2 edits | Obama Announces $2,000,000,000 oil exploration aid to Brazil Today, President Obama, who has publicly stated his policy of decreasing our dependence on foreign oil, announced a two billion dollar aid package to Brazil, for oil exploration. How can he do that ?? I don't mean morally or politically. I thought that ALL financial appropriations had to originate in the House of Representatives. If the money came from the financial stimulus appropriation, it is a blatant misuse of federal funds. That money is supposed to be used to stimulate the US economy, not the economy of Brazil.
EDIT: Here is the link
»www.newsmax.com/InsideCover/Gulf···d/390382
By the way, the U.S. Export-Import Bank is a federal agency. |
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LangningPremium
join:2003-04-28
Marlborough, MA | reply to Waterbug
said by Waterbug: Today, President Obama, who has publicly stated his policy of decreasing our dependence on foreign oil, announced a two billion dollar aid package to Brazil, for oil exploration. When does Brazil become domestic to US? |
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 OmegaDisplaced OhioanPremium
join:2002-07-30
Cheyenne, WY | reply to Waterbug
I just read an article in Fortune about Brazil's state owned oil company. They seem to be doing pretty darn well without us.
But I imagine that Obama is promising this money so the US gets a certain guaranteed percentage of that oil from Brazil.
But hey, I'd rather my money go to Brazil than any country in the middle east.
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 SnakeoilIgnore Button. The coward's feature.Premium
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Mentor, OH
kudos:1 | reply to Waterbug
IMO, attempt at buying votes thru lower oil prices. |
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| said by Snakeoil:IMO, attempt at buying votes thru lower oil prices.
He's not attempting to buy votes. He will get more votes period if he gets oil prices lowered and more then likely get re-elected because of that.
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 KrisnatharokCaveat EmptorPremium
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kudos:3 | So basically what Snakeoil  said. |
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Why have Obama not been impeached yet? |
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Prot
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Somerville, MA | Because he is not an ahole |
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said by Waterbug: Today, President Obama, who has publicly stated his policy of decreasing our dependence on foreign oil, announced a two billion dollar aid package to Brazil, for oil exploration. No, he didn't. Not according to the article you linked anyway. Try this article: »blogs.forbes.com/kenrapoza/2011/···-to-rio/
quote:
Here’s what is really going on with that $2 billion loan. Petrobras declined to comment on it, but a spokesperson at the Export-Import Bank, which offered Petrobras $2 billion in a preliminary commitment in April 2009, did comment. (And after some due diligence all my own, here are the the “known-knowns”.)
The Export Import Bank is a government run bank. It made a preliminary commitment to offer Petrobras $2 billion in April 2009. What that means is, Petrobras could take out a loan from the Bank and use that money not to enrich Soros or shareholders, per se, but to enrich US companies in the energy space, mainly businesses in the oil, natural gas, and oil rig space. The money would in fact come back to the US and, hopefully, even create jobs due to demand for goods and services from Petrobras, one of the biggest oil companies in the Americas.
What’s become of that $2 billion? On February 4, 2010, the Bank entered into a medium-term credit guarantee facility with Petrobras for $308 million. That means if Petrobras wants, it can go to a bank — in this case it is JP Morgan — and take out a loan for $308 million to buy goods and services from US companies. The Export Import Bank then would guarantee that loan from default, which in turn makes JP Morgan happy because it will not lose money and will make interest on the loan; make Petrobras happy because the loan guarantee means low interest rates on the loan; and it makes the Export Import Bank happy because they can collect fees (undisclosed) and provide a boost to the companies in the US in which Petrobras will do business.
Although the Bank has agreed to guarantee the loan to be made by JP Morgan, the transaction is not operative. That’s a legal term that means no legal documents have been signed by JP Morgan or Petrobras saying that the loan is active. The Bank approved it, but Petrobras has not acted on it for more than one year later.
In other words, the $308 million is part of the $2 billion offer. Petrobras has not yet tapped a single dime of it.
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| said by fatness:said by Waterbug: Today, President Obama, who has publicly stated his policy of decreasing our dependence on foreign oil, announced a two billion dollar aid package to Brazil, for oil exploration. No, he didn't. Not according to the article you linked anyway. Try this article: » blogs.forbes.com/kenrapoza/2011/···-to-rio/ quote:
Here’s what is really going on with that $2 billion loan. Petrobras declined to comment on it, but a spokesperson at the Export-Import Bank, which offered Petrobras $2 billion in a preliminary commitment in April 2009, did comment. (And after some due diligence all my own, here are the the “known-knowns”.)
The Export Import Bank is a government run bank. It made a preliminary commitment to offer Petrobras $2 billion in April 2009. What that means is, Petrobras could take out a loan from the Bank and use that money not to enrich Soros or shareholders, per se, but to enrich US companies in the energy space, mainly businesses in the oil, natural gas, and oil rig space. The money would in fact come back to the US and, hopefully, even create jobs due to demand for goods and services from Petrobras, one of the biggest oil companies in the Americas.
What’s become of that $2 billion? On February 4, 2010, the Bank entered into a medium-term credit guarantee facility with Petrobras for $308 million. That means if Petrobras wants, it can go to a bank — in this case it is JP Morgan — and take out a loan for $308 million to buy goods and services from US companies. The Export Import Bank then would guarantee that loan from default, which in turn makes JP Morgan happy because it will not lose money and will make interest on the loan; make Petrobras happy because the loan guarantee means low interest rates on the loan; and it makes the Export Import Bank happy because they can collect fees (undisclosed) and provide a boost to the companies in the US in which Petrobras will do business.
Although the Bank has agreed to guarantee the loan to be made by JP Morgan, the transaction is not operative. That’s a legal term that means no legal documents have been signed by JP Morgan or Petrobras saying that the loan is active. The Bank approved it, but Petrobras has not acted on it for more than one year later.
In other words, the $308 million is part of the $2 billion offer. Petrobras has not yet tapped a single dime of it.
Back to my original question. Whether it is an outright loan or a loan guarantee, where does a federal agency get $2,000,000,000, without an appropriation from congress. How can a federal agency make a commitment of $2,000,000,000 of tax payers money, without the consent of congress. If federal agencies have that kind of money in their budgets, to allocate at will without the consent of congress, it is no wonder that the federal budget is out of control. |
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fatnesssubtleJanitor
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1 edit | The Export-Import Bank has existed since 1934. It is chartered for 5 year periods by Congress. It makes loans (not grants). There's plenty of information about it online.
quote:
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."
»www.snopes.com/politics/gasoline···loil.asp
My question is why you posted false information? This wasn't even stated by the article you linked: said by Waterbug: Today, President Obama, who has publicly stated his policy of decreasing our dependence on foreign oil, announced a two billion dollar aid package to Brazil, for oil exploration.
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 GomezExile in waitingPremium,Ex-Mod 06-11
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