ARE WE STILL THE LAND OF RED, WHITE AND BLUE OR, ARE WE NOW JUST RED?
by Beth Schoeneberg
July 30, 2013
We see the labels, “made in China” – and now it is our pork?
The news has been all over the Internet and even a little on mainstream media – China buys Smithfield for $4.7 billion! Shuanghui International Holdings is buying Smithfield Foods Inc., the world’s largest hog producer to feed a growing Chinese appetite for U.S. pork. Needless to say, this deal is stirring a lot of concern among U.S. politicians.
Let’s think about this a bit… We are in debt to China for trillions of dollars! We’ve heard numerous reports in the last several months of Chinese hackers stealing American military sensitive weapon designs…. And in a recent report there has been an unprecedented agreement, the U.S. Treasury has agreed to give China direct access to its auctions. Never before in the 237-year history of this nation has any foreign government been granted such intimate access to Capitol Hill… No laws have been broken but I believe the trust of the American people has been!!!
This nation is losing its independence and sovereignty to none less than China???
I don’t see any of our DC Occupiers rushing to our aid and representing what is best for this nation. The debt is bad enough WAY BAD!! But now for a mega-ag-corporate-food supplier, such as Smithfield to sell out to China; we’re talking about our U.S. Food supply here!! (This is only ONE of the reasons or consequences we shouldn’t have BIG CORP AG in this nation…)
GREED – takes the place of patriotism and national loyalty. I know – Beth Ann is old fashioned… can you see what is happening here?
Five executives who run one of the worst-performing large U.S. food
makers are set to reap at least $85.4 million from its sale.
• CEO C. Larry Pope owns stock valued at $25.4 million based on the $34-per-share offer price. Pope would also get $11 million for his share options -- according to a proxy filing which based its calculation on the company changing hands on April 29, 2012 when the stock was 38 percent lower than the price Shuanghui agreed to last week.
• Smithfield senior managers will stay on after the takeover -- this despite Smithfield having posted a negative return of 18 percent in the five years through March 28.
• If their employment is terminated during the takeover or within two years of this change of ownership, the executives stand to reap even more. Total compensation and share sales would be at least $126.4 million.
• Last year, Smithfield's CEO, COO, CFO, and chairman were together the second-highest paid group of senior managers in the U.S. food industry.
Bob Hall asked, “By the way, what about all those dead pigs in Chinese rivers? Wouldn't it be interesting if some inscrutable bureaucrat has known all along what killed them?”
China buying Smithfield is the biggest Chinese pay for a U.S. company since state-controlled energy firm CNOOC Ltd offered to buy Unocal for about $18 billion back in 2005. It later withdrew its bid under U.S. political pressure. AND a $20.1 billion bid by Japans’ SoftBank Corp has fanned fears of Chinese cyber-attacks against the U.S. SoftBank uses equipment made by China’s Huawei Technologies Co Ltd HWT.UL and ZTE Corp. Last year, the House Intelligence Committee urged U.S. telecoms firms to steer clear of those firms, saying potential Chinese state influence posed a threat to U.S. security.
So Chinese Hackers steal our military secrets…
China attempts to buy one of the U.S. communications …
China is allowed to bypass Wall Street to purchase Treasury Bills…
One of our largest food corporations sells out to China…
Military secrets stolen, an attempt to buy or control telecommunications, energy, economy and now food. Am I alone smelling a threat; a red threat? YET we continue to borrow money from them and become their slaves!
AND dare I give you statistics on our trade deficit?
"U.S. International Trade in Goods and Services -- April 2013"
The Nation's international trade deficit in goods and services increased
to $40.3 billion in April from $37.1 billion (revised) in March, as
imports increased more than exports.
• Our goods deficit with the EU increased 25.3 percent from March to April.
• Our goods deficit with China increased 34.8 percent from March to April.
• Our goods deficit with one country -- an adversary -- represented 39.4 percent of our entire goods deficit, including petroleum.
"Behind the Rise in House Prices, Wall Street Buyers"
• Blackstone has bought some 26,000 homes in nine states. Colony Capital already owns 10,000 properties.
Beware the bubbles, and please remember that neither Blackstone nor Colony are strangers to the Chinese government.
We need to take this RED-SITUATION very seriously my friends!
The transaction with Smithfield would be the largest Chinese takeover of a U.S. company -- to be financed by a combination of cash, debt rollover, and a commitment from Morgan Stanley.
Morgan Stanley is serving as financial advisor to Shuanghui.
Morgan Stanley, at $135 billion, was the #3 recipient of U.S. taxpayer-provided bailout funds. Mitsubishi UFJ Financial Group, at 22%, is Morgan Stanley's #1 shareholder.
Shuanghui "privatized" in 2006 with an investment from an international group including:
• CDH Investments -- manages China's National Social Security
• New Horizon -- owned by Temesek of Singapore and SBI Holdings of Japan
• Kerry Group -- Ireland
• Temesek -- owned by the government of Singapore
Shuanghui's directors include:
• Chou David Tse Young, Director of Shuanghui International Holdings, Ltd., also a partner and managing director of Goldman Sachs, currently overseeing Goldman's direct investment effort in Greater China. Chou holds an MBA in finance from the University of Chicago.
• Yang Zhijun, Managing Director of Shuanghui International Holdings, Ltd. and today's point man, holds an EMBA from the University of Iowa
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Smithfield brands include:
• John Morrell
• Healthy Ones
Make note of all this… As the scripture said, Mary pondered these things...” we too should take note and watch what you buy in the future, ponder what this “takeover” by China truly means to us as a nation and a “free” people…
As usual – my suggestion is to watch the labels and buy locally whenever possible. Perhaps now is the time for you local hog farmers to advertise your product! REAL RED, WHITE AND BLUE PORK!
Credit Bob Hall for the data in this article
© 2013 - Beth Schoeneberg - All Rights Reserve