Corrupt Practices

The Bush administration reverses its stance towards Chinese Trade, mentioning the threat of tariff duties on Chinese products to counter subsidies on Chinese Products. What does this mean? Way back in the 1980s, duties were taken off Goods from Communist countries, because subsidies could not be determined in magnitude when Production was Government-owned. The Result is much different Today, as China has adopted other Production and Marketing strategies. The article, and both American and Chinese leadership, stay away from the real presence of the actual nature of the Subsidies; almost automatic extension of loans from the corrupt Chinese Banking system, which are extended for corrupt Cash payments to Chinese Banking officials, and where the loans are never repaid. The Bush administration probably has a Green Light from Chinese leadership, who deeply desires to strip Profitability from this activity.

Gretchen Morgansen discusses the fact that many Companies are instituting "clawback" policies to force Executives to return Incentive Pay which they did not actually earn. Here again is action which basically consists of anti-corruption procedures. A Democratic Congress, traditionally in love with Regulation, should very much regulate this aspect of Business conduct. I would suggest an Incentive Pay Statement posted with the Stock Exchange Commission where the Stock is listed, with a mandatory delay for two years of Incentive Pay award, in which time such awards can be tested for actual value by the Company. This legally-enjoined practice would grant time to review awards, and ensure Corporate practice would be less likely to be based on the corrupt generation of high Numbers in the Short-term to get awards.

The South Korean and Panama Trade deals may again be examples of use of Corrupt Trade and Business practice. South Korea stands adamant in using Rice as a Salt Tax, resisting all Imports where the South Korean Government does not buy on the International Market, and resale domestically–at about a 300% Markup. The South Korea Trade Pact will not open the South Korean market to a vast range of American Goods; but will provide Copyright protection, and the ability for American business to import desired Korean Products without paying American duties. The Panamanian Trade deal also allows for escape from payment of American duties on desired Panamanian Products. This Escape from American duties is a end-around evasion of elimination of those Duties in Congress, where American Labor and domestic American business would forestall elimination of the Duties. lgl