Well, it’s game over. When it comes to the Southern Border Wall, Donald Trump has officially won the argument; the rest is just details.
This is what winning looks like folks!
Why do we say this? Because what’s not written in this story is the Mexican political leadership arguing about the viability of the Southern Security Wall being built. They have conceded the most important aspect.
The argument has moved beyond ‘will the wall be built’, and now is focusing on ‘who is going to pay for it‘. The media will skip noticing that little nuance.
In an interview Thursday with Jorge Ramos on Fusion, former Mexican president Vicente Fox responds to Donald Trump’s plan to build a wall on the U.S.-Mexican border.
“I’m not going to pay for that fucking wall! He should pay for it. He’s got the money,” Fox said. (read more)
Remember – In a recent Mexican news article it was revealed that money transfers (remittances) from the U.S. to Mexico now surpass the amount of the entire Mexican oil business. Wired money transfers total almost $25 Billion:
Mexico – […] There was a 4.75% increase in money sent from abroad, most of which comes from the U.S., to total US $24.8 billion last year, up from $23.6 billion in 2014, said the Bank of México.
The bank said it was the first time remittances had totaled more than petroleum revenues since it began tracking them in 1995. Oil revenues last year totaled $23.4 billion.
An important factor in the increase in remittances is the jobs created by economic recovery in the U.S.Some 11 million Mexicans are believed to be living in the U.S. and many work in construction. Remittances, 97% of which are sent electronically, averaged $292 last year. (read more)
Even if President Donald Trump does not renegotiate any of the $58 Billion trade imbalance we have with Mexico; and if you only target the remittance dollars ($25 billion) which are vital for the Mexican economy, you can see how easy it would be to get Mexico to pay for the border wall.
Federal Budgets are fixed on ten year projections. In order for an expenditure to be revenue neutral the revenue must meet or exceed the expenditure over a 10-year period.
If you take the $25 Billion in outbound remittances, and you apply a small 4% surcharge for each wire transfer to Mexico, that surcharge would net $1 Billion/year. Multiplied over ten years (budget requirement) that means $10 Billion into the U.S. treasury from the surcharge fee.
$10 Billion in revenue.
How much is the projected cost of the border wall per CNN?
$10 Billion.
