What liberals do not understand is when President Trump is saying confidently that “Mexico will pay for the wall,” it’s because he already has an ace in his sleeve.
Do you know what Mexico’s largest source of funds is?
#2 is oil exports, $23.5 billion in 2015.
#1 are remittances, funds wired to Mexicans from the United States which accounted for $24.6 billion between January to November 2016 alone.
Without any doubt, a large percentage of those funds going back to Mexico were also earned ILLEGALLY by criminal trespassers. Does that sound fair to you?
It’s the oldest scam in the book. Mexicans come illegally, make money in the United States, then send it back to make their Mexican families richer.
Back in April, Trump outlined a plan to use these remittances as leverage in negotiating payment for the border wall.
Donald Trump would try to force Mexico to pay for a border wall by targeting billions of dollars in remittances sent by immigrants living in the U.S., according to a memo released by his campaign Tuesday.
The memo outlines in new detail how Trump would try to compel Mexico to pay for the 1,000-mile wall he’s promised to build along the Southern border if he becomes president.
In his proposal, Trump threatened to change a rule under the USA Patriot Act, an anti-terrorism law, to cut off a portion of the funds sent to Mexico through money transfers known as remittances. His plan would also bar non-Americans from wiring money outside of the U.S. unless they can provide documentation establishing their legal status in the country.
While their tone is of course sympathetic to Mexico, even CNN admits using remittances as a bargaining chip would have DEVASTATING consequences for Mexico if they did not work out a deal with President Trump and he held them hostage.
The average remittance from Mexico is about $300. Essentially, Mexico’s most lucrative natural resource are the people who leave home.
Remittances help drive Mexico’s economy, from paying for new home construction to schools, especially in low-income areas. The cash transfers from the U.S. have also been growing faster than wages and inflation. And it’s a critical time for Mexico’s economy, which is showing signs of weakness.
With Mexico’s currency, the peso, near an all-time low, its economy only grew 2.2% last year, Mexico’s finance minister says. Trump’s threats are only going to make it worse — the IMF estimates Mexico will only grow 1.7% this year.
On top of slower growth, the government hiked gas prices by as much as 20% at the start of the year as part of an energy deregulation policy. That’s sparked widespread protests and looting.
All to say: Dollars mean a lot to many Mexicans and they’re becoming more and more valuable. Taxing or halting that flow of cash could negatively impact millions of Mexicans.
There you have it, President Trump’s ace in the sleeve.
Pay for the border wall or the dirty money flowing back to Mexico is going to be taxed “big league.”
Mexico has taken advantage of the U.S. for long enough. Massive trade deficits & little help on the very weak border must change, NOW!
— Donald J. Trump (@realDonaldTrump) January 27, 2017
Kellyanne Conway on Mexico
Kellyanne Conway Full Interview Today 1/27/17 . President Trump News .
Kellyanne Conway “The #1 Source of Funds into Mexico are Mexicans working here and Sending the Money Back”
As we discussed in a piece earlier today, it is a fact that the #1 cash cow for Mexico is funds sent back to Mexico from relatives working in the USA.
This gives President Trump tremendous leverage in negotiating with Mexico for reimbursement for the border wall.