Mitch Vexler exposes a $5.1 trillion property tax fraud by rigged central appraisal districts, arguing this "biblical proportion" error forces banks to hold unsustainable municipal bonds. With 401ks and pensions heavily invested, he predicts a 70% bond value collapse, rendering savings worthless while BlackRock halts redemptions amid compounding leverage. Connecting Middle East oil disruptions to cascading defaults on student loans and homes, Vexler warns of existential counterparty risks where even crypto fails, urging listeners to secure survival supplies against impending nuclear or supply chain catastrophes. [Automatically generated summary]
All of those things that I just mentioned are actually connected as well into pensions because they become derivatives.
They wind this stuff up into packages and sell this garbage off, and it's cratering.
Welcome to today's interview here on BrightVideos.com.
I'm Mike Adams, and today we are joined by Mitch Vexler, who has just an extraordinary individual with great courage who's been sounding the alarm on a number of topics, including how your property tax dollar amounts are actually rigged and your property taxes are in essence stolen by various jurisdictions across the United States.
It's a giant scam to take your money.
But also, we're going to talk about the interaction between the commercial lending market, bonds, commercial banks, and much more.
So welcome Mitch Vexler from Mockingbird Properties.
Let me give out your website.
It's mockingbirdproperties.com slash DCAD, which is, we'll talk about that coming up.
But welcome, Mitch.
It's great to have you back on the show today.
Thank you very much for inviting me and giving me the opportunity to further explain this to mom and pop across the United States, Canada, and believe it or not, as far away as New Zealand.
Well, give us the big picture perspective of how deep is the trouble that's brewing right now for our financial world.
The property tax situation, be it the overvaluation and the overtaxation created at the central appraisal districts on behalf of the school districts, we've tabulated it out at roughly 5.1 trillion.
The problem is that's not the real number.
And the reason it's not the real number is because under the Sarbanes-Oxley requirements, banks that are holding roughly 60% of their funds in cash are required to have that money in bonds.
Part of that bonds are municipal bonds, but it gets much worse when you understand what that means.
So 60 million Americans actively participate in 401ks.
Roughly 21 million Americans are covered by state and local government pensions.
So you've got 401ks and pensions that are holding these school district bonds.
And roughly one-third of the adults receive income from various pension plans.
But these pension plans are not going to perform because the bonds under the hood are not going to perform.
So if you realize the expenses that the median household income has and that the money does not exist today or tomorrow morning to cover off the interest on those school district bonds, never mind paying them down, then you must ask, okay, if the median household income doesn't exist, exactly what is the value of the bonds required to pay them down.
And the answer would be somewhere between 13 and 30 cents on the dollar.
Meaning at a minimum, you're looking at a 70% haircut if one was to keep those bonds in force.
The position that I'm taking is the bonds aren't worth toilet paper and the entire system needs to collapse because the school districts have created a fraud on such a biblical proportion that it simply cannot be paid off.
See, you have fraud on one hand, then you have interest to cover the fraud.
The median household income does not exist to cover the interest to pay down the interest.
Never mind pay down the fraud.
You've got compound cumulative interest on top of compound cumulative fraud.
And to that point, go ahead.
Well, I'm sorry, but the practical upshot of this is, according to what you're saying, that many retirees who are relying on pension payouts in order to meet their basic costs of living, which are also rising because of inflationary pressures, those people are going to be destitute because at some point they're going to be cut off or offered a settlement.
As you said, what was it, 13 to 30 cents on the dollar?
Or will these pension funds just go belly up and disappear?
Portions of the pensions will go belly up.
Portions of the 401ks will go belly up.
If they say, well, it's part of a portfolio.
So that portion of the portfolio decreases, that statement would be true.
However, there are other pressures, such as car loans that are now defaulting.
You've got so many pressures that are out there.
Consumer purchasing power is slowing.
Home loans are defaulting.
Student loans are defaulting.
These are all pressures.
All of those things that I just mentioned are actually connected as well into pensions because they become derivatives.
They wind this stuff up into packages and sell this garbage off.
And it's cratering.
So isn't it interesting that just yesterday, BlackRock, of all things came out and said, yeah, we're not going to allow cash redemptions.
I saw that.
Yeah, that's following Blackstone a week ago.
We're not going to allow cash redemptions.
So if you can't redeem your shares in those funds, then so now, I mean, basically, we have a liquidity crisis that's beginning.
It's accelerating.
Or how would you describe it?
It's 100% liquidity crisis, except this is going to be so much worse than 2008 because the rule of 72, and we've tracked this at least back to the year 2000.
That's when I believe the interest jumped the principal.
And under the rule of 72, that interest has been compounding to the tune of seven, every seven to 10 years, double up.
The problem is that's just on its original weight.
They've continued to add bonds to this problem nonstop.
Salina, Texas just raised $2.5 billion in bonds, the equivalent of $257,000 per house.
This money doesn't exist to pay this off.
This is sheer insanity.
So as part of the suit, go ahead.
No, no, I'm sorry.
Go ahead and complete that thought.
As part of the suit, what I've been pounding the table on is that you, the state, and the attorney general, even though the attorney general is complicit in mating and abetting because he didn't do what was required under the Texas Education Agency as the sole signator to ensure that there was money available to pay for these bonds.
Nonetheless, a criminal complaint was filed.
As a result of that criminal complaint being filed, he opened up a 1,000 district investigation here in Texas on December 7th to determine the level of the overvaluation.
Well, with all that said, that proves that even the Attorney General is in a box.
That proves why we are at the Supreme Court right now.
The median household income, I don't care how anybody tries to slice this across the United States does not exist to pay for these debts.
Period.
End of paragraph.
Let me share something that happened to me locally here in Texas with the taxing authorities.
We got a tax bill on a piece of property that the bill was the tax bill was something like $87,000.
And whoa, that's crazy.
So we went to protest it at the tax office and they immediately said, oh, yeah, that's a decimal point error on our part.
The taxes should actually be $8,700.
So we'll correct that for you.
Now, I'm wondering, how often do these taxing authorities just add another zero to everything and send them all out and hope that companies or people pay these insane numbers?
I mean, is that part of what you're seeing?
I know that's like very simple, basic level fraud, right?
But I experienced that myself.
I saw it with my own eyes.
And I noticed the decimal point never moves the other way.
You never get a bill for $870.
You know what I mean?
This problem is so off the charts.
It is not an exaggeration to state that these CADs that meet with the central appraisal districts to examine a predetermined budget.
The only reason they're meeting to determine the predetermined budget is because they're cooking the books.
None of this is real.
These people are literally not doing anything that adheres to law.
We've tracked all this all the way through.
And it's so bad.
There was a document, and I got my hands on this about 90 days ago, from the California Policy Center examining in 2015 after a 14-year study.
They called the bonds then toxic.
Well, what was so interesting about that document is inside that document, they talked about election fraud with regard to raising the bonds.
So it's not just the face value when the CADs are saying, well, we're going to manipulate this, which, by the way, we have on tape from Don Spencer stating we took 60,000 properties outside of the database, manipulated it in Excel and put it back.
Well, where I'm going with this, the California Policy Center found that problem.
DCAD, we have that problem on audio.
We have depositions from DCAD.
Don Spencer falsified the tax rules.
We have that.
That's been filed with the state comptroller and the attorney general.
All of this, by the way, has been filed with the DOJ, the SEC, and the FBI.
But isn't it interesting that in 2015, the California Policy Center outlined these exact same that were happening then?
Well, lo and behold, a week ago on a report that I've been waiting several months to get my hands on from Johnson Central Appraisal District was what I would call an audit light.
And it wasn't a real financial audit.
It was an audit of the problems.
Well, on page four of that document, verbatim was the exact same thing that A, we discovered at Denton Central Appraisal District, B, what the California Policy Center themselves had outlined in a 356-page document.
We have the irrefutable proof of the pattern and practice to defraud, not just in Texas, not just in the United States, but in other countries that claim to be using uniform standards of professional appraisal practice.
The truth of the matter is they're not.
When they have this word workarounds, well, we have a workaround for this.
That means that they manipulate the data to whatever determined amount they want to manipulate it to.
The software that's being used by these CADs is designed to allow them to commit fraud.
It's irrefutable.
I mean, there's no defense for any of this.
The Unsustainable House of Cards00:14:00
So as you're describing it, what's being constructed is a financial house of cards that is not sustainable.
And when it topples, many, many millions of people are going to be hurt just in America alone.
And I'd love your response to the idea that a trigger may have just occurred, which is this war in the Middle East, which of course has wrecked much of the energy infrastructure.
that will have long-term implications for many industries, including agriculture, fertilizer production depends on natural gas and sulfur, et cetera.
But energy scarcity could cause the beginning of a lot of defaults of certain companies and manufacturers in different countries, which could bleed into banks and so on.
What's your assessment of how much of a sort of cascading domino effect, impact that this current crisis could have on the financial situation you're describing?
Let's go down the road for a second of leveraged derivatives.
So coincidentally, one of the people that I work closely with is in the process of putting a very large fund together to take advantage of these type of situations.
And he wrote a document, a couple of pages, but it traces through what would happen if 25% of the world's flow of oil was delayed and or stopped.
And the cascading effect due to the leverage derivatives themselves would be enough to knock the globe off of its kilter, meaning the catastrophe that would follow, because everything is connected to oil.
And even the median household income, you would say, well, how's that possible?
Well, because people have jobs and those jobs are dependent on oil.
If you manufacture packaging, well, packaging is dependent on oil.
Heating is dependent on oil.
I mean, other than coal and that kind of thing.
But all these things globally are dependent upon one another.
And the power grid depends on natural gas in large part.
Yeah, but you have the same problem, right?
So you look at these data centers, whether it's nonsense or not, put it to the side, but look at the data centers.
They need diesel-powered generators.
Where are the parts made?
China.
How do the parts get here?
Oil.
All of these things are connected.
So when you start to understand the waterfall effect, now, BlackRock is using it as an excuse saying, well, okay, this is what happened.
So we're not going to allow redemptions.
But they never explained it.
They just simply said, we're not going to allow redemptions.
Well, when you understand the math under the hood, it's what I call cap rate compression.
So if you look at real estate, multifamily as an example, right now, today, there are people, developers, that are using other people's money to go and build multifamily on a five-cap.
That's a 5% rate of return on cash.
When you look at the private equity, what's private equity been doing?
Well, they've been buying other private equity.
What's the rate of return?
About 6% all cash.
The cap rate compression globally is so great now that everybody's chasing yield because no matter how you look at it, the deficit that the Federal Reserve has created at roughly 1.8 trillion in 2025, well, that requires money to be printed to pay for that deficit.
The deficit never went away.
You have that exact same rail happening at the school districts and the central appraisal districts.
The printing machine for the school districts is mom and pop.
Their house is the asset.
That's the security for the fraud that they have committed on the bonds.
It is the exact same rail.
One is occurring at a state level.
The other is occurring at a federal level.
Either way, this debt isn't going to get paid off.
It's going to blow up unless serious people get together, i.e. the state of Texas, go and meet with the Federal Reserve.
I mean, I have solutions, possible ideas, and a hybrid, but that's just me talking with myself.
It's useless.
Yeah, nobody seems to be interested in solutions.
They just want to pretend that everything's fine.
And speaking of pretending, I noticed that the Trump administration appears to be pretending that the war with Iran is just about over.
And yet you and I both know that Iran has said it's not over and the Strait of Hormuz will not be open to commercial vessels.
And that is, according to my research, about 20 million barrels per day of oil is now offline, which I think that's roughly around 20 to 25% of global supply.
And also, I think the UAE and also Qatar, you know, they shut operations.
They're just not producing anymore.
And for some of the Gulf Arab states, there's no more place to put the oil.
You know, the oil storage is maxed out because there's no ships taking it away.
So if we've lost, let's say, 25% of global oil production, even though in the U.S. we may domestically have more oil than most countries and Russia, of course, has plenty of oil.
This is going to hit Europe very hard, very hard.
And that's going to cascade from London to New York, isn't it?
I mean, we're not isolated.
We don't live on islands anymore.
Talk to us about that.
The private equity funds, interestingly enough, are cross-collateralized with the shadow banks.
The shadow banks get their money from the big banks.
Well, they're all cross-collateralized.
They're all in bed with each other.
And they're all out there doing derivative nonsense, which I'm not even sure the Federal Reserve has the ability to track what's going on.
It would be quite a lifting chore.
The point of the matter is, it only takes one domino to fall and the entire thing comes down.
And the biggest red flag that everybody's got right now, in fact, is BlackRock with $14 trillion.
Now, does BlackRock really care about their assets under management?
Yes, because they get a fee.
Do they really care about the profit?
No, because they get a fee.
2% of assets under management, $14 trillion, not a bad day at the office.
The point of the matter is that it's the leverage, it's the compounding of the leverage, and it's the derivatives on the leverage that simply can't be paid off.
There's no math to do it.
And that's why when you look at BlackRock saying, yeah, we're not going to allow any redemptions.
And then you look at the auto loans, be it the fraud on tricolor, et cetera, et cetera.
But even Stellantis, Stellantis has what's called SFS, Stellantis Financial Services.
And it exists to sell cars to subprime borrowers.
Well, we've heard of this word subprime in 2008, and it didn't end well.
Right back to your word, liquidity crisis.
Well, that's what's going to happen, except this time around, the magnitude is simply so much greater.
The income didn't ever went up to even participate in paying down these debts or the interest on these debts.
Well, I guess everything you say makes sense.
But my question, I'd like to redirect it is will this energy crisis, in your view, will this accelerate the unraveling of the derivatives market?
Or is that not really a factor that and I guess the bigger question is, you know, how long can this go on in your view?
Because many of us have thought that this system would not make it this far.
And somehow it's still limping along.
What do you think?
All of these elements that we're speaking of are interconnected.
Nobody knows which one it will be that takes down the entire operation, but let's put that under the heading of crisis of confidence.
The second the bond market and the participants in the bond market believe they're not going to get their money back or a portion, be it the interest back, that's when this crisis of confidence kicks in.
Now, you can say that it's due to oil.
You can say that it's due to stretch margins.
You can say all sorts of things.
But the truth of the matter is it's already started because BlackRock, that's the kiss of death.
Well, we're not going to allow participants to take their money back.
And it comes down to what is it that you think you own in your bank account?
What is it that you think you own when you're holding a hard wallet in crypto?
None of these things are real, right?
The bank account, they now have a bail-in.
If a bank goes down, a large bank, that bank has the right to seize your cash and hand you back a share in its bankrupt bank.
Crypto, crypto is nothing more than a speculative instrument.
It's not backed.
And by the way, I'm perfectly fine with the math.
The math is good when you look at these ledgers and how this works.
I studied it.
It's not the math.
It's the fact that the government now has their hands into things like Bitcoin, which was never the purpose of Bitcoin.
Bitcoin was designed to be decentralized.
The second a government has it, by definition, it's now centralized.
Next issue is that the government has the right to seize any coin they want right now today without a warrant.
What is it that you own?
See, and that's the same problem when you look at exactly what happened the other day, coincidentally, when oil ran up.
So Sunday night at the open, oil skyrockets 20%.
Can you imagine the damage to those who were participating in the options that had no protection when the volatility and the gamma spike three standard deviations?
If you're on the wrong side of that, you're down 400 or 500%.
So you may only have a small amount of options, but look at what you've got to pay to get out of the trade.
That's the problems with the derivatives if you don't understand what you're doing.
And all these things are tied.
You have the exact same thing with JP Morgan on the silver a month ago.
The story is that JP Morgan themselves was on the wrong side of the trade for 45 days.
That begs the question: where the hell was their credit risk department?
It's insane that they would let it run.
But nonetheless, the price runs up.
And then in order to balance the books, miraculously, the price drops down.
10 bars, two legs, sideways to down, except it all happened in one day.
So when you begin to realize the extent that the money is manipulating the circumstances because of the leverage, it's the leverage and it's the creation of the interest.
You add these two things together, you're going to end up in a crisis of confidence.
So this crisis of confidence, and I think that's the appropriate term here.
When people begin to really learn the lesson of counterparty risk, which I guess they're starting to learn with BlackRock right now, that you think you have an investment over here and yet you can't get it back out whenever you want to.
There's counterparty risk in banks or in crypto that's held by the exchanges, for example, right?
Or in bonds, obviously, that's almost the definition of counterparty risk.
But we live in a country where very few people even know what the rule of 72 is that you mentioned earlier.
Almost nobody knows what that is.
And I mean, people in finance, I suppose, do, but the average person has no clue, can't even divide by 10% or whatever.
They can't even do the math.
So at what point, in your view, will people begin to realize that the counterparty risk is existential to their savings or their retirement funds?
What is the panic point where people say, oh my God, I got to get out of the system at any cost?
You're there now.
They just don't realize it quite yet.
So the average family of four in the United States is literally living off credit cards.
They are roughly $20,000 income minus expenses upside down.
They can't afford the real estate taxes.
So on average, the real estate taxes, whether you're a renter or a homeowner, average about $7,000.
And everybody would think, to your point, well, that's only 2% of the value of my property or my apartment.
No, that's not the way to look at it.
That's 8.6% of your effective gross income.
That's the problem.
The money simply doesn't exist.
So what do you end up with?
Well, you end up with an increase.
Never mind the tens of thousands that have already lost their homes.
You're going to end up with tens of thousands more that are going to lose their homes due to tax lien foreclosures.
This is happening now.
Your auto defaults are skyrocketing.
Well, if you're going to have a job in states like Texas or California, you need a car.
If you can't pay your property taxes and you can't pay the payment on a car, and even though Stellantis is as an entity that finances to subprime borrowers, if the money doesn't exist and the average family is upside down, how are you going to pay for a car?
How are you going to pay for the property taxes?
How are you going to pay for health insurance that's skyrocketing to the tune of 300%?
How are you going to pay for house insurance that's got nothing to do with the problems of the house, but the insurance company is trying to hedge what's coming?
Yeah.
Stock Up for Nuclear Survival00:04:09
These things are all connected.
And also, I suppose, how are you going to pay for any of those things when your job has just been replaced by AI?
And that's the topic I want to get in.
Let's get in the weeds with you on that in part two of this interview.
So stand by, Mitch.
This is the wrap-up of part one.
Let me go out your website again.
It's mockingbirdproperties.com/slash DCAD.
That's DCAD.
You can get all the documents there.
It's really a lot.
You can see everything that's been filed.
You can see the petitions.
You can see the PDFs and you can download many of the items right there.
So check that out.
And Mitch, please stand by.
Folks, this continues in part two, which will run one day after part one here.
And you can find part two at brightvideos.com.
So thank you for watching part one.
There's much more to come.
We'll discuss the AI impact on jobs and the threat of implosion of the credit markets in part two.
Thanks for watching today.
Take care.
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