Obama_ George Soros and Petrobras Mar 2011 snopes.com by LegionZ411

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									snopes.com: Obama Lends $2 Billion to Brazilian Oil Company                                                                     Page 1 of 4




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                                  Brazilian Oil
 




     Crime
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     Disney                       Claim:   President Obama signed an executive order to lend $2 billion to a Brazilian oil
     Embarrassments               company, with no financial gain for the U.S.
 
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                                          MOSTLY FALSE
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     Inboxer Rebellion
     Language
     Legal                                       This is a perfect example why many refrain from watching the news on ABC,
 
     Lost Legends                                NBC, CBS, or MSNBC.

     Love                                        Today on a segment of the "Glen Beck Show" on FOX (Fox Cable News) was
     Luck                                        the following:
     Media Matters
                                                 "Today, even though President Obama is against off shore drilling for our
     Medical
                                                 country, he signed an executive order to loan 2 Billion of our taxpayers
 
     Military                                    dollars to a Brazilian Oil Exploration Company (which is the 8th largest
                                                 company in the entire world) to drill for oil off the coast of Brazil!
     Movies
     Music                                       The oil that comes from this operation is for the sole purpose and use of
     Old Wives' Tales                            China and NOT THE USA! Now here's the real clincher... the Chinese
     Politics                                    government is under
     Pregnancy                                   contract to purchase
 



                                                 all the oil that this oil
     Quotes                                      field   will   produce,
     Racial Rumors                               which is hundreds of
                                                 millions of barrels of
     Radio & TV
                                                 oil".     We       have
     Religion                                    absolutely    no    gain
 
     Risqué Business                             from this transaction
                                                 whatsoever!
     Science
     September 11                                Wait, it gets more
     Sports                                      interesting. Guess who
     Travel                                      is      the     largest
                                                 individual stockholder
     Weddings
                                                 of this Brazilian Oil
                                                 Company and who
                                                 would benefit most
                                                 from     this?  It   is
                                                 American
                                                 BILLIONAIRE, George Soros, who was one of President Obama's most
                                                 generous financial supporter during his campaign.

                                                 If you are able to connect the dots and follow the money, you are probably
                                                 as upset as I am. Not a word of this transaction was broadcast on any of the
                                                 other news networks!



http://www.snopes.com/politics/gasoline/braziloil.asp                                                                            7/19/2011
snopes.com: Obama Lends $2 Billion to Brazilian Oil Company                                                        Page 2 of 4
                               Forward this factual e-mail to others who care about this country and where
                               it is going. Also, let all of your Government representatives know how you
                               feel about this. Is this the kind of "transparency" you want from your
                               government?

                               Below is the Wall street Journal article to confirm this.

                               Wall Street Journal editorial
                         




                      Origins:   The above-quoted article references a segment attributed to Fox News
                      Channel host Glenn Beck criticizing President Obama for signing an executive order to
                      lend $2 billion to a Brazilian oil company to finance offshore drilling, all without
                      securing reciprocal oil exports from Brazil or any other benefit to the U.S. Nearly all of
                      the substantive claims made in that article are false, as detailed below:

                    • [President Obama] signed an executive order to loan 2 Billion of our taxpayers dollars
                      to a Brazilian Oil Exploration Company

                      This statement is false: President Obama signed no such executive order. On 14 April
                      2009, the Export-Import Bank of the United States (Ex-Im), an agency whose mission "is
                      to assist in financing the export of U.S. goods and services to international markets,"
                      issued a preliminary approval for a $2 billion loan to Brazil's national oil company,
                      Petroleo Brasileiro S.A. (Petrobras), to help fund offshore oil exploration and
                      development.

                      The approval of the loan was an action undertaken not by officials who had been
                      appointed by President Obama, but by his predecessor, President George W. Bush, as
                      Ex-Im itself stated:

                            The Bank's bipartisan Board unanimously approved the preliminary
                            commitment to Petrobras on April 14, 2009, before any Obama appointees
                            joined the Bank. In fact, at the time the Bank's Board consisted of three
                            Republicans and two Democrats, all of whom were appointed by George W.
                            Bush.

                      Despite the claim that the money committed to Petrobras is "taxpayer dollars," Ex-Im
                      notes that "the vast majority of our financing consists of guarantees of loans made by
                      commercial lenders," that "the bank is self-sustaining and does not receive any
                      appropriated funds from Congress," and that "the Bank's activities do not cost the
                      American taxpayer a dime."
                       


                    • We have absolutely no gain from this transaction whatsoever!

                      This statement is also false, one predicated on the mistaken assumption that the only
                      tangible financial benefit of lending money to Petrobras was to guarantee a supply of
                      Brazilian oil for the United States. The Ex-Im's mission statement declares:

                            The Export-Import Bank of the United States (Ex-Im Bank) is the official
                            export credit agency of the United States. Ex-Im Bank's mission is to
                            assist in financing the export of U.S. goods and services to
                            international markets.

                            Ex-Im Bank enables U.S. companies — large and small — to turn export
                            opportunities into real sales that help to maintain and create U.S. jobs and
                            contribute to a stronger national economy.

                      Accordingly, as set forth in a 29 July 2009 press release, Ex-Im's chairman and
                      president, Fred P. Hochberg, declared that the bank approved the $2 billion
                      preliminary commitment not as a downpayment to ensure future oil purchases from
                      Brazil by the U.S., but "to encourage purchases of U.S. goods and services by
                      Petrobras":

                            I chose Brazil as my first international destination for good reason: Brazil is
                            a powerhouse among South American economies and offers tremendous
                            opportunities for U.S. exporters in many sectors. I want Brazilians to know
                            that Ex-Im Bank has the will and the capacity to finance their purchases of
                            U.S. equipment, products and services.




http://www.snopes.com/politics/gasoline/braziloil.asp                                                               7/19/2011
snopes.com: Obama Lends $2 Billion to Brazilian Oil Company                                                       Page 3 of 4
                      (Although Fred P. Hochberg is an Obama appointee, the President did not nominate
                      Hochberg for the position of Ex-Im president until 20 April 2009, a week after the
                      board approved the loan to Petrobras.)
                       


                    • The Chinese government is under contract to purchase all the oil that this oil field
                      will produce, which is hundreds of millions of barrels of oil.

                      China does have an agreement to buy Brazilian oil from Petrobras, but not literally to
                      purchase the entire output of Brazilian offshore oil fields. In May 2009, the China
                      Development Bank (CDB) agreed to lend Petrobras $10 billion (five times the amount of
                      the Ex-Im loan); in exchange, "the two sides agreed to increase actual crude oil exports
                      from Brazil to China." At the same time, Petrobras and Sinopec (the China Petroleum
                      and Chemical Corporation) signed a separate long-term export agreement providing for
                      Petrobras to export 200,000 barrels of oil to China per day from 2010 to 2019.
                       


                    • Guess who is the largest individual stockholder of this Brazilian Oil Company and who
                      would benefit most from this? It is American BILLIONAIRE, George Soros, who was one
                      of President Obama's most generous financial supporter during his campaign.

                      Billionaire financier George Soros has donated large sums of money to groups that
                      support the goals of the Democratic Party (including an estimated $23.5 million
                      towards defeating the re-election effort of President George W. Bush in 2004), and his
                      hedge fund (Soros Fund Management LLC) does hold stock in Petrobras. However, the
                      implication that President Obama unilaterally directed the issuance of a loan to
                      Petrobras as quid pro quo repayment to George Soros is erroneous since, as noted
                      above, the loan was approved and made by a Republican-majority board of Ex-Im
                      officials who had been appointed by George W. Bush.

                      Soros' hedge-fund firm sold off 5 million of its 37 million Petrobras shares in May 2009,
                      and the firm sold off another 22 million shares in August 2009, before Petrobras
                      received any loan funds from Ex-Im.
                       


                      In a letter published by the Wall Street Journal on 21 August 2009, Ex-Im president
                      Fred P. Hochberg refuted the criticisms expressed in that newspapers' editorial of
                      three days earlier:

                            Your editorial "Obama Underwrites Offshore Drilling" (Aug. 18) more
                            correctly should have read, "Obama Underwrites U.S. Jobs." That's because
                            the mandate of the Export-Import Bank of the U.S. (Ex-Im Bank) is to help
                            create and sustain U.S. jobs by financing U.S. exports. Our offer to provide
                            financing to Brazil's state-owned oil company Petrobras does exactly that.

                            That's what is behind our decision to offer at least $2 billion in loans or loan
                            guarantees to help finance purchases of U.S. goods and services by
                            Petrobras. This increases the likelihood that American — not
                            foreign — workers will be employed to satisfy part of the company's
                            planned $175 billion investment during the next five years.

                            Ex-Im Bank does not make U.S. policy. In fact, our charter prohibits us
                            from turning down financing for either nonfinancial or noncommercial
                            reasons, except in rare circumstances including failure to meet our
                            environmental standards.

                            We make no grants. The vast majority of our financing consists of
                            guarantees of loans made by commercial lenders, not Ex-Im Bank direct
                            loans. The foreign buyers that use Ex-Im Bank products pay us in full. Over
                            the past 16 years the fees that we collect have netted American taxpayers
                            more than $4.9 billion plus the jobs those exports have created. Thanks to
                            the fees we charge, the bank is self-sustaining and does not receive any
                            appropriated funds from Congress.

                            At a time when jobs, and exports, are more important than ever in helping
                            our economy recover, Ex-Im Bank is achieving its mission to keep
                            Americans working, and we're doing it without burdening the
                            U.S. taxpayer.




http://www.snopes.com/politics/gasoline/braziloil.asp                                                              7/19/2011

								
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