Is everybody ready to go here and sign up to run for political office? You might be after you read this post.
Pimco Says Dollar to Weaken as Reserve Status Erodes (Update3)
Aug. 19 (Bloomberg) — Pacific Investment Management Co., which runs the world’s biggest bond fund, said the dollar will weaken as the U.S. pumps “massive” amounts of money into the economy.
The dollar will drop the most against emerging-market counterparts, Curtis A. Mewbourne, a Pimco portfolio manager, wrote in a report on the company’s Web site. The greenback is losing its status as the world’s reserve currency, he said.
“Investors should consider whether it makes sense to take advantage of any periods of U.S. dollar strength to diversify their currency exposure,” Mewbourne wrote in his August Emerging Markets Watch report. “The massive amounts of U.S. dollar liquidity produced in response to the crisis” have helped reduce demand for the currency, he wrote.
The Dollar Index, which tracks the greenback against a basket of currencies, touched 78.823 today, the lowest this week. It has fallen 12 percent from this year’s high in March as U.S. authorities pledged $12.8 trillion to combat the recession. China, the world’s largest holder of foreign-currency reserves, and Russia have both called for a new global currency to replace the dollar as the dominant place to store reserves.
“While we have not yet reached the point where a new global reserve currency will arise, we are clearly seeing a loss of status for the U.S. dollar as a store of value even in the absence of a single viable alternative,” Mewbourne wrote.
The U.S. government boosted spending and the Federal Reserve bought bonds to revive credit markets that seized up after financial companies posted $1.6 trillion in writedowns and losses, raising concern there is an oversupply of greenbacks.
Meanwhile, it appears the hater in the house (WH) is helping out his old buddy George Soros with Petrobras; a Brazilian Oil Company:
Obama Underwrites Offshore Drilling
You read that headline correctly. Unfortunately, the Obama Administration is financing oil exploration off Brazil.
The U.S. is going to lend billions of dollars to Brazil’s state-owned oil company, Petrobras, to finance exploration of the huge offshore discovery in Brazil’s Tupi oil field in the Santos Basin near Rio de Janeiro. Brazil’s planning minister confirmed that White House National Security Adviser James Jones met this month with Brazilian officials to talk about the loan.
The U.S. Export-Import Bank tells us it has issued a “preliminary commitment” letter to Petrobras in the amount of $2 billion and has discussed with Brazil the possibility of increasing that amount. Ex-Im Bank says it has not decided whether the money will come in the form of a direct loan or loan guarantees. Either way, this corporate foreign aid may strike some readers as odd, given that the U.S. Treasury seems desperate for cash and Petrobras is one of the largest corporations in the Americas.
But look on the bright side. If President Obama has embraced offshore drilling in Brazil, why not in the old U.S.A.? The land of the sorta free and the home of the heavily indebted has enormous offshore oil deposits, and last year ahead of the November elections, with gasoline at $4 a gallon, Congress let a ban on offshore drilling expire.
Well not here in the USA until more of his backers buy oil companies.
From Bloomberg on August 15, 2008
Soros Hedge Fund Bought Petrobras Stake Worth $811 Million
Aug. 15 (Bloomberg) — Billionaire investor George Soros bought an $811 million stake in Petroleo Brasileiro SA in the second quarter, making the Brazilian state-controlled oil company his investment fund’s largest holding.
As of June 30, the stake in Petrobras, as the Rio de Janeiro-based oil producer is known, made up 22 percent of the $3.68 billion of stocks and American depositary receipts held by Soros Fund Management LLC, according to a filing with the U.S. Securities and Exchange Commission. Petrobras has since slumped 28 percent.
From Bloomberg on August 14, 2009
George Soros Cut Petrobras Stake in Second Quarter (Update2)
Aug. 14 (Bloomberg) — Billionaire George Soros cut his stake in his biggest holding, Petroleo Brasileiro SA, in the second quarter while buying more shares of other energy producers.
His New York-based hedge-fund firm, Soros Fund Management LLC, sold 22 million U.S.-listed common shares of Petrobras, as the Brazilian oil company is known, according to a filing today with the U.S. Securities and Exchange Commission. Soros bought 5.8 million of the company’s U.S.-traded preferred shares.
Here is where he has bought now, and where you want to keep your eye.
Soros boosted his stake in oil company Hess Corp. to 5.1 million shares as of June 30 from 3.7 million at the end of the first quarter, according to the filing. Hess was Soros’s second- largest holding. He also added to stakes in Houston-based Plains Exploration & Production Co. and bought shares in Calgary-based Suncor Energy Inc. and InterOil Corp. in Sydney.
It appears Bambi is using our money because George pulled his, AND he still wants to be able to eat his cake too.
Ready to go to that link in the first sentence?
I’m not an economics expert. I don’t even play on on TV. But even I know that if you want to increase the value of an asset you don’t borrow against it to the point of making it nearly worthless.
If any Republican was smart (you can stop laughing now) they would call for an immediate investigation into this Soros fiasco. And they would call Obama to the carpet for loaning money to a foreign company for oil reserves exploration when can easily afford it without our backing, . If anything, this would resonate with the American public. It is an obvious example of throwing American taxpayer money away. Nothing new, just very obvious. Frankly, some intelligent Democrats not beholding to special interests (yeah I know, absolutely hilarious) should make the same case.
People seem to forget Black Monday and what George Soros did to the British Pound. Follow the Money. Who is boycotting Glenn Beck look at how much shares Soros owns in Walmart, Best Buy and CVS. Soros is such a tool. The GOOD NEWS it means Glenn Beck is making an impact.
Someone left this on a comment on Hot Air. I don’t know if these numbers are correct but if they are it explains a lot.
GEORGE SOROS some of his holdings 1st quarter 09.
WalMart 1.8 million shares
Best Buy 1.9 million shares
Walgrens 1.9 million shares
Home Depot 3.9 million shares
Lowes 5.4 Million shares
Darn. Am I going to have to boycot Hess now? I buy most of my gas from them. My list of boycots is growing so much I soon won’t be able to buy anything in my area!
Soros gave us BO so I should be grateful, eh? Ha Ha Ha
Thanks again, DT. You are amazing.
It’s by design.
The question is whether Obama is a knowing participant in it or whether he is just a pawn/stooge. The more I see Obama in these townhalls, I’m beginning to think it is the later. I don’t think he’s that smart… especially when it comes to economics and finance… boy, is that the understatement of the century!
When you think about it, he has abdicated EVERYTHING over to Pelosi/Reid, the DNC, the Fed, Turbotax Timmy, and their enablers (Soros being one). Axelrod has to keep him chained to a teleprompter to keep him from wandering off the reservation. I’m sorry folks… this guy is not THAT smart… he is nothing more than an ACORN community organizer who had his skull filled with mush at some elitist colleges. He has not displayed one ounce of leadership on ANYTHING! He doesn’t know the meaning of the word!
Soros is playing him like a fiddle to his own ends. I have been saying for months now that someone (probably Soros) is actively working to collapse our currency.
On the oil front… having worked in the oil industry in the past… my head is about to explode. We have oil companies in this country who have already spent millions of dollars bidding on Federal OCS leases and then are not allowed to drill on them… and this is all at a time when government revenues are at an all-time low?!
We are doing this in Brazil to build up their economy because that is what the globalist corporations want. Brazil is part of the BRIC countries (Brazil-Russia-India-China) where most of our work is now being offshored by these same globalist corporations, while at the same time they are laying off people in North America in quarterly increments so as not to arouse suspicion with the SEC. There is a nice euphemism they use for this… it’s called “emerging markets.” They have already sucked everyone in North America dry to where everyone is in debt up to their eyeballs. It’s now time to do it somewhere else.
Again… it’s all by design.
Dug – I am glad to see that somebody else agrees with me that this guy is a dolt. I think he needs a teleprompter because he hasn’t been paying attention or isn’t even in the meetings and does not know the material. Everybody has been telling him for years that he is some kind of rock star and he believes his own hype now.
This story will get buried because it will add to the fire of liberty raging right now.
Dug, thanks for your clear and concise explanation of what is going on regarding the globalist corporations’ agenda.
I’m telling you, ALL these players must be rounded up and put in jail! They are traitors, even the idiot in charge.
Palin slams Obama over Brazil deal.
Yes Dug, SOMEONE is trying very hard to collapse this economy. I believe the conspiracy theory that it is the banksters, of which, Soros is just a puppet of. We know the names “Soros”, “Rockefeller” and “Rothschild”, but there are unknown names even higher than them. Soros wishes he had THEIR kind of money, and he will do anything “THEY” command, to try to get there. THEY already control the currencies of the world, and now THEY want to OWN the world. This economic shutdown is going according to plan. Plans calculated and re-calculated long ago, and now it is THEIR plan to follow through and kill the United States and turn it into a third world country. It is THEIR plan to completely eliminate the middle class, small business, and personal wealth, leaving behind just a few “elite” and the serfs.
Obama Underwrites #OffshoreDrilling Too bad not in Brazil, & a #Soros company..still payg 4 those favors http://bit.ly/rmc6V
Dug is right. On the face of it, it doesn’t make sense. Why would anyone want to cause a collapse of the American Economy? Wouldn’t that be killing the goose that lays the golden eggs? I like roasted goose, but not that much. So, why is it? G.Edward Griffin will back me up on this: For those in power, who have been working to make the N.W.O a reality, a free and prosperous economy ANYWHERE on the globe is anathema. It must be stamped out. For almost 100 years the Fed has been fleecing this country. Now it’s time for it to die, and get out of the way for N.W.O. Americans won’t go willingly into that until a.) a totally perverted and unhuman education system dehumanizes the population and fools it into the collectivist trap and b.) through inflation of a non-intrinsic currency, or fiat currency, you bring the economy to its knees, such that our dollars aren’t worth anything more than toilet paper. Without a strong economy, and a population that hasn’t lost “the image”, N.W.O will happen, and they won’t have to fire a shot. Around 1920, the communist international reasoned that a strong nationalist country which loves her freedom, even this can be brought to submission by degrees. That’s what they did, and you now see the result in the White house. But having said this, I offer it as reason enough that now like no other time in the past, is the time to fight back, take our country back, and send the collectivists packing!