How Mexico will end up paying for the wall

[100%TtId]

PEMEX's loss is Texas' gain.

https://nexusnewsfeed.com/article/climate-ecology/mexico-s-new-president-will-ban-fracking/

One of the dumbest decisions ever made. Mexico's de-reg'd power markets will love burning their expensive non-frac natgas.

[flywise]

Well, they get what they deserve
This man will lead them straight down the road of Venezuela. A road of extreme poverty

[Playa]

Sounds like it is a token move as very little of their production is frac’d anyway, seems it would have little immediate effect.

Well, they get what they deserve
This man will lead them straight down the road of Venezuela. A road of extreme poverty

You think illegal immigration is bad now. As crappy as their economy is, it is miles better than Venezuela. If Mexico becomes as economically crippled as Venezuela we won’t have a way to hold the mass of immigrants back

[flywise]

Sounds like it is a token move as very little of their production is frac’d anyway, seems it would have little immediate effect.




You think illegal immigration is bad now. As crappy as their economy is, it is miles better than Venezuela. If Mexico becomes as economically crippled as Venezuela we won’t have a way to hold the mass of immigrants back

Oh i know. But that may be a continuation of their plan. Im sure they want as many of their citizens to break into this country as possible.
Like i said in another thread, we have 50 years left ( at least as we know it) unless there is a massive change event

[Playa]

As for Mexico paying for the wall, seems we could simply use the $320 Mil in annual aid we give them until the wall is paid for.

[Legdog]

I missed where it said how Mexico was paying for the wall.


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[BolilloLoco]

I missed where it said how Mexico was paying for the wall.


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I assume he means Mexico will be buying all its natural gas from us at an inflated rate.

[MadHatter]

As for Mexico paying for the wall, seems we could simply use the $320 Mil in annual aid we give them until the wall is paid for.

At that rate, we would finish paying it off, sometime around the next ice age.

[100%TtId]

I assume he means Mexico will be buying all its natural gas from us at an inflated rate.

No, not at all.

Follow the energy supply chain from a global perspective.

Fracking generally makes new and existing wells more productive at a lower cost per unit of output. Lower cost production and more supply of energy commodities like crude and natgas lowers their price (assuming stable demand) and means electric power utilities with natgas fueled generation can produce power at a lower cost. Large power consumers like factories and steel mills can produce goods at a lower cost and be more competitive for goods exported to the global market. Ditto for crude and gasoline. Lower energy production costs also affect market shares of the producers. Lowest cost exploration always wins at any market price in commodities. Banning fracking in Mexico puts PEMEX at a cost-disadvantage compared to US-based exploration where fracking is allowed. All else being equal.

Natgas is the main feedstock in fertilizer. Mexico's agricultural exports are less price competitive when fertilizer costs are higher than compared to other exporters who use cheaper fertilizer thanks to cheaper natgas from fracking.

Cheniere will put their LNG export terminal in Corpus online later this year. The U.S. and Texas will have a stronger and cheaper supply chain available to serve the global markets. PEMEX again is at a disadvantage in the export market.

TransCanada now controls a substantial portion of the North American pipeline system from Canada to Mexico and will build out more lines where supply is plentiful and they can be assured to have shippers. Those areas of growth are where fracking is making supplies available and profitable, i.e.in the US, not Mexico (some exceptions here, but the trend shifts to fracking areas).

So, by banning fracking, PEMEX is less competitive, Mexican exports are less competitive, Mexican agri products are less competitive, and this makes the US the beneficiary in every way.

All this takes years to p!ay out. Mexico doesn't do much fracking now but they could and should.

All that increased economic activity in the US generates tax revenue for Washington who can then..... wait for it...

Spend it on a big beautiful wall.

[Pedernal]

We need more than just a wall. Regardless if the scenario above plays out, there is a need to make it easier to legally bring in/import labor.

Currently, gasoline in Mexico is at around $4/gallon while wages for an average labor job are approximately $60-$80/week. Even at $80/week just imagine if gasoline was that espensive here as it relates to price ratio when compared to weekly salary. In Mexico, 20 gallons of gas will blow the entire weekly salary. Obviously, people earning that amount are probably not vehicle owners but that was just to give a perspective on the economic situation there.

I have heard that Walmart pays as much as $13/hour at certain stores for those that gather carts and bring them back into the store. There are hundreds of examples of jobs here that pay more in a day than could be made there in a week. This is just Mexico, there is the rest of Central and South America which are probably in a similar or worst economic situation.

None of these numbers are going to improve regardless of fracking being allowed or not in Mexico.

[SmTx]

Y'all got it all wrong.

[flywise]

We need more than just a wall. Regardless if the scenario above plays out, there is a need to make it easier to legally bring in/import labor.

Currently, gasoline in Mexico is at around $4/gallon while wages for an average labor job are approximately $60-$80/week. Even at $80/week just imagine if gasoline was that espensive here as it relates to price ratio when compared to weekly salary. In Mexico, 20 gallons of gas will blow the entire weekly salary. Obviously, people earning that amount are probably not vehicle owners but that was just to give a perspective on the economic situation there.

I have heard that Walmart pays as much as $13/hour at certain stores for those that gather carts and bring them back into the store. There are hundreds of examples of jobs here that pay more in a day than could be made there in a week. This is just Mexico, there is the rest of Central and South America which are probably in a similar or worst economic situation.

None of these numbers are going to improve regardless of fracking being allowed or not in Mexico.

Your right fracking is not.going to improve things down there. Their biggest problem is the same one that exist around the world, political corruption. Until these poor broken countries fix that, they will remain poor. And we can't do anything about that.

[RiverRat1]

Your right fracking is not.going to improve things down there. Their biggest problem is the same one that exist around the world, political corruption. Until these poor broken countries fix that, they will remain poor. And we can't do anything about that.

That and it's really none of our business.

[systemnt]

That and it's really none of our business.

That may work in other 'conflicts'... but it really is our business.
It effects the US directly.
It effects the US Economy,
It effects the US Education system.
It effects the US political system.
It effects the US health care system.
It effects it's border security and policies.
It effects it's security for US Citizens.
It effects it's safety
It effects it's sovereignty.

So yes..it is really our business.

[jer_james]

That may work in other 'conflicts'... but it really is our business.
It effects the US directly.
It effects the US Economy,
It effects the US Education system.
It effects the US political system.
It effects the US health care system.
It effects it's border security and policies.
It effects it's security for US Citizens.
It effects it's safety
It effects it's sovereignty.

So yes..it is really our business.

Agreed