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By: Wayne Brown
I listened to President Obama’s State of The Union speech with interest to see what grand plan he was proposing to rein in the run away spending in America which has been draining our asset base for the past three years. When the speech was over, I essentially knew little more than when I started with the exception that the President confirmed in a round about method that he intended to continue spending at the current rate for the foreseeable future of his administration. Of course he served up with dose of bitter medicine with a flowery, highly motivated push for investment in America’s future even if it bankrupts those who will have to live it. At a time when we needed vision and leadership, we simply got more of what we have already seen…misguided economic and social philosophy.
You might have heard the President casually mention late in his speech that he planned to head down to South America to forge new partnership in the coming year. He specifically mentioned Brazil and “investing” more of America’s money into offshore drilling in that country. He said little or nothing of the state of affairs of offshore drilling in the USA and offered no urgency on the point. Obviously, the President was continuing his pandering to the environmental crowd for their vote in 2012.
As you might remember, early on in the Obama administration, the President committed 2 billion U.S. dollars in investments to Petrobras, the giant oil company owned by the Brazilian government. This investment of taxpayer dollars conveniently took place after Mr. Obama’s prime benefactor, George Soros, had invested his money in the offshore drilling operations of Brazil. Some conclude this was simply a coincidence. Others smell a rat especially in light of the restraints placed on offshore drilling in domestic waters of the USA.
With the news of the USA’s investment and a potential future investment that could reach as high as 10 billion dollars, the price of Petrobras stock took on an upward trend shortly afterward. George Soros hedge fund held at least 22 million shares of Petrobras through his hedge fund investment company. In August of 2009, Soros’ fund took advantage of the price increase and sold off the stock only to turn around and reinvest in some of the preferred premium shares of Petrobras which yield an additional 10% in dividends to the holders. Needless to say that Soros and company made a tidy profit off of the investment impact by the USA.
Now President Obama is going to Brazil to firm up this partnership to a greater degree with plans to use Brazil as an alternative supplier for petroleum products. Keep in mind that this is oil that Brazil has basically committed to China. It is not oil bound for the USA markets and the effect at best may be to relieve some of the Chinese demand for oil in other sectors of the world.
You might wonder why Brazil would not be more interested in producing this oil for its own consumption. Apparently, some years back, Brazil was able to find effective methods to convert the sugar cane raised in the country into a form of ethanol which is one-third to one-half the price of the current ethanol made in the USA from corn products. With that achievement, Brazil’s need for expanding their offshore operations is primarily driven by the interest in selling the products to other countries. So America is investing in Brazil’s offshore drilling so that Soros and Brazil can make money off the venture. I wonder when the American taxpayer will see any profit from the investment.
Keep your eyes peeled for an announcement by President Obama as to his intention to also invest taxpayer dollars in oil exploration in Venezuela. Specifically, be on the look out for the names HOVENSA and Petroleos de Venezuela. This is a joint venture currently in the works between U.S. based Hess Corp and Venezuela for the purpose of refining oil in St Croix, Virgin Islands. By the way, in case you are wondering, George Soros recently raised his investment in Hess Corp from 3.7 million shares held to 5.1 million shares held according to his filings. It will certainly be interesting to see if President Obama and George Soros just happen to coincidentally have the same idea once again only in Venezuela this time.
On the surface, all of this seems so transparent that many would simply shrug it off as nothing more than coincidence. Certainly George Soros is getting wealthier by the day off of the investments made by the USA. The President is playing to the environmental tone in the USA and keeping a tight lid on U.S. domestic offshore drilling as well as potential new sites in Alaska. Brazil and Venezuela are offered up as shining alternatives to the potential environment dangers of investing in our own oil resources. From that perspective, the President reaps the justification for investing more dollars which America does not have into foreign oil production. He simply ignores that the removal of the government’s choke hold on U.S. domestic oil producers could enrich our oil independence and the taxpayers would not have to invest one dime. Now that is truly transparency at work.
George Soros despises all that America stands for yet he is willing to whisper in the emperor’s ear and have him do his bidding in order to make money in the most underhanded of ways while appearing to have some real genius in terms of his financial savvy. He relishes the idea of bring America to its financial knees knowing that when that time comes it will be much easier to convert it to the Socialist nation that it rightly should be; at least that is how he sees it. There is no better way to get there than to continue to borrow money from the Chinese to cover our investments in South American oil…it’s a given.
Political correctness, cultural diversity, and environmental consciousness are the rules of the day in America at the present. Our lives seem to revolve around such issues and any one person who takes issue with these concepts is immediately labeled with as many evil names as those on the left can conjure up to undermine the credibility of their argument. As they silence those voices who might question the legitimacy of these conceptions, they mortgage America’s future again and again. If those voices continue to go unheard and unheeded, Americans will not have to worry about future investments or national debt for America will be over, once and for all. Give that some thought when you hear the President speaking of his new plans for investment in America’s future.
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