Interest Not Taxable On Bonds Used To Finance Government Operations President Trump Mandated Concrete Border Wall Financing and Construction

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President Trump Mandated Concrete Border Wall Financing and Construction

President Trump’s campaign promise mandates a concrete border wall to stop illegal immigration from Mexico. Mexico has to finance and build concrete structures. We the People must make a joint agreement with Mexico for financing and construction to fulfill the President’s promise. Usable Silica Sand is Key.

First, imagine a skyscraper like Trump Tower. Skyscrapers all over the world are made of concrete. The main ingredient of concrete is silica sand with a cement binder. The beautiful glass facades of buildings like the Trump tower are made of sand treated at 2,300 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 have Silica sand as their main ingredient.

Usable silica sand is the longtail keyword here. There is a worldwide shortage of products. Desperate scarcity doesn’t end with building construction in the US

From Jim Hightower’s Lowdown Newsletter we learn that in four years, from 2012 to 2016, China consumed more construction sand than the US between 1900 and 2000. And, the city of Shanghai has built more skyscrapers in just the last ten years than in there is in New York City.

Wait a minute, you say. While the EPA was still functioning, we were told deserts were growing around the world at an alarming rate. How can there be a shortage of sand? Unfortunately, desert sand is not suitable for construction. The grains are too small and round with compression ratios below the minimum for building or fracking.

That’s right, fracking. Companies such as ExxonMobil and Halliburton use sand to break up underground shale deposits to find fuel trapped in rock formations in states such as Wisconsin, Minnesota and North Dakota.

The major oil company in Wisconsin, known as the mother of all frackers, is drilling a well nearly two miles deep. Mother-frackers blast ten million pounds of precious sand into the rock, trying to suck the last miserable drops of peak oil from the earth. There are already over a hundred fracture wells in the United States. America will use one hundred and twenty million tons of fracking sand this year, increasing thirty percent annually.

Fortunately, for the construction of the Mexican Border Wall, the President has successfully reversed Obama’s land policies in places like the beautiful Bears Ears National Monument in Utah. Thanks to President Trump’s cancellation of mining regulations in these remote and environmentally sensitive alluvial deposit areas along creeks and river beds, the availability of silica sand will increase. Not to worry, habitat protection for endangered species will also be canceled despite opposition from the tourism and conservation lobby and some Democratic lawmakers.

Governments around the world including China and Indonesia have made efforts to limit sand mining. The Mexican government stopped legal sand mining operations when they discovered that not only was it damaging their environment, sand was being used in the United States.

Cemex, a small Mexican sand mining company with fourteen billion annual sales, extracts three hundred thousand cubic yards of beautiful Monterey Bay, CA sand every year. They are exempt from federal regulations protecting our beaches. Their shares rose significantly when Trump was elected on the promise of a border wall.

OK, let’s get started. Here is the gist of the plan to build a Mexican border wall.

It took two years to acquire the property and complete the design. Not part of the building plan, American taxpayers will pay for that part. With Dodd-Frank easing, US banks will help recoup the entire amount under this plan, as will be explained here.

Thanks to automation in the construction industry, it took two years with only two hundred unskilled workers to build the wall. Workers can be selected from a pool of imprisoned illegals. The Department of Justice will offer repatriation in Mexico and early release for their participation in the construction workforce.

Subsequently, the Government secured twenty-five billion dollars worth of thirty-year construction bonds or capital-raising bonds from Mexican banks as a funding mechanism. The President’s lackeys estimate twenty-five billion dollars in the cost of the wall. Banamex, Mexico, a subsidiary of Citigroup, or the largest bank in Mexico, Banco do Brasil with assets of five hundred and fifty billion are possible choices. With the support of the US Congress, banks can be assured of payments from the second year of development.

Congress may establish a public-private company to license sixteen Mexican sand mining companies to extract sand at sites across the US. Guarantee the Mexican companies for ten years, with an expectation of twenty billion dollars in gross resale of price-controlled commodities and valuables per year, per company.

The taxing authority is the US Congress which will collect a sand mining excise tax of three percent, equivalent to a minimum of ten billion per year in aggregate, from the gross resale of sand, as an instrument of payment.

Goldman Sachs may serve as a debt services administrator for receivables turnover, and an assigned tax revenue deposit holder. Per the bond contract, they maintain the deposit, interest free, for one year. GS legally utilized that amount up to one hundred billion per ten billion, for the construction of new buildings not related to the Wall. Remember, GS retains tax revenue for one year before payments begin.

After the first year, Goldman Sachs initiated settlement, with a Mexican sand mine excise tax, leading to bond redemption. GS generated a substantial taxable profit over the thirty years of the bond’s maturity from the leveraged loan. The US government benefits from tax revenue. The Mexicans happily built and paid for the wall.

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