Soros in, out, and back in Petrobras…
Did the George Soros divestment in Petrobras precede a far larger reinvestment? Soros was recently exposed by Glenn Beck as possibly attempting to exploit the weakness of American energy companies, whose operations were recently frozen by President Obama, after the Deep Horizon oil rig disaster. But did the George Soros divestment in Petrobras precede a reinvestment? Did Soros quietly get in, out, and then, back in to Brazil’s massive state run oil giant?
Apparently so, as Soros’s $900 million divestment, and subsequent divestment, was quietly followed by a whopping $2 billion reinvestment making his long term intentions worth investigating.
The question begs again, why would Soros divestment in Petrobras precede a far larger reinvestment? The controversial hedge fund manager has a history of manipulating markets to turn currencies on their heads, but does he have similar plan for America? If so, is he even capable of upsetting our economy with his purchase of a massive 1,110,200 shares of the Brazilian oil company Petrobras?
Soros’ purchase of Petrobras shares comes at an interesting time. Not for any investment standpoint, really. Petrobras as a stock has been quite a dud all year. But something to consider is this is not typical behavior for any reputable fund. On the May 18 broadcast of the Glenn Beck show, Beck makes the point by sourcing the Forbes headline about Soros’ Petrobras buy. Beck went after Soros in 2009 just before the Export Import Bank of the United States said it had offered Petrobras a $2 billion loan to drill deep off the coast of Rio de Janeiro. Did Soros know of the loan in advance? Was President Barack Obama’s timing a little too convenient, when he provided financing to a company in which Soros is heavily invested in?
Soros is also a big Democratic fund raiser and clearly has strong influence in the Democrat party. The argument could be made that Soros was buying the stock because his contacts in the US government told him that they were going to fund Petrobras to drill for oil, which could result in a boon for Petrobras shares.
To understand the big picture, one has to look at how submerged Soros is in American politics. Behind the scenes he funds at least half a dozen organizations dedicated to replacing our current Republic with a Socialist government. The argument could be made that his financial wrangling with Petrobras is a covert effort to undermine the American economy. After all, the tenants of the Socialist game plan is to “overwhelm the system” from within.
Perhaps we should be grateful that Soros’s adventurism in Petrobras is proving to be not such a hot investment, and even worse for the loan guarantees made by a U.S. bank at the behest of a sitting U.S. president… Why would President Obama encourage loan guarantees to be made to a foreign energy concern over U.S. energy companies who desperately need help? Why did the President freeze permits for U.S. companies out of concern for safety in deep water drilling scenarios, and then, provide huge loans to Petrobras when he knew of their plans to drill in waters thousands of feet deeper?
Is the White House truly behind a scheme to undermine American energy concerns and further weaken our economy? Whatever the truth is, the facts warrant that this situation bear close scrutiny in the future.
Food for thought…