What Obama wouldn’t fund with $2B in loan guarantees
posted at 4:45 pm on August 20, 2009 by Ed Morrissey
Earlier this week, we found out what kind of energy production Barack Obama likes to support when he offered $2 billion in loans and guarantees to Brazilian oil producer Petrobras to drill off Brazil’s shores — while supporting a moratorium on offshore drilling in the US. Coincidentally, Obama had the opportunity to offer the exact same amount of money to an American company for energy production just three weeks earlier. Did they get the cash for their zero-emission energy industry venture? Apparently, George Soros didn’t invest in USEC:
Bethesda-based USEC on Tuesday accused President Obama of reneging on a campaign pledge after the Energy Department turned down the company’s request for $2 billion in loan guarantees for a new uranium enrichment project in Piketon, Ohio.
USEC, which operates the nation’s only uranium enrichment facility, said it would “demobilize” the new project, which it said could not obtain private financing without the federal loan guarantee. The company has already spent $1.5 billion on what it calls the American Centrifuge Plant, but USEC says the final price tag could reach $3.5 billion, 1 1/2 times as much as it estimated two years ago.
“We are shocked and disappointed by DOE’s decision,” USEC chief executive John K. Welch said in a statement. “President Obama promised to support the loan guarantee for the American Centrifuge Plant while he campaigned in Ohio. We are disappointed that campaign commitment has not been met.”
Let’s make this clear. Obama found $2 billion in the depleted Treasury to fund an expansion of oil production in Brazil, despite both his opposition to American offshore drilling and to increasing reliance on fossil fuels. However, he cannot find any money to keep a promise to support nuclear energy in the US by keeping the USEC plant in operation in Ohio, a state that will get hammered by his cap-and-trade proposal. The denial will set back the introduction of nuclear energy that could replace some of the coal-based electrical power generated in Ohio and elsewhere.
The DoE says that the USEC project has not reached the readiness stage required for funding. However, the same is true of the project that Obama’s funding in Brazil. In fact, investors (other than Soros) wonder whether the state-owned and state-run Petrobras is really up to the task of properly exploiting the find, despite the leftist government’s campaign of supporting Petrobras control of it. The extraction of the coastal find is still in the planning stages, whereas the USEC facility is much closer to production. Yet the US has no use for American energy even as it subsidizes Brazil’s government-owned oil production.
What’s the difference that pushed Obama towards Petrobras and away from USEC? Because from here, it just looks like George Soros.
Blowback
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Yeah, but Soros isn’t getting insider info on Piketown.
- The Cat
MirCat on August 20, 2009 at 4:48 PM
Obama is not, and never has been interested in anything that will increase real energy production in the US.
MarkTheGreat on August 20, 2009 at 4:48 PM
O.B.A.M.A.
One Bad Ass Mistake America
jake-the-goose on August 20, 2009 at 4:49 PM
Soros, but you really should just MoveOn from this non-story!
/sarc
PBoilermaker on August 20, 2009 at 4:49 PM
It’s George Soros and Obama’s continuing effort to send this country into a massive crisis.
Daggett on August 20, 2009 at 4:50 PM
Obama makes decisions based on two ingrained traits of his:
1) His complete corruption and willing to sell his influence on the free market, to the highest bidder, and:
2) His utter incompetence, born of stupidity, ignorance and arrogance.
This latest idiotic decision of his appears to be a little of both.
The real question is when can we be rid of Barack Obama. The sooner, the better for the country.
NoDonkey on August 20, 2009 at 4:50 PM
It’s a drop in the bucket compared to what we waste with the United Nations each year! I’m gonna gag!
SouthernGent on August 20, 2009 at 4:50 PM
FIFY
ladyingray on August 20, 2009 at 4:50 PM
Haven’t been paying attention, have you?
Has Obama kept any campaign promises made to people outside his immediate family (taking Michelle on a date and letting his kids have a dog)?
malclave on August 20, 2009 at 4:50 PM
Anyone surprised?
Anyway Guys, please check out this Right Wing Rocker’s “Silent No More” 3 min video….really impressive stuff.
deedtrader on August 20, 2009 at 4:51 PM
I’m not surprised. Very disappointed, betrayed, and ashamed, but not surprised.
jwolf on August 20, 2009 at 4:51 PM
One
BadBig Ass Mistake Americajake-the-goose on August 20, 2009 at 4:49 PM
Bad ass is not the appropriate term for this mistake. A bad ass mistake would be entering an underground Kumite against Jean Claude Van Damme or dumping oil on baby seals in front of Steve Seagal.
Shock the Monkey on August 20, 2009 at 4:52 PM
Ummm….the Treasury isn’t depleted if you keep printing money!!
DUuh!
catmman on August 20, 2009 at 4:52 PM
Ed, it is now 10 billion. Not 2 billion.
upinak on August 20, 2009 at 4:52 PM
Obama is pro Iranian enrichment programs , US not so much.
the_nile on August 20, 2009 at 4:52 PM
Obama doesn’t want evil American oil companies making evil profits. Who the hell needs their tax revenues when you own the printing presses. And to think Ohio voted for this pinko-commie.
ICBM on August 20, 2009 at 4:53 PM
Here Ed, via Oil Online
http://www.oilonline.com/home/digest/?tx_ttnews%5Btt_news%5D=76704&cHash=6d3144f949
upinak on August 20, 2009 at 4:53 PM
I can’t even begin to convey my disgust of this man. He’s a blatant liar, and why anyone can continue to trust what he says, or does, is beyond me.
While some go cold this winter, think of your beloved Obama, sitting at the table, dining on waigu steaks, and fine wine….while keeping the house, nice and toasty. It’s the change you voted for.
capejasmine on August 20, 2009 at 4:54 PM
Soros controls the White House.
cubachi on August 20, 2009 at 4:54 PM
How could a Messiah, crowned KING in a Greek Temple be in bed with some Hungarian Billionaire? I mean……….aren’t Messiah’s supposed to be perfect and all that……….that’s what MSNBC says…………..and hell who can’t believe them………..anyway I know one thing………The Messiah, when he swears he was born in Kenya, I mean Russian, I mean Nigeria, I mean Hawaii…….I KNOW we can count on it….!
Cinday Blackburn on August 20, 2009 at 4:55 PM
The main problem with this story and the one regarding funding Brazil is that the press ignores it. Only the internet, blogs and talk radio cover these things. It’s hard to get the message out to the rest of the public. It’s like it never happened.
sandee on August 20, 2009 at 4:55 PM
Craps Blue retard statement in 4, 3, 2,….
jbh45 on August 20, 2009 at 4:55 PM
I won. – B. Obama
Wyznowski on August 20, 2009 at 4:57 PM
eximbank offers loans to feorign entities to purchase Amerian equipment and goods. we basically help them buy our stuff. criticizing this loan is opportunistic nonsense.
sesquipedalian on August 20, 2009 at 4:57 PM
We need a Photoshop with Obooba wearing kneepads, talking to Soros.
Akzed on August 20, 2009 at 4:57 PM
Where are this generation’s Woodward and Bernstein to document Soros’ control of the Presidency?
kingsjester on August 20, 2009 at 4:57 PM
This is one of those issues that really gets under my skin and drives me up the wall.
What is it going to take for people to wake up and realize that Filthy Liar doesn’t give a whit about America, American workers, American ingenuity, American energy production, American liberty or the American spirit?
Filthy Liar does not like America. Simple as that. He’s a card-carrying member of the “One World, No Borders, No Nation Better or Stronger Than Any Other” brigade.
BardMan on August 20, 2009 at 4:57 PM
“The U.S. government is prepared to provide up to $10 billion in loans to finance the development of massive hydrocarbon reserves off Brazil’s coast, a Brazilian official said Wednesday. ”
Much easier to funnel kickbacks from a foreign company..
the_nile on August 20, 2009 at 4:58 PM
Is there some new electoral map Obama is counting on for 2012?
myrenovations on August 20, 2009 at 4:58 PM
“We can’t be overdrawn: we still have checks left!” -Hussein.
Akzed on August 20, 2009 at 4:59 PM
Automated Talking points.
portlandon on August 20, 2009 at 4:59 PM
Soros has been a blight on this country for far too long.
Dee2008 on August 20, 2009 at 4:59 PM
Yeah, I think he plans on the next census saying the population of California is 400 million, mainly centered in San Francisco and Los Angeles, giving the state nearly all of the House seats that are apportioned by population.
teke184 on August 20, 2009 at 5:00 PM
Yep. Totally wouldn’t make sense to allow for exploration and drilling in this country. Just send the cash to other countries instead.
lorien1973 on August 20, 2009 at 5:00 PM
As Sarah Palin said, once again ahead of the curve:
IndieDogg on August 20, 2009 at 5:00 PM
Dude this corrupt socialist weasel cut a school vouchers program in Washington for 1700 innercity black children which was nowhere near $2 billion. Do you really think he gives a crap about us?
elduende on August 20, 2009 at 5:01 PM
Well, that’s part of the problem. We need foreign entities purchasing American goods using the Ex-Im Bank loans.
It all traces back to the Obama Administration. It can’t find billions to build American nuclear energy facilities, but it can find billions to lend foreign companies a liberal financier purchased a major share of the week before.
Though, really, as a member of the left you should know about “opportunistic nonsense”. You’re an expert.
amerpundit on August 20, 2009 at 5:01 PM
Yesterday he thought obama changing the with-holding tables in the stimulus package was a tax cut. He’s just ignorant.
lorien1973 on August 20, 2009 at 5:01 PM
Obama is not, and has never done what’s best for the US citizens. This is the most corrupt and Socialist administration ever.
ColumbusConservative on August 20, 2009 at 5:01 PM
stop this jealousy over my mad typing skillz.
sesquipedalian on August 20, 2009 at 5:02 PM
Why yes, the 57 state map.
Our 50 states plus Venezuela, Iran, Russia, China, Cuba, North Korea and Kenya.
He’s a shoo in.
NoDonkey on August 20, 2009 at 5:03 PM
Well now Soros will have more money to pay for advertising with Axelrod’s firm.
barnone on August 20, 2009 at 5:03 PM
I’m jealous over your personal constitution. I could never display such ignorance in the way the world works and then look at myself in the mirror. You deserve credit for that ability, my friend, and you shall receive it. Because I’m nice like that.
amerpundit on August 20, 2009 at 5:04 PM
I guess that I don’t understand, doesn’t congress have to approve expenditures like this?
farright on August 20, 2009 at 5:06 PM
What are you talking about?
……. He said he was going to ‘Change’ the country, didn’t he?
Was no one listening…..?
Seven Percent Solution on August 20, 2009 at 5:07 PM
Let’s never speak again about Axelrod’s firm anything, I fear it has been down quite a few one-way streets, if you know what I mean.
NoDonkey on August 20, 2009 at 5:07 PM
So thoroughly corrupt as to saint Hoffa by comparison.
spmat on August 20, 2009 at 5:10 PM
farright on August 20, 2009 at 5:06 PM
You have a quaint, antiquated view that the rule of law means anything in this country any longer.
With Democrats, the law means whatever is convenient for them at that particular moment.
It’s call a living, breathing, rolling over in it’s grave, Constitution, you see.
NoDonkey on August 20, 2009 at 5:10 PM
NoDonkey on August 20, 2009 at 5:07 PM
I feel so dirty, going to wash my hands and keyboard now.
barnone on August 20, 2009 at 5:10 PM
Has anybody seen this mentioned on any MSM outlet?
d1carter on August 20, 2009 at 5:12 PM
I am shocked, just shocked that the man didn’t honor his word. /s
chemman on August 20, 2009 at 5:12 PM
O/T – ‘The Boss’ is on Hannity right now……
………. good stuff!
Seven Percent Solution on August 20, 2009 at 5:13 PM
St0q tH1z gEa70zy 0^cr Mi mAb Tyq!nG skills.
portlandon on August 20, 2009 at 5:14 PM
No, they are buisy race baiting.
farright on August 20, 2009 at 5:16 PM
And undermining the U.S.?
aikidoka on August 20, 2009 at 5:17 PM
Fixed it for you.
johnsteele on August 20, 2009 at 5:17 PM
There you go “bearing false witness” against the precedent again.
chemman on August 20, 2009 at 5:17 PM
Uhhhh…..Does anyone else think this could potentially be a huge money laundering operation to repay Soros?
Soros Hedge Fund Bought Petrobras Stake Worth $811 Million
Dr.Cwac.Cwac on August 20, 2009 at 5:17 PM
Even if that were true, wouldn’t it be better to loan the money to an AMERICAN company, which would also buy the same AMERICAN equipment and we’d end up with oil from an AMERICAN source?
Well, duh.
Daggett on August 20, 2009 at 5:20 PM
They’re shocked, shocked, that Obama wouldn’t live up to his promises, huh? They have absolutely zero sympathy from me. The only companies that should’ve believed Obama’s bullcrap promises are the coal companies, when he said he’d bankrupt them, and do basically everything in his power to destroy them and put them all out of work.
Virus-X on August 20, 2009 at 5:21 PM
Obama hates Americans.
My collie says:
/sarcasm off
CyberCipher on August 20, 2009 at 5:22 PM
WTF? No seriously…WTF?
If this nation had a media that actually gave a shiite, Ogabe’s numbers would be in the low 30′s and he would be considering resigning.
The Mafia has taken over D.C., this is getting out of hand.
Bishop on August 20, 2009 at 5:23 PM
Conspiracy theorist.
I bet you’re still holding out for the Kenyan birth certificate too, right?
/s
VibrioCocci on August 20, 2009 at 5:23 PM
I”m scared what I may say…………
1luckydogg on August 20, 2009 at 5:24 PM
No. Duh. Everybody knows he’s 4 years older than he says and was born before Hawai’i was a state.
/s
Dr.Cwac.Cwac on August 20, 2009 at 5:26 PM
Try out your luck 1luckydogg
chemman on August 20, 2009 at 5:27 PM
I like your tinfoil hat, Doc.
Where’d you get yours?
VibrioCocci on August 20, 2009 at 5:28 PM
In the “lab”…..like everyone else.
Dr.Cwac.Cwac on August 20, 2009 at 5:29 PM
Mary Schapiro, Line 1 please. SEC should at least investigate for insider trading.
Dr.Cwac.Cwac on August 20, 2009 at 5:31 PM
Someone has to take a break. I’m getting dizzy from all the spin.
Emailgate, blacks carrying guns while pretending to be white supremacists, moonshiners at NASCAR, US offshore oil drilling on the wrong continent…
STOP THE WORLD!!!
Yoop on August 20, 2009 at 5:31 PM
because petrobras is commercially viable, unlike usec, apparently.
it’s probably soros’ fault.
sesquipedalian on August 20, 2009 at 5:31 PM
Chuck Schumer must be outraged. He’s the protector of the average guy and the enemy of the greedy, Republican lovin’ oil companies.
Hening on August 20, 2009 at 5:32 PM
They’d have to find out who tipped off Soros. And I don’t think Obama will admit it.
Daggett on August 20, 2009 at 5:32 PM
Well, then, you probably won’t like my theory that Brazil was given the money because Obama wants to reward Brazilian officials and/or encourage them to make more remarks like this one.
My collie says:
/sarcasm off
CyberCipher on August 20, 2009 at 5:32 PM
That would be a good argument if usec did offshore drilling, which is how Obama’s “up to $10 billion” will get spent by Brazil.
Nice try, troll. Well, actually, it wasn’t. It was pretty lame.
Daggett on August 20, 2009 at 5:35 PM
So Obama promised to help out USEC, they went ahead with expansion plans, and when it came time to write the check Obama couldn’t spare the change?
Car dealers sold new cars, taking in ‘clunkers’ expecting subsidies for the transactions. When it came time to write the checks, the Obama administration can’t find the money?
Couple more times like that, shouldn’t take more than four or 12 more times, and people will begin to suspect that Obama promises aren’t worth very much.
Skandia Recluse on August 20, 2009 at 5:37 PM
thanks for correcting me. i wasn’t aware that commercial viability as a criterion for a loan only matters if you do offshore drilling.
sesquipedalian on August 20, 2009 at 5:40 PM
I ran with that at the time, and there was a second difference – there is a competing gas-centrifuge facility in New Mexico, run by a subsidiary of the European UNESCO, called the National Enrichment Facility. The “shocking” thing is, while USEC executives donated to McCain and mostly Republican candidates, LES (the UNESCO subsidary) PR head Brenda Brooks maxed out to Obama.
steveegg on August 20, 2009 at 5:41 PM
I need to proofread – the European company is URENCO, not UNESCO. D’OH!
steveegg on August 20, 2009 at 5:42 PM
You don’t think Rahmbo has a direct line to his Master?
Dr.Cwac.Cwac on August 20, 2009 at 5:45 PM
The point that you are deliberately ignoring in order to contrive a counter-argument:
Obama has up to $10 billion to invest in energy.
1. He can invest it in a US company to do off-shore drilling here in the US in order to create jobs and reduce our dependence on foreign oil. The US benefits in every way. There are plenty of viable companies to do the work.
2. He can invest it in a Brazillian company so Brazil can do off-shore drilling in order to create Brazillian jobs and reduce Brazil’s dependency on foreign oil. There’s the possibility that some of the money could come back to the US in sales of equipment, so the US might benefit.
He chose the latter. And it had nothing to do with viability.
Daggett on August 20, 2009 at 5:47 PM
Uh… thats the way its supposed to work… however, under the “new” international banking rules, its just a loan.
They can spend it anywhere they want. Some may go to US companies… but most will not.
As to USEC? Funny how IRAN can build and run centrifuges but our own energy department says a US company cannot?
Romeo13 on August 20, 2009 at 5:50 PM
Yeah, and on the 1 in a trillion chance the SEC could convict Rhambo, Obama would just pardon him.
The only way I think anyone in this administration will ever be challenged on (let alone held responsible for) any of the illegal activities they’re doing is if the GOP takes over Congress in 2010.
Daggett on August 20, 2009 at 5:50 PM
Bingo, Ed.
In a nod to the state, however, the Energy Department said it would expand cleanup efforts at the now-closed Portsmouth enrichment site in Piketon. It said it would spend $118 million of stimulus funds and an additional $150 million to $200 million a year on decontamination over the next four years. The department said that would create over 1,000 jobs, more than twice as many as would be lost at USEC’s centrifuge project. The announcement brings total spending on the Portsmouth cleanup to $850 million over the next two years.
Marxist math at work:
In one case a company wants a loan to start a private business which, if successful, will employ people and provide much needed clean energy for years and years to come.
In the other, taxpayers pick up the tab to provide temporary jobs which will vanish in 2 years, and nothing has been done to increase the energy supply.
Buy Danish on August 20, 2009 at 5:53 PM
One more thing regarding the soon-to-be-mothballed USEC gas-centrifuge uranium enrichment plant – Candidate Obama pledged to support the loan application.
As Jim Geraghty says, “All Barack Obama campaign statmenets come with an expiration date. All of them.”
steveegg on August 20, 2009 at 5:54 PM
LOL did you read my blog on this?
upinak on August 20, 2009 at 5:56 PM
At least not one whose executives not only don’t donate to him, but donated to his opponent.
The Chicago Way, baby.
steveegg on August 20, 2009 at 5:58 PM
Obviously you don’t know much about oil exploration and Petrobras.
Yoop on August 20, 2009 at 6:03 PM
well, it seems to me that he has way more than $10 billion to spend, heh. eximbank, the official export-credit agency of the US, makes foreign loans only, like a recent $2.5 billion loan for indian infrastructure projects. it has nothing to do with usec and its ‘fuges. hence, obama never had to make the choice you describe, which makes ed’s post as well as your comments either ignorant or dishonest.
sesquipedalian on August 20, 2009 at 6:03 PM
EX-Im banks is a Federal BANK who gives loans to foreign companies to produce better quaility items BUT at a lower cost to import in the U.S. for AMERICANS to make.
Maybe you should actually research rather then spew.
upinak on August 20, 2009 at 6:05 PM
He doesn’t seem to know about Ex-Im bank, Oil, American oil workers sitting on their butts laid off and the fact that NONE of this is for Americans and/or jobs.
Opps.
upinak on August 20, 2009 at 6:06 PM
Obama is not, and never has been interested
in anything that will increase real energy productionin the US.MarkTheGreat on August 20, 2009 at 4:48 PM
FIFY
ladyingray on August 20, 2009 at 4:50 PM
Love it. Drill baby drill.
Jason58 on August 20, 2009 at 6:06 PM
2005 – Huge new oil discovery in Brazil
2008 – ‘Huge’ gas field found off Brazil
i’m willing to go out on a limb and say they’re viable.
sesquipedalian on August 20, 2009 at 6:07 PM
So is ANWR, North Dakota, Colorado and off the coast of Florida and California.
Your point is mute.
upinak on August 20, 2009 at 6:11 PM
you guys are really bizarre sometimes.
Evergreen Solar and Ex-Im Bank Offer Loans for Solar Projects Outside US
US Ex-Im Bank loan for India’s infrastructure sector
Obama okays U.S. Exim bank loans for Cambodia, Laos [to help finance export of US goods]
sesquipedalian on August 20, 2009 at 6:12 PM
eximbank has nothing to do with ANWR, CO, and anything else within the US.
sesquipedalian on August 20, 2009 at 6:14 PM
Crapsblue got the plank in the Iraq thread.
journeyintothewhirlwind on August 20, 2009 at 6:15 PM
Ex-Im bank is also only suppose to deal with… wait fo it… RENEWABLE RESOURCES!!!!
Whoa. I guess you still didn’t research!
upinak on August 20, 2009 at 6:17 PM
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