9 2 mins 12 yrs

WHO says the god-king opposes drilling offshore?

The US is going to pump billions into Petrobras, the … erm Brazilian state oil corporate so it can explore the Tupi oilfield off the coast of … ahh, Brazil.

The U.S. is going to lend billions of dollars to Brazil’s state-owned oil company, Petrobras, to finance exploration of the huge offshore discovery in Brazil’s Tupi oil field in the Santos Basin near Rio de Janeiro. Brazil’s planning minister confirmed that White House National Security Adviser James Jones met this month with Brazilian officials to talk about the loan.

The U.S. Export-Import Bank tells us it has issued a “preliminary commitment” letter to Petrobras in the amount of $2 billion and has discussed with Brazil the possibility of increasing that amount. Ex-Im Bank says it has not decided whether the money will come in the form of a direct loan or loan guarantees. Either way, this corporate foreign aid may strike some readers as odd, given that the U.S. Treasury seems desperate for cash and Petrobras is one of the largest corporations in the Americas.

Money press to ramming speed, Brother Bernanke …..

Still, someone in the US looks to be doing well out of it. By a strange, coincidental stroke of luck (no doubt) Obama backer George Soros cleared his position on Petrobras common shares and piled into dividend-paying preferred stock – a couple of days before his boy the President threw billions at the Brazilian state oil company. How’s your luck, eh?


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9 thoughts on “Drill Baby Drill!

  1. As the newspaper suggests, it looks like a case of N.I.O.B.Y., which loosely translates as Not In Obama’s Back Yard. There are proven oil reserves off both of Continental America’s coastlines, but Obama’s stalling on whether to allow drilling, and thus upset all the ‘Greenies’ and ‘Environmentalists’ who helped vote their favourite into office!

  2. Pete,

    It’s a laugh, isn’t it? But perhaps Obame is so gifted, so visionary, that he can see what we cannot.

    You couldn’t make it up.

  3. Insider trading of the highest order! – not to mention integrity and honourable intent!

    So Soros has finally ‘bought’ himself a President! – small wonder that even the most primitive of governments are laughing at the US Executive, when they are so easily manipulated..

  4. Oh look! The Obamabots have absolutelynothing to say about this lovely tale of insider dealing from their favourite fixer and their beloved and incorruptible One.

    Quelle surprise.

  5. Can someone help a finance amateur understand what Soros has done here and how Obama’s activities have helped him make money from switching out of common into pref? Thanks

  6. Oh look! The Obamabots have absolutelynothing to say about this lovely tale of insider dealing from their favourite fixer and their beloved and incorruptible One.

    Are there actually any Obamabots here?

    Nevermind. More importantly, what is their to say? It should be patently obvious by now that insider trading characterises "investment" at that level of society. Goldman Sachs business model seems to be based largely on just that, via front running and high frequency trading. Its got feck all to do with who is in office. They are all at it and the only thing that changes is who gets to feed from the top or the bottom at certain periods (or administrations).

    Its disguisting, its wrong and it should not happen. But you know what? It does and nothing will change until these people are brought to book over it. But that would require tough laws and regulation of the finance and equities market. That is never going to happen, especially not now, as those at top of the pyramid have garnered so much power and prestige in the western world (a 30 odd year process).

  7. The SEC is there to prosecute the little guy and protect the big guy. Its a captured institution. The last 18-24 months is all the evidence you need to demonstrate that the lunatics are running the asylum (insider trading being near the bottom of their long list of insane antics). 10 years ago we would have been shocked at a multi billion dollar creative accounting scam by a large corporation. 10 years on and a single person can create a $50 billion pyramid scheme and it causes less anguish than the death of a pop star. Meanwhile large companies, mostly financial institutions, have moved on from the billion to the trillion. 12 to be more precise.

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