25 Jan

Buffett and Soros benefit from Obama’s decisions. Us not so much. [Reader Post]

                                       

Whenever Barack Obama makes a key decision, it always seems to benefit special supporters. 80% of the money Obama threw away on “green energy” programs went to his big donors. It’s become painfully evident that crony capitalism has its fingerprints all over other Barack Obama decisions.

Last year Barack Obama softened up Warren Buffett by awarding Buffett the Medal of Freedom, which Obama felt was appropriate for Buffett having accumulated more than $40 billion in personal wealth. In return, Buffett has become a cheerleader for Obama, voicing his support of Obama’s Buffett rule.

WASHINGTON — President Obama on Monday will call for a new minimum tax rate for individuals making more than $1 million a year to ensure that they pay at least the same percentage of their earnings as middle-income taxpayers, according to administration officials.

The devil, as they say, is always in the details:

Mr. Obama will not specify a rate or other details, and it is unclear how much revenue his plan would raise. But his idea of a millionaires’ minimum tax will be prominent in the broad plan for long-term deficit reduction that he will outline at the White House on Monday.

Recently Barack Obama said no to the Keystone Pipeline. An article from Bloomberg (which curiously went down the memory hole already) scrapes the ice off the windshield so we can see why:

Warren Buffett’s Burlington Northern Santa Fe LLC is among U.S. and Canadian railroads that stand to benefit from the Obama administration’s decision to reject TransCanada Corp. (TRP)’s Keystone XL oil pipeline permit.

With modest expansion, railroads can handle all new oil produced in western Canada through 2030, according to an analysis of the Keystone proposal by the U.S. State Department.

“Whatever people bring to us, we’re ready to haul,” Krista York-Wooley, a spokeswoman for Burlington Northern, a unit of Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc. (BRK/A), said in an interview. If Keystone XL “doesn’t happen, we’re here to haul.”

The State Department denied TransCanada a permit on Jan. 18, saying there was not enough time to study the proposal by Feb. 21, a deadline Congress imposed on President Barack Obama. Calgary-based TransCanada has said it intends to re-apply with a route that avoids an environmentally sensitive region of Nebraska, something the Obama administration encouraged.

The rail option, though costlier, would lessen the environmental impact, such as a loss of wetlands and agricultural productivity, compared to the pipeline, according to the State Department analysis. Greenhouse gas emmissions, however, would be worse.

If completed, Keystone XL would deliver 700,000 barrels a day of crude from Alberta’s oil sands to refineries along the Gulf of Mexico, crossing 1,661 miles (2,673-kilometers) over Montana, South Dakota, Nebraska, Kansas, Oklahoma and Texas.

Obama gives Buffett award. Buffett voices support for Obama. Obama makes decision to help put money in Buffett’s pocket.

Tidy.

Obama has what is realistically a complete moratorium on domestic oil exploration and production while at the same time helping to fund Brazil’s Petrobas search for oil. In addition, Obama granted Petrobas permission to operate a deep water vessel in the Gulf of Mexico:

Petrobras has received final approval to operate the Gulf of Mexico’s first floating production, storage and offloading vessel, clearing the way for the Brazilian oil giant to start pumping oil from two deep-water fields, federal regulators said Thursday.

The Bureau of Ocean Energy Management, Regulation and Enforcement took the “final regulatory step” in green-lighting the project, with the approval of a production safety system permit and a supplemental deep-water operating plan, the bureau said in a statement.

The floating production, storage and offloading vessel, or FPSO, has a daily production capacity of 80,000 barrels of oil and 16 million cubic feet of natural gas. The ocean energy bureau said with the latest approvals, production at the Cascade and Chinook deep-water fields is expected to begin soon.

The fields are in more than 8,000 feet of water about 165 miles off Louisiana, in an area called Walker Ridge.

The reason?

Soros.

In August of 2010 George Soros sold off his stake in Petrobas.

Billionaire George Soros’s fund management firm sold all of its Petroleo Brasileiro SA stock, dumping its biggest company holding ahead of a planned $25 billion offering by Brazil’s state-controlled oil producer.

Soros Fund Management LLC, which oversees $25 billion, sold 9.1 million American depositary receipts representing Petrobras common stock and 5.88 million ADRs corresponding to preferred shares in the second quarter, according to a filing with the U.S. Securities and Exchange Commission yesterday.

But then he bought back into Petrobas:

Billionaire investment manager George Soros built on his position in Brazilian oil and gas company Petrobras in the first quarter of 2011 for his Soros Fund Management firm, according to the guru watchers over at Guru Focus.com on May 17. He now owns 1.1 million shares of Brazil’s state owned oil company.

Soros sold out of Petrobras in mid-2010 only to return to the market in the fourth quarter of 2010 with the purchase of roughly 588,000 shares. The stock has been a money loser for Soros since getting back into the market, according to his average share price calculated by Guru Focus. Petrobras closed May 17 at $34.27 per share, so Soros’s big purchases in one of Brazil’s top two most actively traded stocks was unaffected by his large purchase orders.

May I draw your attention to the timing. Soros began “building” on his position from the fall of 2010 into the “first quarter” of 2011.

The decision to allow operation of the deep water vessel is announced in the middle of March 2011, and it coincidentally just happens to follow Soros’ Petrobas holdings expansion. Now Brazil has signed an agreement with China for China to purchase Petrobas’ oil.

The administration had already been found in contempt for its determined effort to keep US interests at bay in the Gulf while aiding Soros’ Petrobas.

Curious.

About DrJohn

DrJohn has been a health care professional for more than 30 years. In addition to clinical practice he has done extensive research and has published widely with over 70 original articles and abstracts in the peer-reviewed literature. DrJohn is well known in his field and has lectured on every continent except for Antarctica. He has been married to the same wonderful lady for over 30 years and has three kids- two sons, both of whom are attorneys and one daughter on her way into the field of education. DrJohn was brought up with the concept that one can do well if one is prepared to work hard but nothing in life is guaranteed. Except for liberals being foolish.
This entry was posted in Barack Obama, Culture of Corruption, Economy, Energy, George Soros, Oil, Politics, Radical Relationships, WtF? and tagged , , , , , , , , . Bookmark the permalink. Wednesday, January 25th, 2012 at 8:09 am
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17 Responses to Buffett and Soros benefit from Obama’s decisions. Us not so much. [Reader Post]

  1. Liberal1 (objectivity) says: 1

    It’s the same with Republicans.  The Hunt family of Texas (family friend of the Bushes)  benefited more than anyone from the Iraq war, by oil contracts with the Kurds in the oil rich north.

    ReplyReply
  2. drjohn says: 2

    Even if we accept your premise, it is not the same. The American people were not compromised for that effort as they are for Obama’s efforts.

    ReplyReply
  3. Nan G says: 3

    If anyone deserves to go to prison for a long time for ”insider trading,” it is Obama.

    Obviously he gave a quid pro quo for Buffett and Soros supporting him.

    Recall that Soros was present at the very first Obama fundraiser at Steven and Judy Gluckstern’s home, April 9, 2007.

    There’s even a photo of it.

    As for Warren Buffett not paying enough tax, how’s this for a Buffett Rule: Tax all railroad profits derived from the transport of crude oil at 80%. Maybe get the Democrat unfair profits board to enforce it.

    ReplyReply
  4. Pingback: Buffett and Soros benefit from Obama’s decisions. Us not so much. « Investment Watch Blog – 2012

  5. Hard Right says: 4

    Even IF what liberal#2 said was accurate, it still wouldn’t make it right. Leftists love to use what they think/allege someone else did as justification for their corruption and hypocrisy.

    ReplyReply
  6. Buffalobob says: 5

    This regime is so confident the MSM will cover or ignore their cronyism nothing is off limits for them.

    ReplyReply
  7. Nathan Blue says: 6

    @Liberal1 (objectivity): If true, that was wrong too. So do your country a duty and don’t allow Obama a second term, because I’m sure you don’t support corrupt politicians that line the pockets of “Big Business.” Soros and Buffet are as big as they come.

    ReplyReply
  8. Wm T Sherman says: 7

    Liberal1 (subjectivity) seems to be saying that the Hunts had some sort of special corrupt arrangement in Iraq enabled by the Bush admistration. I would certainly not accept anything this tool says without references. He has a long track record of unsupported statments and outright lies. Prove it, tool.

    Of people who say that the the Iraq war was a conspiracy to grab Iraqi oil for American corporations, I always ask:

    1. Why didn’t this alleged U.S. government/corporate cabal just make a corrupt arrangement with Saddam, and guarantee his security in exchange for preferred access to his oil plus favorable pricing, instead of going to the immense risk and expense of overthrowing him? You just know he would have gone for it, and the money to be made would have been much greater.

    2. Why are the Chinese are moving into the Iraq oil fields in a big way?

    The reaction of liberal idiots to these questions often goes something like, the chaos of war provided cover, and the Chinese are reaping the benefits because neocons are so stupid. It’s as if they had discovered that someone they’ve accused of racism again and again were actually friendly with minorities. They wouldn’t draw the simple obvious conclusion that they were wrong; no, they’d just say that the person in question is still a racist, just a stupid incompetent one.

    ReplyReply
  9. Bruce says: 8

    Does anyone remember the huge selloff of securities in September 2008 that had to be shut down for fear it would collapse the market? Could Soros have been behind this to help his buddy Barry Soerto?

    Just curious.

    I’m not a conspiracy nut, but there are just too many unconnected dots that all lead to the WH! And, WHY IS HE STILL NOT RELEASING HIS PAPERS?

    ReplyReply
  10. Marine72 says: 9

    Funny how all the money just goes even faster to the rich ‘old’ white guys. Hopee and changee in action. No racist in this ole WH.

    ReplyReply
  11. Greg says: 10

    A link to the financial crisis documentary, Inside Job:

    http://watchdocumentary.tv/inside-job-documentary/

    “Those who don’t learn from history are destined to repeat it.”

    ReplyReply
  12. Greg says: 11

    @drjohn, #2:

    Even if we accept your premise, it is not the same. The American people were not compromised for that effort as they are for Obama’s efforts.

    Except, perhaps, for the 4,484 who died as a result.

    Then there’s the cost to the taxpayers: The total spent to date is a bit under $1 trillion, but it’s estimated that the ultimate cumulative cost will exceed $3 trillion.

    What did we get for the lives and money?

    ReplyReply
  13. Marine72 says: 12

    So much for taking care of the downtrodden people of “color”. Just another of the continuing parade of giveaways to fat old white men?

    ReplyReply
  14. Hard Right says: 13

    It gets better. Guess who another prposal would benefit? Gee, what an unprecedented coincidence.

    http://hotair.com/archives/2012/01/26/presidents-natural-gas-proposal-would-benefit-billionaire-investor-george-soros/

    ReplyReply
  15. JustAl says: 15

    @Liberal1 (objectivity):

    Except that is actually one of the least “oil rich” parts of the country: http://news.bbc.co.uk/nol/shared/spl/hi/middle_east/02/iraq_key_maps/img/maps/iraq_oil_map485.gif
    But, by all means, don’t let the facts get in your way.

    ReplyReply
  16. JMock says: 16

    @drjohn:

    yup, the Iraq war will in no way have any negative effects for the American people
    /sarcasm

    ReplyReply

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