US Lending Money To Brazil to Benefit…China??

February 3, 2010 at 15:39 (Economy, News)

Economic Noise has this pretty good article detailing some pretty fishy plans. Everybody knows that government (any government) is corrupt, but sometimes seeing the connections between big money donors and the behind the scenes deals is maddening.

Despite our economic problems at home and an adverse position on drilling for oil off our shores, we are guaranteeing or lending billions to Petrobras, a huge Brazilian-owned oil company. The reason offered is so that they can drill for oil off their coast. The oil has been committed to China and not us. There are many troubling aspects to this arrangement.

* First, what business does our government have lending money to any corporation, never mind a large foreign corporation? At a time when our industry is starving for capital, we lend to Petrobras. It might make some sense if we were guaranteed a portion of the oil from the field. That apparently is not happening. Supposedly it is going to China.
* Second, it appears as though George Soros is a major shareholder in Petrobras. He also was probably the largest financial backer of the Obama Administration. As unethical as this appears, if we were getting the oil, it might actually have some economic basis other than rewarding a campaign contributor.
* Third, why is the oil going to China? This aspect of the deal is the most troubling of all. Is the US being blackmailed by its largest creditor? Have they told us to do this or else they will stop funding our debt? Or worse, they will start selling Treasuries? I suspect but have no proof that this third factor is pre-eminent with the second not inconsequential.

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