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January 2018
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Riddle me this, 10 Billion USD loan to Petrobras?

                Did you ever hear something that left you saying WTF, this cannot be true.  Today I was told by a Petrobras employee in Brazil that the US government has agreed to give Petrobras 10 Billion dollars.  Now, considering the Petrobras just received billions from China in a deal to provide oil for a decade, why on earth would it need to borrow more dollars to fund even more projects?  More importantly, what kind of shenanigans is this?  Oh, do not worries, we at Alphas Edge will break the news to you!

                The real truth is that IT IS NOT a loan per say.  Petrobras for whatever reason has agreed to sell millions of future oil barrel to the US government for an upfront cash advance of 10 Billion.  This is very similar to the deal that Petrobras did with China a few months ago.  Gen. James Jones (President Barack Obama’s national security adviser), discussed the matter with officials this week during a visit to Brazil.  From our understanding, the agreement has already been signed!

                What troubles us however is that Obama was against drilling off the US Coast claiming that is was an environmental hazard.  So, instead, he decides to purchase 10 billion worth of oil by funding off shore projects in foreign soil!  Can you say hypocrite? 

                What this means to you as a trader is expect the dollar to fall and fall hard as billions more are printed.  Oil however will stay relatively cheap for at least a decade and will not face economic disrupting increases caused by supply shortages.  But remember, oil moves opposite to the dollar so as the dollar falls, oil prices should go up.

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