The Wall Street Journal reported that the Obama administration will invest $2 billion (or more) in drilling off the shores of Brazil, of all places. The left does all they can to keep us from exploring off our own shores. Yet we’re suddenly investing $2 billion – that we don’t have – in a Brazilian oil company?
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.
Odd, isn’t it? The one who campaigned against oil companies and the use of fossil fuels is now suddenly investing our children’s money in a foreign oil company? This is the same man who said he wanted higher gas prices to break our addiction to foreign oil. Why the sudden change of heart?
His New York-based hedge-fund firm, Soros Fund Management LLC, sold 22 million U.S.-listed common shares of Petrobras, as the Brazilian oil company is known, according to a filing today with the U.S. Securities and Exchange Commission. Soros bought 5.8 million of the company’s U.S.-traded preferred shares.
Soros is taking advantage of the spread between the two types of U.S.-listed Petrobras shares, said Luis Maizel, president of LM Capital Group LLC, which manages about $4 billion. The common shares were 21 percent more expensive than preferred today, according to data compiled by Bloomberg. …
Petrobras preferred shares have also a 10 percent additional dividend, said William Landers, a senior portfolio manager for Latin America at Blackrock Inc.
“Given that there will most likely never be a change in control in the company, I see no reason to pay a higher price for the common shares.” Brazil’s government controls Petrobras and has a majority stake of voting shares.
Unfortunately, it’s doubtful anyone in the media will pursue this story. The media is oddly incurious about George Soros, his hedge fund and his political connections. A quick search of “George Soros Petrobas” came up with nothing but stories of Soros the investor. Not Soros the puppet master. No questions of Soros and insider trading. Nope. Just Soros, the brilliant investor.
Had this occurred under a republican administration there’s no doubt in my mind it would be the lead story on every network news broadcast. Not to mention the 24 hour cable news loop.
Even without the Soros connection this should cause outrage on both sides of the aisle. Obama’s letting down his green supporters on the left by investing in off-shore oil drilling, no matter where that drilling takes place . And the right should be outraged because he refuses to invest in drilling here at home – or allow private companies to do so.
With only a few exceptions, the silence on this story is deafening.
Update: Gateway Pundit has even more on this story with links. Like Obama approving nuclear engery in the UAW but not here at home and how Chevron is drilling in deep waters because of the ban on offshore drilling.
Update 2: See comment below from Ray and make up your own mind.