Make the chili sauce: In a stockpot or Dutch oven, combine the beef (do not brown first), onion, tomato sauce, tomato paste, chili powder, sugar, salt, pepper, garlic salt and 2 cups (480 ml) water. Stir until combined then add the bay leaves. Cover and simmer over medium-low heat for about 2 hours.
Stir in the vinegar and simmer for 30 minutes longer.