
We’re not going to comment on the current workings of our
lawmakers in Washington, D.C. Instead we wish to focus on an
event that took place during another administration. So let’s
see if we can make sense of something that makes no sense to us.
In September of 2013 the worlds largest hog farm and pork
processor in the world, Virginia based Smithfield Foods was
bought by Shuanghui International Holdings. Shuanghui is the
biggest meat processor in China. And the Obama administration
condoned the sale.
At the time concern about a Chinese company controlling a major
U.S. meat supplier was voiced and the administration downplayed
said concerns. If you haven’t heard of Smithfield perhaps you’ve
heard of Farmland, Armour, John Morrell, Kretschmar, Curly’s,
Carando, Cook’s, Margherita, Gwaltney or Healthy Ones.
The above mentioned firms are the brands Smithfield products
are sold as. The meat stays here and is processed here yet the
profits go to the Chinese company. Said foreign company now
controls nearly all the bacon, sausage, and ham sold in our
country and owns 25% of all pigs in America.
So here’s what bothers us. In 2005 the United States Gross
Domestic Product (GDP) was $13 trillion and was six times bigger
than China’s GDP that year. If we fast forward to 2017 our GDP is
only 1.6 times larger than China. At this rate China is expected
to beat our numbers by 2029.
And if we look at purchasing Power Parity (PPP), China is
already ahead of us as of 2015. For the last 140 years America
has had the biggest economy but that may not last much longer.
There is more to the story and we’ll finish it next week. This
is one segment of a growing problem for us and the future of our
country.
We’ll leave it at that and you can draw your own conclusions.
For now, enjoy our Friday as here on the east coast of Iowa it’s
going to get chilly tonight.
Comments are always welcome.