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To: elmatador who wrote (53795)8/20/2009 4:31:26 PM
From: Elroy Jetson  Read Replies (1) | Respond to of 218180
 
That's the deal. The governments of the United States and China are lending Petrobras the money needed to buy U.S. and Chinese products and services needed by Petrobras.

Some of these U.S. and Chinese goods and services will be used to explore and drill the subsalt oil and gas deposit, and some will be used by Petrobras in their retail or other operations. This is good business because in the future U.S. and Chinese equiptment will need U.S. and Chinese replacement parts and services.

In return Petrobras will repay these loans and interest with the future oil and gas production in Brazil which will be created with these goods and services.

As I mentioned previously, Petrobras is effectively selling their future oil and gas production to the U.S. and China today. As Daniel Day Lewis said in "There Will be Blood",

"If you have a milkshake, and I have a milkshake, and I have a straw. . . . There it is, that's a straw, you see? You watching?

And my straw reaches across the room, and starts to drink your milkshake. I drink your milkshake!"
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