You can figure out if the tires are adjusted correctly, get 2 people, and take a tape to the top and bottom of the hubs (brake assembly), and see if they are the same.
What you show there appears to be some sort of damage from hitting something, or at least that's what I'd guess the tire guys will say. It looks like you hit something. The cheap tires may have a propensity towards splitting vs. creating a bubble like a radial would do. It just seems it would be almost impossible to get a single location rub like that any other way, but I'd be interested to know.