President Trump’s campaign pledge mandated a concrete border wall to stop illegal immigration from Mexico. The Mexicans must finance and build the concrete structure. We the people must reach a mutual agreement with Mexico for funding and construction in order to keep the presidents’ promise. Usable silica sand is key.
First, think of a skyscraper like a Trump Tower. Skyscrapers around the world are made of concrete. The main ingredient in concrete is silica sand with a cement binder. The beautiful glass facade on buildings like the Trump Tower is made of sand treated at twenty-three hundred degrees Fahrenheit. The foundations, driveways and sidewalks, basements and garages of single-family homes are made of usable sand and cement. The ribbon of highways, bridges and tunnels connecting the world all contain silica sand as the main ingredient.
Usable silica sand is the key word here. There is a worldwide shortage of the product. The Desperate Shortage Does Not End With Building Construction In The United States
From Jim Hightower’s Lowdown Newsletter, we learn that in the span of four years, from 2012 to 2016, China consumed more construction sand than the United States did between 1900 and 2000. And the city of Shanghai has built more skyscrapers in the past ten years alone. are in New York.
Wait a minute, you say. While the EPA was still functioning, we were told that deserts are expanding around the world at an alarming rate. How can there be a shortage of sand? Unfortunately, desert sand is not suitable for construction. The pellets are too small and round with a compression ratio below the minimum for construction or fracturing.
That’s right, fracking. Companies like ExxonMobil and Halliburton are using sand to fracture underground shale deposits to find fuel trapped in these rock formations in states like Wisconsin, Minnesota and North Dakota.
Big Wisconsin oil companies, known as the mother of all frackers, are drilling wells nearly two miles deep. The Mother-Frackers detonate ten million pounds of precious sand into the rock, attempting to suck the last miserable drops of peak oil from the earth. There are already a hundred fracture wells in the United States. America will use 120 million tonnes of fracking sand this year, increasing by thirty percent each year.
Fortunately, for the construction of the border wall in Mexico, the president was able to overturn Obama’s land policy in places like the picturesque Bears Ears National Monument in Utah. With President Trump’s rollback of mining regulations in these remote and environmentally sensitive alluvial deposit areas along streams and riverbeds, the availability of silica sand will increase. Don’t worry, habitat protection for endangered species will also be rolled back despite opposition from the tourism and conservation lobby and some Democratic lawmakers.
Governments around the world, including China and Indonesia, have made efforts to reduce sand mining. The Mexican government shut down legitimate sand mining companies from operating when it found that not only was it destroying their environment, but the sand was being used in the United States.
Cemex, a small Mexican sand-mining company with fourteen billion dollars in annual sales, extracts three hundred thousand cubic meters of magnificent sand from Monterey Bay, California each year. They are exempt from federal regulations protecting our beaches. Their stock increased dramatically when Trump was elected on the promise of a border wall.
OK, let’s go. Here are the details of the construction plan for the border wall of Mexico.
It will take two years to acquire the property and complete the design. Not being part of the construction plan, US taxpayers will pay for that part. With Dodd-Frank easing, US banks will help recover the full amount with this plan, as will be explained here.
Thanks to automation in the construction industry, it will take two years with just two hundred unskilled workers to build the wall. The workers could be chosen from a group of imprisoned illegals. The Justice Department will offer repatriation to Mexico and early release for their participation in the construction workforce.
Then the government obtains a twenty-five billion dollar construction bond over thirty years or a capital improvement bond from a Mexican bank as a financing mechanism. The president’s henchmen estimate the cost of the wall at twenty-five billion dollars. Banamex, Mexico, a subsidiary of Citigroup, or Mexico’s largest bank, Banco do Brasil with five hundred and fifty billion in assets are likely choices. With the support of the US Congress, the bank can be confident to repay from the second year of construction.
Congress can create a public-private company to authorize sixteen Mexican sand-mining companies to mine sand across the United States. Give these Mexican companies guarantees for ten years, hoping for $ 20 billion gross resale of the precious commodity whose cost and price are controlled per year per company.
The tax authority is the US Congress, which will levy an excise tax on sand mining of three percent, or a minimum of ten billion a year in total, of the gross resale of sand, as a reimbursement instrument.
Goldman Sachs may act as the debt service administrator for accounts receivable turnover and as the assigned holder of tax revenue deposits. By bond contract, they keep the deposits, without interest, for one year. GS is legally exploiting this amount at one hundred billion for ten billion, for the construction of new buildings unrelated to the wall. Remember, GS retains tax revenue for one year before repayment begins.
After the first year, Goldman Sachs begins to repay, along with Mexican excise taxes on sand mines, the repayment of the bond. GS realizes a substantial taxable profit during the thirty-year maturation of the bond from leveraged loans. The US government benefits from tax revenues. The Mexicans happily built and paid for the wall.