And while the state-backed oil giant can tap one of the most dynamic growth stories in the world, Petrobras faces the dual problem of pricing restrictions and mountinginflation.
Mountinginflation will also put pressure on Fed Chairman Ben Bernanke and his program of quantitative easing, dubbed QE2, devised to spark inflationary expectations. (Read Distressed Debt Investors Prefer Real Estate in 2011).