Wednesday, April 20, 2016



Updated 11/12/2019
We first published this in 2016. Since 2016 Congress has been in a continuous obstruction any form of border control. Yet the wall inches ahead fueled by private donations and the transfer of some monies that were within the executive purview to transfer. We think this post is worth a periodic revisit and we will monitor and update regularly .

 Introduction: There is a provision within the Patriot Act, Section 326 – referred to as the “know your customer” provision. This provision compels financial institutions to require identity documents before opening accounts or conducting financial transactions. This requirement is a key provision in Trump's plan to force Mexico to pay for the border wall on our Southern border.  Section 326 authorized the executive branch to issue detailed regulations on the subject, and these are found at 31 CFR (Code of Federal Regulations)  130.120-121. Basically, if used as it is possible to use it, Trump's proposed application of Section 326 forces a decision on Mexico.  Mexico can  make a one-time payment of $5-10 billion for the wall or lose $24 billion which continues to flow into their country year after year from illegals working in the US, sending money home. There are several ways to employ Section 326 to compel Mexico to pay for the wall including any one or a combination of the following. 
  • First promulgate a “proposed rule” (regulation) amending 31 CFR 130.121 to redefine applicable financial institutions to include money transfer companies like Western Union, also redefine “account” to include wire transfers. Finally, include in the proposed rule a requirement that no alien may wire money outside of the United States unless the alien first provides a document establishing his lawful presence in the United States.
  • Expect Mexico to protest loudly and immediately because they receive about $24 billion a year from Mexican nationals working in the United States. The majority of that amount comes from illegals . It forms a sort of unofficial welfare system for poor Mexican families. There is no significant social security or welfare provided by the state in Mexico.
  • After allowing a day for Mexico to blow off steam, a non PC American President simply tells  Mexico that if the Mexican government will contribute the funds needed to the United States to pay for the wall, the non PC ( presumably Trump) Administration will not promulgate the final rule, and the regulation will not go into effect. This should be a "no brainer" for Mexico's corrupt government, swap a one time payment of about $5 billion for an annual stream of $24 billion to keep the peasants in line. 
  • In the alternative we could trade tariffs, or enforcement of existing trade rules: There is no doubt that Mexico is engaging in unfair subsidy behavior ( see our YARN FORWARD POST). Scams like the Mexican "yarn forward" ploy done in concert with China have eliminated thousands of U.S. jobs, a fact that a non PC U.S. government is obligated to respond to. Tariffs are the usual response, the  impact of any tariffs on the price of imports will be more than offset by the economic and income gains of increased production in the United States. Mexico needs access to our markets much more than the we need their cheap products. An administration that put our national interest first would realize that  we have all the leverage and will win the negotiation. Obviously, if you have a large trade deficit with a nation, it means they are selling far more to you than the reverse – thus they, not you, stand to lose from enforcing trade rules through tariffs . Paying the $5 billion for the wall will look cheap.
  • Another alternative; cancelling visas: Immigration is a privilege, not a right and frankly we control it.  Enter the U.S. illegally and not much happens to you other than extradition and that may be after many years of earning illegally in our economy. If one of us enters Mexico illegally it usually means 8 years in prison. Mexico is dependent on the United States as a release valve for its own poverty.  – When we approve hundreds of thousands of visas to their nationals annually we create one of our greatest leverage points. We also have leverage through business and tourist visas for important people in the Mexican economy. We actually don't need these people they need us.
  • Visa fees: This is something that we completely control. Even a small increase in visa fees including border crossing cards would pay for the wall. Border crossing cards, of which more than 1 million are issued a year, one of the greatest sources of illegal immigration into the United States, via overstays. Mexico is also the single largest recipient of U.S. green cards, which confer a path to U.S. citizenship and create long term larger transmittal of U.S. earned funds to Mexico. Again, we have the leverage so Mexico has to put up the wall or pay the much higher price or prices.
No matter what the liberals say, we have the moral high ground here.  Mexico has taken advantage of us through crime they don't suppress. Gangs, drug traffickers and cartels have freely exploited our open borders and committed vast numbers of crimes inside the United States. We have borne the high daily cost of this criminal activity, including the cost of trials and incarcerations, and deportations. Along the Texas Rio Grande border and elsewhere we have also paid a great human cost . We have the moral high ground and all the leverage. When the liberal media calls Trump crazy and dismisses the wall and the idea of Mexico paying for it they are being dishonest. Frankly we aren't all that confident in Mr. Trump, nor do we like his personality, but his idea of a wall and Mexico paying for it is not silly and far from impossible and would set a new tone for the foreign policy of the United States. The media opposition is simply so much leftist propaganda not based on fact. The truth is a President with balls could build a border wall, it would work, and making Mexico pay for it would actually be one of the easier aspects. Vote for whoever you want in the up coming election, it will probably be stolen by the Democrats through their usual voter fraud anyway, but calling the wall or Mexican payment for it impossible is simply the ranting of leftist air heads.

No comments:

Post a Comment