and settled in The Bronx, where he ran a general medical practice and five drugstores.

          … according to multiple biographers, Hammer was named after the “arm and hammer” graphic symbol of the Socialist Labor Party of America (SLP), in which his father, a committed socialist, had a leadership role at one time.[8] (After the Russian Revolution, a part of the SLP under Julius’ leadership split off to become a founding element of the Communist Party USA.) Later in his life, Hammer confirmed that this was the origin of his given name.

          Liked by 9 people

          1. Hammer’s father was imprisoned, not in the Soviet Union but in the USA after he preformed a back alley abortion that killed the woman. (the ref is above)

            Liked by 9 people

        1. Good question.

          They sure buy a lot from there. Other than that, I don’t know.

          The ones on my list were all ones where either I knew, or a reasonable inference could be made from publicly available information, that they were engaged in corrupt actions benefitting China.

          Liked by 2 people

    3. “…Could they have thought of this back in the 70’s? I wonder when they realized they could DO THIS….”

      OH YES!!!

      I have been watching China for a while. Here is info most people do not know.

      Hope this is still available:
      The Money and Connections Behind Al Gore’s Carbon Crusade
      by Deborah Corey Barnes
      http://www.humanevents.com/article.php?id=22663

      MOAR…

      Armand Hammer was president and chief executive officer of Occidental Petroleum after he acquired a controlling stake in the firm in 1957. He ‘OWNED’ Senator Albert Gore, Senior saying he had Senator Gore, “in my back pocket”

      Is it any surprise that Clinton, with Al Gore JR as VP worked REAL HARD for CHINA?
      Chasing the Dragon Clinton’s China Policy (This may have been scrubbed drat it!)

      Gore and Occidental Petroleum: Excerpt from The Buying Of The President 2000

      …, in the Democratic Party, Vice President Al Gore has a long-time relationship with Occidental Petroleum that has been enormously beneficial to the company. Occidental’s late chairman, the controversial Armand Hammer, liked to say that he had Gore’s father, Senator Albert Gore, Senior, quote, “in my back pocket”, unquote. When the elder Gore left the Senate in 1970, Hammer hired him for $500,000 a year. Personally and professionally the vice president has profited from Occidental largess. To this day he still draws $20,000 a year from a land deal in Tennessee brokered between his father and Hammer. The total amount is more than $300,000. The personal relationship between young Gore and Hammer was very close throughout the 1980’s, including trips on Hammer’s private jet and constant campaign contributions…

      1985 Larouche Pub Armand Hammer: Soviet ‘Fixer’ from Lenin to the Present

      After “doing so much for the Soviet Union” Hammer was invited to do the same for Communist China.

      1982: Hammer-ing deal with China is Armand’s latest coup

      Two years ago, Deng Xiaoping of China said to Dr. Armand Hammer, “You were a friend of Lenin. You must come to China and help us, too!” Last month Hammer, the crusty chairman of Occidental Petroleum, was in Peking. With the help of China’s boss, he cut a typical “Occidental Deal.”

      …He made his first deal with the Soviets in 1921, capturing the pencil manufacturing monopoly in Russia. Ever since, he has refused to let political problems interfere with commerce…

      Whether dealing with Lenin, Stalin, Khrushchev or Brezhnev, Hammer has been singleminded in his purpose of developing the Russian connection…

      Liked by 12 people

  7. Wow. Great article, Daughn.

    I knew the financial things were bad between us and China, but not that bad.

    Politicians/regulators/police over here who are compromised (i.e. totally corrupt) on this financial stuff are thereby also compromised on the even much more dangerous national security stuff. That explains a lot.

    It works the other way, too. Money they rip off of us with this con artist stuff goes to their government to fund building their nuclear missiles, their nuclear submarines, their aircraft carriers, their EMP weapons, their anti-ship missiles, their amphibious fleet to conquer Taiwan, their fleet of F-35 fighter jet clones whose design and technology they ripped off of us, their space program, their anti-satellite weapons, their Belt and Road initiative, their street cameras with AI facial recognition, their cyberwarfare against our IT infrastructure… It just never ends.

    And every time they threaten us with the big war stuff, kill us all with EMP, or nuke Los Angeles, or get their Mini-Me North Korea to do their dirty work, so we retaliate against the Norks, not them, then that just gives our politicians and generals whose hands are dirty with this Chinese money scam some cover to kick the can down the road on cleaning up the scam.

    “Uhh, well… Uhh, we couldn’t exactly risk getting them angry by asking them to clean up their dirty accounting practices, at a crucial juncture in international diplomacy, when their general was threatening to bomb one of our mainland cities, now could we??!! Uhh…”

    This really explains A LOT.

    P.S. The movie subtitles aren’t Spanish. I’m pretty sure they are Portuguese. Or, if not, then Catalan.

    Liked by 12 people

  8. wow amazing stuff Daughn…and easily understandable which I appreciate!
    I am fairly naive when it comes to business worldwide and I honestly believed all companies trading on OUR stock exchange were vetted thoroughly…smh
    thanks for opening my eyes!!!!

    Liked by 10 people

    1. I originally wrote it as a movie review.
      Watched the movie was was blown away – didn’t know of the additional problem of stock listings/400 companies/Nevada mines, etc.
      Girlfriend called in the middle off it.
      I was telling her all about it.
      And I was overly excited, talking too fast.
      She stopped me for a definition, and I realized I was being an ass.
      She’s a brilliant woman, but not her wheelhouse (Oncology nurse).
      She was the reason I rewrote the top half of this post.

      Other people, who spent their career in this arena……… skip to the bottom.
      But my hope, was to not be ass and assume everyone would be as interested as I was.

      Liked by 6 people

  9. Daugn,
    If you go back in years you can tie the FRAUD to ISO 9000.

    ISO 9000 – What Is ISO 9000? A Standards Series — ASQ

    “ISO 9000 is a set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements….”

    WHEN was ISO shoved down the throats of QC Engineers?

    WIKI: “…ISO 9000 was first published in 1987 by ISO (International Organisation for Standardization).[11] It was based on the BS 5750 series of standards from BSI that were proposed to ISO in 1979….”

    The WIKI article goes on to say:
    “Over one million organisations worldwide are independently certified, making ISO 9001 one of the most widely used management tools in the world today. However, the ISO certification process has been criticised as being wasteful and not being useful for all organizations….”

    Liked by 7 people

    1. A deeper Dive into ISO using my notes about HACCP and FOOD.
      [It helps to remember the International Corporate cartels do not give a crap if they kill humans.]

      Here is an overview of HACCP, NAIS, GGFP and ISO from the point of view of a Quality Engineer with thirty five years experience in the Quality field. You can not separate NAIS or HACCP from “The WTO and The Sanitary and Phytosanitary Agreement (SPS)” and “the commitment of member countries to traceability (NAIS)  internationally established guidelines such as  “Guide to Good Farming Practices” and  HACCP “The Hazard Analysis Critical Control Point” system.

      Remember Dr Deming the father of the modern Quality Revolution said this:

      “The problem is at the top; management is the problem.” [1] Dr. Deming emphasized that the top-level management had to change to produce significant differences, in a long-term, continuous manner. As a consultant, Deming would offer advice to top-level managers, if asked repeatedly, in a continuous manner.
      [1] Deming, W. Edwards. 1993. The New Economics for Industry, Government, Education, second edition.

      No amount of paperwork, or traceability or other magic wands can make up for the attitude of top management. Turning control of food safety over to a paperwork system directed by the top Management whose first concern is Profit is the act of a madman.

      The USDA and the FDA are pushing ahead to change the United States “Food Safety” protocol, methods and regulations from those that have made US food the safest in the world to questionable “management practices” based on ISO. ISO is seen by many Quality Professionals “as the primary negative influence.” in “ the direction that the quality movement has taken in recent years.”

      The WTO and The Sanitary and Phytosanitary Agreement (SPS) allows members to take scientifically based measures to protect public health. The agreement commits members to base these measures on internationally established guidelines and risk assessment procedures.
      *http://www.cid.harvard.edu/cidtrade/issues/spstbt.html
      *http://www.oie.int/eng/publicat/rt/2002/WILSON.PDF

      internationally established guidelines and risk assessment procedures. ==> ISO. This is why ISO was introduced first. About a decade BEFORE WTO was ratified in 1995.

      😲 😱 😡 😨 😩 👎
      Now look at this comment closely and think about the LIABILITY that got SHIFTED TO CHINA WHO CAN NOT BE SUED OR HELD TO ACCOUNT!!!
      😲 😱 😡 😨 😩 👎

      Think dog food and baby formula that killed. Think all of the pharmacutical products now made in China.

      NAIS and ”Guide to Good Farming Practices” (GGFP) are WTO and ISO’s “internationally established guidelines” the SPS “agreement commits members to” Both are based on the same faulty reasoning. ISO 9000 and similar certification schemes like GGFP do not add quality to a product, nor do they insure that quality is in the product. Instead, they show documentation that indicates the methods by which the product was supposed to have been made and nothing more. To rely upon certification, management practices and traceability as an indicator of quality misses the mark entirely. Not only that in farming it shifts the product liability from the processing plants where most food contamination originates to the farmer. Instead of promoting food safety it encourages laxity in the processing plants because the liability has been shifted. Already Equity Livestock Co-op, allowed by WISCONSIN to create a monopoly, has burdened cattle producers with contracts shifting all liability to feeder cattle producers if they can’t prove they are innocent.
      http://www.nonais.org/2008/09/01/bulletin-board-200809/#comment-1395096

      Liked by 11 people

      1. Worked long and hard with an Egyptian family who owned many quarries. When they bought ISO CERT processing lines, it meant we could export to Europe. HUGE change in biz model but almost broke the bank. It worked, but it was tight for a while.

        Liked by 4 people

    2. So what do Quality types think of ISO???

      See this article: http://www.systemsthinking.co.uk/3-1-article.asp for a discussion of the origins of ISO 9000, what is wrong with it, and why.
      In this article Admiral Hyman Rickover was concerned with bad quality that resulted from bad management. ISO 9000 addresses conformity to standards instead of improvement of management. The Japanese who were trained in QUALITY IMPROVEMENT by Dr. Demming, father of the modern Quality Movement, do not endorse ISO.

      Scott Dalgleish was an editor of the American Society for Quality Magazine for five years, and now owns a small manufacturing business. (I have called him and talked to him when the food safety modernizationmess was being pushed.)

      …Scott Dalgleish, [was] vice president of manufacturing at Spectra Logic Corp., a Boulder, CO, maker of robotic computer tape backup systems. Dalgleish, an ASQ certified quality manager who has worked in the quality profession since the late 1980s, is not happy with the direction that the quality movement has taken in recent years. And he sees the ISO 9000 family of standards as the primary negative influence.

      Among other things, Dalgleish contends that ISO 9000 misdirects resources to an overabundance of paperwork that does almost nothing to make products better, while fostering complacency among top management and quality professionals alike. The recent conversion to the 2000 version of the standard has only made things worse, he says. While ISO 9000:2000 has almost no effect on how good companies operate, it requires huge amounts of time for document revision that could better be spent on real quality improvement, he believes…

      *http://www.qualitymag.com/Articles/Letters_From_the_Editor/e4100ee7f4c38010VgnVCM100000f932a8c0____

      Probing the Limits: ISO 9001 Proves Ineffective
      *http://www.qualitymag.com/Articles/Column/17062620c7c38010VgnVCM100000f932a8c0____

      …”I’m wondering if there might be a silent majority of Quality readers out there on the topic of ISO 9000. The response to my July editorial, “Eliminate ISO 9000?,” was the heaviest that we have received in some time. I got lots of e-mails from readers about the piece, which reported the views of Scott Dalgleish, a quality professional who has been publicly critical of the impact of ISO 9000 on manufacturers, and has suggested that companies eliminate ISO 9000 altogether from their quality management systems.

      Many of the responses were quite articulate, and some were humorous and entertaining. You can read a sampling in this month’s Quality Mailbag department on p. 12.

      One thing that struck me about the letters I received is that almost all expressed some level of agreement with Dalgleish, particularly on issues related to excessive ISO 9000 documentation requirements. As you’ll see in the Mailbag department, one reader even said that his company has already dropped its ISO 9001 certification with no apparent negative effects.

      What surprised me is that the July editorial elicited no ardent rebuttals in defense of ISO 9000…

      *http://www.qualitymag.com/Articles/Letters_From_the_Editor/65730ee7f4c38010VgnVCM100000f932a8c0____

      A while back, I asked one of W. Edwards Deming’s assistants if she knew of any truly quality-focused, Deming-based companies. She could not name one that was currently in business. “ Scott Dalgleish

      Even the Military is not happy with ISO
      Mil Standard 105E was declared obsolete in 1995.
      This is from the handbook, not from the Standard.

      The ISO 9000 series of standards (and their U.S. equivalents, the ANSI/ASQC Q9000 standards) specify a set of requirements aimed primarily at achieving customer satisfaction through the establishment of a documented quality system. The intent is to prevent nonconformities at all stages from design to servicing (see paragraph 5.1.2 of MIL-STD-1916). With the international affiliation of the standards, organizations in all parts of the world can be assured that a supplier complying with the appropriate ISO 9000 standard has the framework for an acceptable quality system.

      A basic quality management system should adhere to the elements described in the ANSI/ASQC Q9000 Series of Standards. The ANSI/ASQC Q9000 standards provide a template after which organizations can model their quality systems. Using ANSI/ASQC Q9000 will not in itself assure quality products. However, it will assure that if the organization is using its quality system appropriately, it has in place the necessary mechanisms for corrective and preventive action…

      Liked by 7 people

      1. Essentially, ISO 9000 seeks to ensure that the same thing is done every time…..but not necessarily the right thing. By overdocumenting the tasks involved, it seeks to remove human unpredictability — but it also encourages management to reduce the necessary qualifications of each position to merely walking through a checklist (and eventually can assist outsourcing and offshoring).

        Furthermore, if you seek ISO 9000 certification, you are required to request ISO 9000 certification from all your suppliers.

        Liked by 5 people

        1. “…encourages management to reduce the necessary qualifications of each position to merely walking through a checklist…”

          And you could SEE the change in how HR departments operated. Instead of looking for RAW TALENT to be grown in house they shifted to looking for the correct round peg to fit into the slot. If you did not have the Correct buzz words in a resume and the correct ‘certifications’ from the certificate mills they would not even consider you and never passed you on to the hiring manager.

          This meant Corporations could also say ‘There are no AMERICANS who can do the job’ so we have to hire the guy from Pakistan who has the RIGHT buzz words and the correct ‘certifications’

          Meanwhile the guy who WAS doing the job has to train the foreigner and he then gets fired.

          It all fits together and is part of the destruction of the USA from within.

          Liked by 6 people

      1. Daughn,
        Thank you very much for this article. It really dovetails nicely with the information I have and rounds out the picture.

        NO WONDER Trump wanted to be President and NO WONDER they HATE HIM. Also notice how they DIVERTED ATTENTION TO RUSSIA AND AWAY FROM CHINA!!!

        The MSM just spend three years yelling Russia Russia Russia while ignoring the Chinese threat as much as possible.

        Liked by 9 people

      1. Actually it connects quite nicely to what Daughn and I are saying when you remember those Corporations are hand in glove with CHINA and therefore want to DESTROY the USA.

        That is a list of the TRAITORS to the USA who are really working in the interests of Communism and China.

        Liked by 6 people

  10. I’ll have to watch the movie later, but in my past, I worked for a medical school. Big one. My section was an overhead sort of thing, and the Chinese researchers used to complain when we closed for holidays. They would be in the labs, so this place should be open, right?

    It’s frightening to think of what those people could have been up to with no one else around. Didn’t matter which holiday.

    Liked by 7 people

  11. For the layperson WHY the complaint about ISO?

    Because BEFORE ISO the quality department would INSPECT AND TEST INCOMMING MATERIALS instead of RELYING on the certificate from the vendor.

    After ISO we were told NOT TO INSPECT!!!

    I had major fights over this as a QC Engineer. In one case I was told I had a ‘supecious nature’ and NO we would not spend the $68 dollars a year to test a critical chemical. KARMA hit shortly there after and the chemical did not ‘met spec’ The entire contiuous process line FROZE and the clean up cost millions.

    Now add in what Daughn said about the unreliability of foreign companies, esp CHINESE Companies and you see the major hurt we are in.

    Lets take planes:

    The heads of bolts are marked to indicate the strengh of the bolt. A bolt with 6 marks will sell for a LOT MORE than a bolt with none.

    https://www.boltdepot.com/fastener-information/materials-and-grades/bolt-grade-chart.aspx

    The Chinese figured this out.

    One of the QC Engineers I met at a national ASQ meeting told the same story I just mentioned. Upper Mgment said NO TESTING trust the Certificate. Well QC Engineers are suspecious by nature so this guy grabbed a high grade bolt and put it in his instron tensile testing machine. The darm thing was pot metal and fell apart at the slightest pull.

    Where did he work? AT AN AIR CRAFT MANUFACTURER!!! That pot metal bolt was SUPPOSED to hold together the wing of a new aircraft!!!

    We should thank that QC engineer for the 100 to thousands of lives he probably saved.

    Liked by 8 people

    1. I have been working on cars for several decades, and have a couple of old cars I play around with. You have hit on two things I have been saying for the past ten years or so.

      It is obvious that nobody is doing quality control inspections of the repair parts that are being sold for automobiles. This is true not only of the off brand parts sold at the cheap discount auto parts stores, it is also true of the parts being sold by many of the same suppliers the OEMs buy from. If you own an old car, sourcing parts is a skill you need to develop. And old parts removed from the car are often set aside and rebuilt for later use.

      And your comment about fasteners is spot on. To support my hobby, I maintain an inventory of fasteners taken from older wrecked or junked cars because I trust the metallurgy of old German fasteners (my cars were originally manufactured in Germany). I know several other hobbyists who do this too.

      Liked by 7 people

      1. A Fort, you are so right.
        Had an accident, only one in my life (knock wook), and had to have a disc replaced. After repairs, car pulled to the left, and noticeably so. Vibrated above 70mph.
        Took it back 26 times to complain.
        Finally figured out it was an aftermarket part, not an original Ford part.
        No problems since then.

        Liked by 4 people

    2. We got into testing quartz countertops, coming out of China.
      OMG, I wish you were my friend back then.
      What a damn nightmare.
      Chinese testing certificates = 92% quartz, and 8% resin. Take the same sample back to Univ of MN labs, and we get about 56% quartz and 44% resin.
      WAYYYYYY off.

      Then gosh, I can’t remember, help me with this Gail, I want to say it was the NSF that opened a lab in Shanghai to test carpets, etc for entry into the USA.
      Then there was a another certification stamp, testing for the plastics found in baby bottles when you put them into a microwave.
      The certification was soooooooo ridiculous and meaningless…………
      And average person would have to process 25,000lbs of raw meat on a countertop 6″xx6″ square, every day, 365 days a year.
      I mean, who does that in their kitchen?

      We explored the idea of certification for a little while. There were about 400 high end companies in the USA, part of a trade assoc., thought about developing our own line.
      Cost to me to start it was $25K + $50K + $25K.
      Arizona Tile jumped at it.
      Without guarantees from the trade group, I didn’t want to spend the money on a whim. I’m a little guy.

      Liked by 3 people

      1. “… I can’t remember, help me with this Gail, I want to say it was the NSF that opened a lab in Shanghai to test carpets, etc for entry into the USA…..”

        Sorry I can not help. I have been out of QC for almost 2 decades and do not remember seeing that.

        Liked by 4 people

  12. One other point. Daughn mentioned Mutual Funds and Pension Funds. This is another tie in to the Corporate Cartels.

    The paper The network of global corporate control (anticorruptionsociety(DOT)files.wordpress.com/2015/09/swiss-study-the-network-of-global-corporate-control-2.pdf) by Stefania Vitali , James B. Glattfelder, and Stefano Battiston, shows the strings attached from the financial sector to the corporations. And by now, thanks to Trump everyone should be aware of the money strings on our politicians. One point the paper does not mentioned is mutual funds, trusts and pension plans.

    If you invest in a mutual fund you are buying shares in the mutual fund (that you can not vote) and the Mutual Fund then uses YOUR money to buy stock shares which it owns and controls. This allows much more consolidation of control. For example Edward C Johnson 3rd, chairman of the Fidelity Group votes the stock in Monsanto owned by several pension and mutual funds like FMR LLC, FIDELITY MAGELLAN FUND INC, FIDELITY GROWTH COMPANY FUND, and Pyramis Global Advisors. The vanguard Group, aka John C. Bogle, owns another healthy chunk of Monsanto. In this way even more power is concentrated in the hands of a few. This explains the point made in the paper that the amount of power is greater than the amount of wealth can account for.

    So facts like “85% of Monsanto is held by mutual funds and Institutional (financial) Holders” while true in that the money originated from pensioners and other little people does not tell the whole story. Yet it is trumpeted by those who want to confuse those trying to follow the money and power trails and misdirect us into thinking the stock is held and voted by pensioners – a complete and utter falsehood.

    The article Financial Core of the Transnational Corporate Class lists the top companies AND the officers running these corporations.

    …In this study, we decided to identify in detail the people on the boards of directors of the top ten asset management firms and the top ten most centralized corporations in the world. Because of overlaps, there is a total of thirteen firms, which collectively have 161 directors on their boards. We think that this group of 161 individuals represents the financial core of the world’s transnational capitalist class. They collectively manage $23.91 trillion in funds and operate in nearly every country in the world. They are the center of the financial capital that powers the global economic system. Western governments and international policy bodies work in the interests of this financial core to protect the free flow of capital investment anywhere in the world.

    >>>>>>>>>>>>>>>

    And DO NOT TELL ME THOSE “…161 individuals represents the financial core of the world’s transnational capitalist class….” DIDN’T KNOW!

    THEY KNEW BECAUSE THEY WERE THE ONES PULLING THE STRINGS!!
    >>>>>>>>>>>>>>>

    A few other bits of interesting of information:
    In 1976 A typical American CEO earned 36 times as much as the average worker. By 2008 the average CEO pay increased to 369 times that of the average worker.
    timelines(DOT)ws/subjects/Labor.HTML

    Clinton was President from 1993 to 2001. Statistics showed in 1990, before WTO was ratified by Clinton, Foreign ownership of U.S. assets amounted to 33% of U.S. GDP. By 2002, just after he left office this had increased to over 70% of U.S. GDP.
    (wwwDOT)fame.org/HTM/greg%20Pickup%201%2010%2003%20report.htm

    Originally, according to the 1913 Federal Reserve Act, banks were supposed hold anywhere between 12 and 18% of their deposits in “reserve”. That is where the words “fractional reserve” comes in. Gradually the Fed has lowered the amount of “reserve” required until now the banks are operating on no reserve just the 3% cash on hand.

    97% of the US ‘money supply’ is therefore created out of nothing. This fairy dust money is now owed to bankers/financiers plus interest and we pay them back with our labor.
    activerain(DOT)com/blogsview/1036752/3-cash-97-loans-mortgages

    Liked by 6 people

    1. The disappearance of banking reserves is a direct result of the 2008 crash. As part of the shotgun marriage system wherein sound banks were required to buy bankrupt banks, reserve requirements were substantially reduced.

      Looking at the S&L crisis from the 1970s, the banks did not want to take their losses and move on because many of the investments sold for pennies on the dollar during the S&L crisis later came back when the economy improved. And so the bankers lobbied the powers that be to reduce their reserve requirements so that they would be the folks holding the assets that came back into the black when the economy improved. The problem with this little scheme was illustrated by the “lost decade” in Japan — banks would not have money to lend until the economy improved to the point where the assets the banks held increased in value enough to create excess reserves. And so here in the US we experienced more than a decade of pain and hardship for small business and farmers because they could not get loans.

      Liked by 3 people

    1. We are so far ahead in this game, with President Trump.
      We knew he was good, and he was a VSG………. but, damn, the whole flow of capital thing is mind numbing.
      I wasn’t up to speed.
      It’s in another post out soon.

      Liked by 5 people

    1. YOU WOULD THINK that China – with its huge land mass and population could grow enough soybeans to supply their own needs.

      BUT THINK ABOUT IT – what farmer can run a farm with only one son? US farmers used to have 5-6 sons to share labor. Chinese farmers have to hire extra help to do their work.

      At every turn and at every level, Communism deters large families and prosperous enterprise.

      Liked by 4 people

  13. Here is MOAR background on how this was ALL A SET-UP!!!

    “…After 2008 crash, everyone was looking for a way to recover, quickly. The USA and EU were dead but China’s economy was growing like a rocketship (allegedly). American Wall St types wanted an invitation to the party, but they couldn’t invest in China Companies on the NYSE……… until Roth Capital figured a way in via the back door….”


    OK, I have already shown above.
    Armand Hammer ==> Senor Gore Sr ===> Al Gore VP of BillyBoy Clinton.

    So lets take a look at BillyBoy and his connection to the 2008 CRASH

    BillyBoy LITERALLY SETUP THE CRASH

    The problem was the five new banking laws Clinton signed.

    THE BANKING LAWS:
    The McFadden Act of 1927 or Amendment to the National Banking Laws and the Federal Reserve Act (P.L. 69-639, 44 STAT. 1224): Prohibited interstate banking.

    Law: Negating above:
    Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
    (P.L. 103-328, 108 STAT. 2338).
    Permits bank holding companies to acquire banks in any state one year Beginning June 1, 1997, allows interstate mergers.

    The Glass-Steagall Act or Banking Act of 1933 (P.L. 73-66, 48 STAT. 162): Separated commercial banking from investment banking, establishing them as separate lines of commerce.

    Bank Holding Company Act of 1956 (P.L. 84-511, 70 STAT. 133): Prohibited bank holding companies headquartered in one state from acquiring a bank in another state.

    Law: Negating both of the above laws:
    Gramm-Leach-Bliley Act of 1999
    (P.L. 106-102, 113 STAT 1338)
    Repeals last vestiges of the Glass Steagall Act of 1933. Modifies portions of the Bank Holding Company Act to allow affiliations between banks and insurance underwriters. Law creates a new financial holding company authorized to engage in: underwriting and selling insurance and securities, conducting both commercial and merchant banking, investing in and developing real estate and other “complimentary activities.”

    Federal Deposit Insurance Corporation Improvement Act of 1991 (P.L. 102-242, 105 STAT. 2236).
    Also known as FDICIA. FDICIA [b]greatly increased the powers and authority of the FDIC. Major provisions recapitalized the Bank Insurance Fund and [b]allowed the FDIC to strengthen the fund by borrowing from the Treasury.

    Housing and Community Development Act of 1992 (P.L. 102-550, 106 STAT. 3672).

    RTC Completion Act[/b] (P.L. 103-204, 107 STAT. 2369):

    implement provisions designed to improve the agency’s record in providing business opportunities to minorities and women.. Expands the existing affordable housing programs of the RTC and the FDIC by broadening the potential affordable housing stock of the two agencies.
    Increases the statute of limitations on RTC civil lawsuits. In cases in which the statute of limitations has expired, claims can be revived for fraud and intentional misconduct resulting in unjust enrichment or substantial loss to the thrift.

    The Source was (wwwDOT)fdic(DOT) gov/regulations/laws/important/index.html which was removed from the internet during foreclosuregate. and has now been replaced with (wwwDOT)fdic(DOT)gov/regulations/laws/important/ however BOTH addresses now work (Bookmarked didn’t work a month ago – WIERD)

    http://www.fdic.gov/regulations/laws/important/
    https://www.fdic.gov/regulations/laws/important/index.html

    Liked by 3 people

    1. Here are the crucial moves:

      1.CDSs, credit default swaps were exempted from regulation in the Commodity Futures Modernization Act in the year 2000.

      2.Hank Paulson was the Treasury Secretary who engineered the AIG bailout. He worked for Goldman Sachs.

      3. If a bank had the credit default swap insurance policies on a mortgage, especially if they had more than one, it was to their advantage to force foreclosure.

      4. Obama mortgage program sets up homeowners for defaulting on their mortgage by reducing payments up front before qualification. The bank then stalls making a decision for a year by asking for different paperwork, losing paperwork…. They then handing homeowners a staggering bill, due in one month when they do not qualify. If the homeowners could meet the bill the banks then refused to name an actual amount due. (First hand experience. Took 6 months and a lawyer to nail the amount down.)

      Senior investors, who are typically financial institutions, own the AAA tranches that are insured against default by AIG, and they WANT to foreclose on the Middle Class so that insurance payments kick in. Conversely, the junior tranche investors want workouts with homeowners because their investment is not insured.
      [The key to wether you qualify therfore is wether the bank can collect $$$ from tax payers via AIG -GC]

      “To ensure that the mortgage servicer pushes default instead of workout, the servicer is paid double (50 basis points versus 25 basis points) by the MBS to service a loan in default. Why do you think your servicer tells you that you must be in default before it will consider a mortgage modification, a practice known as invited default?

      “Simply put,” says Parker, “the government bailout of AIG has actually encouraged foreclosures because the taxpayers continue to fill AIG’s coffers with enough cash to pay out insurance on defaulted home loans.”

      “A credit default swap (CDS) is a credit derivative contract between two counterparties,” says Wikipedia. “The buyer makes periodic payments to the seller, and in return receives a payoff if an underlying financial instrument defaults. CDS contracts have been compared with insurance, because the buyer pays a premium and, in return, receives a sum of money if one of the specified events occur…

      Instead of cars or houses, credit default swaps were used to guarantee mortgage-backed securities (MBS), a safe bet according to the best-available mathematical models. Why? Because most homeowners pay off their home loans with the certainty of an ATM.

      The is no reserve requirement with CDS because there’s no government regulation. Each insurance company can set aside as much — or as little — as it wants for reserves. In fact, a company could set aside nothing for potential losses without violating regulatory requirements.

      The money NOT set aside for reserves can be invested in high-risk securities to create a larger cash flow for the insurance company. This means that with CDS, insurers expected not only premiums but also bigger investment returns then would be possible with regular insurance products.

      CDS premium revenue is not restricted to those who might have actual losses or real assets to protect. You can bet as much as you want and create as many CDS as you want…. [ ANYONE can bet against you paying your mortgage! -CG]
      http://www.realtytrac.com/content/news-and-opinion/how-the-aig-bailout-could-be-driving-more-foreclosures-4861

      ]

      In other words there maybe more than one CDS on a mortgage and therefore it is much more profitable to collect the multiple payoffs than to refinance the mortgage.

      Obama’s Mortgage Modification Program A Colossal Flop

      …The high unemployment rate alone explains why all of the “stimulus” and bailouts in the financial sector have been to so little effect in improving the market so far……

      …..Obama’s mortgage modification program was a colossal failure, with hardly any principal modifications occurring Obama blames this on Federal Housing Finance Agency Chairman Edward DeMarco, who blocked such measures.

      But even under the agency’s best-case scenario, DeMarco estimated just 248,000 borrowers would have even been eligible for the Home Affordable Modification Program Principal Reduction Alternative — or just 2.3% of the 10.4 million borrowers nationwide who are underwater. Meanwhile, the program likely would have been a net loss to taxpayers….
      http://news.investors.com/ibd-editorials-perspective/121412-637256-obama-housing-recovery-a-failure.htm?p=full

      There is tons more info on that particular rathole but the bottom line is Clinton signed into law the Banking changes that cause the crash. THEN the 2008 crash DROVE investors into the Arms of the Communist Chinese for FURTHER FLEECING OF THE MIDDLE CLASS!

      Liked by 4 people

  14. SMH. The breadth and depth of corruption and depravity is very hard to absorb.

    Does it ever occur to any of these ‘players’ that no matter how these schemes turn out, pyramids have a very narrow peak? There is NO WAY the mass of collusion-ers will all end up as top brass, and their offspring certainly won’t be among the anointed. They must constantly be looking over their shoulder to see who is gaining on them in the constant battle to stay atop the rest of the cabal. Or to be nimble enough to switch gears as the schemes are outed.

    Thanks, Daughn for this sobering post.

    Liked by 4 people

  15. “SEC filings in the USA are serious, and if you misrepresent earnings or commit fraud, your executives end up on CNBC, or in front of a Congressional Committee, or they may land in jail. It’s serious in the USA.”

    _________________

    Maybe once upon a time, but is it serious today?

    The reason I ask is this.

    When the top prosecutorial agency and the top investigative agency are wholly (and I mean TOTALLY) corrupt, then what do criminals have to fear from OTHER criminals, which can’t be solved by money (bribery, graft, etc.)?

    And who has more money to spread around than companies (and brokerage house underwriters) making SEC filings?

    This is the problem.

    As far as I can tell, there are NO ‘good guys’ in the FIB. Just none. There may be some ‘duck and cover’ types who aren’t actively criminal, they just keep their mouths shut and their heads down and look the other way (all day long, every day…), the ‘go along, get along’ crowd.

    Because it’s not POSSIBLE for the majority, or even a significant minority, to NOT be corrupt, and have the whole organization continue is complete corruption 3 years into the Trump administration.

    For one thing, ‘good guys’ would either be ‘whistle blowers’ or RESIGN and go public.

    That’s what GOOD GUYS do.

    The other guys, the ones who stay, and make up excuses to remain part of a wholly corrupt organization, lying to themselves that they’ll try to change it from within?

    Those aren’t good guys.

    That’s just the best of the ‘rank and file’.

    Make a credible argument, one that passes the laugh test, to the contrary.

    Anyone.

    PLEASE.

    And if nobody can, then we really have to stop with the BS that these people aren’t an organized crime unit.

    Which brings us to their PARTNERS in crime, the people who absolutely MUST be partners in crime for the entire putrid scheme to ever get started — much less to continue in perpetuity — and that’s the Department of Injustice, the corrupt heart of the crime syndicate.

    When the investigators AND the prosecutors are WHOLLY and COMPLETELY corrupt, when there isn’t a “good guy” to be found in EITHER organization, then you have EXACTLY what we have today.

    A 3+ year ongoing COUP attempt, with ZERO signs of stopping, until or unless it is CRUSHED.

    And who can CRUSH the DOJ and the FIB?

    WHO?!?

    The United States military can, easily. And I hope they videotape it, because watching the military chasing thousands of absolute criminals out of their government office spider holes would be GLORIOUS.

    But short of the military, WHO can confront a completely ROGUE department of “Just Us” and FIB?

    I can’t think of anybody.

    Can anyone else?

    Until the “top cop” and the “top prosecutor” are NO LONGER and ORGANIZED CRIME TEAM, does anything else really matter?

    Because THAT is where the “Buck Stops”, in the REAL world.

    I know Truman had “The Buck Stops Here” sign on his desk, and that was very quaint and self-aggrandizing, but the president doesn’t get involved with raiding Manafort’s house, that’s the FIB. Or the IRS. Or the ATF. Or any of a hundred other brownshirt enforcer agencies.

    And the only reason anyone who survives an encounter with American Gestapo has anything to be concerned about is their partners in crime, the DOJ, which (clearly) the president ALSO has absolutely no control over or anything to do with.

    So the ‘buck’ never gets anywhere NEAR the president’s desk.

    The ‘buck’ stops with the Gestapo (or communist equivalent) agencies who do the street-level operations, and the SS agency (or communist equivalent) does the prosecuting of any survivors.

    Until or unless DJT takes control of the “cops” and the “prosecutors”, what else really matters?

    Liked by 1 person

  16. “It’s NOT so serious in other countries. The USA, for decades, was the most reliable country in which to do business, less than a 5% corruption expense (yes, we really do have studies for such things). Doing business in South America, I was shocked by my own naivety and our American innocence about the rest of the world and how they operate. The ever-present corruption in South America/Central America/Caribbean was calculated about 30% of expenses. Middlemen had to have their palms greased along the way. Shady payments and odd bank loans were commonplace. We have no grasp of how lucky we are in the USA, how reliable our banking and legal systems are, and how much it helps our GDP. ”

    ____________________

    Shouldn’t these ALL be past-tense?

    It seems like one of the biggest problems Americans have today is decades-long DENIAL of unpleasant reality.

    Our government *IS* exactly as corrupt as the worst South American governments.

    And that means our ‘big businesses’ are TOO.

    Because that’s where the corrupt government gets all their money, from corrupt business.

    That’s how corrupt banana-republic type governments operate, isn’t it?

    Everything you described above?

    Well, looking with the SAME EYES, what do we SEE when we turn our gaze to the HOME TEAM?

    Nieto apparently took a HUNDRED MILLION from the Mexican drug cartels.

    How much do you supposed Pelosi has taken? Or the rest of the Democrat Machine?

    And that’s only ONE source of their funds.

    The C_A has been a rogue organization running guns and drugs and human trafficking for at least HALF A CENTURY.

    What happens when the DOJ, the FIB and ALL the rest of the alphabet agencies catch on and catch UP to what the C_A has been doing my whole life?

    Just take a look around.

    It’s all around us.

    That pot we’re in has been on slow boil for 50 years. It’s bubbling over RIGHT NOW, but we hardly even notice, because the temperature and revelation of their unimaginable corruption was ‘turned up’ gradually.

    Liked by 1 person

  17. “More than anything else, it’s about Judeo-Christian ethics in the USA versus ethics in other countries.”

    ________________

    Agreed 100%, except lately I question the “Judeo” part of “Judeo-Christian”, because there isn’t much in Scripture about “Judeo” being spread to anyone outside the Jews, where by contrast, the gospel of Christ is to be taught throughout the world.

    And if we are talking about the teaching of ethics and values, at least a majority has to participate and have a stake in the outcome.

    Otherwise we end up with a culture very much like what we have today.

    A culture which is tragic and sickening to anyone who would follow Christ.

    Like

  18. “We expect others to do business as we do, act honorably to develop MORE business, but they don’t. A quick profit is too tempting and the culture consistently promotes cheating on a first order……”

    ___________________

    Because there is no longer any PUNISHMENT for wrong-doing — so long as one is a member of a PROTECTED CLASS.

    That’s what “protection” IS.

    No different than paying protection money to a mafia racket.

    That’s essentially what ALL of the ‘protected classes’ in America do. They pay their ‘protection’ money in the form of voting Democrat, and the Democrats pass laws “protecting” them.

    From whom?

    The protected classes never really ask hard questions like that.

    But the Democrats had to have an answer, because they absolutely needed a scapegoat in order to make their whole ‘protected class’ scheme of division a saleable product.

    So who do you think their chosen scapegoat was?

    I think we can figure it out, by basic deductive reasoning.

    Which group, generally, has little if ANY ‘protected class’ status?

    If you guessed “WHITE”, you would be RIGHT. You move on to the quarter-finals.

    Within that group of “WHITE”, who has even LESS “protected class” status?

    If you guessed “MEN”, you would be RIGHT. You move on to the semi-finals.

    Within that group of “WHITE MEN”, who has even LESS “protected class” status?

    If you guessed “Conservatives”, you would be RIGHT again. Congratulations, you’re going to the Big Game.

    Within the group of “WHITE MALE CONSERVATIVES”, who has the very LEAST “protected class” status?

    If you guessed “CHRISTIANS” — you win the championship.

    Liked by 2 people

  19. “Dan stars in a movie made about the story, “The China Hustle”, in 2018. Here’s the movie trailer….. hold onto your seat.”

    ____________________

    From the trailer: “The best place to be a criminal is someplace with no cops.”

    WELCOME to AMERICA in 2019.

    The DOJ and FIB have been corrupt for AT LEAST 11 years (Hussein, 2008) and probably a lot longer.

    Sure, there are ‘cops’ in America, the top level being the DOJ + FIB, just like communist totalitarian states have ‘cops’ too.

    How are OURS any different than THEIRS?

    For just one example, OURS have been actively subverting and undermining and attempting to overthrow the lawfully elected president of the United States for going on 3 years now.

    Not even the KGB was trying to overthrow their own government.

    But our KGB is.

    And if they are brazen and lawless enough to OPENLY go after the president of the United States in broad daylight, then WHAT wouldn’t they do to the rest of us?

    Which government among the nations of men, can credibly be called MORE corrupt than ours?

    When the FIB and DOJ became wholly corrupted, America became “someplace with no cops”.

    The best place to be a criminal.

    A place where criminals run the investigator and prosecutor agencies.

    Liked by 1 person

  20. “General Wesley Clark, former NATO Commander, and Presidential Candidate was their CEO.”

    _________________

    He’s a crook.

    I saw his self-serving excuse-making in the trailer.

    Cry me a RIVER, Wesley.

    .

    “He brought in speakers like former Presidents Bush and Clinton + Colin Powell. All in all Rodman and Renshaw = 40 companies brought to market = 31 billion USD. ”

    __________________

    Crook, crook AND crook.

    Riding the gravy train their whole lives.

    Liked by 1 person

  21. “The interview with Nussbaum, years later…….. is…. amazing=no due diligence, the auditor, a rented Deloitte shop “reviewed” docs from the management team and rubber stamped them. No one had any culpability for the false statements on balance sheets. No way to seek restitution against a Chinese company …. and the salesmen had to face the investors with bad news. ”

    ______________________

    And where was the Bush administration and DOJ, and the Hussein administration and DOJ?

    Former puppets Bush and Clinton were on the take, part of the scam, and evidently so was Powell, along with our good Democrat friend Wesley Clark.

    Hussein’s DOJ certainly wasn’t going to interrupt ANY crime in progress, and you can be absolutely sure Hussein and his Holder/Lynch/Comey syndicate got their cut of ALL the crime being committed on Traitor Hussein’s watch.

    Liked by 1 person

  22. Dan couldn’t find Chinese auditors who were honest, because, as Dan said, “We can’t find auditors in China that will help us, because let me tell you something, if we do…..find those people…….. the government of China will kill ’em. I mean, they will take their ass out and shoot them in the fucking head.”

    ________________

    That’s nothing.

    The wholly corrupt elements of the government of the United States engages in routine mass-shooting / mass-murder ‘false-flag’ events to change the whole direction of our country, don’t they?

    Liked by 1 person

  23. “In China, it is not illegal to steal from a foreign company.”

    _________________

    Then we should have reciprocal laws here with regard to stealing from Chinese companies.

    Reciprocity is the answer to LOTS of ‘problems’ we have with foreigners taking advantage of us.

    The ‘Golden Rule’ works.

    However they treat us, that is how they want to be treated also, and we should oblige them.

    But we don’t, because apparently, America is the land of the suckers.

    Liked by 1 person

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