President Trump’s marketing campaign promise mandated a concrete border wall to cease unlawful immigration from Mexico. Mexicans should finance and construct the concrete construction. We the Individuals should create a mutual settlement with Mexico for financing and development to satisfy the Presidents promise. Usable Silica Sand is the Key.
First, consider a skyscraper like a Trump Tower. Skyscrapers worldwide are product of concrete. The primary ingredient of concrete is Silica sand with a cement binder. The gorgeous glass façade on buildings just like the Trump tower are product of sand processed at twenty-three hundred levels Fahrenheit. The foundations, driveways and sidewalks, basements and garages of single household houses are product of usable sand and cement. The ribbon of highways, bridges and tunnels connecting the world all have Silica sand as the principle ingredient.
Usable Silica sand is the longtail key phrase right here. There’s a worldwide scarcity of the product. The determined shortage does not finish with constructing development within the U.S.
From Jim Hightower’s Lowdown Publication we be taught that inside 4 years, from 2012 to 2016, China consumed extra sand for development than the US did between 1900 and 2000. And, the town of Shanghai has constructed extra skyscrapers in simply the previous ten years than there are in New York Metropolis.
Wait a minute, you say. Whereas the EPA was nonetheless functioning, we have been advised that deserts are rising worldwide at a disquieting tempo. How can there be a scarcity of sand? Sadly, desert sand will not be appropriate for development. The granules are too small and spherical with under minimal compression ratio for constructing or fracking.
That is proper, fracking. Firms like ExxonMobil and Halliburton use sand to fracture underground shale deposits to search out gasoline trapped in these rock formations in states like Wisconsin, Minnesota, and North Dakota.
Massive oil firms in Wisconsin, generally known as the mom of all frackers, are drilling wells almost two miles deep. The mother-frackers blast ten million kilos of prized sand into the rock, making an attempt to suck the final depressing drops of peak oil from the earth. There are already 100 fracture wells in the US. America will use 100 twenty million tons of fracking sand this 12 months growing thirty p.c every year.
Luckily, for Mexico’s Border Wall development, the President has been profitable in reversing Obama’s land insurance policies in locations just like the scenic Bears Ears Nationwide Monument in Utah. Due to President Trump’s rollback of mining laws in these distant, environmentally delicate alluvial deposit areas alongside creeks and riverbeds, silica sand availability will enhance. To not fear, habitat protections for endangered species will even be rolled again regardless of opposition from the tourism and conservation foyer and a few Democratic lawmakers.
Governments worldwide together with China and Indonesia have made efforts to curtail sand mining. The federal government of Mexico stopped official sand mining companies from working after they discovered that not solely was it destroying their surroundings the sand was being utilized in the US.
Cemex, a small Mexican sand mining company with fourteen billion in yearly gross sales, extract 300 thousand cubic yards of gorgeous Monterey Bay, CA sand every year. They’re exempt from federal laws defending our seashores. Their inventory rose considerably when Trump was elected on the promise of a border wall.
OK, let’s get to it. Listed below are the nuts and bolts of the plan to construct Mexico’s border wall.
It’ll take two years to amass the property and full the design. Not a part of the constructing plan, American taxpayers can pay that portion. With the easing of Dodd-Frank, US banks will assist recoup all the quantity with this plan, as can be defined right here.
Due to automation within the development business, it would take two years with solely 200 nonskilled staff to construct the wall. The employees might be chosen from a pool of incarcerated illegals. The Justice Division will supply repatriation in Mexico and early launch for his or her participation within the development workforce.
Subsequent, the Authorities secures a twenty-five billion-dollar, thirty-year development bond or capital enchancment bond from a Mexican financial institution because the funding mechanism. The President’s minions estimate twenty-five billion {dollars} as the price of the wall. Banamex, Mexico, a subsidiary of Citigroup, or the most important financial institution in Mexico, Banco do Brasil with 5 hundred fifty billion in property are seemingly decisions. With the backing of the US Congress the financial institution could be assured of reimbursement beginning the second 12 months of development.
Congress can set up a public-private enterprise to license sixteen Mexican sand mining firms to extract sand at places all through the US. Give these Mexican firms ensures for ten years, with the expectation of twenty billion {dollars} gross resale of the valuable price and price-controlled commodity per 12 months, per company.
The taxing authority is the US Congress who will levy a sand mining excise tax of three p.c, equaling a minimal ten billion per 12 months within the combination, of sand gross resale, because the reimbursement instrument.
Goldman Sachs can function the debt service administrator for accounts receivable turnover, and assigned holder of tax income deposits. Per bond contract, they keep the deposits, curiosity free, for one 12 months. GS legally leverages that quantity to 1 hundred billion per ten billion, for brand spanking new constructing development unrelated to the Wall. Keep in mind, GS retains the tax income for one 12 months earlier than reimbursement begins.
After the primary 12 months, Goldman Sachs begins reimbursement, with Mexican sand mining excise taxes, in direction of reimbursement of the bond. GS makes a considerable, taxable revenue in the course of the thirty-year maturation of the bond from leveraged loans. The US Authorities income from tax income. The Mexicans have gleefully constructed and paid for the wall.
