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Election Fraud, Bond Fraud, Property Tax Fraud

Fri, 17 Apr 2026 19:27:44 GMT

Election Fraud, Bond Fraud, Property Tax Fraud
A Preview of the Talking Points in the 2nd Amendment to the Criminial Complaint

By MItchell Vexler, April 17, 2026

Live links to more Articles and evidentiary documents included

Link to accompanying info-graphic presentation, The Nexus of Fraud

Why Voting Fraud matters?

Is it worth an hour of your time to review this Article and the upcoming 2nd Amendment to the Criminal Complaint so that you might save several hundred thousand dollars over the next 30 years of your hard earned money and not transfer that money via fraud into the pockets of criminals ? In addition to this Article, you might want to read the 1st Amendment to the Criminal Complaint .

The evidence in this Article and 2nd Amendment to the Criminal Complaint exposes State and Federal voter fraud, school election fraud, school district bond fraud, and Central Appraisal District (CAD) property tax fraud all of which steals your money which is further siphoned off into pet projects that you did not vote for, and or was embezzled into other criminal activity. Think Minnesota on steroids, across the Nation and in your district with a pattern and practice so heinous it tries to cover up its treasonous fraud using math to scramble its footprint of existence.

Let’s start at the upper level with this very recent wake-up call.

Liberals Advance Bill That Could Criminalize Quoting The Bible As Hate Speech

Wednesday, Apr 08, 2026

Canada is barreling toward a chilling new reality where quoting certain Bible passages could be treated as a criminal hate speech offense.

Bill C-9, the so-called Combating Hate Act, cleared the House of Commons on March 25 and now moves to the Senate.

Critics say the legislation guts a decades-old legal safeguard that protected sincere religious expression, handing prosecutors new tools to target Christians and other believers who dare reference holy texts on topics like sexuality.

Canada just criminalized the Bible. Bill C-9 has passed.

Quoting Scripture on marriage, sin, or God’s design for sexuality can now be prosecuted as “willful promotion of hatred.

Do you support free speech?

Do you support the 1 ^st Amendment of the Constitution of the United States of America?

Yes?

Then this is exactly why voter fraud is illegal and such actions are Treasonous. Voter fraud by software manipulation is intent to defraud and the manipulated math to defraud would not exist but for the intent. Every Citizen must seek out the fraud and hold the criminals accountable.

This is what we are doing in the 2nd Amendment to the Criminal Complaint, which irrefutably proves that voter fraud, at both the Federal and State levels, occurred.

There is No Alternative

Under the guise of law, this is the same nonsense wherein a catch phrase is made up which in reality is the exact opposite of the promotion of the newly created law. This newly jingled socialist law replaces long standing laws and Constitutional law. This has already appeared in Germany, UK, and Europe all three of which are causing their own economic unnecessary demise!

This is why citizenry apathy is no longer an option and focus on the fraud is crucial. Every voting Citizen must be involved or face losing the future of what you believe in and what 1.19 million members of the military have died for since the founding of this Country, which is to protect the American Way of Life for all of society.

It is often said that “we get the government we choose to elect, hence the government we deserve”. However, is that the truth? What if the evidence proves, it is not the truth and who was allegedly elected into office was put there by election fraud? What if that person in office was not supposed to be there? What if that judge, who was elected, was not supposed to be there? What if someone voted to put debt on your house in the form of school district bonds, that you don’t approve of and what if that school district bond election was illegal? How exactly does due process under the 5th and 14th Amendments to the U.S. Constitution exist, when voter fraud has occurred?

The ramifications of this election fraud, school district bond election fraud, bond fraud and property tax fraud , affect every single citizen given that the liabilities spun from these frauds end up causing inflation and extend into the future with compound cumulative interest for 20 to 40 years, from today, as the fraudulent liabilities that the criminals created are not being paid off but rolled out in time and interest rates rolled up until the system implodes on its own weight. This implosion will happen because of the fact that the Median Household Income does not exist to pay off the debt and liabilities imposed by fraudsters . As an example, Argyle Texas has over $243,000 of outstanding fraudulent school district bond debt per household today where the median value of a home is $450,000. That $243K increases annually with interest and more fraudulent bonds being raised being the definition of reverse amortization. This is happening across the U.S. and currently estimated at $5.1 Trillion in outstanding fraudulent school district bonds today.

Voting for ever-higher punitive taxes, being both income and property, on the rich is economic suicide and the result of Institutionalized Systemic Moral Hazard . There are not enough rich people, so when the sociopaths run out of rich people to steal money from, your next.

Consider that a wealthy New Yorker can get a raise of almost 40% just by moving. If moving eliminates a 14.8% top state and local tax rate, our top-tier taxpayer gets a 36% raise, not a 14.8% raise, by leaving. Based on my experience examining the propaganda used by State leaders, I would bet that none of them have done any math. When that top tier taxpayer leaves, then who is left to pick up that portion of the burden? The answer is every other taxpaying citizen remaining. This means their burden...your burden of the “fair share” goes up which is impossible to pay for because the Median Household Income does not exist !

Here’s how the math works.

A rich New Yorker pays a maximum state and city income tax of 14.8%, on top of a maximum federal tax of 37%. But there are hidden taxes. Uncapped Medicare and Medicaid taxes push the marginal federal tax to 39.4%. If the income is earned on investments, the Net Investment Income Tax (NIIT, another Obamacare failed construct) adds another 3.8%, pushing the top federal tax above 43%. Then add on top of that, the property tax is used to support fraudulent school district bond debt plus interest accumulating by the second.

So, top-tier New York taxpayers may soon pay a marginal tax of 43% to the IRS and 17% to the city and state of New York. The combined 60% marginal tax rates mean they have the privilege of keeping 40 cents of each new dollar they earn. A move to one of the nine states with no income tax allows our taxpayer to keep 57% of every additional dollar of income, instead of 40%. That’s a 42% raise.

When I left Canada, my taxes were 75% net effective.

Forget the argument about “paying their fair share.” “Fair” is an entirely subjective, bait and switch term, and nothing more than propaganda, not backed up by math or evidence.

Over taxation is not unique to New York. California’s headline top rate of 13.3% becomes 14% with the phase-out of deductions. A Silicon Valley billionaire can keep 43% of each new dollar of income by Moving to Dallas or Miami, or Anchorage which boosts this to 57%, a raise of almost 33%.

It is also said that “People have called the United States 50 laboratories of democracy”. A state or a city is welcome to impose whatever taxes, regulations, or laws are allowed by its own bylaws or the Constitution. Except, this statement is also propaganda, because the Supremacy Clause Article Ten of the U.S. Constitution specifically establishes that the U.S. constitution, being federal laws and treaties override any state laws that conflict with them. It promulgates that all state laws, state courts, and state constitutions are subordinate to the U.S. Constitution and federal laws and treaties made by the U.S. government. However, federal statutes must be pursuant to the U.S. Constitution for the Supremacy Clause to apply; that is, not violate the U.S. Constitution, such as the Bill of Rights. As the 16 ^th Amendment specifically prohibits taxation on unrealized gains (article titled The Legacy of Governor Abbott) , allowing only for taxation on incomes, then what has been imposed by the States in the form of real estate tax and the resulting school district bonds violates the 16 ^th Amendment as well as dozens of State and Federal Laws.

Milton Friedman has been credited with the observation “that the only thing more mobile than the wealthy is their capital. It is the rich who largely fund government spending, whether that spending is at the federal, state, or local level, and whether that spending is wise or foolish. Instead of a politics of envy, perhaps we should try a politics of gratitude.”

Pushing the rich via over taxation is economic suicide and touches the lives of every single Citizen whether a taxpayer or not.

Now, given the evidence with regard to the Federal Reserve being a socialist organization and the desire of socialist organizations , such as your school district creating debts which can’t be paid for, their true intent is control of money and thus control of the population.

How is this control achieved? The answer is simple. Rig the voting allowing for a pre-determined cast of criminals who believe in their power over that of their constituents and who’s intent is to equity strip their constituents in a plethora of “wouldn’t it be great if we could stop bank runs” ( Federal Reserve created in 1913 ), “we need do this for the children” (school district bonds fraud), “we need to rescue the banks” (Federal Reserve 2007), “take the shot because society depends on it” (covid) etc., all of which are the creation of socialist policies, and all of which have proven to be extraordinarily damaging not just on a local, and national level but on a global scale. Society would be considerably wealthier if all 4 of these events and the socialist policies that created them never existed.

The 2 ^nd Amendment to the Criminal Complaint now adds to the Original Criminal Complaint and the 1 ^st Amendment to the Criminal Complaint , and proves the existence and use of sophisticated algorithmic manipulation (Voter Shifting Algorithms) of ballot data by means of hidden vote distortion logic ( HVDL ) that produces controlled, yet organic-appearing results. This HVDL happened to leave a synthetic digital signature in the data across multiple jurisdictions and years of elections around the Nation, confirming deliberate coding rather than chance or error. This HVDL could only have been deployed with the intent to defraud American citizens on an industrial scale , and constituting a criminal enterprise under RICO § 1961(1) at both the State and Federal levels. This voter software manipulation and the attempt to hide the voter shifting algorithms is Treason as you will see in the 2nd Amendment to the Criminal Complaint.

The “Defendants outlined in the 2 ^nd Amendment to the Criminal Complaint, while acting or purporting to act, under the color of an official capacity, which includes the ordering of the voting machines that enable and/or deploy HVDL have exerted an authority beyond the scope of his / her / their office and or took positions that denied the Citizens of the United States the full and free access to, and/or enjoyment of, rights secured by the Constitution and laws of both all States and the United States of America.

The Secretaries of State, Attorney Generals, and the attorneys for each County are deemed to know the law. “Officers of the court have no immunity…when violating a constitution right for are deemed to know the law.” Owens v Independence 100 S.C.T. 1398 Officers of the Court know that properly applying the facts to the law is NOT discretionary. (Walker v Packer, 827 S.W.sd 833, 840 (Tex. 1992)) and misapplying the facts to the law in a matter is an abuse of discretion and constitutes Official Oppression.

A special category of investigation by the SEC is warranted regarding any Securities firm who sold school district bonds without any due diligence on the bonds and the underwriting of those bonds, and the lack of disclosure to the bond buyers with regard to the ability of those bonds to be retired. Did the Securities firms have knowledge on the use of HVDL which could provide cover for their activities or provide cover for the activities of the election of state school district officials and or Federal officials, to keep the fee machine running? Did the Securities firms knowingly commit fraud in the underwriting of the school district bonds? The evidence of how this was done is in the 1st Amendment to the Criminal Complaint and has also been delivered to the SCOTX in the Amicus Brief .

We now have reason to believe and do believe that the named Defendants as well as those in similar positions across the United States have committed various crimes against the laws of their State and throughout the United States, including but not limited to Official Misconduct, Official Oppression, Sedition and Treason (voting machine and software providers) of which facts and violations are listed in the 2 ^nd Amendment to the Criminal Complaint.

How many cases of voter fraud across the U.S. occurred that can’t be answered because in many cases access to the Cast Voter Records (CVR) was denied, or lost, or delayed or modified years later? Regardless of this denial, it should not be up to citizens to have to file lawsuits, which takes time and money to prove what is already required in law. This time and money, being delay and expense, are what the criminals depend on to keep the fraud in perpetual motion. It is up to the government, being both State and Federal, to prove that the laws were not violated… and they can’t. In Vexler’s case, (see both the Response and the article The Importance of the Vexler case to Texas and the United States ), now at the SCOTX, I have had to file lawsuits almost annually since 2017 and have demonstrated beyond reproach that the methods of “valuation” by the CADs are pure fraud in violation of both State and Federal laws. No election can be called legitimate unless it can be proven that the software does not contain voter shifting algorithms. The voting machines utilizing such software are a crime scene. Just like the software being used at the CADs that allow the employees to tamper with data and change that data to suit a pre-determined school district budgets which has zero to do with Uniform Standards of Professional Appraisal Practice (USPAP) or Uniform and Equal under States laws. Crimes were committed ending in Trillions of dollars of school district bond fraud, with this liability fraudulently transferred to the backs of the property owners and renters, and wherein the inflationary effects of these crimes is affect all Citizens today and for the next 20 to 40 years or until these bonds are put into bankruptcy along with the school districts that created them.

The software used by the CADs and the voting software used by the States were both designed to allow fraud to occur.

What evidence exists that these crimes were not committed?
What evidence exists of true transparency?
Given the evidence of crimes outlined in the 2 ^nd Amendment of the Criminal Complaint, and lack of prosecution, how exactly are elections and software manipulation safeguarded?

The answer is none, none, and they aren’t.

The investigation and prosecution demands of the Defendants found within this Criminal Complaint (2nd Amendment to the Criminal Complaint), upon the DOJ, FBI, and SEC are necessary to (1) safeguard future elections, (2) terminate all Central Appraisal Districts as they are beyond repair and (3) terminate any school district from having access to the bond markets ever again. The nexus between all three is software fraud which allows for accounting fraud, which allows for bond fraud, all of which are inter-connected and all of which are illegal.

Why we need to repeal ALL property tax and why voting matters...it’s all connected:

Is the person, or people, elected to office responsible for allowing the overvaluation and over taxation, along with the school district bond fraud, and school district bond election fraud the rightful occupier of that position? How do you know? Did you vote for people who would put you in a position to lose the roof over your head, because you can’t afford the fraudulent taxation? Did you vote to go bankrupt to support your school district? Did you vote for a sociopath?

Your money is their source of funding for their criminal activities.

1. Violation of 16 ^th Amendment

People are taxed out of their homes, adversely impacting senior citizens with homes paid off.
Financially bankrupting Homeowners forces them to sell their home and move.
Young Adults are priced out of Home Ownership. Appraisal District software helps set fraudulent floor on home prices.
You will never own, or have the opportunity to own, the roof over your head.
Equity stolen. The real estate tax steals what would be your amortized equity and that is equity stripping.
Your real estate tax is their mechanism to fund fraudulent ISD Bonds and pay for the interest on those fraudulent bonds for as long as those fraudulent bonds exist.
The majority of school districts that raise bond money are bankrupt, and property taxpayers are paying to delay their eventual bankruptcy. It is literally shoving hard earned money into the pockets of lenders who invested in fraud.
Your 401k, Pension and IRA may have invested in the fraudulent school district bonds.

2. 2008 bank crisis + this bond crisis = now many times (80X) worse than Enron.

See Amicus Brief filed with the Supreme Court of Texas.

Example: May 2025, Celina ISD (Independent School District) was recently able to pass $2,275,695,579 in bonds. There are approx. 9,377 households in Celina, TX. That’s $242,689 in ISD debt per household, in 1 year, without counting the servicing interest or the past bond raises or the off-balance sheet financing.

Bonds do not pay teacher salaries or any M&O (Maintenance and Operations)
Large amounts of ISD bonds are purchased through Teacher Pensions, meaning the teachers themselves are in harm’s way.
Large amounts of ISD bonds are purchased by institutions as a collateral requirement.
AAA Credit Ratings based on “ Unlimited Ad Valorem Pledges” or “ Unlimited Tax” (no such thing). Unless you have Unlimited earnings there is no such thing as Unlimited tax.
Bond debt has skyrocketed and mathematically cannot be paid back as is required in law. The underwriting of the bonds cannot be backed up based on fundamental math.
ISD Bonds are insolvent which has bankrupted cities and schools & property owners.
The interest to service $2 billion in Bonds over 30 years is approximately $9 billion in additional cost not including new bonds being raised annually.
This issue is playing out not just in Texas but across the U.S.

3. There is No Recourse or Due Process, as Property Rights have been stripped which violates 5 ^th & 14 ^th Amendment.

CAD (Central Appraisal District) is responsible for accurately valuing our homes. They can’t and don’t as the software being used is designed to allow fraud to be committed.
ARB (Appraisal Review Board) is supposed to support property owners in protesting their home value when a property owner does not agree with the CAD’s home value. The ARB (or Board of Equalization) is an illusion of legitimacy. They are incapable in law of determining fraud or understanding USPAP.
The CADs often use renegade value software that falls out of legal requirements in order to back the CAD’s pre-determined budget into a home value. This allows them to achieve higher revenue and has nothing to do with USPAP – Uniform Standards of Professional Appraisal Practice. See partial list of violations of law by the CADs and school districts.
The CAD and the ARB are working together, often to bully and confuse homeowners into accepting an overvaluation. The ARB (Appraisal Review Board or Board of Equalization) is an illusion of legitimacy working for a CAD that commits fraud for its owner, being the School Districts that commits bond fraud.
The CAD & School Districts claim immunity and use the Appraisal Review Board, as the exclusive remedy, which is a Constitutional issue because the ARB does not have the authority or ability in law to determine fraud thus the ARB itself is aiding and abetting fraud. In Federal law, there is no immunity for fraud .
The Protest process is not fair, or uniform and equal, as required under law, in the Texas Constitution, or the majority of State’s Constitutions, and certainly not under the U.S. Constitution.
All past and future data has been intentionally corrupted by using software that allows the hand overwriting of values, meaning the software is designed to allow fraud to be committed .

SOLUTION A: Bill to Repeal all Property Tax in Favor of the Uniform States Sales Tax (follow link)

Immediately end all property tax in favor of the Uniform States Sales Tax
In Texas, Sales Tax goes up to a maximum of 15% for 3 years until stabilization. There should be 0 (zero) bonds remaining after 3 years. And if they cannot be paid off in 3 years, the bonds and schools districts are put into bankruptcy and the liability removed from the back of all property owners, thus all property tax repealed. Then after year 3 years the Sales Tax drops to 11-12% moving forward because the fraud has been removed from the system.
No impact on food and medicine except for potential deflation.
STOPS all Bonds and requires ISD’s turn over all the accounting, including the bond CUSIP’s and amortizations schedules, within 60 days of passing the Bill to Repeal All Property Tax.
Within 60 days ISDs must prove ability to pay off all Bonds within 3 years or face immediate Bankruptcy.
Eliminates Billions in agencies’ waste fraud and abuse, thus reducing the revenues needed.
Puts money back into the classrooms and promotes quality teachers and higher teacher pay.
Requires transparency to the public, fully visible via transparent on-line check registers from the State Comptroller’s office.

All property owners will own their land and thus restore the amortization schedule from which to build their equity rather than having that equity stripped via fraudulent real estate tax and fraudulent school district bonds. The property owners will end up owning their property in 20 to 30 years when the mortgage is paid off so that they have a retirement vehicle.

SOLUTION B : Prosecution of those who participated in the creation of software designed to rig votes and data using sophisticated algorithmic manipulation being Voter Shifting Algorithms (VSA) by means of Hidden Vote Distortion Logic ( HVDL ) that produces controlled, yet organic-appearing results which then tries to cover its tracks leaving behind artifacts known as Lockstep Parallel Motion ( LPM )

1. The 2nd Amendment to the Criminal Complaint exposes the existence of an algorithm so heinous and treasonous that politically opposed voters are changing their minds in perfect unison.

The analysis of the certified Cast Vote Record shows that for the first 85% of mail-in ballots, the two opposing groups changed their minds at the exact same proportional rate. For example, as A voters' opposition dropped from 80% to 60%, B voters' opposition simultaneously dropped from 60% to 45%.

As support for the proposition ebbed and flowed, the gap between the two groups remained perfectly constant. The analysis states that B voters shifted their Yes/No ratio at exactly six-tenths the rate of A voters, maintaining a perfect linear relationship.

It's as if two groups, who couldn't possibly coordinate, were moving in perfect formation. The analysis explains this phenomenon, called "Lockstep Parallel Motion," with a powerful observation:

"That which is imposed upon an entire county is imposed upon every population within it — compelling all people, in all places, to do the same thing at the same time. And what do we call all populations doing the same thing at the same time? Synchronization."

2. There’s a Simple Test to See if These Patterns Are Natural—and They Almost Always Vanish.

How can we know if a pattern like this is a genuine demographic trend or something artificial? The analysis proposes a powerful method called the Precinct-Preserved Shuffle Test (PPST). In simple terms, the PPST is like taking all the ballots and shaking them up, but with one crucial rule: each ballot is only shuffled with other ballots from its own precinct. This breaks any artificial sequence imposed during the count while preserving all natural geographic and demographic trends.

The test posits this simple question: “If we shuffle ballots only within their own precincts, does the miracle pattern survive?”

To measure the results, the analysis uses "sigma" (σ), a statistical term for how improbable an event is. A "5-sigma" result is the gold standard in physics for declaring a new discovery, meaning there's only a 1 in 3.5 million probability of it happening by chance.

When a X-County data is shuffled using the PPST, the lockstep pattern vanishes completely. The perfectly synchronized dance becomes random static. According to the analysis, the original, unshuffled result is a 12-sigma event—a level of improbability that is, for all practical purposes, statistically impossible to achieve by accident.

3. The Cause Isn't Voter Behavior, But a "Flip Function" Applied to Everyone.

If voter behavior doesn't explain the synchronization, what does? The analysis proposes a mechanism called a "Flip Function." The concept is explained using a "weighted coin toss" analogy. Imagine the system treats every "No" vote on the proposition not as final, but as subject to a hidden coin toss, whilst leaving the "Yes" votes untouched.

The "chance to flip" from 'No' to 'Yes' isn't constant; it changes rhythmically as more ballots are counted. For example, early in the count, a 'No' vote might have a 16% chance of being flipped to a 'Yes'. Later on, that chance might rise to 65%.

The most crucial point is that this function is applied uniformly across the entire county. It doesn't target specific parties, districts, or demographics. This uniformity is the proposed cause of the lockstep motion.

For instance, if an algorithm flips 25% of all 'No' votes to 'Yes', then "half of No-Votes for A and B voters, in all districts, will be flipped from No to Yes." Because every subgroup is influenced by the same invisible force at the same time, they all appear to "dance the same dance."

"The software doesn’t need to “aim” at each district. It just applies the same flip function to every ballot in the county, no matter who cast it or where it came from."

4. These Patterns Aren't Isolated—They Appear Across Different States and Election Cycles.

The findings from X-County are not unique. According to the source documents, similar lockstep patterns and other statistical anomalies have been identified in certified Cast Vote Records from multiple jurisdictions across the country.

The forensic analyses presented in this Article and the 2 ^nd Amendment to the Criminal Complaint makes a consistent claim and shows the pattern and practice: analyzing the sequence of certified vote data reveals repeatable, statistically anomalous patterns that cannot be explained by normal voter behavior or demographics.

These patterns are not based on interpretation but on direct visualization and mathematical testing of the state's own certified records.

Whether it's the appearance of "lockstep motion" where none should exist, or a conspicuous "lack of lockstep" where it should be expected, the research of Edward Solomon and Dr. Andrew Paquette argues these are identifiable, testable, and deeply unnatural phenomena. This leaves us with a story of treason. The official totals tell us who won, but the sequence of the votes tells an impossible story of how we got there.

SOLUTION C :

(i) The immediate cessation of all electronic voting machines and the voter shifting algorithms contained therein.

(ii) The immediate termination of all Central Appraisal Districts that use software that is designed to allow fraud to be perpetrated.

There is much more to be seen in the 2nd Amendment to the Criminal Complaint.

Counting Votes

Fri, 17 Apr 2026 18:35:18 GMT

Counting Votes

As computers quietly replaced paper and levers, private vendors, like Cronus and C.E.S. gained vast, opaque power over American elections.

A 1988 Article from the New Yorker

By Ronnie Dugger, October 31, 1988

https://www.newyorker.com/magazine/1988/11/07/counting-votes

Published in the print edition of the November 7, 1988 , issue.

D uring the past quarter of a century, with hardly anyone noticing, the inner workings of democracy have been computerized. All our elections, from mayor to President, are counted locally, in about ten thousand five hundred political jurisdictions, and gradually, since 1964, different kinds of computer-based voting systems have been installed in town after town, city after city, county after county. This year, fifty-five per cent of all votes—seventy-five per cent in the largest jurisdictions—will be counted electronically. If ninety-five million Americans vote on Tuesday, November 8th, the decisions expressed by about fifty-two million of them will be tabulated according to rules that programmers and operators unknown to the public have fed into computers.

In many respects, this electronic conversion has seemed natural, even inevitable. Both of the old ways—hand-counting paper ballots and relying on interlocked rotary counters to tabulate votes that are cast by pulling down levers on mechanical machines—have been shown to be susceptible to error and fraud. On Election Night, computers can usually produce the final results faster than any other method of tabulation, and so enable local officials to please reporters on deadlines and to avoid the suspicions of fraud which long delays in counting can stimulate.

Recently, however, computerized vote-counting has engendered controversy. Do the quick-as-a-wink, computerized systems count accurately? Are they vulnerable to fraud, as well—even fraud of a much more dangerous, centralized kind? Is the most widely used computerized system, the Votomatic, which relies on computer punch-card ballots, disenfranchising hundreds of thousands of voters?

It appears that since 1980 errors and accidents have proliferated in computer-counted elections. Since 1984, the State of Illinois has tested local computerized systems by running many thousands of machine-punched mock ballots through them, rather than the few tens of test ballots that local election officials customarily use. As of the most recent tests this year, errors in the basic counting instructions in the computer programs had been found in almost a fifth of the examinations. These "tabulation-program errors" probably would not have been caught in the local jurisdictions. "I don't understand why nobody cares," Michael L. Harty, who was until recently the director of voting systems and standards for Illinois, told me last December in Springfield. "At one point, we had tabulation errors in twenty-eight per cent of the systems tested, and nobody cared."

Robert J. Naegele, who is the State of California's chief expert on certifying voting systems and is also the president of his own computer consulting firm, has been hired by the Federal Election Commission (F.E.C.) to write new voluntary national standards for computerized vote-counting equipment and programs. Last spring, in San Francisco, at a national conference of local-election officials, I asked Naegele whether computerized voting as it is now practiced in the United States is secure against fraud.

He pointed a thumb at the floor. "When we first started looking at this issue, back in the middle seventies, we found there were a lot of these systems that were vulnerable to fraud and out-and-out error," he said.

I asked him whether he regarded as adequate the typical fifty-five-ballot "logic-and-accuracy public test" that is conducted locally on the Votomatic computerized punch-card vote-counting system—which about four in ten voters will use on November 8th—and he said, "No."

Would such a test discover, for example, a "time bomb" set to start transferring a certain proportion of votes from one candidate to another at a certain time, or any other programmers' tricks?

"Of course not," Naegele said. "It's not a test of the system. It's not security!"

The old mechanical machines prevent citizens from "overvoting"—voting for more candidates in a race than they are entitled to vote for—but the Votomatic systems do not. Not only can people using these systems overvote but election workers, if they are dishonest, can punch extra holes in ballots to invalidate votes that have been correctly cast or to cast votes themselves in races the voter has skipped. In the 1984 general election, about a hundred and thirty-seven thousand out of a total of 4.7 million voters in Ohio did not cast valid ballots for President—mostly, according to Ohio's secretary of state, because of overvoting. The computerized punch-card voting system is "a barrier to exercise of the franchise," and causes "technological disenfranchisement," Neil Heighberger, the dean of the College of Social Sciences at Xavier University, in Cincinnati, concluded in a recent study he made of the subject.

A federal judge, William L. Hungate, ruling last December on a lawsuit in St. Louis, declared that the computerized punch-card voting system as it has been used in that city denies blacks an equal opportunity with whites to participate in the political process. The suit was filed by Michael V. Roberts, a black candidate for president of the Board of Aldermen who in March of last year had lost to a white by a fourth of one per cent in a city election in which voting positions on ballots in the black wards were more than three times as likely not to be counted as those in white wards. Roberts, who was joined in the suit by the St. Louis branch of the National Association for the Advancement of Colored People, contended that computerized voting is such a relatively complex process that it is tantamount to a literacy test, and literacy tests have been prohibited by federal law as an unconstitutional burden on the right to vote. Judge Hungate found that in four local elections since 1981 voting positions had not been counted by the computerized system on anywhere from four to eight of every hundred ballots in black wards, compared with about two of every hundred in white wards (and also found that in the March, 1987, election the computerized returns from six per cent of the precincts had "irreconcilable discrepancies"). The evidence indicated that the computer had passed over the uncounted positions because of either overvoting or undervoting, which is failing to cast a vote in a race. The Judge ordered officials to count by hand all ballots that contained overvotes or undervotes and to intensify voter education in the black wards, but the city appealed, arguing that the racial differential does not always hold true in the city's elections. The Missouri secretary of state, Roy Blunt, called the order to recount the ballots by hand unfair and said that it could "make punch-card voting unworkable."

In Pueblo, Colorado, in 1980, suspicions about the vote-counting on punch-card equipment led to an investigation by a computer expert, but nothing was proved. In Pennsylvania, in 1980, two of three examiners recommended that the Votomatic punch-card system marketed by Computer Election Services (C.E.S.), of Berkeley, California, be rejected, on the ground that it was fraud-prone, but the secretary of the Commonwealth of Pennsylvania approved it anyway. In Tacoma, Washington, in 1982 and 1987, in the only known local referendums on computerized voting, citizens' crusades, led by a conservative Republican, Eleanora Ballasiotes, that focussed on the vulnerabilities of computers to fraud resulted each time in the voters' three-to-one rejection of the systems that their local officials were about to buy. A group of defeated Democratic candidates in Elkhart, Indiana, sued local election officials in 1983, alleging that computer-based irregularities had occurred in a 1982 election; they have since lost three lawsuits, and a fourth one continues. In Dallas, Terry Elkins, the campaign manager for Max Goldblatt, who in 1985 ran for mayor, came to believe, on the basis of a months-long study of the surviving records and materials of the election, that Goldblatt had been kept out of a runoff by manipulation of the computerized voting system. The attorney general of Texas, Jim Mattox, was impressed by the charges and conducted an official investigation of them. Dallas authorities have declared that since there is no evidence of criminal behavior the case is closed, but Mattox has refused to close it. "I do not think that there were adequate explanations for the anomalies," he told me, in Austin.

C omputer programmers working for the private companies that sell election equipment write their programs in higher computer languages or the intermediate assembly language, and these are translated or compiled into the binary language of ones and zeros which computers understand. The original programs, which are centrally produced, are commonly called "source codes;" only a few local governments own and control the source codes that are used in their jurisdictions. According to Jack Gerbel, a founder of C.E.S., who has sold more computerized vote-counting equipment than any other individual in the country, about half the time the companies' programmers also write the codes that "localize" (or "initialize") vote-counting systems for the specific elections of each jurisdiction. The source and local codes together tell the computers how to count the votes. Local public tests may or may not adequately test the local codes, but, as Naegele said, they do not test the source codes.

The election-equipment companies, which thus both sell and program the computers that tabulate public elections, have long contended, in and out of court, that they own the source codes and must keep them secret from everyone, including the local officials who conduct elections. In 1985, Jack Kemp (no relation of the congressman), the president of C.E.S., which was then the leading election-equipment company in the country, warned in so many words that an outsider who got the company's source code could compromise elections with it. Through an affidavit that Kemp furnished for a lawsuit in Charleston, West Virginia, the company affirmed that the security of the vote-counting in C.E.S.-equipped jurisdictions depended in large measure on its retention of the secrets of the code, and that there would be "a grave risk" to this security if the defeated candidates were permitted to see the code. "The significance of the company's proprietary interest in its software is incalculable from our perspective," Kemp asserted.

That significance is incalculable from the voter's perspective, too. Insofar as source codes have not been opened to examination on behalf of the public—and most have not—instructions to computers on how to count votes appear to have become a trade secret. Only a few states have demanded copies of the source codes, and only in the last year or two have any states examined them. Thus most of the local officials who preside over computerized elections do not actually know how their systems are counting the votes, and when they officially certify that the election results are correct they do not and cannot really know them to be so.

After systems that use computer punch cards as ballots have counted the votes, manual recounts of the holes in the punch cards can be demanded, provided the cards have not yet been destroyed by local officials—as is permitted by most local laws after a specified period of time. But in a new computerized system, "direct-recording electronic" (D.R.E.), which is becoming more widespread, there are no individual ballots, and, the way these new machines are now being used in many jurisdictions, recounts are impossible, for the program destroys the electronic record of each voter's choices the instant after it counts them.

The dominant company now in the sale and programming of computerized vote-counting systems for public elections, Cronus Industries, of Dallas, is better known as its sole and wholly owned subsidiary, the Business Records Corporation (B.R.C.). Cronus/B.R.C. has accused the R. F. Shoup Company, of Bryn Mawr, Pennsylvania—one of its rivals for a forty-million-dollar voting-equipment order from New York City—of infringing B.R.C. patents in the very D.R.E. vote-counting machine, the Shouptronic, that Shoup is trying to sell to New York. In a lawsuit filed last November in Philadelphia, Cronus, on whose equipment between thirty and forty-five million votes will be counted this year, has also sought to discredit Shoup, on the basis of a 1979 conviction of Ransom Shoup II, the president of the company, of two federal felonies—conspiracy and obstruction of justice—in connection with an F.B.I. investigation of an election in Philadelphia that had been counted on mechanical-lever machines. For these offenses, Ransom Shoup was fined ten thousand dollars and given a three-year suspended sentence. Counterattacking, the Shoup firm, whose equipment will tabulate an estimated million and a half votes on November 8th, has accused Cronus of reaching for "a virtual monopoly on the entire business of supplying voting equipment for use in political elections in the United States" and has alleged that the Cronus vote-counting systems that are in use "inherently facilitate the opportunity for various . . . forms of fraud" and "create new and unique opportunities for fraudulent and extremely difficult-to-detect manipulation and alterations with respect to election results."

In 1985 and 1986, Cronus bought Computer Election Systems and also eight smaller election-equipment and election-printing firms, while selling off three other subsidiaries, thereby transforming itself, in eighteen months, from a small conglomerate of disparate industrial businesses into the titan of the computerized-vote-counting business.

Cronus is now responsible for most C.E.S. systems that are still in service and for a computer-based "mark-sense" voting system that B.R.C. has sold in the past few years. B.R.C. also sells computerized voter-registration systems; election supplies, including, this year, perhaps a hundred and sixty million punch-card ballots; election assistance and service; and other computerized information services for local governments. C.E.S. used to take pride in publicizing the millions of votes cast on its machines (a total of three hundred and fifty million between 1964 and 1984), and after Cronus bought C.E.S., in 1985, C. A. Rundell, Jr., then the chairman and chief executive officer of Cronus, told a reporter that his company had about forty per cent of the election-service market. But when I asked Rundell earlier this year how many votes Cronus systems will count in 1988 and in which jurisdictions, he refused to say. "We certainly are not going to provide you with a list of customers and the kinds of systems they have," he declared. "We've got to ask how much competitive intelligence we divulge to our competition." He did volunteer that the total for votes counted by Cronus systems was below thirty-five million. Officials at R. F. Shoup, however, seeking to prove that Cronus is a monopoly, charge that Cronus systems will count fifty or sixty million votes on November 8th. In any case, Cronus and C.E.S. systems are used by the voters in such cities as Los Angeles, Chicago, Detroit, Houston, Phoenix, Miami, Seattle, Minneapolis, Cincinnati, and Cleveland.

On Election Day, about one in every three American voters still pulls down the lever on an old thousand-pound mechanical-lever machine, and about one in every nine still marks the old-fashioned paper ballot that is counted by hand. In the past two years, however, more than eighty United States counties have abandoned lever machines, and more than ninety have abandoned paper ballots, the replacements being in most cases either D.R.E. or mark-sense systems. In mark-sense systems, which are also called "optical-scan," computers employing light or electrical conductivity count votes that have been cast on ballots with pencils or markers. Mark-sense is now used by about eight per cent of the voters; a multi-punch-card, count-the-holes computer system called Datavote, which is sold by Sequoia Pacific Systems Corporation, of Exeter, California, is used by about four per cent; and electronic D.R.E. systems, the newest computerized voting technology, are used by about three per cent. "The election business is shifting into the mark-sense and the electronic [D.R.E.] stuff," according to Richard J. Stephens, the president of a small election company in Escondido, California, who has been in the field since 1966. "The punch-card systems will remain out there, but B.R.C. is not trying to sell punch-card anymore—it's selling mark-sense now."

T he private business of counting votes in public elections can be realistically understood only as a small, if extremely important, segment of the computer industry itself, and thus a business that has both the strengths and the weaknesses of the over-all industry. The computer industry's strengths—astoundingly vast and rapid computational power, the automation of trillions of transactions—have been well known for some time, but the weaknesses have come to be understood only lately. In recent years, the vulnerability of computers to tampering and fraud has become a commonplace in many industries. Computer operators do not leave fingerprints inside a computer, the events that occur inside it cannot be seen, and its records, and printouts can be fixed to give no hint of whichever of its operations an operator wants to keep secret. The practical problem of the computer age is invisibility. Hackers—adventurous programmers—penetrate corporate and governmental computers for fun and jimmy the programs in them for gain. "Electronic cat burglars" have stolen billions of dollars from banks and other businesses—a billion a year by a recent estimate of the American Bar Association. By means of computer fraud employees have raised their salaries and students have raised their grades. Caltech students printed out more than a million entry blanks for a McDonald's contest and won a Datsun station wagon. Employees of a federal agency diverted tens of thousands of dollars to nonexistent employees. In the infamous 1973 Equity Funding Corporation fraud, company officials and other employees typed into their computers names of about sixty-four thousand people who didn't exist as holders of more than two billion dollars' worth of life-insurance policies that didn't exist but were "resold" to reinsurers. "Electronic dead souls," the writer Thomas Whiteside has called these fabricated customers.

Whether or not elections have ever been stolen by computer before, some citizens and some officials are asking if it could happen in the future. Could a local or state office or a seat in the United States House of Representatives be stolen by computer? Might the outcome of a close race for a United States Senate seat be determined by computer fraud in large local jurisdictions? Since, under the state-by-state, winner-take-all rules of the electoral college, a close Presidential election can be decided by relatively few votes in two or three big states, could electronic illusionists steal the Presidency by fixing the vote-counting computers in just four or five major metropolitan areas? Could people breaking into or properly positioned within a computerized-vote-counting company, acting for political reasons or personal gain, steal House or Senate seats, or even the White House itself?

Randall H. Erben, the assistant secretary of state in Texas, who served as special counsel on ballot integrity to President Ronald Reagan's campaign in 1984 and, in 1986, headed a similar group for Governor Bill Clements, of Texas, told me in Austin, "I have no question that somebody who's smart enough with a computer could probably rig it to mistabulate. Whether that has happened yet I don't know. It's going to be virtually undetectable if it's done correctly, and that's what concerns me about it." Willis Ware, a Rand Corporation computer specialist, warned those attending a 1987 conference on the security of computer-tabulated elections, "There is probably a Chernobyl or a Three Mile Island waiting to happen in some election, just as a Richter 8 earthquake is waiting to happen in California." The chief counsel of the Republican National Committee, Mark Braden, told me that he has yet to see a proved case of computer-based election fraud, but added, "People who work for us who know about computers claim that you could do it."

Some officials concerned with elections think about the unthinkable in their field; namely, the stealing of a Presidential election by computer fraud in the vote-counting in metropolitan areas of key states. Steve White, the chief assistant attorney general of California, said to me last spring in Sacramento, "It could be done relatively easily by somebody who didn't necessarily have to be all that sophisticated. Given the importance of the national election, sooner or later it will be attempted. There is a real reluctance to concede the gravity of the problem." Jim Mattox, the Texas attorney general, while discussing Cronus/B.R.C./C.E.S., exclaimed to me in dismay a year ago, "One thing is clear: one company in the United States should not have as big an impact on elections as this company has got. Nobody should have in a democracy. The right to vote is too sacred."

C omputers can be ordered to transfer votes from one candidate to another, to add votes to a candidate's total, to determine an outcome in accordance with a specified percentage spread. All the computer experts I have spoken with agreed that no computer program can be made completely secure against fraud. Where they differed was in their characterizations of this fact. Local election officials and election-equipment-company specialists, executives, and salesmen usually took the position that state certification procedures and local logic-and-accuracy tests provide enough security for reasonable assurance that elections are honestly counted. The independent computer specialists I interviewed were divided, generally speaking, into two camps. One, led by Roy Saltman, of the National Bureau of Standards, Robert Naegele, and Lance Hoffman, of George Washington University, sees local-election theft by computer as possible, but stresses the fact that no case of program tampering has been proved. This camp attributes the manifold problems of computerized vote-counting entirely or almost entirely to inadequacies in the administration of elections and insufficient testing of the equipment, and regards the theft of the Presidency by computer as, in effect, impossible. The other, led by the Pennsylvania voting-systems examiner Michael Shamos and the computer specialists Howard Jay Strauss, of Princeton, and Peter G. Neumann, of S.R.I. International, a nonprofit research institution in Menlo Park, California, emphasizes the ease of concealing theft by computer "without a trace;" characterizes local elections as very vulnerable to fraud; and regards the theft of the Presidency by computer as entirely possible.

Should citizens delegate the job of vote-counting to technicians? Most people do not know enough about computers to be able to tell what is happening during computerized vote-counting, even if they are looking straight at the card readers and computers. In Dallas last year, during a conference of citizens concerned about this issue, David T. Stutsman, an Indiana attorney with experience in contested-election cases, said, "In traditional elections, the people in your neighborhood, your neighbors, had the responsibility and the legal duty to supervise an election. They counted the votes. The precinct officials don't count the votes anymore. The power—that is, political power—has gone to the venders, to the venders' representatives, and to the people that operate those machines." He also said, "You're putting more power in the hands of fewer people."

Demands for much stricter security in computerized elections appear to be gaining adherents in many quarters. Sometime after the November election, the National Clearinghouse on Election Administration, a grandly named four-person office in the F.E.C., will publish voluntary, but potentially influential, national standards for the security and accuracy of computerized elections. In a late-summer draft, the Clearinghouse proposed that the election-equipment companies place their source codes in escrow, the idea probably being that in the event of seriously disputed election results the codes could be obtained and examined by representatives of the public.

The evolution from counting paper ballots one at a time to counting as many as a thousand punch-card ballots a minute occupied about seventy years—a period that can be seen as having opened in 1892, when lever voting machines first appeared. Four years later, Joseph P. Harris, the inventor of the Votomatic system, was born, on a farm in North Carolina. In the First World War, Harris was a flying instructor, and afterward he helped pay for his doctorate in political science at the University of Chicago by flying the mail between Chicago and Cleveland in open-cockpit planes. A favored student of Charles Merriam, who was seeking to develop a scientific basis for understanding politics, Harris became a teacher and a scholar who over four decades wrote many books on politics and elections. He refined and championed the process of permanent voter registration, and it was largely through his efforts that permanent registration replaced the earlier system of recurring reregistration. In the nineteen-thirties, drawn to Washington by the New Deal, he served on committees advising President Roosevelt on economic-security and administrative-management issues.

Early in his career, Harris saw for himself that the politicians in big cities stole votes easily. Touring voting places during a Chicago election in the nineteen-twenties, he spotted a shotgun at one precinct and also noted "a good deal of corruption that you could see." In a 1934 book, "Election Administration," he recounted the details of proved ballot-stuffing, repeat votes cast by paid drunks (sometimes fifteen or twenty times), and shameless miscounting in Philadelphia, Pittsburgh, and Cleveland, and he quoted Boss Tweed's testimony before the Board of Aldermen in New York City that he had routinely instructed his Tammany Hall men to "count the ballots in bulk, or without counting them announce the result in bulk, or change from one to the other, as the case may have been," and Tweed's further statements that "the ballots made no result; the counters made the result," and "I don't think there was ever a fair or honest election in the City of New York."

During several summers in the nineteen-twenties, Harris supervised the installation of lever voting machines made by the Automatic Voting Machine Company, of Jamestown, New York (he gave up the job with A.V.M. because he felt that it tainted him somehow). He was struck by the machines' complexity, weight, and cost, but he also realized that the lever machines represented a big step forward in a long process. People had voted with kernels of corn or black and white beans in Massachusetts in the sixteen-forties, viva voce or by a show of hands in pre-Revolutionary times, and on paper ballots that they wrote out for themselves or had written out for them, then on printed ones, then on the secret and official printed "Australian" ballots that were adopted generally in the second half of the nineteenth century. When a voter using the mechanical machine presses down a lever beside a printed choice, the return of the lever to its original position causes a tenth of a turn on a tens counter, which is connected to a hundreds counter. A.V.M. was the first large firm in the field. Samuel R. Shoup, the grandfather of the president of the present R. F. Shoup Company, organized the principal rival to A.V.M., the Shoup Voting Machine Corporation (S.V.M.), in 1905.

By 1928, a lever machine was used by about one of every six American voters. In the early thirties, while he was a professor of political science at the University of Washington, Harris began to have constructed in the university's engineering shops a gizmo that he thought of as the application of the principle of the player piano to the mechanical voting machine. ("The computer was beyond my dreams," he said later.) One voted on Harris's device by depressing keys that made perforations in a paper roll, and in due course the machine would automatically count the perforations and print the results. A Seattle businessman went halves on it with Harris, and in 1934, after much difficulty, the moonlighting professor won a patent, but by then he understood that financially the project was far beyond him and his friends. He invited "the I.B.M.," as he called the International Business Machines Corporation, to develop and market his device, but, in 1937, the company turned him down. On the eve of the Second World War, he was still tinkering with the machine—considering entering votes on the paper roll as lead marks that could be read electrically, or even, as he wrote to I.B.M.'s director for market research in 1939, "on a punch card."

For Harris, as for nearly everyone, the war intervened, and he taught management and administration at a school for military officers. One day in the early nineteen-sixties, though, when he was teaching at the University of California at Berkeley, a former student asked him if he had ever thought of using a standard I.B.M. computer punch card for vote-recording. "I hadn't, but I did," Harris wrote later; he had forgotten his own idea of 1939. Soon after he had been asked about the I.B.M. card, the election chief of Alameda County, California, complained to him that the lever voting machines could barely handle the current ballots, which kept growing longer. "Joe," he said, "what we need is some kind of a simple mechanical device that can be related someway to a computer." In that context, the election official talked about the I.B.M. Port-a-Punch, a hand-held device for punching out the rectangles on the I.B.M. card. "I started to think," Harris said later. After a cataract operation in 1962, as he lay bedridden for two weeks with pads taped over his eyes, he had a eureka experience: he suddenly visualized "a computer card in an inexpensive holder with a permanent election 'book' premarked with candidates and issues."

The founding president of C.E.S., Robert P. Varni, told me what happened next. We were in his apartment in San Francisco, a twenty-third-floor Nob Hill penthouse looking out across the great sweep of the bay, the islands, and the bridges. "I was working for I.B.M.," he said. "One of my accounts was U.C. Berkeley. I got a call from Joe Harris. He asked about the I.B.M. Port-a-Punch. 'I have an idea, and I'd like to borrow it for a while,' he said. He didn't want to buy it. It was an eight-dollar item. He wanted to borrow it, along with about a dollar and a half's worth of punch cards."

Assisted by William S. Rouverol, a retired professor, who was an engineer, Harris cobbled together his ingenious new device for computerized vote-counting. "After a while," Varni went on, "he called and said, 'I've done something interesting with that Port-a-Punch you lent me.' I went to his office and he showed me the first prototype of the Votomatic." Harris said later that he had derived the name of his invention from the Shine-O-Matic, a shoeshine machine he had read about in the Sunday paper.

Varni is now the trim, prosperous chairman of a firm that computerizes police and fire departments. As he recalled those early days, he often broke into a warm smile. Harris didn't know anything about computers and needed someone who did, so, in 1963, Varni sent him to Kenneth Hazlett, an athletic young man who was the foreman of the university's computer room. Hazlett had had only two years of higher education, at Oakland City College, but he had been introduced to tabulating machines during a two-year spell in the Navy, and after taking an I.B.M. course in programming he had begun teaching the skill to some of his staff at Berkeley.

"Joe Harris walked into my office with a handful of these Port-a-Punch cards and wanted to know if they'd go through a computer," Hazlett recalled. "I walked him outside my office to a small I.B.M. computer, and from the console I keyed in about a three-instruction loop that would simply flush these cards through the card reader. And they went sailing through. Joe Harris just lit up!" Harris realized that he could use the cards themselves as ballots. He showed Hazlett a mockup of the prototype, and, Hazlett said, "I agreed to do him a real program." To produce and sell his invention, Harris then formed Harris Votomatic, Inc., with a quarter of a million dollars he raised from about two dozen of his colleagues at the university, including Hazlett, and from Varni. Having retired from teaching, he then began driving around the West trying to sell his invention.

Devising the early programs for what became the C.E.S. systems, Hazlett gave next to no attention to security against the kinds of fraud that could be concealed in the computerized system itself. "There are two problems," he told me last spring in his sunlit apartment in Corvallis, Oregon. "One is getting the system to work the way you want it to, and the other problem is avoiding fraud. We concentrated mainly on the first. Then, beyond that, we worked with county and state governments, coöperated in developing procedures for logic-and-accuracy-testing programs—which is running ballot cards having known votes through and verifying the totals that are produced, and even the counting by hand or machine of selected precincts post-election to look for fraud or error. And that's about all we can do."

Does Hazlett have confidence now in the security of computerized elections against fraud?

"Not a hundred per cent," he said. However, he added, he knew of no elections that had been stolen by computer.

Is a logic-and-accuracy test actually a test of a system's accuracy?

"Obviously it isn't as far as you could go in testing the program," Hazlett said. "It's a very simple test. If a programmer had the necessary programming tools, he or she could get around that kind of test—of course. Knowing that the deck is fifty-five cards, you could trigger some function to come into service after fifty-five cards. Use your imagination—there are any number of things you could do. It's not an easy problem."

According to Donald G. Baumer, an engineer who worked with Hazlett, both of them realized that the Votomatic counting system could be manipulated—for instance, through the toggle switches that were on the front of a Data General Nova computer—but it was assumed that nobody would do this, because anybody who tried it could be seen. In the workshop at his small election-equipment company, near San Francisco, Baumer explained, "The concept was to devise a program that no one could ever get to—you would have to be a knowledgeable person, you would have to have the source code, and you would be very visible, standing in front of a computer throwing switches."

As Harris got older, he realized that he could not wheel around the country selling Votomatics forever. Managers who were looking for new products had taken over Varni's unit at I.B.M., and in 1965—Varni having disclosed his investment—I.B.M. bought the assets and patents of the Harris Votomatic and became for four years the nation's principal computerized-election-equipment company. Harris served I.B.M. as a paid consultant throughout the period.

"Glitches"—the term that company people seem to prefer for errors and accidents in computer elections—began to emerge in those earliest years. For example, in May, 1968, in Klamath County, Oregon, candidates' positions on the ballots were rotated in the precincts to avoid giving any candidate the unfair advantage of the top position everywhere, but the ballots got mixed up, and voters in more than a fourth of the precincts punched out rectangles for candidates they did not mean to vote for. Harris said later that as the new system became controversial, I.B.M. responded in some communities "by instructing its staff to describe the machine as the Harris Votomatic," not I.B.M.'s.

In Los Angeles County in the June, 1968, Presidential primary, deputy sheriffs were to carry voted punch cards from the precincts to two regional counting centers—one on Third Street, and the other at the I.B.M. Service Bureau Corporation, on Wilshire Boulevard, next door to the Ambassador Hotel. However, after Senator Robert F. Kennedy was shot that night at the Ambassador, police cordoned off a four-block area around the scene, and the tapes containing the totals from the Third Street center could not be brought into the I.B.M. building. The counting was not completed until nine o'clock the next morning. Reporters were irritated by the delay, and officials at I.B.M. began to wonder seriously about the risks of the election business, which, comparatively speaking, was providing only a small profit.

That November, in Missoula County, Montana, in the national contest between Hubert Humphrey and Richard Nixon, another difficulty arose. Joseph H. Chowning, who was an I.B.M. salesman then, told me not long ago, "Through a programming error in a few precincts, ballots cast for Nixon were counted for Humphrey or vice versa." In traditional Republican strongholds, Nixon was defeated, while Democratic redoubts went for him. In a precinct where both paper and punch-card ballots were used, Nixon swept the paper ballots, but the computer voted for Humphrey by a landslide. The error was caught immediately, Chowning said, but he and an I.B.M. public-relations man had to fly to Missoula to dispel the unease.

One other event, a singular one, came to Chowning's attention about this time. "Just before or after the 1968 election, there was an article or editorial in a small suburban Chicago newspaper that came out and said that the reason I.B.M. was in the business was to make Thomas Watson President of the United States," he recalled, referring to the chairman of I.B.M. "I'm guessing, but I'm sure it went right straight to Mr. Watson's desk." Ken Hazlett, too, has a vague memory of this. "I wondered at the time if T. J. Watson was interested in running for President," he told me.

Chowning went on, "Here I.B.M. had a product that guaranteed two or three per cent of its gross income and eighty to ninety per cent of its publicity, not all of it favorable." I.B.M. got out of the vote-counting business. By 1969, it had licensed five voting-equipment companies to sell the Votomatic: two in Illinois, one in New York, one in Tulsa, and C.E.S., which was founded by Varni and three other I.B.M. men—Chowning, Jack Gerbel, and Ken Hazlett (whom I.B.M. had hired to write programs for the Votomatic)—and which therefore had the great advantage of its executives' association with I.B.M.'s reputation.

V arni and his team at C.E.S. had a good run. By 1976, nearly seventeen million voters—more than a fifth of all those voting for President that year—entrusted their election decisions to C.E.S. counting systems.

The C.E.S. Votomatic punch-card system "has probably had more effect on the country than almost any other product," Varni said to me. Although today it is generally regarded as an outmoded technology, it is by far the most widely used method of counting votes by computer. The Votomatic is based on the assignment of a tiny, numbered pre-perforated rectangle on a standard eighty-column, twelve-row I.B.M. punch card to each candidate and the assignment of other rectangles to the "yes" and "no" positions on each question to be voted on. This punch card, covered with numbers but displaying no names of candidates and none of the propositions to be voted on, is the ballot. The vote recorder, which is the Votomatic, is a spined booklet listing the choices of the day in writing and mounted over a plastic mask that is designed to prevent voters from punching out any holes but the ones they are supposed to be able to punch. The voter slides the punch card underneath the booklet and then fits two holes near the top of the card onto two posts that are intended to keep the card properly aligned under the booklet. Alongside the choices printed on each page, arrows point to holes that match numbered rectangles on the underlying card. The voter turns the pages and, using a simple stylus attached to the device by a chain, punches out the rectangles that, as holes in the punch card, express his or her choices.

After the polls close, stacks of the voted punch cards are fed into card readers, in each precinct or in one central counting place, depending on the preference of the officials of the jurisdiction. A blower in each reader creates an airstream and fluffs up some of the cards at the bottom of the stack; a pump creates a vacuum; and a spinning cylinder attached to the pump seizes a ballot and flings it past a light whose beam flicks through each punched-out hole, the cards whizzing through the reader at a rate of up to a thousand a minute. If the spinning cylinder doesn't grab two ballots at a time, if the minute punched-out rectangles of cardboard have separated properly from the cards, and if the computer underneath and connected to the card reader has been programmed correctly, the computer then quickly and accurately tabulates the votes; that is, counts according to its location each pinpoint of light that twinkles through a card for a millisecond.

The punched-out scraps, which have come to be called "chad," are supposed to be forced between two vertical rubber strips underneath the ballot and into a chad box. Sometimes, however, a chad does not break completely free from the card and becomes a "hanging chad," and sometimes voting-hole rectangles are merely indented by the voter's stylus. "Hanging chad has been with us since the invention of the Votomatic," Hazlett told me. C. A Rundell, of Cronus, informed me during an interview in his office in Dallas last fall that because of the chad problem, and also because of wear and tear on the ballots, vote totals may not change the first time ballots are run through the card reader, and probably won't the second time, but the third or fourth time they may change, "and then you've lost your audit trail." The inexact science of divining what the voter intended in the case of a mere indentation or whether the card reader counted a hole that was partly or wholly blocked by a hanging chad has been called "chadology."

Presumably, most of the elections counted by the C.E.S. systems went smoothly ("People don't want to read about a good election," Jack Gerbel told me in September), but the company did have problems. In the 1970 primary in Los Angeles, voters in some precincts voted for the wrong candidates because of incorrect rotations; in other precincts ballot pages were missing. A computer program did not record totals on a hundred of its counters. Ballot cards jammed in the card readers and had to be duplicated by election workers—clerks were seen poking holes in punch cards with pencils. The central computer stopped or was stopped six times during the counting; and it was discovered only after the counting that more than five hundred precincts had been overlooked.

In 1970, the election commissioners in St. Louis, who were considering buying the Votomatic system, asked the accounting firm Price Waterhouse to evaluate it, with devastating results. Security controls on the Votomatic would be "more easily subject to abuse" than those on the mechanical machines in place, the firm said. Candidates' names could be misaligned with the rectangles on the ballot "by manipulation of the ballot book pages' printing or positioning, by manipulating the positioning of the punched card used to record the vote, or by manipulation of the program used to tabulate the vote," the report continued. "It is possible to write a program in such a way that no test can be made to assure that the program works the way it is supposed to work. . . . It is possible to set card readers to misread the information punched into the cards. It is possible to have instructions in computer memory to call in special procedures from core, tape, or disk files to create results other than those anticipated. . . . There is no practical way to assure accuracy of the proposed computer tabulation short of complete duplicate processing on third party computers with reproduced ballot card decks and third party control programs." Gerbel, who was taking over the C.E.S. sales effort in major jurisdictions, responded with a long recitation of the customary tests and safeguards, and also emphasized the system's acceptance in fifteen states, discounted "information supplied by competitors," and concluded, "For six years, the personnel of C.E.S. have answered the comments made in this report by conducting successful Votomatic elections."

I n 1977, C.E.S. was bought out by Hale Brothers Associates, a San Francisco investment company controlled by Prentis Cobb Hale, Jr. When his family acquired C.E.S., through a "friendly cash offer," for twelve million dollars, Prentis Hale, an influential Republican who was given to partridge-hunting with General Franco in Spain, was best known as the Hale in Carter Hawley Hale (C.H.H.)—the nation's seventh-ranking chain of department stores and the largest chain in the West. The year Hale bought the election company, C.H.H. earned fifty million dollars on sales of a billion and a half dollars.

A couple of years later, C.E.S. survived an investigation by the antitrust division of the Justice Department. "We became the target of a criminal grand jury," David L. Dunbar, the company's president at that time, told me recently. The investigation lasted more than a year, and the company turned over a whole file cabinet of records to the Justice Department. The investigation was dropped very early in 1981—in January or February, Dunbar recalled, adding, "I used to kid people we had to get Ronald Reagan elected to get this thing killed.”

As the eighties opened, C.E.S. was the unchallenged leader in the business of computerized vote-counting equipment. In 1980, C.E.S. systems were in place where about thirty-five million Americans were registered to vote, and they counted about three out of ten of the votes that were cast in the United States. Two years later, C.E.S. equipment tallied thirty-six per cent of the votes in the country. As of November 6, 1984, nine out of twenty votes—44.2 per cent—were counted on C.E.S. equipment in a thousand and nineteen jurisdictions in forty states. To put this a different way, the electronic technology made and marketed by one small company housed in an industrial building near San Francisco Bay counted the votes that were cast in more than sixty-four thousand precincts where almost forty-seven million Americans were registered to vote.

The period 1977 through 1986, when C.E.S. for the most part dominated the computerized-election business, was a time of technical mishaps and rising suspicion. A precursor of the serious breakdowns that lay ahead had occurred in a legislative race in Los Angeles in 1976. The outcome was reversed twice—once by a machine recount, the second time by holding every one of the hundred thousand ballots up to a light and counting the holes one by one. "Hanging chad" and "bulging chad," as the indented tabs were sometimes called, were blamed for shifts of tens of votes in both directions.

In 1978, a candidate for comptroller of the State of Illinois refused to believe he had lost Madison County by a large margin, and it turned out, according to Michael Hamblett, a member of the Chicago Board of Elections, that the totals had "flipped—here was a computer flip-flop."

That same year, in a statewide recount for secretary of state of Ohio (which Mark Braden, the present general counsel of the Republican National Committee, helped to conduct), only sixteen votes changed out of about three million. But overvoting on punch-card ballots was beginning to trouble Ohioans. Anthony Celebrezze, Ohio's secretary of state, estimating that about fifty-five thousand voters had had their votes invalidated in this way, asked, "Are they being partially disenfranchised by some peculiarity of the equipment itself?"

In El Paso, Texas, the winner of a 1978 school-board race, Marvin Gamza, was deprived of his victory when the computer failed to count votes cast for him in three precincts, because ballot layouts from an earlier election had been used in them. Suspicions were voiced that the mistake had been deliberately left uncorrected, and the federal judge who heard the case, John H. Wood, was angered when he learned, from the television news one night, that some of the relevant ballots had been burned. He concluded that "a willful effort" had been involved in the error, rejected the claim of the putative winner, and installed Gamza on the school board. But Judge Wood was overruled on appeal, because Gamza had filed his protest too late. "The winner lost," said Malcolm McGregor, Gamza's lawyer, but McGregor doubted whether the mixing up of the layouts was premeditated, because, he said, "a baboon would not have tried to steal the election that way."

In 1980, computerized vote-counting faltered seriously in a number of jurisdictions across the country. A study by the city clerk of Detroit concluded that in a primary conducted on the C.E.S. punch-card system, which the city had just installed, votes on one out of every nine ballots cast had been invalidated—fifteen thousand in all—because people had tried to vote in two parties' primaries.

In that same year, when a mark-sense system sold by Martel Systems, of Costa Mesa, California, was used for the first time in Orange County, California, a Republican stronghold, there was a four-day delay in the count. On Primary Night, more than fifty precinct-level memory cartridges had broken down, and—because of programming errors, it was explained—the computers had given about fifteen thousand Democratic-primary votes meant for delegates for Jimmy Carter or Edward Kennedy to delegates for Lyndon LaRouche and Jerry Brown.

Montana law permits voters to demand paper ballots, and in Missoula (where votes for Humphrey and Nixon had been interchanged in 1968) as many as thirty per cent of the voters chose to vote this old-fashioned way. Still in this same year, 1980, card readers broke down in jurisdictions in Michigan, Arkansas, Indiana, and Utah. In Salt Lake City, a central card reader started "putting out jumbled numbers on about three out of every hundred ballot choices," according to a news report. In a township in Ohio, two tax proposals were switched; the voters would have taxed themselves five times as much as they wanted to if the error hadn't been discovered after the voting. In Custer County, Nebraska, the county clerk said that a count on a C.E.S. system concerning a school-closing issue showed more people voting than were registered. The computer had also refused to read some ballots and had read only parts of others. In Bradenton, on the Florida Gulf Coast, a seventh of the county's precincts had to be counted twice, because "soggy, warped, and mangled ballots" occasionally jammed the computers. Directly across the panhandle, at Fort Pierce, on the Atlantic, new computerized machines counted Democratic ballots well enough but refused to accept Republican ones. "It was awfully strange," the supervisor of elections, James Brooks, was quoted as saying. "Those damn machines must have been built by the Democrats."

In San Antonio, Texas, in perhaps the most consequential breakdown in 1980, it was discovered that the C.E.S. program that counted votes in the Presidential election in Bexar County could not tally more than nine thousand votes for any race, so the computers had not counted many of the votes cast for Ronald Reagan and two other Republican candidates. The official post-election canvass found that sixteen-hundredths of a per cent fewer total votes were cast than had been reported on Election Night, whereupon the San Antonio Express noted, "As San Antonio moves into the computer age, the slogan of the universal suffrage movement becomes, 'One man, 0.9984 vote.' ” The recount dragged on for several weeks, with local politicians pointing fingers at each other. Mike Greenberg, a columnist for the Express, learned that election officials had taken unmarked ballots home overnight. "Even already marked ballots could be tampered with," he went on to say, continuing, "Anybody with a straightened-out paper clip could punch out a few more holes to either spoil a ballot with the 'wrong' votes or cast 'right' votes in races ignored by the legitimate voter." In due course, Bexar County returned to lever machines.

A candidate for the school board in Carroll County, Maryland, in 1984, T. Edward Lippy, finished third, with about six thousand votes. When, in obedience to state law, the voted C.E.S.-system ballots were taken to an adjoining county to be recounted on a different computer system, about twelve thousand five hundred uncounted votes were found, and it was learned that in fact about nineteen thousand citizens had voted for Lippy. He was proclaimed the winner. The error was explained as a slipup by a local data-processing official. ("It was my mistake," he said.) He had inadvertently replaced the correct C.E.S.-provided program with a test program that would not count two votes if they were punched in one column on the ballot, and most of the voters who favored Lippy had also voted on a home-rule proposition in the same column with the numbered rectangle assigned to votes for Lippy. The wrong program had also cost President Reagan more than two thousand votes in the first count. A standard pre-election test had not caught the official's mistake; in a state without the requirement to double-check the count, it could have been missed.

In 1985, in Moline, Illinois, a candidate for alderman served for three months before a recount removed him from office. This mistake was laid to a slipping timing belt that had caused the card reader to fail to count a number of straight-party votes for the real winner. The apparently defeated candidate, it turned out, had actually won handily.

I n the fall of 1980, Michael Shamos, a computer scientist, law student, and businessman who was teaching at Carnegie-Mellon University, in Pittsburgh, and running a software company, saw an announcement on a computer bulletin board that the Commonwealth of Pennsylvania was looking for examiners for computerized-voting systems. He knew nothing about such systems, but the job sounded interesting, so he signed up and went to Harrisburg to examine the C.E.S. Votomatic system. "What I saw that day," he told me not long ago, "was hair-raising and mind-boggling: antique, obsolete, unreliable technology packed with a systems approach that was even more unreliable."

We were talking in the upstairs study of Shamos's home in Pittsburgh. On the wall above his desk was a large Princeton University pennant. He has degrees in physics from Princeton and Vassar; an M.S. from American University in the technology of management; three degrees in computer science, including a doctorate, from Yale; and a law degree from Duquesne. Shamos continued, with feeling, concerning the Votomatic system, "Counting paper ballots is no picnic. I really thought hard about this. Am I being picky? I came to the conclusion that it's far worse than a paper ballot. After all, what is the rush? I for the life of me couldn't figure out why anybody would use this."

That November, Shamos presented to Pennsylvania's Bureau of Elections his evaluation of the C.E.S. election system. Punch-card technology was obsolete, his report stated. The C.E.S. system had not been modernized and was "a security nightmare, open to tampering in a multitude of ways," Shamos continued. "It is apparent that security was not taken seriously as an issue during the design of the Votomatic." The report went on to note that the ballot pages in the Votomatic booklet could easily be shuffled or replaced; blank punch-card ballots were easy to obtain; and the plastic seals on the boxes used to transport voted ballots for central counting were easily duplicated. Moreover, the system could not be verified without examination of its source code, yet C.E.S. had refused to produce that code; no effort had been made to restrict access to the control panels or the toggle switches on the computer, with which "any person can enter arbitrary numbers into the machine's counters;" and the counting program, loaded through a deck of punched cards, could be altered to change the counting "by inserting or deleting a single one of the cards or by transposing two of them."

Shamos now warned, "The following scenario is thus fully possible. A would-be election fixer enters a voting booth with a card concealed on his person that, when read by the tabulating computer, will reset its counters to values desired by the fixer. On leaving the booth, he presents this card, conveniently wrapped in its secrecy envelope, to an election official who, not being permitted to examine it, drops the 'ballot' into a box. After the election, the card makes its way to the central counting facility where it is read by the computer. Instead of being counted as a vote or rejected by the system, the effect of this card is to change the current vote total for any candidate desired."

In a carefully worded paragraph headed "Concentration of Control at C.E.S.," Shamos noted, "All software used in the Votomatic machines is obtained in the form of secret card decks supplied by C.E.S. Without casting doubt on the integrity of C.E.S. in any way, nonetheless, the possibility exists that an unauthorized person may gain access to the central point from which these programs are distributed and alter them. The implications are frightening when it is remembered that one-quarter of all votes cast in the U.S. are counted by these programs."

Throughout the evaluation, Shamos wrote, C.E.S. "took the attitude that the Votomatic system has been in use for seventeen years, has been evaluated by more than thirty states, and has never been denied certification. In response to virtually every question regarding a deficiency, the vender responded by stating that the problem had been considered by a number of other jurisdictions and was found not to be serious. . . . The Votomatic system must be denied certification."

Pennsylvania assigns three examiners to inspect each voting system submitted for certification, but the decision about it is made not by them but by the secretary of the Commonwealth. One of the other examiners found the system acceptable. The third, C. Kamila Robertson, of the computer-science faculty at Carnegie-Mellon (who said that the voting booklet had come apart in her hands, and that "it would be easy to sabotage the computer in this system . . . the switches are there for the switching"), agreed with Shamos. The secretary of the Commonwealth certified the system, but Shamos's report soon became one of the basic documents in the controversy over computerized vote-tallying.

T he precinct-level corruption that Joe Harris had witnessed in Chicago in the twenties was visible again in the 1982 election there, but now instead of repeat voters the precinct captains had repeat votes, as counted on the C.E.S. system. According to the report of a grand jury that investigated the 1982 election, and whose indictments led to fifty-eight convictions, ward committeemen appointed city employees as precinct captains, and these factotums either produced for the political machine on Election Day or lost favor with their patrons. The grand jurors reported, "One precinct captain and his son disregarded the actual ballots cast by voters and instead held their own fraudulent election after the polls closed by running two ballots through the voting machine. One ballot was a straight Democratic 'punch 10.' That ballot was counted by the machine a total of one hundred and ninety-eight times. To make the results less suspect, they also counted a ballot containing some Republican votes a total of six times. Consequently, all but two of the voters in that precinct were disenfranchised."

The grand jurors said that in many Chicago precincts in 1982 faked punch-card votes were cast in the names of transients, the ill, the incapacitated, and people who had moved away, had died, or had not voted. Runners worked the boarding houses and hotels to find out who was not coming to the polls. "The ballots either were punched on the voting machines by people posing as the voter, or were punched with ballpoint pens or other similar objects in a private place outside the polling area," according to the grand jury's report. In one named precinct in the Thirty- ninth Ward, the captain gave lists of non-voters to one of the election judges, and she slipped them into her shoe. During the day, she would draw out a list when no one was looking and forge names from it on blank ballot applications. "The precinct captain and others apparently retreated to the privacy of the men's washroom to punch some of the ballots," the grand jurors said.

T he legal conflict that perhaps best embodies the doubts about computerized democracy, and demonstrates—whether the plaintiffs or the defendants were right in this particular case—many of the difficulties of proving charges of stealing elections by computer, started in Charleston, West Virginia, in 1980 and ended, for all practical purposes except for the plaintiffs' liabilities, in a federal appeals court in Richmond, Virginia, in 1986.

In 1971, Jack Gerbel, of C.E.S., and an area C.E.S. representative had presented the Votomatic for approval in West Virginia, but the state's two examiners rejected it. They cited its permitting of overvoting, and they stated, "The computer program . . . can possibly be modified by an experienced data-processing person, causing the computer to miscount votes cast for a particular race." However, the West Virginia secretary of state, Jay Rockefeller (who is now United States senator from West Virginia), seeing, as he wrote at the time, that the report of the examiners was negative, designated two new examiners, and they approved the system.

At about 7 p.m. on November 4, 1980, as Ronald Reagan was being elected President, Walter J. Price III, a plump-cheeked, energetic young man in a blue blazer and khakis and his "Election Day" tie—blue with diagonal gold and red stripes—drove down to the voter registrar's office in Charleston. A freshman Republican legislator in a county that Daniel Boone had once represented in the Virginia Assembly, Price was going downtown to see himself reëlected, as he thought, and to watch the operation of the new system the county had bought the year before from C.E.S. He was not worried about vote fraud, he told me later, because the first clerk of Kanawha County the Republicans had had since 1932, Margaret (Peggy) Miller, would be running the count.

Over the vehement objections of the voter registrar, Carolyn Critchfield, Price threaded his way among desks and people toward what the election workers called the computer cage. This was a small room with windows on all sides that began about four and a half feet above the floor and a Dutch door that had a window in its top half. The two vote-counting computers of the BT-76 (Ballot Tab) system in Charleston, one of them designated the "master" and one the "slave," had been set up on the floor inside, with punch-card readers on top of them and printers beside them. On the computers, down near the floor, were sets of toggle switches. Price has testified under oath, and repeated in greater detail during lengthy interviews with me, that, as he walked around the outside of this room looking in during the next hour and a half, he saw four kinds of actions, which, four and a half years later, dominated the only known court trial so far of charges that an election was stolen by computer. The people who Price said took these actions have all vigorously denied doing so, also under oath.

Traditionally on Election Night in Kanawha County, the vote totals were announced and posted in the precincts. This year, none were. Instead, the uncounted voted punch cards were all carried from the precincts to the registrar's office and run through one central system, which Walter Price was looking at. Only these cumulative centralized counts, which included no record of precinct-by-precinct totals, were coming out of the whining, clacking printers; then they were ripped loose and fed to the local reporters and to the citizens who had gathered on the other side of the chest-high reception counter.

Price said that at least four times while he was looking into the computer room that night he saw Peggy Miller, the county clerk, drop down into what he called a coal miner's squat—“not on her knees but bent down with her knees coming up toward her chest"—in front of the sixteen toggle switches on the master computer, consult notes she had on a pad or clipboard, put the notes down, turn a key, flip some of the switches, and turn the key again. Such an action was not called for in the counting of the votes. After Peggy Miller finished flipping the switches, Price said, she reclaimed her notes and stood up. On more than one of these occasions, she walked over to the nearby "dasher," a slow printer, "and she would type some things and then the printer would run," he said.

The incumbent congressman for that district, running again, was a Democrat, John Hutchinson. He had been elected the mayor of Charleston three times in the seventies, and in 1976, during his service at City Hall, he had run for governor, but had lost. Although he and Jay Rockefeller, who in 1980 was the Democratic governor, were not friendly, Hutchinson was regarded by Walter Price as one of the five most influential Democrats in the state. Mick Staton, Hutchinson's Republican opponent, was a close friend of Peggy Miller's husband, Steven, a lawyer, who was the general counsel for the Republican executive committee of that congressional district, and Staton's largest campaign contributor. Hutchinson had trounced Staton in a special election the preceding June, and two polls conducted by the Charleston Gazette had predicted that Hutchinson would win again, in the counting that Price was watching, by a spread of between fourteen and sixteen percentage points; that is, by around twenty-five thousand of the votes that were being counted. Hutchinson's wife, Berry, said that a poll by the Democratic National Committee, too, had shown that her husband would win by a wide margin. Staton himself, however, had predicted that he would win, by five points.

Price said that during the counting his fellow-Republican Steve Miller entered the computer cage, drew out of the inside pocket of his suit coat a pack of cards between a quarter of an inch and an inch thick and the same size as the ballot and control punch cards, patted the cards to even them up, and handed them to his wife. According to Price, they were talking, but, being behind the glass, he could not hear what they said. Price testified that Peggy Miller ran the cards through the card reader, retrieved them, and gave them back to her husband, and that he returned them to his breast pocket and left the room.

Seated at a table lodged between elements of the C.E.S. system was a man Price had never seen before. Clearly, the person he was referring to was Carl Clough, the Northeast sales manager of C.E.S., who had been with the company for ten years. Price said he saw this man busily using a telephone and what seemed to be a calculator. Open in front of him on the table was a large case resembling a briefcase. Three or four times, Price said, the man grasped the phone as one might the handle of a suitcase, and, he told me, he "places it, he very carefully places it" in the case; he "pushed it down . . . it was just a very deliberate pushing in" of the phone. After a time, he said, the man put both hands to the case, seemed to hold it down with one hand "like he was steadying, like there was some resistance to," the phone's "coming out," and, with the other, pulled the phone out "with some force." This resembles a description of a man using a modem, a device that permits computers separated by hundreds or thousands of miles to communicate with each other over telephone lines.

The operator of the master computer that night was Darlene Dotson; the secondary, slave computer was the responsibility of Vicky Lynn Young, just two years out of high school. Vicky Young needed to keep her job, because she was taking care of some of her close relatives. Nevertheless, later, on the witness stand, she swore that on one occasion during the counting in the cage Clough "told me to go over and stand beside Darlene and help her with her computer so that nobody could see."

Had this happened? Clough was asked during the trial. "Absolutely not," he replied. Furthermore, he said, he had had a briefcase in the computer cage, but there had been neither a modem nor any other electronic equipment in it. He thought that he had used a phone in the cage, but that it could have been moored in an adjacent room. Young testified that Clough had tools but had not used a modem; he denied that he had any tools. Dotson averred twice before the trial that there had been a phone in the room and that Clough had used it "more than once;" at the trial she said there had been a phone jack in the room, but no phone.

Peggy Miller said on the stand that she had not gone into the computer cage at all on Election Night, thereby denying Price's testimony. (Mrs. Miller, who has resumed her former career as a schoolteacher, and is a candidate for the state legislature on November 8th, later said to me of Price, "He lied in court," and she also said, "He'll testify against his mother if it'll get him something.") Steve Miller, asked by the lead attorney for the plaintiffs, John Mitchell, "Did you enter the computer room and take several computer-sized cards out of your pocket and lay them down?" answered, "Absolutely, positively no." Clough said the Millers had not been in there while he was, although he had "stepped out a few times." A county commissioner said that he had seen Peggy Miller in the room. Dotson said that the Millers were not there and that Peggy Miller "may have come in but not all the time." Young "didn't remember" Peggy Miller there, and said that she did not see Steve Miller come in "that I remember."

In a document having to do with an appeal, the defendants described Price's testimony as uncorroborated and "soundly contradicted by every other witness called by plaintiffs who was in a position to observe the occurrences in the computer room." They characterized Young's testimony as a denial that Peggy Miller had manipulated the toggle switches; they stressed that Price had not known the identity of the man he had seen with the briefcase.

On the night in question, Price, following the returns, perceived that he was losing his position in the House of Delegates, and after saying so to a friend of his he exclaimed loudly, pointing to the computer cage, "The only election I lost was in that room!" Hutchinson, too, lost that night, and by nearly ten thousand votes—the five percentage points by which his opponent, Mick Staton, earlier that fall had predicted his own victory.

Leonard Underwood, a Baptist minister, who had been defeated for the legislature by seven votes, challenged the Charleston results in a lawsuit, but Peggy Miller said that sixty-two days after the election—just two beyond the earliest legal moment in the absence of a contested election—she had had the punch-card ballots destroyed, not realizing that Underwood's challenge was still pending. "Anytime an election is completed . . . those materials are cleaned out," she said. "Otherwise we would have a continuous buildup of materials."

T. David Higgins, a Union Carbide computer specialist who was also the chairman of the Kanawha County Republican Party, testified during the trial that in Charleston in the summer of 1981, at a political affair for Representative Staton, he had spoken at length with Steve Miller:

He was very unhappy with the fact that I was working with the joint House-Senate subcommittee here at the Capitol which was looking into the whole question of electronic voting in the state of West Virginia. And he also said something to the effect of how it worked out that my working with them, collaborating with them, somehow in his mind cast aspersions of. . . . He suggested that I thought there was something irregular in the election of November, 1980, here specifically in Kanawha County. I said to him at that point that I did not think they had done anything wrong in the election of 1980. I said to him, "I do not think that you understand enough about this computer to rig it to fix an election." And Steve looked me in the eye, grinned like a shark . . . and said to me, "You underrated us."

(In a recent interview, Steve Miller denied that he had said "You underrated us" to Higgins at the Staton affair. "He told me about reports he had heard from Democrats that 'you guys had stolen the election,' and that he had told them we weren't smart enough to do that," Miller said. "And he's right, I grinned like a shark. In fact, I laughed out loud. I told him, 'Thank God, neither are you, David,' and turned on my heel and walked off.” Miller went on to describe Higgins as "a conceited, arrogant fop" and "a shallow idiot." On the subject of Walter Price's testimony, Miller said, "He's a liar. I've never been in that computer room in my life." As for Price himself, he said, "If I had a choice between sitting down with him and a polecat, I'd pick the polecat.")

C.E.S. officials in Berkeley, upon learning of the rising public alarm in Charleston, sent out one of their programming consultants, C. Stephen Carr, who had probably written or revised as many of the codes for vote-counting machines as anyone else in America. Testifying at hearings on electronic voting that had been called by the West Virginia secretary of state, in Charleston, Carr declared, "While any computer system can be penetrated, the time and effort to penetrate this one is so extreme as to render it effectively impenetrable."

Representative Staton was defeated for re-election in 1982. The West Virginia legislature passed a law that year requiring that after each election "at least five per cent of the precincts shall be chosen at random and the ballot cards cast therein counted manually." A special grand jury that was convened to investigate the November, 1980, election indicted Peggy Miller on six felony and nine misdemeanor charges of election-law violations, none of them directly related to the computers, and she was tried and acquitted on all counts.

T hree of the Democrats who had lost in 1980—Hutchinson, Underwood, and Bill Reese, a candidate for county commissioner—continued to be troubled by the outcome even after Miller's acquittal. Underwood wanted the three of them to sue for damages.

John Hutchinson told him, "Why, you're crazy as a bedbug, they beat me by ten thousand votes."

Underwood replied, "If you're gonna steal it, you can put in ten thousand as easily as ten."

Dozens of times, driving past the Hutchinsons' home, which is near his own in Charleston, Walter Price recalled, he thought that he should go in and tell Hutchinson what he had seen in the computer cage. "It occurred to me that that poor man ought to know what really screwed him out of Congress," Price said to me. "Why I didn't do it I don't know."

In mid-1982, though, he said, he happened to take a seat in front of the Hutchinsons at a public meeting in the state capitol, and Berry Hutchinson, a shrewd and ebullient woman, who is a member of an old-money Charleston family, leaned forward and asked him, "Were you by any chance present when the ballots were being processed in 1980?"

"Well, yes, I was," he replied.

She told him she and her husband would buy him lunch in the basement cafeteria if he would tell them what he had seen.

"For about thirty-five seconds," Price told me, he flinched mentally at "having truck with Democrats" and at having everybody see him walk through the capitol with John Hutchinson, but then—“It was a flash of lightning"—this response was erased by the thought Well, hell, you've got to do what's right. Price thereupon said he would go. Over lunch, he said, he described to the Hutchinsons what he had seen, and during a visit to the computer cage after lunch he showed Berry Hutchinson the toggle switches on the front panel. Outside the registrar's office, she said later, she asked him whether he would testify if they filed a lawsuit, and he said yes.

Early the next year, John Hutchinson, Underwood, and Reese, their evidence dramatically fortified by Walter Price, sued the Millers, the registrar of voters, the county commissioners, C.E.S. and four of its employees, and others for about nine million dollars in damages, alleging (in their third amended complaint) that various of the defendants had "tampered, directly and/or indirectly, with the computer programming of the election computer" and "rigged the counting computers by the manipulation of control toggle switches and the use of predetermined material or both in such a way that the computer did not reflect an actual count of ballots cast." The plaintiffs contended that by these and other means they had been deprived of "their constitutional right to vote or receive votes [and] their right to hold public office," and of income, reputation, time, and money.

Needing a computer expert, the plaintiffs turned to Wayne G. Nunn, a slender, soft-spoken man of thirty-six who was a project scientist for Union Carbide, one of the major chemical companies in West Virginia's Chemical Valley. Nunn had supervised the design and installation of computer networks, some costing several million dollars, for the firm's laboratories and pilot plants. He had shared an office there for three years with David Higgins, who was the chief of Union Carbide's computerized technology-intelligence-information network. Nunn also ran a small custom-software venture that wrote programs, did consulting, and sold operating systems. He had programmed computers in many different computer languages and in the field of artificial intelligence. Having no confessions from any of the defendants, John Mitchell determined to rely on circumstantial evidence in trying to prove a conspiracy. Three weeks before the 1984 Presidential election, Nunn conducted a nine-hour examination of the C.E.S. system with Carr, who had programmed it, Kemp, the C.E.S. president, and a dozen or so other people watching. Because of a clerical slipup in the listing of what Nunn wanted to see, C.E.S. was not required to show him the source code, the diagrams for the circuit boards, and the operators' manuals. Nevertheless, feeling his way along in the microcosmic darkness of the program's space, Nunn, with one punch card, added ten thousand votes to the total of one of the candidates in a mock race for President.

During a deposition he gave subsequently, under extensive cross-examination by an attorney for the Millers, Nunn said that he had perceived seven ways in which the C.E.S. system in use in Charleston could be caused to miscount the votes: by manipulating the toggle switches on the face of the Data General Nova computer to change vote totals and the figure for total votes processed; by altering the program deck of cards during the counting; by running "summary cards" through the computer to add votes for candidates; by changing vote totals using the keyboard at the slow printer that was part of the system, using another computer located nearby and connected by a cable, or using a computer thousands of miles away, by means of modems; or by planting a "Trojan horse" (hacker jargon for secret, undetectable commands that can be hidden in a computer program) in the code that controls the vote-counting, requiring it to switch, say, one out of every four votes from one candidate to another or give a candidate a false victory by a certain percentage.

The plaintiffs were determined to make a second effort to break the source code, and C.E.S. was determined to prevent Nunn from studying it. C.E.S. asked Judge Charles H. Haden II, of the United States District Court, whose wife had been the chairperson of Reagan's reëlection campaign in West Virginia, not to let Nunn even see the code, because it was "a 'trade secret' . . . highly confidential." Alternatively, the company said, if the Judge forced them to let Nunn inspect the code Nunn should have to do it at C.E.S. headquarters in Berkeley and should not be permitted to copy it or leave with any notes.

Hutchinson and his fellow-plaintiffs assailed the C.E.S. insistence on secrecy from a broad perspective. "There should be full disclosure of matters involving public elections," they contended. "[The] demand for 'secrecy' by C.E.S. only insures that the potential for fraud will be perpetrated. This involves a matter of strong public policy." (Perhaps the plaintiffs meant "perpetuated," but their motion said "perpetrated.")

Judge Haden ordered C.E.S. to make the source code available to Nunn in Charleston, but he ratified the company's practice and requirement of secrecy, and he decreed, "Dr. Nunn will not reveal any information to anyone. . . . No records shall be made of information obtained." (During the trial, the Judge stated from the bench, "They are entitled to protection of the secrets.") But the litigants had extracted their minimum requirement: Nunn had the code, and he examined it to his satisfaction in a closed office at the local C.E.S. attorneys' firm for parts of two days.

What he had was a printout of "the assembler third pass listing" for the BT-76 program—a stack of computer paper still joined together at the folds which was four or five inches high. He was allowed to make notes but was not provided with the computer he needed in order to test the code systematically; all he could do was look at the highly technical lines of the listing. This was gruelling mental work, and after three or four hours he was very tired. During the second day, he decided there was nothing more he could learn from just looking, sealed his notes, gave them to the C.E.S. lawyers, and left.

Carr and Kemp flew to Charleston to crowd into the computer cage again and watch Nunn's second examination of the system. As the day wore on, the number of people watching varied between ten and twenty-five, and sometimes Nunn could hardly move around. Mustachioed, skinny, and dapper in a blue suit, he examined the inside of the computer with a long black flashlight, tested again how it worked, and printed out results of a mock election. He announced that with the toggle switches he had been able to manipulate the figure printed out on a cumulative report for total ballots counted.

Several hours later, after further examining the machine, Nunn cast and counted one punch-card ballot, with just one vote on it, printed a cumulative report that showed one cast and counted, stopped the computer, used the toggle switches to change the vote for Position No. l, re-started the computer, printed out, and, showing the printout, announced, "The next report is a cumulative report, again showing one precinct processed, one ballot processed. But Position No. 1 now has ten thousand and thirteen votes." Then, again with one ballot, he produced five votes. Then seven. "No punch cards were necessary," he told me later. "I could have produced the result of ten thousand or any number we wished without counting a single ballot."

T he 1985 Charleston trial was conducted between April 9th and May 2nd in a federal courtroom within a few blocks of the registrar's office, where the votes had been counted that November night in 1980.

Midway through the trial, Walter Price gave his account of what he had seen in the computer cage. After some gambits that Price parried easily, John F. Wood, Jr., the attorney for the Millers, pounced on two facts: that in handwritten notes Price had made on what he had seen he had not mentioned seeing Steve Miller give his wife the cards, and that in his deposition he had once called the cards "sheets of paper" and had not said that Steve Miller had taken them out of his coat pocket. Wood suggested to the jurors that the witness was making things up, and one of his closing questions was "That's your story today, isn't it, Mr. Price?"

"I would not characterize my testimony here as a story," Price retorted.

While Nunn was on the stand, the defense lawyers raised at least a hundred objections, and Judge Haden sustained about half of them. Mitchell had planned to have Nunn repeat for the jury, on Charleston's C.E.S. system, his demonstration of how to steal an election, but the attorney abandoned that because of positions the Judge was taking on the admissibility of testimony. "There will be no evidence presented in this case of a Trojan horse," Haden informed the jurors. "None will appear." Nunn was prepared to testify that a "debugger" in the BT-76 program, while enabling a programmer to make repairs in the program, was also a Trojan horse; Haden excluded such testimony. Nor would the Judge let Nunn testify that when he had examined the system he had found discrepancies in the locations of memory addresses for the storage of information.

The fact that the C.E.S. system had been officially approved for use in West Virginia had a perverse effect during Nunn's testimony. Fifty-nine standards for computerized vote-counting had been proposed in 1975 by Roy Saltman, a specialist on the security of computer-tabulated elections, in the then definitive National Bureau of Standards study on the subject. Nunn had concluded that the C.E.S. system sold to Kanawha County in 1979 violated thirty-nine of these standards, but Haden refused to let him say so, on the ground that the state's approval of the system rendered the Bureau of Standards report "immaterial."

Nunn managed to tell the jurors (sometimes only to have Haden order them to disregard the information) that vote totals could be directly changed by means of the toggle switches on the computer's front panel without leaving a trace on an audit trail, and that summary cards, which in the C.E.S. systems are the same size as the punch-card ballots, could be used to add votes to candidates' running totals. Nunn also testified that he had concluded that the program had been changed during the counting.

To alter a candidate's votes with punch cards, Nunn told the jurors, one does not need to know the candidate's location in the computer's memory; all one needs is the number of the candidate's ballot position (a number that anyone voting in the election can know). With that and one punch card, Nunn testified, "you can set his vote total in the cumulative counters or in the precinct counters to zero," and then, with a second card, "you give him, you know, ten million votes if you want."

When the plaintiffs rested, the defendants asked Judge Haden to render a directed verdict for their side and send the jurors home. The legal situation was clear. Before entering a directed verdict in a conspiracy trial, as defense lawyers observed in statements to the Judge, he was obliged to give the plaintiffs "the benefit of every reasonable inference," to read their evidence "in a light more favorable to them"—to give it "favored treatment."

"I find," Judge Haden ruled, "that the only evidence that the 1980 election was rigged is purely speculative in nature; it was mere suspicion; and it does not form the basis for the Court . . . to infer that a conspiracy may be present. . . . The plaintiffs have never proven the existence of a conspiracy or these defendants' membership in a conspiracy." The ruling continued, "Consequently, all we have in this case are a series of unrelated acts that have been proven, most of which have a reasonable and an innocent appearance as easily as they would have a culpable appearance, none of which . . . are attributable to more than one individual or to more than one entity. . . . And there are certain things that have been attributable to the defendants," but "the proof of individual overt acts, however compelling some few of them may appear to be to plaintiffs' counsel, does not suffice for the absence of proof of the conspiracy." Haden entered directed verdicts for the defendants and dismissed the jurors after their three weeks' service.

A year ago, Judge Haden entered a finding that the plaintiffs would have to pay the legal costs of the defendants, including C.E.S., which Mitchell estimated would total about six hundred thousand dollars. Just two of the C.E.S. lawyers had billed the election-equipment company for twenty-seven hundred hours' work on the case—about fifteen working months—and Haden re-billed this to the plaintiffs, on his judgment that, despite the fact that an earlier judge had ruled the case not frivolous, it was "meritless." According to John Mitchell, almost everything that the three plaintiffs own is tied up by liens pending Haden's entry of his final order on costs and the resolution of the three defeated candidates' certain appeal from it.

" C .E.S. wasted a lot of money defending a case totally without merit," Stephen Carr, the chief programmer for C.E.S., declared during an interview I had with him. We spoke in his office at Information Processing Corporation, his company, which does engineering work on computer products and consults on computer programming, in Palo Alto, California. "Three politicians who couldn't believe that the electorate hadn't voted for them felt that they were surely gypped by the system. They got a local Ph.D. consultant who worked at Union Carbide. He was not dumb, but he had essentially, you know, taken money to be their expert witness, and they tried to show how the program could be manipulated. The case was so bad that after they presented their side the judge threw it out of court—the whole thing just died."

What was Carr's view of the ten thousand-odd votes that Nunn produced with one summary card during the first demonstration?

"With summary cards, you put in totals and multiple counts," Carr agreed. "But they also, at least in our design, would leave a very noticeable mark on the tape. Anyone who was at all knowledgeable couldn't miss it: a record left that these votes had come in from a special control card, not from ballots. So I wasn't impressed."

Carr laughed and smiled, then continued, "This is funny. Nunn also spent a bunch of time trying to show how you would work from the front panel of the Data General computer called the Nova. It was front-panel switches that computers of that era had. And if you know enough and the people will let you, in half an hour or maybe twenty minutes you might manipulate what's inside the computer and change things."

Walking me back to a room that was almost filled with computers, Carr went to a Data General Nova there and gave me a demonstration of how to raise a storage location for data—sometimes called a memory address—into the lights and change the figures stored in it. "But the chance of doing this unnoticed is just nil," he said. "And doing it in a way that doesn't cause the whole program to stop is terribly tricky. You can always argue the theory that there's some superhuman who's smart enough, but it's so hard to do that that somebody that good probably doesn't use his talent to mess around with one vote-counting machine. I mean, it's not citizens in West Virginia; it's, you know, somebody that's the Godfather! It just doesn't play in my mind that someone that was that up to speed would care about the race in West Virginia. And, you know, they had all kinds of theories that we out in California cared about that race. What we wanted was to run an honest election and get paid. Not even to run an election—to provide the equipment that the local people could run an election on. And I will say, as an outsider, I never saw in my contact with C.E.S. people any evidence of any kind of impropriety, or even caring. The people I saw at C.E.S. were interested in making honest money."

Turning to charges about Trojan horses, Carr said, "There have been some people who say that the way to phony up these programs is to make them count correctly when the counts are small"—as in a preëlection test with, say, a hundred ballots—“and then cause a fudge factor to come in when the counts are large; you then bring in your bias."

Carr granted that someone could "put a special thing in the code that when it saw some special pattern it did some special stuff."

How could that be detected?

"You could certainly find that by examining the source code," Carr replied. "It would take a while."

I asked Carr about audit trails. He mentioned, as an example, "a printer that leaves a hard-copy record of what things happened in time."

Could such a printer be turned off?

"You could imagine someone cutting a wire—you can imagine anything. If the election officials and the clerks were used to running the computer and the printer stopped, you'd pick it up right away, because the printer makes a loud sound. And, of course, typically these Election Nights there are representatives, or monitors, from all parties watching."

I also asked Carr about the possibility of fixing national elections.

One reason it would be very difficult for a single programmer at a major election company to fix a national election, he said, is that although the central source code is general, local election officials have to prepare instruction cards dealing with each local election's different candidates and their different positions on the different local ballots, "so that in one precinct Party One may be the Democrats, but in another precinct Party Two may be the Democrats, and the program then follows instructions to put all the votes for Democrats together. So it would be very tricky to, in this general program— If you set out to help one party in one state, you might totally screw yourself in another, it's just that tricky for the programmer back at C.E.S."

In a close Presidential election that would be decided in a few large jurisdictions "it wouldn't be impossible," Carr added.

I then asked him how, hypothetically, he himself might go about such an undertaking.

In response, Carr adverted to his basic position: "I just don't know how you'd do it. I really don't. Because, even with the computer doing the counting, there are so many people involved. It would take a major conspiracy. You'd have to have a lot of people—twenty, thirty, a hundred people—on your side. It wouldn't be one man. It certainly wouldn't be anyone who did the program." Even if a corrupt official is running the counting in a big city, "he still has to depend on a lot of staff," Carr said. "It would take at least one person from each of the disciplines—programming, the management—to really get a start on it, and then there'd be tremendous risks you'd be found out. I don't think it's doable."

W hat had Wayne Nunn actually seen when he looked at the C.E.S. source-code listing in the lawyers' offices? What were the "secrets" he had learned? Bound by Judge Haden's protective order, could he talk about them? On a Saturday night last December, I drove from Charleston to Nunn's home, a ranch-style house in the town of Poca, ten miles away. We talked in the den, where he had an Apple Macintosh Plus on his desk.

Could he say whether he had found a Trojan horse, or more than one?

"The only thing that I'm restricted from doing is telling you exactly the code that's in the program," he said. "It had lots of fascinating little nooks and crannies hidden around in it that no one has ever let me talk about. There are at least a half-dozen places, maybe a few less, where you could lay in a Trojan horse in that source code—lay in routines to do whatever you wanted to in an election—because there's code in that system that shouldn't be there, is not being used, is worthless to the operation of the system. It can be replaced with anything you want it to be."

Had Nunn found a trapdoor; that is, a place in a program where one can break down its security system and emerge undetected deep inside the program?

"Yes. There is one."

And had he found "wait loops'' in the program which conceivably could control outcomes, or "Christmas trees"—Nunn's term for surprise packages in a program?

"They're all there. There are wait loops there. There are routines that are not documented in the manual and, from every way I can determine, do not work."

As we talked, Nunn got up from the couch, where he had been sitting, walked to his desk, and sat down at the Macintosh. "You continue to ask questions," he said. "I want to look for something here. I've come up with an idea." After about ten minutes, during which he went on answering questions, he called me over to the keyboard and invited me to add on the computer any numbers that came into my head. I added eight and thirteen, then two multidigit figures; the sums printed on the screen were correct. "Now," he said from the couch, to which he had returned, "add two and two." On the off-the-shelf program of this standard-brand computer two and two added up to five. In ten minutes, before my eyes, Nunn had made a Trojan horse for me. He printed the five-step program out and gave it to me. I still have it:

10 input x 20 input y 30 if x=2 then x=3 40 print "The sum of x + y is", x+y 50 go to 10

Line 30 is the Trojan horse inserted into the program that makes two and two five. "I've told it every time it sees the number two, replace it with a three," Nunn said.

I asked him if signs of these various ways to interfere with the C.E.S. system could be kept out of its audit trails.

"All of them can defeat the audit trail, some of them better than others," he replied, with some feeling. "Because, you see, built into that system is the ability to turn the audit trail off. Every one of them you can turn off."

What about the test decks that are run through the C.E.S. systems before and after elections?

"That is the biggest joke in the world," Nunn said. "Anyone who knows how to run the C.E.S. BT-76 system can be trained to steal an election on it in twenty minutes. A summary card, anybody can do." Of the switches he said, "As long as they are out there on the front of the machine and they're turned on, someone has the ability to stop the machine and fool with the panel switches. . . . You have no control over what's done to the memory of the machine.

"But it's even more serious than that. I write this program. I go through it. I'm absolutely sure that I know exactly what it's doing. I compile it and punch a deck of cards and hand it to you. We meet a couple of days later down here at the courthouse and you run what you say is my program. There is no way on earth that I can stand there and watch that computer run and swear in a court of law that that is my program running. Now, it may have the same input and output, but as far as swearing that it's my program, I can't. I can't even look at the punch deck. Now, there may be a few people in the world who can look at the punch deck for the executable image"—that is, the program deck in object code—“and read the punch cards and recognize the instructions, but I can't do it. Damn few could. From that point of view, there is no security."

That night, Nunn told me, step by step, how to steal an election with the toggle switches that stick out of the front of the Data General Nova computers in some C.E.S. systems. "Briefly, using the toggle switches, what you do is you halt the computer," he said. "You examine the memory address at which the computer's halted—you make a note of it. You go to the memory location that holds the counter of the candidate that you want. You load the memory address for the candidate you want to fix into it, and you say, 'Load address.' Then you load the number of votes to give him and then you say 'Deposit.' That's wiped out his real count and given him a fraudulent count right then. If you want to go someplace else and do it—some other memory location—you do as many as you want. You just do this until you're finished. Then you load the address where the computer stopped. O.K.? And then you hit the button for it to continue. The program continues on exactly the way it was. There's nothing in the computer that— The computer never knows it's been halted."

There is no printout on any audit tape, Nunn told me. If a time-and-date record was maintained and someone noticed that the clock was running late, that would be the only clue.

N o matter how deeply public officials may dedicate themselves to it, the task of tightening up the security on Election Night computers will remain a daunting one—and, if complete security is the standard, impossible. The computer scientist Roy Saltman, at the National Bureau of Standards, who is the leading authority in the federal government on the subject, stresses in his new report, "Accuracy, Integrity, and Security in Computerized Vote-Tallying," published in August, that no manipulation of election computer programs has been proved, but he also warns of "the possibilities that unknown persons may perpetrate undiscoverable frauds," by, for example, altering the computer program or the control punch cards that manipulate it, planting a time bomb, manually removing an honest counting program and replacing it with a fraudulent one, counting faked ballots, altering the vote recorder that the voter uses at the polls, or changing either the logic that controls precinct-located vote-counting devices or the voting summaries in these units' removable data-storage units.

The problem in this segment of the computer business, as in the field at large, is not only invisibility but also information as electricity. Secret instructions can be so well hidden in software, especially if the language is the lower-level assembly, that testers cannot be sure of finding them. Testing all the possible paths that a computer program (and therefore a hidden code) could follow through a punch-card ballot apparently could not be done comprehensively short of assigning the job to a second computer, and even then one runs up against what Robert Naegele has called "the polynomial problem"—the vastness of the programming possibilities in the inner space of a program. Mathematicians at Notre Dame, working with Deloris Davisson, a computer specialist, have calculated that the number of possible programming pathways for a program executed through a standard punch-card ballot would be two to the nine-hundred-and-sixtieth power—a one followed by two hundred and eighty-eight zeros. "It's a number that my computer can't hold," Davisson said.

At the merely mechanical level, computer experts in a large jurisdiction cannot test punch-card systems for every voting possibility. "It's an infinity as far as our work is concerned," said Rick Fulle, assistant director of voting systems and standards for the Illinois Board of Elections. "For our purposes, it just can't be done." When a state examination of the C.E.S. system in Chicago was suddenly scheduled, Fulle said, the chairman of the state board demanded that all possible ballot-punch configurations be tested, but Fulle figured out arithmetically that running through the sixty-seven million-odd test ballots necessary would occupy twenty staff members full time for four hundred and seventy-seven years.

If one regarded the manifold issues of computerized democracy in a reductionist way, perhaps the principal concern would be whether, in a close election, the Presidency can be stolen by means of computer vote fraud in several major jurisdictions.

Carr offered reassurance that although theoretically such a calamity could occur, it would be extremely difficult technically and would require too many confederates to be feasible.

Michael Shamos, the voting-systems examiner for Pennsylvania, does not believe that a large number of people would have to be involved. "This is false," Shamos replied when I asked. "One. One person. The point is that, the way things are going, a national mechanism exists that could be manipulated by anybody, from a single individual to a nationwide conspiracy. It's not whether it exists or not, it's the fact that the mechanism is there to make it easy."

The leading candidates for the Presidency are seldom separated by more than ten points, so "here's what we do," Shamos said. "Working in a company headquarters, I'm writing some election software, which will be sent by Federal Express to jurisdictions in executable object code. I'm going to program this thing so that if there are more than eight hundred people voting in a precinct I'm simply going to trade some votes, take them from other parties and dump them into the party that I want to win. So all the totals are going to be exactly right. I'm going to change ten per cent of the votes, or five per cent—some small number. And that software is going out to pivotal jurisdictions in the country. And that is going to shift the national election. It's easy for a programmer. And his superiors will never find it. There's no way to find it unless they do an exhaustive code audit themselves. And this is a solo effort—one guy who happens to be well placed. Of course, many others are involved, but they don't know."

If some jurisdiction that had been tested for more than eight hundred votes discovered that the program didn't count correctly, and returned it to the factory, the programmer would simply say there had been a glitch on the tape, or a bad rom—a unit embodying "read-only memory"—"or some other technical mumbo jumbo," Shamos went on. "And we have an election, and the wrong guy gets elected." If recounts discovered errors in some localities they, too, would be attributed to programming errors, he said.

Shamos believes it "not unlikely for some guy to realize one day, he's sitting there in the room in the midst of all those coding forms—he says, 'My God! I can control this whole thing!' ” After all, Shamos said, "we have enough tales of hackers who when they found they could do something went and did it, maybe even not with malicious intent, just to show that they could do it."

He then pointed out a second possibility: "Of course, you can imagine that the venders of the system are in with certain politicians. The politicians agree, 'Yes, I'll buy this system, if you fix the election my way next time,' and they actually give orders to their subordinates to do it. That's always seemed somewhat less likely to me, because of the possibility of a whistle-blower. Then, the third possibility is tampering by someone not in the employ of the company, by a break-in at the vending company."

Summing up, Shamos said, "What does it mean that one company is controlling a large fraction of the voting in the United States? If you provide the software, you are controlling, even if you are not manipulating. Computerized vote-counting doesn't occur in the light of day, it occurs inside silicon in a little black box. That box is completely under the control of the vender, and if anything wrong happens we might never find out.”

During an interview in a hotel lounge in San Francisco, Roy Saltman said, "If I broke into B.R.C.'s master computer program and changed the code, how about the nine hundred and ninety-nine other versions that are already out there? It's not a massive, central thing—all the computers are not connected to B.R.C. or to any single vender. There isn't any kind of central control that controls everything. I don't think that's a reasonable supposition. If you do the recount of the ballots, the whole thing falls apart."

Robert Naegele believes that no one person could steal an election by computer and, like Saltman, he does not regard computerized theft of a national election as at all plausible. In a large jurisdiction like Los Angeles County, Naegele told me, five or six people would have to be involved, and hardly any jurisdiction is so centralized that one person could do it there. "My private opinion," he said, "is that there has never been any successful fraud in a computerized election. As I understand it, it's really not feasible. To do this, you require a hell of a lot of very sophisticated code. . . . I am not concerned about fraud on the national level. I don't think that's happened, and I don't think it's going to happen."

Like Carr, Peter Vogel, a computer lawyer in Dallas who was recently appointed an examiner of computerized voting systems by the Texas secretary of state, is skeptical that any conspiracy among large numbers of people would work, but, like Shamos, he thinks that the Presidency can be stolen by computer—"because of the electoral college." Vogel said to me in his office, "If you have a majority in the right states, it doesn't matter who has the majority of the votes in the country. If you program the right states for the right elections, I think you could control the Presidential results."

Howard Strauss, of Princeton, gave me written answers to a series of questions about the possible rigging of United States elections by tampering with computer-tabulated election systems. He said that "there are many, many ways to do this," but all of them "can be largely eliminated" by rigorously followed procedures.

"If one software vender dominates the electronic-election market, subverting that vender may be the easiest way to alter national elections," he wrote. One individual, working alone, would be able to effect changes in the code more quickly and securely than a group, he believes.

What categories of people might fix computers in elections? I asked. Strauss replied, "In order of ease of subversion, some of the most likely groups or individuals include election-system venders and their programmers and consultants, election-system operators, the Federal Election Commission, technical mavens of all kinds, and election officials and workers. It is possible that foreign agents, candidates and their staffs, and voters with special interests could subvert any of the above individuals or have sufficient expertise to subvert the process themselves."

Peter Neumann, of S.R.I., declared, "If somebody is a skilled user of a conventional computer system, he has the ability to do almost anything he wants and leave no trace, because most of the computer systems today do not have adequate protection or auditing facilities. Personal computers are nonsecure, for the most part. Now, in the election systems the vulnerabilities are enormous. You effectively have to trust the entire staff of the corporation that is producing your software. Every single member has to be trusted. It would take one person to rig the system, typically, because of the way the thing is set up. There are very few internal controls."

Speaking in his office at S.R.I., amid papers stacked and scattered about on his desk and the floor and a chair nearby, Neumann went on, "Even if you can look at the source code, you can't guarantee that there's not a Trojan horse embedded somewhere in the code. Any self-respecting system programmer can hack the innards of the system to defeat encryption techniques or any password protection, or anything like that. All this stuff is trivial to break, for the most part. In most computer systems out there, it is child's play. Given the fact that the underlying systems are so penetrable, it is relatively easy to fudge data—for example, to start out with three thousand votes for one guy and zero for the other before the counting even starts, even though the counter shows zero. Essentially a Trojan horse in the coding. I can do it in the operating system. I can do it in the application program. Or I can do it in the compiler. I can rig it so that all test decks work perfectly well. I program it so that, after the test is run, at, say, six-fifty-five in the evening, it simply adds thousands of votes. It would never show up." He added that having a computer count a set portion of one candidate's votes as if they had been cast for his or her opponent would be "utterly trivial to do."

As for stealing a Presidential election, Neumann said, "I would put in a whole variety of techniques. I wouldn't just rely on one. You might use a different technique in each state, for example. You could trigger it so that you didn't do anything wrong if everything was going well, and if your candidate was losing you simply add votes—and you have to subtract, too. You have to make all the consistency checks satisfy. That's relatively easy to do."

Neumann exclaimed, "The possibilities are endless!" He seemed to be enjoying them, but then drew back. "I think the possibilities for rigging elections with computers are enormous. I'm not going to say it's ever been done. The point here is it's in the hands of one very skilled programmer or somebody who understands the system."

In the face of such contradictory expert testimony, it is all but impossible for laymen to ascertain the precise degree of risk entailed by the use of computerized voting machines. Nevertheless, given the crucial role of public confidence in the integrity of the ballot, common sense suggests that the question should be resolved definitively, by the press and, perhaps, by Congress. The press has begun to grapple with the issue, thanks in part to a series of articles by David Burnham in the Times a few years ago, and press coverage of contested computerized election contests has contributed to several reform efforts in the field.

With lever machines, the risk of vote-stealing has always been relatively easy to reduce. In one of the rules that Joseph Harris laid down in a model election-administration system, published by the National Municipal League in 1930, no lever voting machine could be used until it had been examined by "a competent mechanic." It is also necessary in lever-machine precincts that on Election Day candidates and representatives of parties be present at least twice—when the voting starts, to make sure that the counters are set at zero, and after the polls close, when the backs of the machines are opened, to read the totals. These are the moments of maximum opportunity for a vote-stealer: if he is not observed, he can simply turn the counters to obtain a desired result.

In the opinion of many specialists, there is only one comparably simple and effective way to deter fraud on Election Day in most computerized jurisdictions: an immediate hand recount of the ballots cast in a random group of precincts selected after the vote-counting by various parties to the election. Such a recount would be the greatest fear of anyone implicated in stealing an election.

When Harris reflected on the fact that computerized punch-card elections could be manipulated, he advocated, as a remedy, that every county and city using the Votomatic "set aside a number of precincts to count by hand and to compare the results from a hand count to the machine count." Who chooses the precincts? And when—before or after the election—does anyone know which ones they will be? Harris, in his model system, provided that "the candidates should be permitted to designate the precincts which they wish to have recounted and to amend and add to the list from time to time." "A manual recount of at least one per cent of the ballots of each contest is recommended," Roy Saltman wrote in his new report, and he added, "Responsibility for selection of some of the precincts to be recounted should be granted to candidates or parties." Michael Harty, now the Maricopa County elections director, in Phoenix, and the computer scientist Frederick Weingarten, of the congressional Office of Technology Assessment, suggest that voters who doubt the integrity of a computerized tabulation should, one way or another, at once secure the tabulating software as primary evidence.

Saltman also offered a set of recommendations that are not so easily carried out: all vote-tallying software should be obtained from an accountable source of stock offered publicly by reputable venders and should be scrutinized for "hidden code;" access to all stages of vote-tallying should be controlled; the ballots themselves should be carefully monitored administratively; every vote not cast by a voter in a race should be registered by voting machines as not cast; the use of pre-perforated punch cards should be ended, and perforations should be made unnecessary by the use of spring-loaded styluses. (The last change would require modification of the Votomatics.) More broadly, Saltman recommended that the professional science of internal controls which is used in business be adopted in vote- counting.

Naegele proposed to the F.E.C. that vote-counting codes should be written in higher-level computer languages, because they are "quite a bit easier" to analyze for error or, for that matter, fraud. He told me, in California, that "the venders objected to this strongly," saying the vote-counting goes much faster in assembly (lower-level) language. A recent draft of the F.E.C. standards would make the use of high-level languages "discretionary only." "What I wish," Naegele said, "is that some state would adopt a requirement for higher-level language, so the others would follow."

Ken Hazlett, the programmer who pioneered in the business with assembly language, expressed to me in Corvallis an opinion even more emphatic than Naegele's about the use of assembly language for computerized vote-counting: "Insane! It should all be in high-level language, so there's a chance it'll be readable code twenty years later. There's no room for assembly except in some small isolated process."

The concepts of putting source codes in escrow and providing for their examination by independent test agencies seemed well established in the recent F.E.C. draft. Michael Shamos argued during my interview with him that escrow is not a workable concept for protecting election software (among other things, he wanted to know to whom private custodians of the code would be accountable), but the proposal is popular.

A number of other remedies, in addition to those in the studies by Saltman and the F.E.C.'s Clearinghouse, have been suggested by individuals in the election community.

Terry Elkins, whose inquiries and accusations concerning the 1985 mayoral race in Dallas led to the enactment of reform legislation in Texas, maintains that election officials should be made more accountable at law for their performances. Michael Harty, who suggested that programmers of election computers should be licensed, emphasizes the little-known fact that most state election laws are not mandatory but "directory," and levy few or no penalties against officials who do not obey them. Paul Goldy, the president of the International Technology Group, of Woodbury, New Jersey, a smaller firm in the computerized-election market, advocates user groups for local election officials, organized around specific products, like the groups that many computer buffs belong to. Shamos has proposed that persons who have criminal records for acts of "moral turpitude" should be barred from the vote-counting-equipment business.

R. J. Boram, the chief programmer of the R. F. Shoup Company, and Shamos advocate a high-prestige national election commission to test and certify vote-counting systems, including the software for them; Howard Strauss and a Princeton colleague have prepared for Election Watch, a small group that is working for change in this area, a specific proposal for a national testing authority. At a conference in Dallas sponsored by Election Watch, Strauss said that representatives of the venders and anyone else who could change the counting program should be barred from computer rooms on Election Night.

Some citizens believe that vote-counting software should be in the public domain, available to all parties and candidates, for whatever checks they wish to make on it. "I'm not for a public process being handled by private companies that won't let us see what's going on," says Susan Kesim, a young executive of a computer-security firm in Indiana. "Public-domain software—it's open. I want to see that it added one to the total, because that's the process of voting."

"Maybe a private foundation should do it," Frederick Weingarten has suggested. "Maybe if there was a consensus among the states, the federal government could write its own software and certify it through the National Bureau of Standards or the F.E.C.—say, 'This we guarantee is accurate and untamperable.' ”

Penelope Bonsall, the director of the F.E.C. Clearinghouse, said of the public-software concept, "It's a public-policy question; it's too broad for us to consider. It would have to compete with private interests. I don't know who would fund it. I just don't see how you would eliminate private efforts in this area."

By 1984, the year before Joseph Harris, the exemplar of the entrepreneurial approach to computerized vote-counting, died, a subtle change had come over him. By then, lawsuits and accusations were bedevilling his baby, Computer Election Services, Inc. In a newspaper interview, Harris predicted that Americans would probably vote on TV monitors in voting booths, and computers would announce the winners minutes after the polls closed. But then he struck a note new for him, adding that these changes would not come for about twenty years, because such completely computerized voting would require "extremely careful management and planning to prevent error and fraud."

The new direct-recording electronic (D.R.E.) vote-counting machines, which New York City is preparing to buy on behalf of its three million registered voters, may become the realization of Harris's vision of futuristic electronic voting. When citizens vote on one of the D.R.E. systems, they address themselves to a printed ballot affixed to the face of the machine or displayed on a TV-like console and, with a finger or an electronic pointer, press on a box with an "X" in it beside their choice. The four surviving bidders in New York City are Cronus, Shoup, Sequoia Pacific, and, the one firm offering a TV-like system, the Nixdorf Computer Corporation, which is a wholly owned subsidiary of Nixdorf Computer, A.G., of West Germany. The bidders had to provide the technological capability to retain a record of "randomized" (that is, out-of-sequence) electronic images of each voter's set of choices, but the city reserved the right to buy this capability or not.

Saltman's recent report indicated that the D.R.E. systems have one characteristic that from a security point of view may be even more important than the unavailability of real recounts if a voter's choices are not retained electronically. Since those choices are converted onto the counters inside the machines, there is no way to check from the outside whether they are recorded correctly. If the machine retained voters' choices on magnetic tape, the tapes would not necessarily be correct. Saltman wrote, "The fact that the voter can see his or her choices on a display, or even receives a printout of the choices made, does not prove that those were the choices actually recorded in the machine."

"There is no security in using a computer to count ballots," Wayne Nunn told me the evening he made me a Trojan horse. "I don't believe that computers should be used to count votes. I believe that what you should use for counting votes is a system that any voter can appreciate—in which he can fully understand all steps of the process. There shouldn't be any magic involved, because a computer system to the general populace appears to be magic. You put something in one end and, voilà!—something else comes out the other. A computer is such a flexible thing that what happens between the time when you put it in and the time when it comes out can be what any clever individual wants."

Follow the Yellow Brick Road

Thu, 09 Apr 2026 22:44:13 GMT

Follow The Yellow Brick Road

By Mitchell Vexler, April 9, 2026

All Citizens, not just the property owners, are affected by the property tax fraud and school district bond fraud, and it is important to help everybody become aware of how they are being defrauded.

The more people that know and participate in their city, school districts and social media, the faster a proper national resolution will occur.

We do these interviews, maintain the website, file criminal complaints, file lawsuits, and more, because the evidence that has been generated is irrefutable and you never know who is watching. Nationally, not just in Texas, we need the help of the FBI, DOJ, SEC as well as legitimate Judges.

We are now at the SCOTX and opposing counsel is arguing for sovereign immunity, claiming ultra-vires does not exist and that the Central Appraisal Districts and their employees can commit fraud on all citizens with immunity which is Taxation Without Representation. Remember, the War of Independence was fought over TAXATION WITHOUT REPRESENTATION .

Mom and Pop need to recognize what is happening to do the best they can to prepare for the reality of mass defaults and bankruptcies due to the Institutionalized Systemic Moral Hazard which has festered into full blown fraud.

Whether you are new to understanding property tax fraud and school district bond fraud, or already have a firm understanding of the issues, the links that follow are a map to help you get up to speed faster.

New to Property Tax Fraud, here’s an overview:

https://irp.cdn-website.com/39439f83/files/uploaded/Quick+Overview.pdf

Understand the issues and want to protest value:

https://realestatemindset.org/p/protest-property-value
Take a video camera (audio recorder) and a witness, as they will lie straight to your face. Record it and share it, then press criminal charges and file a lawsuit if applicable.

Want to file criminal complaint(s) :

Want to file suit against the Chief Appraiser and CAD:

Want to know about the 313 Agreements and Off-Balance Sheet Financing by the school districts:

Want to learn about Vexler’s case at SCOTX:

Want to contact Travis for a podcast:

travis@realestatemindset.org

Websites with Information / Evidence:

www.commonsenselaw.org (Jeff Mashburn)
www.realestatemindset.org (Travis Spencer)
www.mockingbirdproperties.com/dcad (Mitch Vexler)

Co-Conspirators: State & Local Officials, Appraisal Districts, The Federal Reserve

Fri, 03 Apr 2026 18:58:10 GMT

Co-Conspirators

State & Local Officials, Appraisal Districts, The Federal Reserve

By Mitchell Vexler, April 3, 2026

Link to Corresponding Graphics: The Architecture of Equity Stripping – The Red Ledger Audit

Roughly 37.6% which is 42,000,000 households in the U.S. are going to go bankrupt or lose the roof over their head. (See A Bankrupt Population is a National Security Risk .)

The true house affordability is $103,000 based on today’s Median Household Income (MHI) of $81,000 and average expenses, including the fraudulent real estate taxes at roughly $7,000 /year, assuming $50,000 cash down, meaning the difference of $43,000 in purchasing power. At $7,000 per year, the real estate tax fraud component is roughly $583/month. Graphic provided below. (Also, see Review of Home Affordability of Denton County Texas for 2023.)

There are 3147 counties in the U.S.

34 states and the District of Columbia have accessed the tax-exempt bond market to finance their schools.

Bond election fraud has occurred. The voters don’t have a clue about the reverse amortization and equity stripping they were duped into. Argyle Texas has roughly $243,000 per household in outstanding fraudulent school district bond debt.

The evidence of accounting fraud and thus bond fraud is also shown in multiple independent reports from across the U.S. including:

JCAD Comprehensive Report
JCAD and GISD violations of Law
California Policy Center – Bond Study – including bond election fraud
Residential Appraisal Testimony
313 Agreements, Energy Contracts, Off Balance Sheet Financing (CommonSenseLaw.org)
Conroe Hyatt Regency Convention Hotel - Bond (PPP) Financing
(or see article, Municipal Bankruptcy )
School Funding Issues - BOND FRAUD
(use find, search for “bond” on https://www.mockingbirdproperties.com/dcad )

The only reason housing is not affordable is because of the fraud that allowed for overvaluation and over taxation and the fraudsters and co-conspirators that are responsible.

The databases are intentionally and irretrievable corrupted.

There would need to be a 40-50% house price reduction just to get back to the value where we were 6 years ago. According to the Fed, inflation only ran at roughly 3% per year for that period, 2020 to 2025. That’s about 18%. House values have gone up an average of 100% across the U.S. That means 82% of the increase is pure fraud for a variety of purposes, the majority of which is the interest on school district bonds, and this means the bonds have not been paid off but rolled out in time and the interest rates rolled up and this has been happening since at least the year 2000. Add into this, the rule of 72 till today, plus the annual increase in demand for more school district bonds and the amortization schedule that you are being demanded to pay for over the next 20 to 40 years, and it is an irrefutable fact that the school districts are bankrupt as are 42,000,000 households. The longer this deception plays out the larger the number of defaults.

School District Superintendents have committed accounting fraud and bond fraud.

USPAP (Uniform Standards of Professional Appraisal Practice) is required in law (Section 23.01(b) of the Texas Property Tax Code) and Uniform and Equal is required under the Texas Constitution. Both have been rendered meaningless by the fraud, as has the Appraisal Foundation.

Who is responsible…Chief Appraisers, School District Officials, the Boards, their attorneys as officers of the court who are aiding and abetting a criminal conspiracy to defraud, state comptrollers, AGs, IAAO, TAAO, inspector general, and the Judges that refuse to allow the prosecution of what has already been admitted as fraud.

What is the difference between Ilhan Omar, Chief Appraiser Don Spencer, and Jerome Powell?

Ilhan Omar has allegedly stolen over $30 million by way of kickbacks and money laundering through a winery that does not exist, and that money is taxpayer money.
Don Spencer, as Chief Appraiser of the Denton Central Appraisal District, is responsible for the over taxation of Denton County Taxpayers in excess of $1.34 Billion of taxpayer money stolen as a result of fraud in 2023, with over $7.17 Billion in excess tax from 2017 to 2025 by Spencer and his predecessors. (See Review of DCAD Certified Values & Property Taxes 2017 to 2025 .)
Jerome Powell’s term started in 2018 where the assets of the fed were roughly $4.4 Trillion. By 2023 they were $8.3 Trillion, and right now are at around $6.7 Trillion. Taxpayer money is being shuffled around.

All 3 of these people and their organizations are frauds, wherein your money is transferred into their pocket without a hope of ever seeing a return on, or return of, your money because the debt they created by virtue of fraud cannot be paid off but for printing of more money thus creating more fraud. At the local level, property values are increased fraudulently to generate more tax revenues and to support raising more municipal and school bonds in order to cover off the compound cumulative roller coaster of interest, the bigger fraud. Mom and Pop are the printing presses for the school districts, and the Fed is the printing press for the banks.

We have Mr. Spencer on tape stating that they took 60,000 properties outside of the database in excel, manipulated them, and put them back. This statement was delivered to the SCOTX.

Mr. Powell, I have only one question…and that is… how exactly is any of the U.S. National Debt going to be paid off, as in retired?

Mr. Spencer, I have the exact same question for you. How exactly are the property owners going to get back the billions you stole from them?

Mr. Powell has zero credibility. Remember “Inflation is Transitory”! Mr. Spencer and the entire DCAD operation also have zero credibility, and DCAD, along with all CADs, must be terminated as they are beyond repair.

We now have the attorney’s playbook (how to aid and abet a criminal conspiracy to defraud being used across the U.S.) wherein opposing counsel in the Vexler case through persistent lies, is asking the court(s) to guarantee taxation without representation. The exact circumstance that the War of Independence was fought over which was “NO Taxation Without Representation”. Opposing Counsel’s responses, being the playbook, are on my website. (See Response for DCAD & Response for Spencer at https://www.mockingbirdproperties.com/dcad )

The evidence is irrefutable, and insurmountable under the laws of the U.S. (See Violations.pdf .)

The laws of the U.S. and State Laws are not being adhered to in favor of fraud which ends up equity stripping all of society.

Math is the Achilles heal of socialism – Federal Reserve and School Districts are on the exact same rails of the train track. (See The Debt Model of socialism , Chain the Doors of the Federal Reserve , & We Don’t Need Arguments. We have Facts, Law & Math .)

The only thing that is holding this crime scene together is fraud.

NY City just received a negative bond rating. This problem has been building for over 50 years with regard to the pension fraud.

The reckoning is the fact that the Math will supersede the delay of the government’s interference in the natural course of your economics. The Math exposes the fraud and the co-conspirators, including the rating agencies. We laid the evidence at the feet of the DOJ, FBI, and SEC.

Private credit, private equity, shadow banks, big banks, all of which are cross collateralized, and leveraged into derivatives and a portion of your 401K and Pension is interwoven into this mess which also contains School District Bonds and Municipal Bonds.

The solution is the immediate repeal of all property tax in favor of the Uniform States Sales Tax which eliminates the “industry of fraud” and restores the 16th Amendment, being taxation on income only, and restores property ownership such that when the property is paid off you own it.

We are at the SCOTX now, asking to remand the case to the lower court to be heard on its merits of fraud.

The more people that know and participate the faster a proper resolution will occur. Forward the videos and links to the articles and to protect yourself and your family you must get involved at your municipal and school district levels. Your group should hire attorneys and prosecute the criminals, or 37.6% + of the people in this room will face bankruptcy. The heavy lifting is done; all you have to do is duplicate it. You have the power and you need to use it.

Go to…

www.realestatemindset.org for how to do proper comparisons and file criminal complaints,
www.mockingbirdproperties.com/dcad to review the depth of the issues, including reading Articles, Letters, and Discussions ,
www.commonsenselaw.org to learn about 313, energy contract and methods of kickbacks.

Take a camera and a witness to every interaction at a CAD, School District, and Municipal function. When they lie straight to your face, post it on social media.

The CAD are coconspirators with the school district.

Let’s look at the accounting for school district bonds.

THE BONDS WERE RAISED BASED ON MULTIPLE FRAUDS INCLUIDNG BUT NOT LIMITED TO:

A. Federal Reserve printing money which creates inflation, which is a tax, which is fraud on the Citizens.

CENTRAL APPRAISAL DISTRICT OVERVALUATION AND OVER TAXATION WITH NO REGARD TO USPAP, TEXAS PROPERTY TAX CODE, TEXAS CONSTUTION AND THE CONSTITUTION OF THE UNITED SATES OF AMERICA.
SCHOOL DISTRICT ACCOUNTING FRAUD AND SUBSEQUENT BOND FRAUD. A.) FALSIFYING DEMOGRAPHIC PROJECTS, B.) FALSIFYING COST TO BUILD WIHTOUT BIDS OR DRAWINGS C.) FALSIFYING COST TO OPERATE D.) HIDING INFORMATION ON “INVESTMENT POOLs”, E.) HIDING COST OF COMPOUND CUMULATIVE INTEREST ON OUTANDING BONDS, F.) HIDING ANY PROPER ACCOUNTING (FORENSIC AUDIT) SPECIFYING AND MATCHING THE BONDS RECEIVED TO THE SPECIFIC DEMAND FOR THE BOND G.) FALSIFYING ADVERTISING FOR THE RAISE OF THE BONDS H.) UTILIZING LUMP SUM ANNUAL BONDS WITH NO BREAKDOWN OF THE USES OF THOSE BONDS I.) NO AUDITS FOR THE SOURCES AND USES OF THE BONDS J.) NO CHECKS AND BALANCES “WE ARE NOT THE REPOSITORY OF DOCUMENTS” AS STATED BY THE OFFICE OF THE ATTORNEY GENERAL K.) “NO ENFORCEMENT” AS STATED BY THE STATE COMPTROLLER L.) UNDERWRITERS FRAUDULENTLY CLAIMING “UNLIMITED TAX” M.) RATING AGENCIES ARE GROSSLY NEGLIGENT N.) SCHOOL DISTRICT BALANCE SHEETS DO NOT REFLECT POPER ACCOUNTING FOR THE BONDS INCLUDING COMPOUND CUMULATIVE INTEREST BY NOT PAYING OFF THE BONDS BUT ROLLING THEM UP AND ROLLING THE INTEREST OUT AND IN ADDITION NOT ACCOUNTING FOR THE COST OF NEW BONDS ADDED TO THE PRIOR BONDS AND EXAMINING THE ABILITY OF THE HOUSEHOLDS TO PAY WHICH THE MAJORITY CANNOT BASED ON THE MEDIAN HOUSEHOLD INCOME.

B. The Real Estate tax includes the FED’s fraud, plus the fraud of overvaluation and over-taxation.

C. Now add the cumulative bond fraud at the school districts.

= THIS IS A PONZI SCHEME OF BIBLICAL PROPORTIONS.

Now let’s consider the following list with regard to the Probability of Default... and remember this is applicable across the U.S.... All Real Estate is local.

Jobs – where is the economic engine?
Housing Inventory declining?
Population declining?
Seniors’ taxpaying ability declining?
Student enrollment down? i.e. 8% in Itasca.
Flatline population growth?
Failing teachers and school districts, yet the demand for bonds goes unabated.
Why? Who receives benefit?
Hidden Investment pools?
Can the Median Household Income pay for the fraudulent debts created by the CADs and the School Districts?
Is there enforcement of laws including audits on the school districts? We have the responses from AG, Comptroller, State Auditor, TDLR, and TALCB stating they do not have enforcement authority.
Where is the proof that the demand for the bonds, per line item, is paid for by the bonds?
No payoff of bonds. Roll up and roll out.
Where did the money go?
The State’s matching funds is defrauding the federal government as a result of the “off” balance sheet contracts.
No person voted with the 313 agreements
The 313 agreements (pet projects) provide lucrative tax abatements and provide private industry incentives (advantages) that no taxpaying individual has.
Taxpayers do not have a vote in the process.
The districts have failed to deliver information requested in writing regarding the proposed or projected tax revenue(s) or the benefits from any of this “off balance sheet financing” methods.
The legal counsel and consultants that negotiated the 313 contracts for the district were paid for by the solar farm owner/operators. This is a direct conflict of interest.
The district failed to negotiate the best possible financial benefit to the district and therefore relieved the solar farm owner/operators of their fair share of local tax revenue from ad-valorem taxation on real property.
The district failed to take advantage of the knowledge and experience of a taxpayer that would have resulted in a much favorable financial benefit for the district for many years.
The district as of this date has not released information to taxpayers that has been requested by formal written request.
Ad-valorem taxes are applied to Real Property based on the assessed values determined by, for example, the Hill County Appraisal District (HCAD). The district, working in unison with officials with HCAD, have demonstrated and levied ad-valorem taxes unequal and out of uniformity with the Universal Standards of Professional Appraisal Practice (USPAP) as required by law.
School district officials have demonstrated further bias and prejudice against citizens and taxpayers not involved or part of a Chapter 313 Agreement by allowing solar farm owner/operators to use depreciation schedules for solar farm equipment installed on leased land acquired under the Chapter 313 Agreements. This allows solar farm owner/operators to benefit from both the lower taxable valuation stated in the contract but also by applying depreciating schedules to the solar farm equipment.
School officials do not offer or extend the same tax relief opportunities as granted to solar farm owner/operators to the typical resident and property owner. Chapter 313 Agreements executed by district officials violate key tenants to the uniform and equal requirements as stated in USPAP.
Depreciation schedules are not allowed as a means to reduce the taxable liabilities for the typical property owner, but instead typical homeowners are challenged annually with ever increasing property values and escalation of property taxes.
School officials that have executed Chapter 313 Agreements to relieve solar farm owner/operators of their fair share of tax burdens are ear-marking projected increases in tax revenues as part of future bond referendums being pursued by school officials.
These projected tax revenues are not guaranteed funds. There are no surety, or performance, bonds issued to guarantee future tax revenues will be realized for future years. The citizens and taxpayers had no voice or input into the decisions made by school officials. School officials did not have written approval from taxpayers for the decisions made by school officials and board members. This is Bond Election Fraud.
If school officials maximized the available local tax revenues from ad-valorem taxes on Real Property, school districts would not need to issue bond referendums at all and could fund school districts from local resources and eliminate need for state of federal matching funds.
School districts have demonstrated incompetence and gross negligence and understanding regarding how to maximize the available tax revenues that should be flowing into the local school district(s). This has resulted in further negative financial impact to local taxpayers and homeowners.
School district officials have obligated taxpayers within the taxing jurisdiction of their respective district for a financial contract and agreement for ten years without taxpayer approval or vote. Tax abatements are a contract with a monetary value that guarantees or relieves a solar farm owner/operator financially for ten years. This contract can is used by solar farm owner/operators as collateral for loans used to construct solar farm projects.
Chapter 313 Agreements that have been executed by school districts have become a negative line item in the annual budget. School board members have limited the bonding capacity of districts by obligating the district and taxpayers financially for years. These contracts are binding at this time unless the court(s) rule the agreements are illegal and violate the rights of citizens by eliminating them completely from the process.
Texas Bond Program is insolvent.
Your pockets are being picked while you sleep. Your equity from your amortization schedule is being stolen by the CADs fraudulent real estate tax, then bonds are created which can’t be paid off = 2 layers of theft on the back of all property owners. Further you don’t have that money to invest, stripping you of your future. (EQUITY STRIPPING)
Tax Assessor Collector mails property tax bills that are fraudulent.
Where is the Bond Schedule stating all outstanding individual bonds, including term, interest rate, underwriter, purpose, conditions, and their corresponding CUSIP numbers, and amortization schedules, from 9/1/2001 to 9/1/2025?
Where is the amount of cumulative interest, outstanding interest and or compound cumulative interest on the outstanding bonds as of 9/1/2025?
Where is the amount of interest to be paid in the future on the outstanding bonds starting 9/1/2025 to 9/1/2045?
Where is the name of the Auditor and Auditing / Accounting Company, address, phone number and email address, hired by the School District.
Databases at the CADs are compound fraud.
They can’t confirm they are NOT breaking the law (they being the Attorney General, State Auditor, State Comptroller).
Why is there a denial of the information?? Because they are complicit in aiding and abetting a criminal conspiracy to defraud?
How do you know that the bonds can be paid off? Show us. CUSIPS – Median HH Income. How do you know the CUSIPS are being used when the Texas AG, State Auditor, State Comptroller, BRB, Texas Education Agency, Superintendents, and chief appraisers don’t have or won’t turn them over.
The entities and individuals claim sovereign immunity to protect them from the fraud they committed.
The SEC should immediately prohibit the State of Texas from gaining access to the bond market as the State of Texas Bond program is insolvent. – READ the Amicus .
What proof exists that the certified tax rolls are correct?
What proof exists that on an individual or global basis, the certified taxes are correct?
If not correct and used as a basis for a property tax and school district bonds, how do homeowners recover from that lack of authority?
Where is your verified data – DCAD, JCAD, HCAD, MCAD and all CADs in the State of Texas and across the U.S.?
What evidence exists that the ARB panels utilize USPAP, to determine their Values?
What method and under what laws do the ARB panels use to determine their values?
The ARB under the Patel case written by the Supreme Court of Texas, cannot be the final determiner of value as the ARB does not have the authority under law to determine fraud.
No one has met the requirement of proof.
Where is the verification of evidence?
Where is the verification that the process, as required in law, was adhered to?
ARB – we can’t question the process by which the ARB comes to a number.
Billions of dollars of fraudulent liabilities have been put on the property owner of which they are not required to pay.
Willing suspension of disbelief.
Nothing meets the standard of what is required. – that is the big con!
What if mortgage rates go up?
What if the property values go down by 10, 20, 30% with regard to the CAD’s bond fraud? Where is the Probability of Default analysis?
Bonds have derivatives allegedly to protect the values. What is the probability of the derivatives paying off when the system implodes due to fraud?

THE DIFFERENCE OF SURVIVING OR BANKRUPTCY IS THE REAL ESTAE TAX.

There was no income tax until 1913. The same year the Federal Reserve was created.

Tue, 31 Mar 2026 22:15:21 GMT

There was no income tax until 1913.

By Mitchell Vexler, March 31, 2026

Link to corresponding graphics, titled The Shadow Ledger

There was no income tax until 1913.

That was the same year the Federal Reserve was created.

Coincidence? – I think not!

Accounting Fraud? – Guaranteed.

Let's review:

the current financial h ealth of the U.S. & its people,
the historical coun ts provided by Erased Evidence , and
the actual words of Robert F. Kennedy.

Consider the following with regard to the current financial health of the U.S....

The Privilege to Know - When Knowing Is No Longer Neutral ,

( Vegas “BONDGATE” Symposium Presentation, Graphic Slide Edition ),

… the evidence of mass accounting fraud co ntinues to grow, an d the ramifications of this accounting fraud is what we as society are forced to pay in the form of inflation and compound interest to the point we are now at where the Median Household Income does not exist to pay for the interest never mind paying down the debt. The accounting fraud is at both the Federal Reserve level and the School District bonds as presented in The Privilege to Know .

According to Erased Evidence there's a building in Washington DC that shouldn't exist. The old post office pavilion was completed in 1899 with granite columns, a 315 ft clock tower, and vaulted ceilings with hand carved stone detail. It cost $3.2 million. The federal government built it without collecting a single dollar of income tax from American citizens. In fact, the federal government built the entire transcontinental railroad system, funded the Spanish American War, constructed the Library of Congress, and maintained a standing military across 45 states, all before 1913. That was the year the 16th Amendment was ratified, giving Congress the power to levy income tax on individuals. Before that, the official story is simple. Tariffs, excise taxes, and land sales covered everything. But the math doesn't match the buildings. Let me show you what I mean. In 1890, total federal revenue was approximately $43 million. The majority came from customs duties, roughly 57%, with internal excise taxes on alcohol and tobacco contributing another 30%. Land sales and miscellaneous fees made up the rest.

That same decade, the federal government funded the completion of multiple transcontinental rail lines, began construction on the Panama Canal infrastructure, built 27 new federal concourses, and expanded the Navy from 42 ships to 95. The USS Indiana, launched in 1893, cost $3 million. The pension building in Washington, completed in 1887, cost $886,000. The Montana State Capital, finished in 1902, required $485,000 in federal appropriations. The 1893 World's Columbian Exposition in Chicago, received $2.5 million in federal funding on top of private investment. Added up across one decade, and the numbers stop cooperating with the textbook explanation. Consider the scope. Between 1865 and 1913, the federal government constructed infrastructure that rivaled anything built in Europe. State capitals with domes larger than the US Capital. Concourses with marble imported from Italy. Post offices in towns of 3,000 people that featured granite facades and bronze fixtures. Custom houses in port cities designed like Roman temples. This wasn't frugality. This was abundance. And the people who kept the books remembered. There was a generation of Americans who worked inside the system before 1913. Clerks and accountants and treasury officials who saw how the money moved. Many lived long enough to be interviewed in the 1930s and 1940s by researchers trying to capture the last memories of the old economy. Their testimonies were filed in archives. Most were never widely published.

Mary Duckati was born in 1868 in Boston. She worked as a clerk in the US Customs House from 1889 to 1922. In a 1938 interview preserved at the Massachusetts Historical Society, she described the ledger system used to track tariff revenue. When asked if tariffs alone could have funded federal operations, she paused, then said there were other columns. We called them special appropriations. The interviewer asked what that meant. She said the records were kept separately and she wasn't permitted to discuss them. John Hastings, a Treasury Department accountant from 1895 to 1931, gave a similar account in a 1941 oral history archived at the Library of Congress. He described reviewing federal expenditure reports in the early 1900s and noticing surpluses that didn't correspond to tariff collections. When he asked his supervisor, he was told those funds came from asset management and were not part of public appropriations. He never saw a full accounting. These weren't conspiracy theorists. They were clerks. They filed receipts, tracked expenditures, and balanced ledgers. And what they described doesn't match the official story we've been taught. The official story says tariffs covered everything. In 1880, tariff revenue was $186 million. In 1900, it was $233 million. In 1910, $333 million. Modest growth over 30 years. But during that same period, federal expenditures ballooned from $268 million in 1880 to $694 million in 1910. The gap widened every year. So, where did the money come from? The textbooks say efficiency, economic growth, and careful management. But the buildings say something else. They say there was wealth flowing into federal coffers from sources that were either not publicly reported or were reported under categories that obscured their true origin. Wealth substantial enough to fund construction that still stands today over a century later as some of the most durable infrastructure in America. And in 1913, everything changed. The 16th Amendment passed. The federal income tax became law. And within a generation, the people who remembered how it worked before were gone. But the receipts aren't gone. The appropriations records, the custom ledgers [ The Shadow Ledger ], the treasury reports from 1870 to 1912 are sitting in the national archives. The testimonies from elderly clerks and accountants are preserved in university libraries and historical societies. The buildings themselves are still standing, physical proof that something funded them. The question isn't whether the government had money before 1913. Clearly, it did. The question is where that money came from and why the people who knew were never asked to explain it in detail before they died. Let me show you a specific case that makes the funding question impossible to ignore. The 1893 World's Columbian Exposition in Chicago. 27 million visitors across 6 months. Over 200 buildings spread across 630 acres, known as the White City. Official records show the federal government appropriated $2.5 million for the exposition. The total cost of construction, however, was documented at approximately $28 million.

Private investors in the city of Chicago covered most of that. But here's where the numbers fracture. The government building alone, a neoclassical structure covering 420,000 sq. ft. was funded entirely by federal appropriations. According to the official exposition directory published in 1893, construction cost was $400,000. The building featured a central dome 120 ft in diameter, Corinthian columns carved from Indiana limestone, and interior halls finished with marble and gold leaf. It was completed in 18 months. For context, the Washington Monument, a simpler obelisk structure, took 36 years to complete and cost $1.2 million. The government building at the White City was exponentially more complex, built in half the time for a third of the cost and then demolished 6 months later. The construction contracts are in the archives. I found them because I was looking for something else. Tracing appropriations records for the Bureau of Public Buildings. The primary contractor for the government building was George Fuller Company of Chicago. The contract dated March 1891 specifies materials, labor schedules, and payment terms. What it doesn't specify is the funding source beyond federal appropriation. Treasury records from 1891 show total customs revenue for that year at $219 million. Total federal expenditures were $365 million, meaning the government was already running a deficit of $146 million. Yet somehow an additional $400,000 was allocated for a temporary exhibition building with no permanent federal purpose. That's one building.

Across the same decade, similar appropriations appear for projects in multiple cities. The 1901 Pan-American Exposition in Buffalo received $500,000 in federal funding. The 1904 Louisiana Purchase Exposition in St. Louis received $5 million. Each time, massive neoclassical structures built quickly, displayed briefly, then demolished completely. And each time the funding appears in federal ledgers without clear sourcing. But here's the detail that researchers have struggled with since 1910. In that year, a congressional investigation led by Senator Nelson Aldridge examined federal expenditures from 1890 to 1909. The investigation was part of broader debates over monetary policy and the creation of a central banking system. The committee reviewed Treasury records, appropriations bills, and departmental budgets. According to the final report published in 1911, there were discrepancies. The committee identified approximately $340 million in expenditures across the two-decade period that were categorized as internal improvements and special appropriations but lacked detailed sourcing and customs or excise records. The report noted these funds appear to come from land management receipts and asset liquidation but did not provide itemized accounting. The report recommended further investigation. No further investigation occurred. The 16th amendment was ratified 2 years later. There were people who noticed. Albert Gallatin, a Treasury official from 1897 to 1920, gave testimony to the Aldrich Commission in 1910.

His testimony archived at the National Archives describes a secondary ledger system used by the Treasury Department to track what he called non-tariff revenue. When asked to specify the sources, he stated they included mineral rights on federal land, harbor fees, and lease payments from railroad companies operating on public land grants. Gallatin calculated these sources generated approximately 15 to 20 million annually between 1890 and 1910. Substantial, but nowhere near the $340 million gap the Aldrich Commission identified. When pressed, Gallatin testified that certain revenue streams were classified under administrative discretion and not included in public reports. The commission asked him to provide documentation. He stated the records were maintained separately by the Office of the Secretary of the Interior and were not part of standard Treasury ledgers. The commission requested those records. According to the hearing transcripts, the request was referred to the Interior Department. No records were ever produced. Then there's the matter of the gold reserves. In 1890, the US Treasury held approximately $190 million in gold reserves to back the currency. By 1900, despite funding the Spanish American War and massive infrastructure projects, reserves had grown to $600 million. By 1910, reserves stood at $1.5 billion. The official explanation is economic growth and increased international trade driving gold inflows through tariff payments. But tariff revenue during that period grew by roughly $100 million, not $1.3 billion. The gold had to come from somewhere. There were elderly miners and land office clerks who remembered Samuel Burch, a Colorado land office administrator from 1883 to 1919, who was interviewed in 1942 by a WPA researcher. The interview is preserved at the Denver Public Library. Burch described a system where mining companies paid royalties directly to the federal government for extraction on public lands. He estimated the payments totaled millions annually, but said the accounting was handled through different channels, not the regular books. (1) When the interviewer asked what happened to those payments, Burch said, "They went to Washington. We sent the reports quarterly. I don't know what they did with them after that. Those reports should be in the archives. I've looked. They're not there." Which brings us to 1913 and the question nobody asked loudly enough. If the system was working, if tariffs and excise taxes and land sales were covering everything, why did the federal government suddenly need to tax individual incomes? (2) The official justification was progressive reform. The idea was simple. Wealth inequality had grown too extreme, and a graduated income tax would distribute the burden more fairly. The 16th amendment passed the Senate 77 to 0 and was ratified by 42 states by February 1913. President Taft signed it into law. By October, the Revenue Act of 1913 established a 1% tax on incomes above $3,000, rising to 7% on incomes above $500,000. The rhetoric was about fairness, but the timing suggests replacement, not addition.

Consider what else happened in 1913. The Federal Reserve Act was signed into law in December, creating a central banking system and fundamentally reshaping how the government managed money. Two massive financial restructurings in a single year. One gave the government the power to tax individuals directly. The other gave a private consortium of banks control over the money supply and credit. Together, they replaced a system that had operated for over a century with something entirely new. Opposition to the income tax came primarily from rural states and agricultural interests. Senator William Bora of Idaho argued in congressional debates that income tax would shift financial power from states to the federal government and create a permanent administrative apparatus for monitoring citizens. He warned it would make the government dependent on a revenue source that required perpetual expansion. He was right, but he lost. The amendment passed, and within a decade, the old systems paper trail began to disappear. In 1921, a fire in the Treasury Department annex destroyed records related to internal revenue collections from 1890 to 1910. The official cause was listed as electrical malfunction. In 1924, the Office of the Secretary of the Interior conducted an internal audit and determined that land management records from before 1913 were incomplete and unreliable. Many were discarded. In 1933, as part of New Deal reorganization, the Treasury consolidated its ledger systems and reclassified pre-1913 revenue categories. Special appropriations became miscellaneous receipts. The detailed sourcing was lost. By the 1940s, the clerks and accountants who had worked in the old system were dying. A few were interviewed, mostly by local historical societies or WPA researchers documenting regional economies. Their testimonies describe a system more complex than the textbooks admit. Revenue from sources that weren't publicly reported. Ledgers kept separately. Instructions not to discuss certain appropriations. But their testimony was filed, not published. It sat in archives for decades, and by the time researchers began asking these questions in the 1970s and 1980s, the witnesses were gone. There had to be one in every federal office in 1950. A woman born in 1870, hired as a clerk in 1890, retired in 1935, living past 80. She would have filed the receipts, tracked the expenditures, seen the separate ledgers. She would have watched the system change in 1913 and known exactly what was being replaced. When her grandchildren asked how the government paid for everything before income tax, she might have started to explain. Tariffs, yes, but also land revenues, mineral royalties, harbor fees, things that weren't always reported the same way, and her grandchildren, educated in schools that taught the simplified version, would have nodded politely and assumed she was misremembering. Because by the 1950s, the textbooks had already decided. Before 1913, the government was small and frugal, funded by tariffs and little else. After 1913, it became modern and expansive, funded by income tax. Clean narrative, simple timeline. Except the buildings from before 1913 are still standing. The granite and marble post offices, the state capitals with imported stone and bronze doors, they're still here, physical proof that the government wasn't small and wasn't frugal. The timeline compresses cleanly. The 1870s through 1890s, infrastructure built at a scale and speed that official revenue doesn't fully explain. The 1890 census captures everyone alive during the transition. Then the only copy is destroyed. The 1910 Aldrich Commission identifies a $340 million gap, requests documentation, receives none. The 1910s and 1930s, records are destroyed or reclassified. The 1940s and 1950s, the last witnesses die. By the 1970s, the paper trail is incomplete and the living memory is gone. But the Treasury annual reports from 1870 to 1912 are still accessible at the National Archives. The Aldrich Commission hearings are published and searchable. The testimonies from elderly clerks are preserved in historical society collections across the country. The appropriations records for federal buildings are filed in the Library of Congress. We know what they built. We know what the official budget was. We don't know where all the money came from. And the people who did know chose silence or were never asked or were asked too late. The archive is public. The ledgers are readable. The buildings are still standing. And the question is still waiting the same way it's been waiting for over a century for someone willing to read the receipts instead of the textbooks.

(1) “The accounting was handled through different channels, not the regular books”.

Now the pattern and practice to defraud comes into focus.

The auditing firms, which are not doing audits as required in law, use the exact same pattern and practice to provide cover to the fraudsters being “we are not given all the information” as if that will provide the audit firm cover from the fact they are aiding and abetting a criminal conspiracy to defraud and they should be held accountable including jail because the vast majority of school districts that raise bonds are guilty of bond fraud and why we filed Criminal Complaints and why The Amicus Brief is now at the Supreme Court of Texas, and as of this morning, so is our Response to the lies of opposing counsel, DCAD and Don Spencer .

The evidence of accounting fraud and thus bond fraud is also shown in multiple independent reports from across the U.S. including:

JCAD Comprehensive Report
JCAD and GISD Violations of Law
California Policy Center – Bond Study – including bond election fraud
Residential Appraisal Testimony
313 Agreements, Energy Contracts, Off Balance Sheet Financing (CommonSenseLaw.org)
Conroe Hyatt Regency Convention Hotel - Bond (PPP) Financing (RealEstateMindset.org)
School Funding Issues – BOND FRAUD

What remains as a result of generations of accounting fraud and bond fraud is one unavoidable financial question that no institution has answered.

One SIMPLE Question: Where is the money going to come from to pay off the fraud that is growing compound cumulative by the second?

No institution has answered that question.

Not the Federal Reserve with its 23,000 employees,
Not the school districts,
Not the teachers who are also being defrauded,
Not the school district superintendents who commit accounting fraud and bond fraud ,
Not the bond underwriters,
Not the appraisal districts,
Not the Chief Appraisers who collude with the school districts to cook the books ,
Not the bond architects,
Not the rating agencies, and
Not the attorneys who are aiding and abetting a criminal conspiracy to defraud .

This One SIMPLE Question, cannot be answered by any of these individuals or institutions which begs the 2 ^nd question, which is… for what purpose does any of these organizations exist??

(2) Why did the federal government suddenly need to tax individual incomes?

The answer with regard to both the federal government and the state government is to transfer the wealth of society (Equity Stripping) into the pockets of the fraudsters, banksters, and co-conspirators. Let’s create an illusion of benefiting society and use that illusion to steal society’s money. The Fed’s illusion…Wouldn’t it be great if we can protect banks against bank runs? The School Districts illusion…We are doing this for the children. Don’t you want to help the children? In both cases the illusion is the creation of mass fraud upon society.

Today the local record of accounting fraud and bond fraud intersects with national financial mathematics, meaning the arithmetic is now exposing both the intent to defraud and the intended delay of discovery of the fraud that has metastasized into the 401Ks and Pensions. The median household income (MHI) does not exist to pay off the interest on the fraud, never mind paying off the fraud, and the result will be massive write-downs and mass bankruptcies if the solution is not put in place quickly.

These are the words of Robert F. Kennedy...

The Anti Apathy!

"There is discrimination in this world and slavery and slaughter and starvation. Governments repress their people; millions are trapped in poverty while the nation grows rich, and wealth is lavished on armaments everywhere. These are differing evils, but they are the common works of man. They reflect the imperfection of human justice, the inadequacy of human compassion, our lack of sensibility towards the suffering of our fellows. But we can perhaps remember -- even if only for a time -- that those who live with us are our brothers; that they share with us the same short moment of life; that they seek -- as we do -- nothing but the chance to live out their lives in purpose and happiness, winning what satisfaction and fulfillment they can.

Surely, this bond of common faith, this bond of common goal, can begin to teach us something. Surely, we can learn, at least, to look at those around us as fellow men. And surely, we can begin to work a little harder to bind up the wounds among us and to become in our own hearts brothers and countrymen once again. The answer is to rely on youth -- not a time of life but a state of mind, a temper of the will, a quality of imagination, a predominance of courage over timidity, of the appetite for adventure over the love of ease. The cruelties and obstacles of this swiftly changing planet will not yield to the obsolete dogmas and outworn slogans. They cannot be moved by those who cling to a present that is already dying, who prefer the illusion of security to the excitement and danger that come with even the most peaceful progress.

It is a revolutionary world we live in, and this generation at home and around the world has had thrust upon it a greater burden of responsibility than any generation that has ever lived. Some believe there is nothing one man or one woman can do against the enormous array of the world's ills. Yet many of the world's great movements, of thought and action, have flowed from the work of a single man. A young monk began the Protestant reformation; a young general extended an empire from Macedonia to the borders of the earth; a young woman reclaimed the territory of France; and it was a young Italian explorer who discovered the New World, and the 32 year-old Thomas Jefferson who proclaimed that "all men are created equal."

"These men moved the world, and so can we all. Few will have the greatness to bend history itself, but each of us can work to change a small portion of events, and in the total of all those acts will be written the history of this generation. Each time a man stands up for an ideal, or acts to improve the lot of others, or strikes out against injustice, he sends forth a tiny ripple of hope, and crossing each other from a million different centers of energy and daring, those ripples build a current that can sweep down the mightiest walls of oppression and resistance.

Few are willing to brave the disapproval of their fellows, the censure of their colleagues, the wrath of their society. Moral courage is a rarer commodity than bravery in battle or great intelligence. Yet it is the one essential, vital quality for those who seek to change a world that yields most painfully to change. And I believe that in this generation those with the courage to enter the moral conflict will find themselves with companions in every corner of the globe.

For the fortunate among us, there is the temptation to follow the easy and familiar paths of personal ambition and financial success so grandly spread before those who enjoy the privilege of education. But that is not the road history has marked out for us. Like it or not, we live in times of danger and uncertainty. But they are also more open to the creative energy of men than any other time in history. All of us will ultimately be judged, and as the years pass we will surely judge ourselves on the effort we have contributed to building a new world society and the extent to which our ideals and goals have shaped that event.

Our future may lie beyond our vision, but it is not completely beyond our control. It is the shaping impulse of America that neither fate nor nature nor the irresistible tides of history, but the work of our own hands, matched to reason and principle, that will determine our destiny. There is pride in that, even arrogance, but there is also experience and truth. In any event, it is the only way we can live."

- Robert F. Kennedy

Repeal all property tax in favor of the Uniform States Sales Tax.

Is the War of Independence, 1768, replaying now in 2026

Mon, 16 Mar 2026 22:32:19 GMT

Is the War of Independence, 1768, replaying now in 2026?

By Mitchell Vexler, March 16, 2026

Perhaps no phrase is used more to describe the grievances of the colonists in the lead up to the American Revolution than “No taxation without representation!”

This Article is an immediate follow-up to We Don’t Need Arguments…We Have Facts, Law & Math. DCAD and SPENCER have FRAUD!

The Importance of the Vexler Case across Texas and the United States .

Mark Maloy, a historian wrote “While the exact phrase did not appear until 1768, the principle of having consent from the people on issues of taxation can be traced all the way back to the Magna Carta in 1215.

The Magna Carta was one of the first steps in limiting the power of the king and transferring that power to the legislative body in England, the Parliament. Parliament had the power to levy taxes. When King Charles I attempted to impose taxes by himself on the English people in 1627, the Parliament passed the Petition of Right the following year, which stated that the subjects of the king “should not be compelled to contribute to any tax, tallage, aid, or other like charge not set by common consent, in parliament.”

A nineteenth-century print of King John signing the Magna Carta in 1215.

The Magna Carta, the Petition of Right and the English Bill of Rights from 1689 helped to form the basis of the British constitution (which is not a single document, but a combination of written and unwritten agreements). The British constitution protected the rights of Englishmen. English colonists in North America believed that they had the same rights of Englishmen. In North America, colonists formed their own colonial governments under charters from the king and regulated their own forms of taxation from their colonial legislatures. For many decades, these colonies enjoyed an extended period of benign neglect as the English parliament let them handle taxation on their own.

In Great Britain in the eighteenth century, there were no income taxes because it was viewed as too much of a government intrusion into the lives of the people. Instead, taxes were placed on property and on imported and exported goods. Money from these taxes helped to pay for public goods and services and supported the government’s military for defense.

In North America, the British colonies regulated their own tax system in each individual colony. These taxes, though, were exceedingly low, and the colonies did not have a professional military to support. Instead, they used a volunteer militia system to defend their towns and homes from attacks along the frontier.

In 1754, the French and Indian War broke out in North America. During the war, the British sent their military to help defend the colonies. The war spread across the globe and became known as the Seven Years’ War. Following Britain’s victory in 1763, the British national debt greatly increased. They now had a larger empire that needed to be defended. In light of this tenuous situation, and since the North American colonists benefitted directly from the British military during the war, Great Britain looked to levy taxes on the colonists to raise revenue for the Crown.

In Massachusetts in 1764, James Otis published a pamphlet titled “The Rights of the British Colonies Asserted and Proved,” which argued that man’s rights come from God and that governments should only exist to protect those natural rights. He believed that any attempt to tax the colonists without their consent violated the British constitution. Here, Otis made a compelling argument for the need for representation in any taxation on the colonies: “no parts of His Majesty’s dominions can be taxed without their consent; that every part has a right to be represented in the supreme or some subordinate legislature; that the refusal of this would seem to be a contradiction in practice to the theory of the constitution.”

Colonists wrote pamphlets protesting taxes and explaining their views. Daniel Dulaney the Younger from Maryland wrote this one in 1765.

In 1764, the British Parliament passed the Sugar Act, which revised a 1733 tax on molasses being imported to the North American colonies from the West Indies. It improved the enforcement of this tax and explicitly stated that the reason was to raise revenue, a first of its kind. American colonists, especially in New England, responded furiously to this new tax.

Samuel Adams said in response to the Sugar Act: “If taxes are laid upon us in any shape without ever having a legal representative where they are laid, are we not reduced from the character of free subjects to the miserable state of tributary slaves? ”

While the colonists likened their situation to slaves of the British Empire, American colonists paid very little in taxes compared with their counterparts in Great Britain. In Great Britain, a person paid about 26 shillings a year in taxes, while in America, they still paid only 1 shilling a year in taxes. Despite this, the American colonists strongly opposed the tax and the lack of any power to influence the decisions of Parliament .

The following year, in 1765, Parliament passed the Stamp Act, which levied a tax on many paper goods (such as newspapers, pamphlets, and legal documents) within the colonies. American colonists met the Stamp Act with protests and outrage. Protests included violence against tax collectors, the formation of the Sons of Liberty, and the creation of numerous “Liberty Trees” where gatherings and demonstrations against British overreach were displayed. In October 1765, delegates from nine different colonies gathered in New York at the Stamp Act Congress. They passed a Declaration of Rights and Grievances in which they asserted in part, “that it is inseparably essential to the freedom of a people, and the undoubted rights of Englishmen, that no taxes should be imposed on them, but with their own consent, given personally, or by their representatives.”

The Stamp Act became so unpopular that in 1766 Parliament repealed the act. However, they also passed a Declaratory Act that directly contradicted the colonists view on the authority to levy taxes. The Declaratory Act noted that Parliament “had hath, and of right ought to have, full power and authority to make laws and statutes of sufficient force and validity to bind the colonies and people of America, subjects of the crown of Great Britain, in all cases whatsoever.”

In 1768, the catchphrase of “ No taxation without representation ” first appeared in a London newspaper . As debate continued throughout the 1760s and 1770s over whether the Crown had the right to tax the colonial subjects, the phrase grew more and more popular. It provided an ideological argument in a short and powerful way against many of the subsequent taxes, such as the Townshend Acts in 1767 and 1768 and the Tea Act in 1773. As the colonies grew more and more rebellious to these taxes, the Crown pushed back stronger and only further drove the two parties towards organized conflict. Conflict finally ignited in 1775, and by the following year, the colonies united and declared their independence from Great Britain.

In 1778, Parliament finally passed the Taxation of Colonies Act which repealed the taxes, but by that point it was too late. What had begun as an argument over the ability and right to levy taxes had expanded into a conflict over the right of self-determination and freedom.

Today, the phrase “no taxation without representation” continues to be used by people who want to have a say in how they are taxed. It remains a powerful phrase that provokes people to think about the consent of the governed.

We have the documented history of bond election fraud by the School Districts, bond fraud , accounting fraud , overvaluation and over taxation fraud by the CADs all of which gigabytes of evidence are at www.mockingbirdproperties.com/dcad .

No homeowner or renter voted to have 8.6% of their gross income paid in property taxes.
No homeowner or renter agreed to bond election fraud.
No homeowner or renter agreed to school district bond fraud, which cannot be paid off.
No homeowner or renter agreed to be the guarantor for bond fraud by the School District or the fraud of overvaluation and over taxation by the CADs and the criminals therein.
No homeowner agreed to lose the roof over their head or go bankrupt due to tax lien foreclosure.
No commercial property owners agreed to allow false income and expense statements to be created by individuals within any CAD from which money is extorted.
No homeowner agreed to a ground lease which is the net effect of the overvaluation and over taxation along with the equity stripping of what would be their amortized debt reduction of their mortgage.

Clearly, we are back to “Taxation Without Representation”! However, this is far worse because the taxation that is funding fraudulent school district bonds and accounting fraud today, will continue for the next 20 to 40 years, as it is a compound cumulative debt, which can never be paid off.

Are we now at the crossroads of civil war based on taxation as was seen in 1775 or do we bypass the civil war and go to 1778 where in Parliament finally passed the Taxation of Colonies Act which repealed the taxes, and hope it is not too late?

As is recorded in history, governments can’t see the forest through the trees and here in the United States, we have a tendency to walk to the very edge of the cliff and peer into the abyss before backing up to safer ground. Perhaps it might be an excellent idea to remand the Vexler case to the lower courts to be adjudicated on its merits being that of fraud, wherein the ultimate conclusion, in order to prohibit the bankruptcy of millions of Citizens, will be the repeal of all property tax in favor of the Uniform States Sales Tax.

We Don't Need Arguments. We Have Facts, Law & Math. DCAD and SPENCER have FRAUD!

Fri, 13 Mar 2026 22:27:30 GMT

We Don't Need Arguments. We Have Facts, Law & Math.

DCAD and SPENCER have FRAUD!

By Mitchell Vexler, March 13, 2026

Also see the video titled, Something PIVOTAL Just Happened with PROPERTY TAX.

https://www.youtube.com/watch?v=PgAEHnlVFwA

Per the court’s request, opposing counsel was asked to respond to the petitioners’ request for re-hearing. In his response, the opposing counsel, who as an officer of the court is attempting to mislead and lie to the SCOTX, as the truth is that opposing counsel is not just acting as defense for SPENCER or DCAD but is in fact aiding and abetting a criminal conspiracy to defraud as a participant in the scheme to settle cases in which there is no basis in law, fact or math to begin with. Opposing counsel is paid on an annual basis to be the fixer for DCAD and intends to keep the gravy train of taxpayer funds rolling into their coffers. Opposing counsel has zero credibility as does DCAD and SPENCER.

Opposing counsel has shown their road map within their Response, being the same pattern and practice to defraud not only across Texas but across the U.S. Here and now, is a portion of the irrefutable evidence that opposing counsel does not want to discuss or allow the presentation of in front of the SCOTX or any court.

Due to intentional delay, this case has been 3 years in the making and now there are the 2024 and 2025 Vexler cases on its heels. The evidence grows as does the fraud being perpetrated upon the Citizens of Texas. These cases should not be bifurcated but upon remand to the lower court immediately consolidated. All the evidence is available for the world to see at www.mockingbirdproperties.com/dcad and nothing is going to change the evidence of the crimes that have been committed.

Opposing counsel intends to lead and mislead the courts including the SCOTX away from the evidence because there is no defense for the crimes committed as it is the testimony under oath of multiple individuals from within DCAD that is traced right to the documents submitted to the SCOTX.

How can the administrative process, under Administrative Law, lead to fraud?

Ultra Vires is a due process violation. (A) Ultra Vires are acts committed beyond legal power or authority, meaning the frauds perpetrated by DCAD and SPENCER upon the Citizens of Denton County.

An Ultra Vires action is outside of Administrative Law. (B)

If fraud can occur under due process (as stated and claimed by opposing counsel) then that must be a due process violation. (C)

The net result is a State “taking” without due process which is mass fraud upon society by ignoring both Ultra Vires and Administrative Law. (D)

If A = B and B = C, which also = D, then A = D

The statute cannot be defended, and neither can the actions of DCAD or SPENCER or opposing counsel because the result is fraud.

The Appraisal process cannot be immune from scrutiny.

See The Importance of the Vexler Case to Texas & the United States as there is a high probability that these crimes are being committed wherever School Districts raise bonds.

In short, and as a response to the opposing counsel’s further attempted misleading statements upon the SCOTX and the Citizens of Denton County and Citizens of Texas, I hereby offer a very short list of irrefutable facts from which there is literally no defense for SPENCER or DCAD or opposing counsel.

In the October 12, 2023 DCAD Board Meeting, the Deputy Chief Appraisers (Littrell & Ashlock) and the Chief Appraiser (Spencer) discuss their manipulation(s) of data within the software, and the removable of data to change it and then reload it to the software program. Notice the words, " workarounds ” and “ manipulate ”.

October 12, 2023 meeting audio recording, located in our audio recording archive
October 12, 2023 partial transcript of audio recording

Where exactly is the word “workaround” in USPAP, Uniform and Equal, in American Procedures Act and Texas Procedures Act and within any document connected to any CAD in the U.S.? Tampering with government documents is illegal under various laws, including 18 U.S.C. § 641, which prohibits the theft or alteration of government property, and 18 U.S.C. § 1519, which addresses the destruction or falsification of records in federal investigations. Violating these laws can result in severe penalties, including fines and imprisonment.

Now also consider the February 15, 2024 DCAD Board Meeting; listen to audio file saved in the audio recording archive or read the partial transcript of this meeting . The DCAD Board congratulates the Chief Appraiser and his staff, saying, “they are truly masters at guessing.”

Where exactly is the word “guessing” in USPAP, Uniform and Equal, in APA and Texas Procedures Act and within any document connected to any CAD in the U.S.?

Texas Penal Code - PENAL § 37.10. Tampering with Governmental Record

(as of January 01, 2024)

(a) A person commits an offense if he:

(1) knowingly makes a false entry in, or false alteration of, a governmental record;

(DON SPENCER FALSIFIED THE TAX ROLL along with HOPE MCCLURE per the evidenced complaint filed with the Texas State Comptroller – DCAD employees falsify property records and values rendering the databases 100% irretrievably fraudulent )

(2) makes, presents, or uses any record, document, or thing with knowledge of its falsity and with intent that it be taken as a genuine governmental record;

(3) intentionally destroys, conceals, removes, or otherwise impairs the verity, legibility, or availability of a governmental record;

(4) makes, presents, or uses a governmental record with knowledge of its falsity; or

(5) possesses, sells, or offers to sell a governmental record or a blank governmental record form with knowledge that it was obtained unlawfully.

A synonym for “workaround” is fraud!

There are over 1,100 exhibits at www.mockingbirdproperties.com/dcad including depositions, audio and DCAD’s own documents, DCAD’s databases, DCAD’s computer entry logs, all of which prove the pattern and practice to defraud.

The economic damages to the Denton County Property Taxpayers are in the Billions of Dollars, dollars that have been stolen from the property owners, forcing considerable inflation that would not exist but for the fraud. Remember this is happening across the U.S.

DCAD and SPENCER are fraudulently increasing property values (with the knowledge of opposing counsel) to allow the School Districts, via pre-determined budgets, that raise bonds and who are committing bond fraud and accounting fraud against all real estate owners, property tax payers, bond holders as well as 401K and Pension holders, all in violation of Constitutional Rights of the victims, being SOCIETY at large. The pre-determined budgets are presented at meetings between the CAD and the School Districts, and the result is Cooking the Books .

The Median Household Income does not exist to pay for the interest on the fraudulent bonds outstanding never mind paying down or paying off the bonds. The interest is compound cumulative on top of the fraudulent bonds, and the school districts do not pay off the bonds, in favor of rolling them out in time and rolling the interest rate up. Then the school districts raise more bonds which creates more debt on top of the current fraudulent bonds. This is a Ponzi scheme. As the property values are fraudulent, so must be, the bonds .

DCAD and SPENCER are guilty of:

Creating fake income and expense data,
Destroying Appraisal Work Records, before and after subpoena,
Hiding property values from the Public,
Utilizing multiple disconnected databases with different data between them,
Manipulating the property valuations in Excel outside of the already corrupted databases, and then further increasing values at the demand of the State Comptroller via the Property Valuation Study,
Deploying fraudulent and inconsistent subcategories / Class Codes for the sole purpose of manipulating values in their sole discretion outside the confines of USPAP, Mass Appraisal Standards, and the Texas Property Tax Code, and with no uniformity of application of the law and no adherence to the law. The Software at the CADs is design to allow the employees to cheat, and if that is not good enough for them, the employees have “workarounds”,
Intentionally not using legitimate comparisons,
Aligning and increasing Appraisal Notice Values, made up to suit pre-determined budgets which have absolutely nothing to do with USPAP or quantifying the true market value of properties,
The CADs are depending on the ARB process to buttress the crimes committed thus making the ARB members co-conspirators in the CADs crime of fraud,
ARB members are not independent as required in law, and are unqualified in all respects to property valuation, math, USPAP, and appraisal law,
Creating “workarounds” of the software including taking 60,000 properties out of the data base, manipulating them in excel and putting them back rendering the entire data base 100% a fraud. Data Set A, B, C, D, E. If B is wrong, then so is A, and then it compounds the fraud annually. In the last 5 years property values according to the CAD went up by 100%, yet inflation according to the Federal Reserve has only gone up 15%. Meaning 85% of the property rise in value is fraudulent. Just to get a value where we were 5 years ago means a minimum reduction of 40% of the current fraudulently assessed value.
Violating USPAP, Mass Appraisal Standards, TDLR, TALCB, Texas Property Code, Texas Constitution, The Constitution of the United States of America, IAAO, TAAO, Appraisal Foundation, Appraisal Institute, and a host of both state and federal law which is seen in the Violations Reviewed.pdf which is on the website mockingbirdproperties.com/dcad,
Violating Texas Penal Code - PENAL § 37.10 (See Violations.PDF),
Nothing meets the standard of what is required – That is the BIG CON and the FRAUD being perpetrated upon the property owners of Denton County and throughout Texas.
The evidence is irrefutable, insurmountable and there is no defense.

DCAD and SPENCER are guilty of defrauding the public. This case must be remanded to be adjudicated on the merits of fraud so that all the evidence is entered on record and Mr. Spencer forced to testify.

Not only does Vexler have this 2023 case but now has the 2024 and 2025 cases. This evidence is not going away and in fact continues to grow as does the compound cumulative interest on the fraudulent principal of the bonds.

See Preamble to Whitewashing of Your Tax Dollars, Pattern and Practice.

In another reference to opposing council attempting to mislead the SCOTX by stating that Vexler offers nothing new here is more proof of opposing council’s misleading statements.

This is the Criminal Complaint ( link ) that was filed with the DOJ, FBI and SEC. As a result of this Criminal Complaint, Texas AG Paxton ordered a 1,000 district investigation on December 7, 2025 ( link ), into the overvaluation and he did so on his way out of the AG office to run for Senate. Read who the complaint is about and how the crimes were committed.

There are independent reports both before and after the 2023 Vexler case that also prove the intent to defraud and the methods used. Here are some examples:

The California Policy Center Report details the methods of bond election fraud and they knew back in 2015 the bonds were toxic. Now they are toxic, raised to the power of The Rule of 72, plus cumulative bond fraud.

In the Johnson County Appraisal District (JCAD) report dated February 7, 2026, examine page 4. Notice the word “workaround”! The same “workaround” as stated by Deputy Chief Littrell of the Denton CAD in 2023 except this JCAD report is current.

See the JCAD and GISD Partial List of Violations .

Review the Kansas Special Committee on Taxation Report, Residential Appraisal Testimony , dated September 18, 2025.

In March 2024 Professional Consulting Services of the International Association of Assessing Officers (PCSIAAO) issued a Gap Analysis Report on their review of the Denton Central Appraisal District (DCAD). The resulting report is actually an admission of guilt on/by DCAD on their property tax appraisal practice failures. This is the short version and analysis of the report, summary notes of report.

When examined together including DCAD’s own Gap Analysis Report, the evidence of systemic fraud is laid bare for the world to see.

Opposing counsel wants nothing more than to bury this entire case, but that will not happen.

To make sure this case and the frauds related thereto are not buried, and are heard both by the Courts and in the Court of Public Opinion, the Mockingbird Properties DCAD website section, https://www.mockingbirdproperties.com/dcad , exists, along with every stitch of documentation including but not limited to the above referenced independent reports that we have, plus the Articles, Letters, and Discussions , all of which is for the benefit of all Citizens, in Texas and across the U.S., and any country that claims to utilize USPAP.

The evidence is the evidence from which there is no defense. USPAP is not being adhered, rendering the Appraisal Foundation and USPAP completely meaningless in favor of fraud.

Why Should the Supreme Court of Texas Care:

If ARBs are the exclusive forum, then property owners have no meaningful remedy for fraud. That is exactly the type of constitutional anomaly the Supreme Court of Texas exists to resolve.

The Patel case is the Supreme Court of Texas own precedent. Extending it to property taxation would be a doctrinal development of Texas constitutional law, which justifies granting review.

The Supreme Court of Texas is the ultimate guardian of the state’s uniformity mandate, and systemic non-uniformity across counties is squarely within its constitutional oversight role.

Expands the boundary of takings jurisprudence into the property-tax context—again, a constitutional development.

Goes directly to the Court’s institutional role as the guarantor of judicial access.

This is not just Denton County—it’s systemic and affects billions in state-backed school district bonds. That’s exactly the kind of statewide crisis the Supreme Court of Texas exists to address.

Bottom Line

The Supreme Court of Texas has, in the last five years, reviewed multiple CAD cases involving equal-and-uniform taxation and jurisdictional barriers to court review . Vexler’s filed petition fits directly into those doctrinal tracks — but raises them on a broader constitutional and statewide scale .

Why This Matters

SCOTX does review appraisal district valuation disputes—especially when statewide tax policy or judicial review procedures are implicated.

Not only are the procedures implicated, so are the individuals, who in totality, are responsible for billions of dollars of theft and opposing counsel shares in this liability. How many times has opposing counsel lied in settlement discussions claiming a cap on legal fees, claiming the accuracy of DCAD, hiding evidence, and negotiating settlements that have no basis in math, law or fact, just for the sake of settling the case? The effect of opposing counsel as the “fixer” for DCAD, hiding behind sovereign immunity and negating Ultra Vires, is the continuation of the fraud upon victims who don’t understand the depth and pervasiveness of the fraud.

The constitutional questions posed within the Vexler case are equal and uniform taxation, open courts, due course of law, and the limits of administrative exclusivity, all of which singularly or together are natural extensions of the Court’s existing precedent.

Conclusion of Authorities

These authorities confirm that Petitioners’ claims lie within categories of disputes the Supreme Court of Texas has repeatedly reviewed. Far from being routine tax complaints, the issues here implicate fundamental constitutional protections, jurisdictional access to the courts, and the financial integrity of the state’s tax and bond systems. Review is therefore both appropriate and necessary.

Jurisdictional Statement

This case presents questions of exceptional constitutional and statewide importance. The Court of Appeals’ decision insulates systemic fraud in property appraisals from any judicial remedy by confining taxpayers to appraisal boards that lack authority to adjudicate fraud. That result violates the Open Courts guarantee (Tex. Const. art. I, § 13) and Due Course of Law protections (art. I, § 19), as recognized in Patel v. TDLR. It also undermines the mandate of Equal and Uniform Taxation (art. VIII, § 1(b)) and strips equity in violation of the Takings Clause (art. I, § 17). Because these appraisal practices directly underpin billions of dollars in Permanent School Fund–guaranteed bonds , the case implicates not only constitutional rights of Texans but also the financial stability of the State. Review is therefore proper under Tex. Gov’t Code § 22.001(a)(2) and (6) .

Again, I have stated in writing, and on video many times, either the law exists, or it doesn’t .

No Constitutional Entity can allow fraud to escape.

Here is the most important question for opposing counsel representing the CAD, its employees, and counsel itself, as an officer of the court:

If you don’t intend to allow the resolution and discovery by every Texan regarding property tax fraud and related school district bond fraud being committed upon them, why is that ?

Note to the Citizens of Texas and throughout the Unites States:

The attorneys who are co-conspirators of the CADs play every trick in the book including delaying hearings, withholding evidence, destroying evidence, and wrangling settlements not based on math, fact or law, all in an attempt to wear down their victims. This is why I have said that it makes sense to join forces without multiple property owners and if feasible in your State, file class Action lawsuits. Given the evidence outlined in this video and in this document, and the map of criminality submitted by opposing counsel to the SCOTX, which every legitimate attorney in the U.S. should study, and given the pattern and practice of the CADs and School Districts to defraud, as documented on www.mockingbirdproperties.com/dcad , every property owner should be looking to file suit, and jam the court system with class action suits, criminal complaints, and law suits against every participant who dares participate in the equity stripping of your property and your retirement.

Every property owner and every Citizen now have the CADs and School Districts play book, courtesy of opposing counsel, and you now also have the response and evidence that proves their playbook is a fraud, just like they are.

In 1775 “NO taxation without representation” was the battle cry via the War of Independence and is just as important and potent today as a result of the fraud being committed upon Society.

Opposing counsel’s response is asking the SCOTX to guarantee taxation without representation. Under no circumstances is that acceptable.

We have the documented history of bond election fraud by the School Districts, bond fraud , accounting fraud , overvaluation and over taxation fraud by the CADs. There are gigabytes of evidence are at www.mockingbirdproperties.com/dcad which can be short listed to:

No homeowner or renter voted to have 8.6% of their gross income paid in property taxes.
No homeowner or renter agreed to bond election fraud.
No homeowner or renter agreed to school district bond fraud, which cannot be paid off.
No homeowner or renter agreed to be the guarantor for bond fraud by the School District or the fraud of overvaluation and over taxation by the CADs and the criminals therein.
No homeowner agreed to lose the roof over their head or go bankrupt due to tax lien foreclosure.
No commercial property owner agreed to allow false income and expense statements to be created by individuals within any CAD from which money is extorted.
No homeowner agreed to a ground lease which is the net effect of the overvaluation and over taxation along with the equity stripping of what would be their amortized debt reduction of their mortgage.

Clearly, under the current fraud, we are back to “Taxation Without Representation”. However, this is far worse because the taxation that is funding fraudulent school district bonds and accounting fraud today will continue for the next 20 to 40 years, as it is a compound cumulative debt, which can never be paid off.

Are we now at the crossroads of civil war based on taxation without representation as was seen in 1775, or do we bypass the civil war and go to 1778, wherein Parliament finally passed the Taxation of Colonies Act which repealed the taxes, and hope that it is not too late?

As is recorded in history, governments can’t see the forest through the trees, and here in the United States, we have a tendency to walk to the very edge of the cliff and peer into the abyss before backing up to safer ground. Perhaps it might be an excellent idea to remand the Vexler case to the lower courts to be adjudicated on its merits, being that of fraud, wherein the ultimate conclusion, in order to prohibit the bankruptcy of millions of Citizens, will be the repeal of all property tax in favor of the Uniform States Sales Tax.

The Fiscal Bond Trap

Thu, 12 Mar 2026 17:19:18 GMT

The Fiscal Bond Trap

By Mitchell Vexler, March 12, 2026

Starting with a few facts:

1.) Government data sources are dubious at best.

2.) Government surveys are designed to illicit what could be misleading answers to obtain an intended result… The Data is Cooked .

3.) As an example, see CPI is a Big Lie , shows that CPI has been modified many times to suit the then narrative.

CPI Excluded Categories (currently)

In recent videos, I explained the flaw of using multiple data sets (B, C, D, & E) to arrive at a conclusion from Data Set A. A flaw in data set B, C, D or E means the database of A is irrefutably flawed. This is playing out across the U.S. now with regard to the property comparisons as seen in the criminal actions of overvaluation and over taxation at the Central Appraisal Districts that create property values to suit a predetermined budget from school districts that raise bonds and transfer the current and future liability of the compound interest and fraudulent principle to the backs of property owners which effects and affects every Citizen and why the Vexler case is now at the Supreme Court of Texas .

Bearing this data set flaw in mind, below is the “Aggregation” of inputs for the CPI, which is used by the Bureau of Labor Statistics which has modified the CPI many times.

Aggregation

For each entry level item (e.g. apples in the Philadelphia metropolitan area) many different price quotes were made in each month. To aggregate these individual price measurements into an index for the item-location combination, a geometric means formula is usually used:

The geometric formula implicitly assumes that consumers exhibit substitution behavior among the various different quoted items (such as apples purchased from one particular grocery store versus another grocery store), whereas the Laspeyres formula does not assume such substitution behavior - indeed, the Laspeyres items are not considered to be exactly uniform or substitutable with each other, even if they represent the same category of item and in the same Primary Sampling Unit (PSU).

By their own definition the inputs of the Aggregation Formula, Weights, Timing, Urban Consumers, Clerical Workers, Urban Wage Earners, A Core CPI index that excludes goods with high price volatility typically being food and energy, CPI specific to the Elderly, means that by the evidence presented in the formula which is not static, all else being equal, and further subject to “erroneous” data input without checks and balances at each level, and subject to interpretation, the CPI is not as much an economic indicator as it is a propaganda machine.

4.) Speaking of propaganda machines, you might want to read The Federal Reserve is a Failure .

5.) School District Bonds are raised where the Median Household Income (MHI) does not exist today or tomorrow to pay for the interest on the annually increasing bonds (aka The Fiscal Bond Trap) never mind paying off or paying down the bonds. As seen below the current average annual real estate tax per household across the U.S. is roughly $7,000 being approx. 8.6% of the household gross income. The average family of 4 is living off credit cards and is short around $20,000. Roughly 42,000,000 households across the U.S. will lose the roof over their head and or face bankruptcy. The average household is $9,000 away from bankruptcy of which $7,000 is the property tax.

THE DIFFERENCE OF SURVIVING OR BANKRUPTCY IS THE REAL ESTAE TAX.

Continuing the theme of propaganda machines, which liabilities are fraudulently assigned to property owners, you might want to read The Whitewashing of Your Tax Dollars Pattern and Practice and The Preamble to Whitewashing . The method of raising the bonds is also fraudulent advertising (bond election fraud) paid for with your tax dollars as now shown in the multiple independent reports are linked within the video discussing whitewashing, https://www.youtube.com/watch?v=X7E6qX0rKNw .

The most important question is…Where is the money going to come from to pay off the school district bond debt which is between $70,000 per house and $1.3 million per house dependent on location and criminality of the school district and the CAD in that district? Keep in mind that in most cases this debt is not being paid off but rolled out and interest rolled up, which is compounding annually and then additional fraudulent bonds are being raised, and in many cases annually. Celina Texas just had a $2.5 Billion bond raise being the equivalent of $257,000 per house and no evidence of ability to ever paying off the initial principal never mind the interest growing compounded plus additional added fraudulent bond debt for the next 20 to 40 years.

Thus, the school districts that raise bonds are propaganda machines along with their co-conspirator CADs, and are guilty of dozens of violations of law , wherein roughly $5.1 Trillion of fraudulent school district bonds have been raised across the U.S. and as seen in the spreadsheet above, and which cannot be paid off because the Median Household Income (MHI) does not exist. Therefor not only is the equity being stripped out of what would be the reduction of debt of the household mortgage (Amortization), which theft is used to fund the fraudulent overvaluation and over taxation to pay for the fraudulent bonds, but it is worse when you understand that about 60 million Americans actively participate in 401(k) plans and 20 million Americans are covered by state and local government pensions, which are a significant source of retirement income for many public workers and portions of those 401Ks and pensions invest in school district bonds, which cannot be paid off.

These propaganda machines have deluded the public into willing suspension of disbelief while simultaneously creating Institutionalized Systemic Moral Hazard .

6.) It seems that crises are manufactured (propaganda of criminals) to consolidate and control capital flows . Mathematically speaking, the real value of the school district bonds is between 13 and 30 cents on dollar today assuming the interest stopped today and no more bonds could be raised, and this does not take into account many school districts where the MHI does not exist to pay any amount meaning the community is bankrupt. Thus, the fraud of the criminals, in violation of the black letter of the law, have stripped the equity from their victims, and transferred the victims’ money, being society’s money, into their coffers. However, fraud can and must be unwound or the system implodes on its own weight because no human and no AI can get blood out of stone. No American is an indentured slave to debt as so stated in the 13th Amendment of the U.S. Constitution which abolished slavery and involuntary servitude in the United States, except as punishment for a crime. The victims did not commit bond fraud, the criminals did. The 13 ^th Amendment also paved the way for laws against debt slavery, which is a form of involuntary servitude where individuals are forced to work to pay off debts.

Given the 6 facts and related linked articles underlined in blue above, one should be asking for what purpose have these frauds been created and allowed to exist without adjudication? Who got the benefit in terms of fees, salaries, and interest paid? Could the ultimate answer be to consolidate and control capital flows, and would that not be the definition of socialism? The point being that socialism ends when the criminals run out of other people’s money to steal, or the defaults lead to civil unrest, whichever comes first. People acting in the here and now, violating the black letter of the law, to transfer your wealth into their pocket, more than likely have never lived through civil unrest. The 1968 Riots in Detroit and Montreal were very real. Bankrupting roughly 42,000,000 households, many of whom have 401Ks and Pensions will be very real. Would it not be better to unwind the fraudulent debt by repealing all property tax in favor of the Uniform States Sales Tax rather than face civil unrest?

Summary of the Real Problem: Retirement Plans & Municipal Bond Investments

Wed, 11 Mar 2026 16:44:02 GMT

Summary of the Real Problem

Retirement Plans & Municipal Bond Investments

By Mitchell Vexler, March 11, 2026

Do you know…

…that about 60 million Americans actively participate in 401(k) plans, with around 600,000 plans available. This number includes both current employees and many former employees and retirees.

…that approximately 20 million Americans are covered by state and local government pensions, which are a significant source of retirement income for many public workers?

…that about one-third of older adults receive income from various pension plans, including private

and public sector pensions?

Types of Pensions

Defined Benefit Plans : These plans promise a set monthly payment in retirement, primarily found in public sector jobs.
Private Sector Plans : Some private employers also offer pension plans, 401(k)s, etc. often with very minimum employer contributions.

Economic Impact

Pension Benefits : In 2025, pension benefits paid out amounted to $680.6 billion

Participation Rates

General Participation : In 2023, about 56% of all civilian workers participated in workplace retirement plans, which includes pensions and 401(k)s.

State and local government pensions often provide more generous benefits compared to private sector pensions , with a higher percentage of public sector employees participating in salary-linked pension schemes.

However, many private sector workers have seen a decline in pension coverage (employer participation), making direct comparisons complex due to various factors like contribution rates and retirement age.

School district bonds are a significant portion of municipal bonds .

Many people are not fortunate enough to have a 401k or a pension and may be dependent on social security, what if that fails?

What is your pension or retirement plan invested in?

This is a partial list of “warning” Articles found under the Articles, Letters, and Discussions section of the evidentiary platform at mockingbirdproperties.com/dcad .

Amicus Brief
The Importance of the Vexler case to Texas and the United States
Equity Stripping + potential loss of value in 401k & Pension = Result of Property Tax Fraud
A Bankrupt Population is a National Security Risk
Crisis of Confidence
They knew in 2015 the Bonds were toxic ( Important Video ) – Whitewashing your money
For The Kids
Criminal Complaint was filed with the SEC, DOJ, FBI, Texas AG, Texas State Comptroller, Texas Office of the Inspector General. The AG is now in default of Texas Education Agency and failing to respond to the FOIA request. The Texas AG in response, on 12/7/25, issued an investigation on 1,000 school districts for overvaluation.

Real Estate Taxes (aka property taxes) are bankrupting Americans . See below.

The difference between surviving and bankruptcy

is the Real Estate Tax!

CADs across the U.S. are fraudulently increasing property values and School Districts are creating bond fraud and accounting fraud against all real estate owners, property taxpayers, bond holders and from which fraud slithers its way into 401(k)s and Pensions, all in violation of Constitutional Rights of the victims being SOCIETY at large by:

Creating fake income and expense data,
Destroying Appraisal Work Records, before and after subpoena,
Hiding property values from the Public,
Utilizing multiple disconnected databases with different data between them,
Manipulating the property valuations in Excel outside of the already corrupted databases, and then further increasing values at the demand of the State Comptroller via the Property Valuation Study,
Deploying fraudulent and inconsistent subcategories / Class Codes for the sole purpose of manipulating values in their sole discretion outside the confines of USPAP, Mass Appraisal Standards, and the Texas Property Tax Code, and with no uniformity of application of the law and no adherence to the law. The Software at the CADs is design to allow the employees to cheat, and if that is not good enough for them, the employees have “workarounds”,
Intentionally not using legitimate comparisons,
Aligning and increasing Appraisal Notice Values, made up to suit pre-determined budgets which have absolutely nothing to do with USPAP or quantifying the true market value of properties,
The CADs are depending on the ARB process to buttress the crimes committed thus making the ARB members co-conspirators in the CADs crime of fraud,
ARB members are not independent as required in law, and are unqualified in all respects to property valuation, math, USPAP, and appraisal law,
Creating “workarounds” of the software including taking 60,000 properties out of the data base, manipulating them in excel and putting them back rendering the entire data base 100% a fraud. Data Set A, B, C, D, E. If B is wrong, then so is A, and then it compounds the fraud annually. In the last 5 years property values according to the CAD went up by 100%, yet inflation according to the Federal Reserve has only gone up 15%. Meaning 85% of the property rise in value is fraudulent. Just to get a value where we were 5 years ago means a minimum reduction of 40% of the current fraudulently assessed value.
Violating USPAP, Mass Appraisal Standards, TDLR, TALCB, Texas Property Code, Texas Constitution, The Constitution of the United States of America, IAAO, TAAO, Appraisal Foundation, Appraisal Institute, and a host of both state and federal law which is seen in the Violations Reviewed.pdf which is on the website mockingbirdproperties.com/dcad,
Violating Texas Penal Code - PENAL § 37.10 (See Violations.PDF),
Nothing meets the standard of what is required – That is the BIG CON!
The evidence is irrefutable, insurmountable and there is no defense.

This Pattern and Practice to Defraud across the United States, Canada, and other Countries as far away as New Zealand can be seen, https://www.youtube.com/watch?v=X7E6qX0rKNw (link to video).

The Correlated Map on how the property tax fraud is created across the U.S. as evidenced by independent reports. See interview by Travis Spencer of Real Estate Mindset on YouTube, just linked above.

https://www.youtube.com/watch?v=lzIAAsl_xHs , Mockingbird’s Denton CAD Report
https://www.youtube.com/watch?v=HljKOmWnsVg , Interview by Daniela Cambone
Preamble to Whitewashing
Whitewashing of Your Tax Dollars
Why We Need to Repeal All Property Tax – Talking Point s
The Debt Model of Socialism
18 Page Court Presentation
We Live in a World of Fraud and Fraudsters
Socialism is a Noun – Last Rat Standing

THE MAJORITY OF SCHOOL DISTRICTS THAT RAISE BONDS ARE BANKRUPT, VIA FRAUD, TAKING THE CITIZENS WITH THEM!

IS YOUR PENSION, 401(k), or IRA INVESTED IN THE FRAUD?

Independent Thought

Tue, 10 Mar 2026 16:08:08 GMT

Independent Thought

By Mitchell Vexler, March 10, 2026

If AI is so good , and the banksters are going to promote it, and spend trillions chasing a theory which is dependent on multiple data sets, is it better than:

A go bag that contains…

Knife
Mechanical Compass
Signal Mirror
Emergency Medical Kit
Peanut Butter
Hard Candies
Head Lamp
Small plastic bag of emergency cash in 5s, 10s and 20s
Paper Map
Water Filter and Storage Bag
100’ of 550 Paracord
Ferro Rod
Bivy
Duct Tape

What do all these things have in common?

You can survive with these few items.

These few items have nothing to do with AI which will be useless when the power goes down, as will the ATMs.

These few items and knowing how to use them means independence – whereas AI, ATMs, and Crypto Coins, means you are dependent on the government, which even the government should not want.

You are not an indentured slave.

Protect yourself and your family.

Get involved.

How Do You Know You Are Not Being Manipulated?

Do you know what formula is in a black box?

Do you know what the formulas are within AI?

How do you know if the results that AI creates are correct or within the realm of statistical probability?

In my career I worked with 2 different real estate software companies. I was working on sophisticated mixed-use developments and needed software that could accommodate lease rollovers and multiple uses. I found a company called Realbase and shortly after getting involved realized it was programed by people who were not familiar with the complexity of lease rollover and multiple uses at the same time. I worked with them to fix it for my purposes and then shortly thereafter they were bought out by an accounting firm and shut it down to eliminate the competition from their own software.

Shortly after arriving in the U.S. I found Argus which was another good program on its way, but at that time, it also suffered from the lack of being able to handle multiple mixed-use buildings on a large scale. I also worked with them to illuminate the issue and used the program for several years.

Over time I realized that I was exporting the data back into excel for further analysis on the Waterfall of profits because using my own spreadsheets in Excel we (my accountant and I) could follow every cell and understand what was going on under the hood. This understanding is independence!

Not Independent is:

The average adult spends about 88 days a year on their phone, which translates to approximately 5 hours and 48 minutes per day. This extensive usage highlights the significant amount of time dedicated to mobile devices each year.

The average U.S. phone bill is approximately $1,700 per year, based on an average monthly cost of about $141.

1 in 5 children is obese and ultra-processed products account for more than 60 percent of children’s daily calories. The average family spends $9,340 per year on food. The average family of 4 is roughly $20,000 upside down and living off credit cards.

Researchers say, “improving school meals will require additional funding, trained staff and better kitchen equipment so schools can prepare more fresh food.” At the same time, the administration has approved requests from 18 states to remove soda and junk food from certain food assistance programs and announced new nutrition training requirements for future physicians. Here is an idea…how about you do your job which is not to poison the children, or you’re fired! This is why parents need to be involved, you can’t leave children’s health up to Institutionalized Systemic Moral Hazard .

Experts also point to declining physical activity in schools as a contributing factor.

Let’s break this down into the manipulation that occurred:

ONE

How does a phone help a young person driving in traffic and texting at the same time?

Was societal peer pressure used to convince that child that regurgitating their narcissistic opinion to their small group of friends, 4 plus hours per day, is productive? Or, is the phone being used as a babysitting device prohibiting critical thought and causing long term psychological damage?
How is it that spending roughly $1,700 per year per phone is productive to a family that is living off credit cards and can’t afford healthy food?
Have people been manipulated by lack of education and training in schools to ignore the true cost of living and the importance of health? MANIPULATION? YES

TWO

1 in 5 children are obese and ultra-processed products account for more than 60 percent of children’s daily calories.

Have people been manipulated by slick glossy ads targeting their children and themselves into buying food that is less expensive, in exchange for less health and convenience? MANIPULATION? YES

THREE

Researchers say, “improving school meals will require additional funding, trained staff and better kitchen equipment so schools can prepare more fresh food.” This sentence is pure propaganda used by the school districts. Pay me more money and I will do a better job! This manipulative propaganda has been used since the creation of school cafeterias. MANIPULATION? YES

FOUR

The average family spends $9,340 per year on food and we know that roughly 42,000,000 households are in harms way of bankruptcy or losing the roof over their head. This brings us right back to the Property Tax, whether renting or owning, is averaging $7,000 per household. If the property tax did not exist, in favor of the Uniform States Sales Tax, then the money that is being used to pay for compound interest on top of compounded school district bond fraud, which is of no value to society, would cease then the combined savings effect could be used in those families for a variety of purposes including healthy food, parents spending the time to better educate their children and more time doing healthy activities as a family. SCHOOL DISTRICT MANIPULATION TO THE EXTREME “FOR THE KIDS” is at least a $5.1 Trillion dollar fraud.

See the video, End Property Tax or Face Economic Depression , that includes California Policy Center evidence.

See Whitewashing your tax dollars .

See For the Kids .

See California Policy Center .

See The Legacy of Governor Abbott ; this is playing out in your State.

Your Voice Does Not Matter Unless It is Used to Help People

Our goal is to help property taxpayers (renters and owners) understand the circumstances that we, as a society, are in and that there are solutions. However, those solutions require your involvement in civil responsibilities (City and School District). Depending on the district, property taxpayers (households) owe between $70,000 and $1.3 million in fraudulent outstanding school district bonds which cannot be paid off today as the median household income does not exist to amortize the debt away. This debt is growing compound cumulative plus new fraudulent debt being added with each new bond raise.

Preamble to Whitewashing of Your Tax Dollars Pattern and Practice

Thu, 05 Mar 2026 16:46:47 GMT

Preamble to Whitewashing of Your Tax Dollars
Pattern and Practice

By Mitchell Vexler, March 5, 2026

Link to download this article in pdf , including hyperlinks

Link to March 2 ^nd article, Whitewashing of Your Tax Dollars Pattern and Practice

The Application of Standard, which is not being followed, and those who are supposed to be the Guardian of the Application of the Standard, both have failed.

The California Policy Institute Report was the WARNING to the World, and if adhered to, would have been the protocol of safety. Failure occurred as a result of non-adherence to another protocol of safety which is Uniform Standards of Professional Appraisal Practice. Failure occurred by intent to defraud, rendering the existence of The Appraisal Foundation and USPAP meaningless. The Central Appraisal District process is lawless.

In Texas the IAAO and TAAO, State Comptroller (fiduciary obligation), and Attorney General (fiduciary obligation) are culpable in aiding and abetting a criminal conspiracy to defraud . This is no longer occurring in the dark or being hidden. This is now, in plain sight. These crimes have been reported to those same officials, and the crimes were ignored which is a violation of Chapter 42 USC 1986 being knowledge of a crime and power to prevent.

There is not a single piece of evidence that shows that the Warning of The California Policy Center was heeded.

There is not a single piece of evidence that any CAD that is effectively owned and controlled by a school district has adhered to USPAP.

There is not a single piece of evidence that proves that bond fraud and accounting fraud by the School Districts (including Board and Superintendent) was not committed.

The issuance of the school district bonds is fraud on a mass scale, and the value of every property is impacted including those who lost their homes due to tax lien foreclosure, those who are about to lose their homes, and those whose equity is being stripped which is the majority of citizen owned properties across the U.S.

The Article called the Whitewashing of Your Tax Dollars is going to give every property taxpayer across the United States, where their school district raises bonds, the ammunition they need to outline and prove the pattern and practice used by the Central Appraisal Districts and the School Districts to defraud every property taxpayer and every Citizen within that County and across the U.S.

We now have Independent Reports including:

The California Policy Center Report on Educational Construction Debt – They knew the bonds were toxic in 2015.
Johnson County Appraisal District Final Report – The report, released a few days ago, outlined gaps in procedures creating massive risk to their appraisal process, i.e. intent to defraud.
Johnson County and Godley ISD Partial List of Violations
Deposition Transcript of Hope McClure , X-Chief Appraiser Denton County
DCAD’s IAAO Gap Analysis Report , International Association of Assessing Officers GAP report on DCAD.
Summary notes , on the DCAD IAAO Gap Analysis Report, provide comments on what the report says and what it doesn’t say.
Criminal Complaint on ITASCA ISD
Estimated Monthly Bond Debt per Household Texas ISD
Pending Municipal Bankruptcy of Conroe Texas in Mongomery County.
Partial List of Violations, 10 Page Review
Wheel of Fraud
The Commissioners Court – Denton County Transcript
Board of Directors Meeting , Transcript and Audio wherein:
Minute 27:11 to 28.47: Deputy Chief Littrell discusses visit to Bexar CAD & the CADs sharing "work arounds" in the CAMA software programs.
Minute 31:06 to 33:18: Deputy Chief Jeanne Ashlock discusses correcting value info "outside" of the software.
Minute 36:38 to 39:30: Minutes 36:38 to 39:30: Chief Appraiser Don Spencer justifies & discusses correcting 60,000 property record values outside of the software by exporting into excel, changing & re-loading data. Tax Assessor Collector Michelle French comments on the enormity of the task being done in excel and on the potential for error.
18 pages of charts and graphics that show the how, who, ramifications, methods, and violations of virtually every appraisal rule and law ever written. In other words, USPAP, the main document in law and Uniform and Equal under Constitutional Law, is irrefutably ignored in favor of intent to defraud.
Amicus Brief now at the Supreme Court of Texas
Criminal Complaint filed with the DOJ, FBI, & SEC
And, a mountain of evidence on https://www.mockingbirdproperties.com/dcad .

All of which in part and in their totality prove the violations of your Constitutional Rights being both State and Federal as the pattern and practice to defraud via overvaluation and over taxation to support fraudulent school district bonds, is across the U.S.

In plain English, the entire Appraisal Process across the U.S. is now proven to be a fraud on a mass scale, and those participating in that process are de-facto committing fraud.

To every Property Owner and every Citizen who suffers from this mass fraud of overvaluation and over taxation and the resulting inflation therefrom, and to the Judges across the United States who are now seeing these fraud cases appearing, the issue of Institutionalized Systemic Moral Hazard and the related Bond Fraud can no longer be ignored.

To the Attorneys who are now filing class action lawsuits, first, thank you. However, you would be well advised to read, understand, and stack your case with the 17 evidentiary items listed above, and the Bankrupt California School District Bonds

UNDERSTAND that No Constitutional Entity (meaning a Court and the investigative authorities including State Comptroller and Attorney General) can allow fraud to escape.

AND

To those attorneys, who claim to be defending a CAD against the now easily proven methods of fraud , and methods of audit , the plaintiffs’ counsel only has one question to ask in front of the Judge and demand that opposing counsel, as an officer of the court representing the CAD, its employees, and counsel itself, answer the question which is:

If you don’t intend to allow the resolution and discovery by every Citizen of this County with regard to the property tax fraud and related school district bond fraud being committed upon them, why is that ?

The Economy Would be Strong but for the Fraud - Why Gold, Why Silver, Why Now

Tue, 03 Mar 2026 21:29:30 GMT

The Economy Would be Strong but for the Fraud

Why Gold? Why Silver? Why Now?

By Mitchell Vexler, March 3, 2026

Here’s a list of frauds, including some links to evidence of the fraud.

School District Bond Fraud, see School Districts Fraud – The Balances Sheet and its Analysis .
Real Estate Tax Fraud, see the Amicus Brief .
Federal Reserve
Central Appraisal District Fraud
Insolvent Bonds
The Flaw of Private Equity
Again, Central Appraisal District Fraud
Property Tax Fraud – Talking Points
Robo-calls asking for donations from charities that don’t exist (If AI is so good, why can’t it eliminate this scourge on society?)
Check Washing
Phone Calls, Text Messages, Email Scams (aka FRAUD…follow the money)
Bank Transfer Scams
Investment Scams
You too can be a real estate millionaire Scam
Business Impersonators
Government Impersonators
Medicare & Medicaid Scams
501.3 (c) Non-Profit Scams
PAC – Political Action Committee (many are SCAMS for personal financial gain)
Employment Agency Scam
Fake Charity Scam
Woke is a Scam
DEI is a Scam
ESG is a Scam
BLM is a Scam
RFID readers
Multilevel-Marketing Pyramid Scam
The sale of your personal data on the dark web
Bank bail-in, wherein if your bank goes broke, they can take your money and hand you back a share in their bankrupt bank.
Real Estate Tax Lien Fraud
AI created videos including AI generated videos and recordings, which contain inuendo, void of facts, are misleading at best. If the creator is unwilling to get on camera, then one must question the credibility of the video.
Biometrics: Fraudsters create the circumstance and offer you the solution for your own security, being let us, the fraudsters / politicians, take your eyeball / retina scanning, fingerprint, and blood sample, to help protect you from who???? The point being you give up your freedom because of a problem created by a fraudster.
Accounting Fraud , Bond Fraud , Rating Agency Fraud, Bank Fraud
Federal Reserve Fraud: The purchasing power of the U.S. Dollar has devalued 97% since 1913 which was the creation of the Federal Reserve. See article, Crisis of Confidence.
Compound Cumulative Interest on Fraudulent Principle
Add on fees / taxes Fraud – for example, hotel tourism taxes
If fraud was eliminated income taxes would go down by roughly 60%
Income and Expense Fraud
Balance Sheet Fraud
Education Fraud. You paid for an education. Aside from debt, what did you receive?
Stock and Bond Fraud – Tricolor placed multiple loans on a single car
Survivor Support Group Scam
Social Security Scam
QR phishing Scam
Charitable Foundation Scam
Feed the Children Scam
UNICEF Scam
Cultural Fraud. Members of certain societies, which are heavy in population per acre, will sell investments to their own family, friends and society members with no due diligence and no remorse.
Main-Stream Media News Fraud: half-truth news is propaganda for purposes of a narrative
The Democratic Party should be sued for false advertising as they are raising money under a false narrative. The definition of “democratic” is characterized by or advocating democracy. There is absolutely nothing democratic about excluding and demonizing any person in society, therefore the name of the democratic party should be changed to what it has become, which is the socialist party of Amerika. They screech “we are concerned about democracy”! What is meant is that they are screaming about their democracy meaning their ability to steal your money and put it in their pocket. In truth, they care nothing about you and only care about their socialist policies from which they can steal and commit more fraud.
Universities, that claim to be there for the education of all yet exist for the benefit of their endowment (Yale & Harvard), are incubators of socialists whose lives may very well end up in ruin because the socialists can’t look after themselves without stealing hard earned money from others.
This entire list above would not exist but for socialist policies. The lack of young people’s ability to buy a home or afford rent is on the back of socialist policies and those who promote them, and yes, that includes members in all political parties because they are either incapable or too lazy to understand the economic impact on society by their actions.

As I have pointed out in numerous Articles and Videos, make no mistake, any Republican who chooses winners over loser is by definition participating in a socialist policy whether they realize it or not and ignoring the most basic tenets of government which is the safety of the population.

For example, the government, being both parties, protected the Federal Reserve instead of dealing with the fraud of printing money which causes inflation, which is a hidden tax. The government, bent on control of money, regardless of party is the problem.

The Hidden Propaganda socialist Model is used by both political parties.

Inflation (I) as a direct result of printing money not backed by assets creates an illusion of an expanding GDP utilizing public spending.

The Consumer Price Index (CPI) increases as a result of the inflation. CPI, the big lie. The method of calculation has been modified so many times; it bears no resemblance to the initial concept. What is the true unemployment number?

Housing and Food (H&F) prices rise faster than an index at a multiple of the CPI index.

Purchasing power (PP) decreases because of inflation and the population becomes slaves to debt as a result of years of interventionist (socialist) policies.

Home Purchase Prices (HPP) increased, up over 100% in 5 years, because of the fraud committed at the Central Appraisal District and School Districts. Housing-related expenses (rent, utilities, maintenance) have risen by more than 30% in 5 years.

The “real shopping basket” of Essential Goods (EG) had roughly a 40% - 60% increase from 2019 to 2025.

Real Wages (RW) are falling and jobs are shrinking. Net real wages, which have fallen by more than double because the government refused to index taxes to inflation and has sharply increased the fiscal burden of families and businesses thus putting 42,000,000 households in harm’s way of bankruptcy or losing the roof over their head. If this group of society is destroyed economically, so goes the global economy and so goes global TRUST .

Fraudulent Immigration (FI) cost the U.S. Taxpayers roughly $1 Trillion per year being roughly $64,000 per immigrant. That debt becomes debt within the U.S. Treasuries, that requires interest payments on that compound cumulative debt, and that interest continues, until such time as that debt can be paid off… where a method of payoff or paydown has not been shown to date.

socialism typically abolishes or severely restricts Private Property Rights (PPR) . Without private ownership and the ability to reap personal rewards from effort and innovation, productivity declines, and economic stagnation follows.

When the state controls the economy, political elites (criminals) gain enormous power over resources and wealth. This leads to Corruption (C) , as those in power use their position to enrich themselves while suppressing dissent.

See article, Fed Analysis: CPI, The Ultimate Big Lie . The method of calculation has been modified so many times, it bears no resemblance to the initial concept. What is the true unemployment number?

As has been stated and shown in the Articles, Letters & Discussions section, the productivity being claimed in the delayed governmental reports is a statistical mirage.

In simple quantifiable terms, the formula is…

(I) ↑ (CPI) ↑ (H&F) ↑(HPP) ↑ (EG) ↑ (FI) ↑ (PPR) ↑ (C) ↑ = ↓ (PP) ↓ (RW) = Financial Disaster

Lower Purchasing Power + Lower Real Wages = Financial Disaster

In reality, even though I made up this formula, this model to one extent or another has been copied and utilized across the globe by many sovereign nations and states and can also be seen in NYC which is playing out. Regardless of what the government officially calls itself (authoritative, socialist, communist, quasi-capitalist), allowing unnatural government interference to the detriment of all society ends badly, and as has been stated, “socialism ends when you run out of other people’s money to steal” .

Following political leaders on blind faith, many of whom are attorneys that can’t add or think of law and math as being co-dependent, has proven to be the generator of fraud. It is also the exact reason why your involvement in your school districts and municipality is so important.

What is the end result of all these scams?

1. Financial Loss

2. Loss of Societal Trust

3. Equity Stripping (See article, Equity Stripping, Your Money, Your Future .)

None of the above would exist if the government and courts were doing their job. The government's job is to create and enforce laws, protect its citizens, and promote the general welfare (finance via capitalism) of the community. This includes ensuring public safety and maintaining order within society.

We can’t fix what we can’t define. The net result of socialist policies is defined above. The issues of property tax fraud and school district bond fraud are linked here and the point being that none of this writing would exist but for the mass fraud being committed upon society. Over time, the proof of multiple school district bond fraud in multiple jurisdictions including Denton County , Johnson County , Montgomery County and across the U.S. as a result of the pattern and practice to defraud is now laid bare for all of society to see and feel the ramifications of mass fraud because honest society is paying for it.

Now ask yourself, how could all this fraud exist if the government and courts were doing their job? Who receives the benefit of allowing fraud to exist? In every instance, without exception, who receives the compound interest on the fraudulent principal? The answers are banks and lenders. Banks and those who control the banks that participate knowingly in fraudulent activity must be held accountable for their actions and this includes the Federal Reserve.

If socialism is not codified as a national security risk, could we not end up as did Cuba, Venezuela, the U.K., Germany, or European Union?

The purpose of this writing, as harsh a thought as it appears, is to generate additional thoughts by Mom and Pop to help them realize the potential of their manipulation into inadvertently participating in a divisive situation. When in reality, the common enemy is inflation and those who cause inflation. You (including the politicians) can’t fix what you can’t define.

The intent of the DCAD section of the Mockingbird website is to provide the evidence along with clarity of how that evidence came to be. It began with our discoveries within the Denton Central Appraisal District (DCAD) and improper property tax appraisals and problematic (often unconstitutional) protest process, which led to uncovering school district bond fraud, as the school districts are a major benefactor of property taxes and inflated property valuations. Through all of this, the pattern and practice of fraud, has been identified in appraisal districts, school districts, municipalities, local government, across Texas, across the U.S., including in our Federal Government.

Why Gold ? Why Silver ? Why Now?

How COMEX Sets Gold Prices and Moves the Market - Temporarily

If you’ve ever followed the gold market closely, you’ve probably asked yourself: what is COMEX , and why does it seem to move gold prices every single day?

Global gold price isn’t set by dealers selling coins or vaults storing bullion. It’s largely driven by trading activity on a futures exchange in New York — the Commodity Exchange, better known as COMEX.

Understanding how COMEX works is essential if you want to make sense of short-term price swings, volatility, and the sometimes puzzling disconnect between futures contracts — often called ‘paper gold’ — and physical demand.

COMEX (the Commodity Exchange) is a division of CME Group , based in New York, where futures contracts for gold, silver, copper, and other metals are traded. Originally founded in 1933, COMEX became the dominant marketplace for precious metals futures. Today, it functions as the primary price discovery mechanism for gold worldwide. In practical terms, it’s where the global gold price is established each trading day except in other sovereign nations that have their own form of COMEX such as Shanghai Gold Exchange or the LBMA in London.

When you see “gold is trading at $5,000 per ounce,” that price is typically derived from the most active COMEX gold futures contract — not from physical bullion transactions.

How Gold Futures Pricing Works

A gold futures contract is a standardized agreement to buy or sell a specific amount of gold (usually 100 troy ounces) at a predetermined price on a future date.

For example:

A trader buys a December gold futures contract at $5,000 per ounce.
That contract represents 100 ounces.
The total contract value is $500,000.

Importantly, the trader does not pay $500,000 upfront. Futures contracts are leveraged instruments, meaning only a fraction of the total value, known as margin which is required to control the position.

Most traders never intend to take delivery of 100 ounces of gold.

Instead, they’re speculating on price movements.

If gold rises to $5,200 , the trader can sell the contract before expiration and capture the $200 per ounce gain — or $20,000 on the 100-ounce contract. If gold falls, they take a loss. In most cases, the position is settled financially rather than through physical delivery.

In other words, COMEX is primarily a financial marketplace — not a physical gold warehouse.

Why Most Contracts Never Result in Delivery

Despite representing enormous quantities of gold on paper, only a small fraction of COMEX contracts ever result in physical delivery except in times of market stress such as the frauds outlined above, the demand for physical starts to overtake the paper trading which is the moment the COMEX and the bullion banks start causing large price movements to scare the unaware or week hands out of their positions, either paper or physical.

In most months and “normal” times, typically less than 5% of outstanding contracts go to delivery. The rest are closed out, rolled forward, or settled financially before expiration. Hedge Funds, Bullion Banks, Market Makers, COMEX, etc. are trading for price exposure, leverage, or hedging purposes — not to take possession of metal and store it in a vault, except in times of market stress coincidentally created by the same Funds, Banks, and Exchanges.

There are times when coin shops report shortages, premiums on physical gold rise, retail demand surges, and central banks aggressively accumulate bullion — and yet the gold price stalls or even drops.

How is that possible?

Because short-term pricing is driven primarily by futures flows, not by physical coin and bullion sales.

If Hedge Funds, Bullion Banks, Market Makers, COMEX unload large volumes of contracts , gold prices can fall quickly — even when physical demand is strong beneath the surface.

Conversely, heavy speculative buying on COMEX can push prices sharply higher, even if retail investors are relatively quiet.

Does COMEX Control Gold Prices?

COMEX does not “control” gold prices in the sense of centrally planning them. Rather, it functions as the primary marketplace where buyers and sellers meet to establish prices through competitive bids and offers.

However, because futures trading volume is so large (often many multiples of annual global mine production) financial flows can outweigh physical fundamentals in the near term. For long-term investors, this is critical to understand.

Gold’s underlying drivers are inflation, currency debasement, real interest rates, central bank accumulation, geopolitical instability and fraud.

Day-to-day volatility is driven by positioning of price in the futures market.

If you own physical gold as a hedge against inflation, currency debasement, real interest rates, central bank accumulation or systemic risk, you may be concerned about what you see in futures market. This is the difference between those who understand the long-term nature of metals investment which is to keep up with inflation and the probable need for a gold / metals standard to back paper currency. Media narratives are made up to suit the moment and have zero to do with clear thinking.

Gold has served as a monetary anchor for thousands of years.

Futures markets are modern financial overlays, useful for liquidity and price discovery, but ultimately are a derivative of the underlying asset.

When confidence in financial systems is high, paper markets dominate. When a crises of confidence during inflationary cycles (caused by fraudulent debt), currency instability, or geopolitical stress, physical gold and silver demand tends to assert itself more forcefully.

The Whitewashing of Your Tax Dollars - Pattern and Practice

Mon, 02 Mar 2026 23:56:04 GMT

The Whitewashing of Your Tax Dollars
Pattern and Practice

By Mitchell Vexler, March 2, 2026

Link to download this article in pdf , including hyperlinks

The Report by Mackenzie Eason can only be viewed as a whitewash, because the report is inconsistent and wrong, as the writers could not have looked at the requirements or math of USPAP, did not examine the software override allowing manipulation of values (whether a new software system or old one), and would take 3 cross examination questions to completely prove the whitewashing.

This is the Scope of Work from which the ability to help determine the layers of fraud can be recognized and dealt with.

Attached hereto, JCAD and GISD Partial List of Violations , is the truth of what is behind the Mackenzie Eason report’s findings described in the Executive Summary section found on page 3 through 5.

Below are excerpts from page 4 of report:

Material Gaps and Risks

Mass appraisal practices rely heavily on outdated schedules, manual adjustments, and legacy workarounds that undermine uniformity and defensibility.

Comment: The words “manual adjustments” and “workarounds” have been used by the Denton Central Appraisal District themselves, to describe practices and tasks performed. They are on record stating they manipulated data: removed data, altered it, and re-loaded it into their software system. They are on record saying they often do workarounds because the software is not completing the task they need to get done, i.e. it is not yielding the result they want. Additionally, they said that they correspond with other appraisal districts, such as Bexar, and share how to do these “workarounds”.

The absence of income-based valuation models for commercial property represents a significant methodological gap.

Organizational culture has been strained by inconsistent and poor leadership, poor communication, and a lack of accountability, contributing to turnover exceeding 100 percent over three years.

Policies, procedures, and internal controls were largely absent at the outset of the review, exposing the district to operational and compliance risk.

Technology modernization efforts, particularly the stalled GSA CAMA conversion, are constrained by the absence of leadership, lack of internal IT capacity, and unclear project ownership.

Comment: IT and software conversion issues exist/existed at the Denton Central Appraisal District also. Delays in CAMA software conversion, followed by a reversion back to prior software, along with other events, led to concerns over the reliability of the data used to issue the appraisal values & appraisal notices in 2021. Then in July 2021, the tax roll was falsified, i.e. fraudulently certified.

Governance and ARB oversight weaknesses have eroded stakeholder confidence and increased reputational risk.

Comment: The stakeholders are the taxing entities that the CAD represents and for whom the CAD produces appraisal values and issues appraisal notices. Communication to and from the CAD and the taxing entities needs to happen so they can “cook the books” together, agree on appraisal values to be set to cover tax revenue they’d like to collect. Stakeholders are likely to be upset with the CAD if the appraisal values do not support, or result in, the dollar value of tax revenue needed.

Compliance Outcomes

JCAD is largely compliant with USPAP Standards 5 and 6 and applicable provisions of the Texas Property Code.

Comment: What does “largely” compliant mean, more than 51% compliant, 75% compliant, 95% compliant? Anything less than 100% compliant means the mass appraisal valuation data and results have been corrupted, which in turn infects and affects the entire database of valuations. Each time an improper valuation is used to compare and value another property, another valuation is improperly made, corrupted.

Compliance risks exist where documentation, training, income modeling, internal controls, and ARB procedures fall short of best practice and, in some cases, statutory expectations.

Comment: The Mackenzie Eason report was quite generous by saying compliance risks exist “in some cases” with statutory expectations. In light of the number other items the report has documented in the findings and recommendations of each domain (area) evaluated, it is clear that JCAD has FAILED the statutory expectations, that is, they have violated appraisal law and property tax code.

Brushing past the most critical issues does nothing to fix the problems because the Mackenzie Eason report failed to quantify the issues and those responsible. Further, multiple pages were scrubbed (redacted) from the report. Why is that? It is property tax dollars that were used to pay for the report, and the public is 100% entitled to understand the fraud that is being perpetrated upon them.

No one can fix what they can’t define and quantify. The JCAD and GISD Partial List of Violations is what the report failed to identify. It is the culmination of what was touched upon within the Executive Summary on pages 3 through 5.

To get a better understanding of the Mackenzie Eason Report’s findings, one has to read beyond the Executive Summary, aka whitewash summary. Read all of the findings included, from the Organizational Overview section and in each of the Domain Valuation sections, 4.1 to 4.12. The problems and violations are greater than they are described in The Executive Summary.

For further examples of a CAD's pattern & practices to defraud, see the Hope McClure Deposition Transcript and our summary notes from the DCAD’s IAAO Gap Analysis Report , along with other evidence posted to https://www.mockingbirdproperties.com/dcad .

The Flaw of Private Equity and You Will Pay the Price!

Sun, 01 Mar 2026 23:37:01 GMT

The Flaw of Private Equity and You Will Pay the Price!

By Mitchell Vexler, March 1, 2026

On the surface, in a typical private equity corporate structure, equity is primarily represented by the contributions of Limited Partners (LPs) and the General Partner (GP). LPs usually provide the majority of the needed capital, while GPs contribute a much smaller portion, if any. As an example, GP equity within Blackrock is not disclosed, nor is the GP equity within individual divisions of the structure.

Notice, I said “on the surface”!

Below the surface are more commonly used scenarios to boost Return on Equity (ROE) at both the GP and LP level, but that boost comes at a highly leveraged cost, for which leverage and resulting failure may be paid by the bail-in method of the cross collateralized source of loan funding being the banks. This means your bank account is the source of the capital to bail out the big private equity firms many of whom are the shadow banks who may have Pension money or 401Ks as investors, and whose loans themselves may be cross collateralized and highly levered.

This is how it is done:

Alleged GP Equity can be derived from multiple sources including bank financing, and other private equity firms, meaning, aside from profit, it has a cost of carry. The bigger the investment targets, the higher the probability that the GP Equity is stacked and extreme leverage on the debt component is deployed.

Acquiring existing operations / companies means that institutional borrowing (banks) is available. Utilizing capital, with less than LP equity cost of capital, can boost the ROE on a % basis, but it has a hidden cost in terms of how much of the Private Equity Firm’s corporate collateral was pledged as collateral.

Utilizing off balance sheet financing by private equity firms involves excluding certain liabilities from their balance sheets to improve above the surface financial ratios and attract investors. This can include methods like operating leases and special purpose vehicles, but it carries risks if used to obscure financial realities. #1 & 2 above could lead to a combined equity of just 5% or less, leaving almost no protection against the entire portfolio of the PE firm (shadow bank) should just one division within the umbrella fail. Lehman Brothers is a prime example wherein it failed primarily due to its heavy investment in risky mortgage-backed securities tied to the subprime housing market, which collapsed during the financial crisis. This led to a severe liquidity crisis, ultimately resulting in the largest bankruptcy filing in U.S. history, at that time, on September 15, 2008.

The more hidden the true structure of equity and then the layering multiple investments (stocks, bonds, leveraged buyouts, mutual funds), the higher the probability of excessive leverage and the higher the probability that the balance sheet and income statement are meaningless as the transparency of the cross collateralization is impossible to track without a full audit and that would not be easy because of the financial engineering buried within the loan and acquisition documents. (see Tricolor, Blue Owl, and Market Financial Solutions in UK, etc.) Many entities under the umbrella of Private Equity have gone bankrupt such as A&P Grocery, Claire's Retail, Red Lobster Restaurant, TGI Fridays Restaurant, Forever 21 Retail, Joann Retail, At Home Décor Retail, Party City Retail, Hooters Restaurant, and Kmart. The nexus between all these companies is the debt and overleverage deployed by PE to boost the initial proformas which are used to attract capital. The question then becomes how many bad over-levered transactions can each PE firm withstand and what is the true collateral backing the positions?

#3 above means that the larger the PE firm the greater the risk exposure. It is the exact opposite of what the public believes. See the Bernie Madoff story, which is the abject definition of suspension of willing disbelief. Suspension of disbelief is the willing avoidance of critical thinking and logic in understanding something that is unreal or impossible in reality, such as something in a work of speculative fiction, in order to believe it for the sake of enjoying its narrative. This is a form of Kabuki Theater and historically, the concept originates in the Greco-Roman principles of theatre, wherein the audience ignores the unreality of fiction to experience catharsis from the actions and experiences of characters. Or, in plain English, one wants to enjoy the story of the snake oil salesman and thereby suspends rational thought and questions of “what if”.

Regardless of their fiduciary responsibility, the PE firms on the surface are segmented with multiple divisions, but that does not take into account the cross collateralization, or the 3 ^rd party counter risk, or what will be the eventual unwinding of the PE firm, based on the over leverage and intentional lack of accountability wherein the management states “it was this segment of the company that caused the collapse of the firm” or “we did not understand the cross collateralization and we would have been fine if we could have raised more LP equity but the market at the time was weak (aka Ponzi scheme)”. The best example of self-delusional thought is this quote from Alan Greenspan wherein he acknowledged a state of "shocked disbelief regarding the failure of lending institutions to self-regulate”, which contributed to the financial crisis. He admitted that he and others who trusted the market to regulate itself made a serious mistake. Except for one problem…was it not the job of the Federal Reserve to oversee the financial collateralization of the institutions that the Fed loans money to in the Reverse Repo??? This is exactly why the doors of the federal reserve should be Chained Shut and why I wrote The Federal Reserve is a Failure .

The point to the above is that leverage kills and being highly levered is an assurance of mass destruction, which when it breaks, will spin out of control very quickly as everybody heads for the exits simultaneously. The Thread of Inconsequential Actions details government entities which choose to turn a blind eye to what is mathematically quantifiable & politically visible and politicians modify laws to placate the public, only exacerbating the growth of the debt...with no person or entity held accountable which brings us to The Importance of the Vexler case to Texas and the United States . The failings of both PE and the school districts are one in the same, which is lack of transparency, the ability to violate the black letter of the law, resulting in the necessity of bailouts or additional taxes to pay for their financial crimes.

Even though the rate of return could be less, protecting the assets and equity with minimal leverage provides a stable return on investment (ROI) and the return of the investment, which must be the primary goal.

The money does not exist at either the Median Household Income (MHI) or the Federal level to print a way out of this reality, and if printed, would cause hyperinflation, which would be the direct result of backing fraud.

Fraud exists not just at the corporate level via the shell game of cross collateralization and extreme leverage, but also within School Districts that raise bonds, wherein the MHI does not exist to pay for the interest on those bonds never mind paying off the bonds. See Vexler’s lawsuit interferes with our ability to commit fraud.

If housing is to be made affordable,
the solution is to repeal all property tax in favor of the Uniform States Sales Tax.

The Economy is Good! We are in a Recession! How Can That Be?

Tue, 24 Feb 2026 16:28:41 GMT

The Economy is Good! We are in a Recession!

How Can That Be?

By Mitchell Vexler, February 24, 2026

On February 21, Steve Moore, a highly regarded economist and conservative commentator, made the following statements.

“Economy is good”

“Inflation is down”

“Tariffs are working”

“I think the economy is doing really well, and I know that may put me in a minority, because some of these polls are showing people are worried about that a word you just said, affordability. But you know, we've been tracking the income numbers every month since Trump came into office for a second term, and so far over the first nine months or so, Americans' incomes are rising faster than the inflation rate, that means they have more affordability. In other words, they can afford more things, not less, and that's, by the way, a big reversal of what we saw under Joe Biden.”

This begs the question… Which economy… Who’s economy? The Wall Street economy... or the Main Street economy?

Wall Street and the banksters can clearly pick the meat off the bones of Main Street. Perhaps their day of reckoning is coming as more and more of the fraud of debt and the creation of that debt surface.

Let’s examine a few facts with regard to Main Street – Mom and Pop.

Daily Affordability is Unobtainable – What can you do about it
The Amicus Brief contains the evidence of financial condition of homeowners, property owners and society with regard to the simple fact that roughly 42,000,000 households (37.7% of the household population) are in harm’s way of bankruptcy and or losing the roof over their head and cannot afford their home and the property taxes which continue to climb based on the overvaluation and over taxation demanded to service the school district bond fraud.
The Debt Model of socialism
We Live in the World of Fraud and Fraudsters – How to Protect Yourself
Messages Received from Concerned Americans
Crisis of Confidence
The Thread of Inconsequential Actions
Car loan defaults at all time high. The share of US subprime borrowers at least 60 days behind on their auto loans rose to 6.90% in January 2026, the highest level on record, according to Fitch Ratings data going back to the early 1990s.
https://www.newyorkfed.org/microeconomics/hhdc Household Debt Balances Reach $18.8 Trillion in the Fourth Quarter. Total household debt increased by $191 billion to hit $18.8 trillion in the fourth quarter of 2025, according to the latest Quarterly Report on Household Debt and Credit. Mortgage balances grew by $98 billion to total $13.17 trillion at the end of December. The pace of mortgage originations continued increasing, with $524 billion newly originated in the fourth quarter. Credit card balances rose by $44 billion from the previous quarter and stood at $1.28 trillion, while auto loan balances increased by $12 billion to $1.67 trillion after holding steady last quarter. HELOC balances increased by $11.6 billion to $434 billion, while HELOC limits rose by $25 billion, continuing an expansion that began in 2022. Student loan balances rose by $11 billion to $1.66 trillion.
For the first time since 1996, gold has surpassed U.S. Treasury bonds as the largest reserve asset held by foreign central banks, with holdings nearing $4 trillion compared to $3.9 trillion in Treasuries.
Central banks are aggressively accumulating gold (over 1,100 tons in 2025 alone) as part of a global de-dollarization trend, reducing reliance on the U.S. financial system amid concerns over debt ($38T+), inflation, and weaponized sanctions.
Gold has delivered a 9.9% annual return over 25 years, outperforming U.S. Treasuries 2:1.
Rising global conflict, inflation and U.S. fiscal unsustainability have reinforced gold’s role as the ultimate geopolitical hedge, with no 3 ^rd party counter risk. If it is in your hands, you own it.
Gold has overtaken U.S. Treasury bonds to become the largest reserve asset held by foreign central banks worldwide for the first time in three decades.
According to the World Gold Council, the total value of gold held by foreign official institutions now approaches $4 trillion, narrowly exceeding their approximate $3.9 trillion in U.S. Treasury holdings. The last time gold held this top position was in 1996.

A recession, if not depression on Main Street, is crystal clear as the school district bond debt cannot be paid off and the liability only increases as a result of the compound cumulative interest which is paid to the lenders for the next 20 to 40 years, who chose to invest in fraud with the lability on the back of Mom and Pop.

Given the above, let’s now consider the following:

The Article, Chain the Doors of The Federal Reserve
The Article, Your Money (METALS), Your Future, Neither a borrower, nor a lender be
The Article, The Federal Reserve is a Failure – Thesis & Fact Part 2
Fraud = Inflation
“We have an ordinance” – we the city want you, a multi-family developer, to build a detention pond even though your land is adjacent to a stream and even though there is a detention pond utilized by Walmart (adjacent property on other side) that was designed to hold 60 acres of runoff. The cost of the pond was $250K plus ongoing maintenance. Effectively, this was paid for by rents collected from the residents of an apartment complex, which is inflation and very much fraud on society.
“It’s for the kids” - property taxes and school district bonds - creating a second mortgage, the equivalent of 70% of the value of your home, to pay for a morally and financially bankrupt school system that is producing students that can’t balance a checkbook and are ill-prepared for life. See article, For the Kids . The fraudulent bonds continue to earn interest and compound, instead of pushing the fraudsters into immediate bankruptcy.
“We need fuel taxes because it is good for the environment”. See article, Cultural Decay .
“We need special hotel taxes to pay for a marketing campaign created by government employees to promote the state”. This is a make-work program that society and guests pay for and that literally delivers nothing of value. It inflates the cost of your hotel stay.
According to Stephan Moore (not Steve Moore mentioned above) “Since the global warming crusade started some 30 years ago, the temperature of the planet has not been altered by one-tenth of a degree—as even the alarmists will admit. In other words, $16 trillion has been spent—a lot of people got very, very rich off the government largesse—but there is not a penny of measurable payoff. But it’s much worse than that. In economics there is a concept called opportunity cost: What could we have done with $16 trillion to make the world better off? What if the $16 trillion had been spent on clean water for poor countries, or preventing avoidable deaths from diseases like malaria, or finding the cure for cancer?

The reality is… The enemy of society, regardless of political affiliation, is debt and the purveyors of debt that transferred the fraud they created onto the backs of all taxpaying citizens. Society has been manipulated into thinking certain expenditures are necessary without consideration to the long-term cost of those unnecessary expenditures. Society has been defrauded!

More information can be read at www.mockingbirdproperties.com/dcad and within the Articles, Letters & Discussions section.

Open Letter to Mark Levin

Sun, 22 Feb 2026 16:02:56 GMT

O pen Letter to Mark Levin

This Open Letter is a bit of a premonition given my experience with politicians, economists, and fraudulent reports. I could be wrong, but let’s see how this plays out in the next few days.

Below is the Open Letter that Mitchell Vexler sent to Mark Levin via email on February 22, 2026 at 8:36 am.

Hi Mark:

I look forward to your discussion with Governor DeSantis on his belief that property taxes can be abolished for homesteads. There is a high probability that he is wrong because A.) the math will not work and B.) it is selective enforcement wherein farmers, land owners, commercial property owners and renters will need to carry the burden left from the homesteads no longer paying the property tax, which also makes it a Constitutional issue under both the Florida Constitution and The Constitution of the Unites States of America specifically the 5 ^th , 14 ^th and 16 Amendments. Further I would bet Governor DeSantis will be silent on the school district bond fraud that caused the over taxation since at least 2016, wherein the property values by virtue of fraudulent overvaluation have gone up close to 100% in the last 5 years.

Further, there is an integral and much larger issue which is the school district bond fraud that is being ignored by every politician and that may end up being the proverbial tail wagging the dog. The bond fraud totals roughly $5.1 Trillion across the U.S. and the real value, in order to pay the fraudulent bonds off, is between 13 and 30 cents on the dollar - maybe. There are many other financial frauds as part of this story including but not limited to off-balance sheet financing, energy contract financing, EDC financing, and hidden investment pools.

This is a link to the Importance of the Vexler Case to Texas and the United States.

The issues in Texas are replicated across the U.S. and there is a high probability that any county where bonds are raised for the school districts, that county will match the pattern and practice of the frauds committed in Texas and also the methods used to attempt to hide the frauds. Part of the problem that we have discovered is that many attorneys are really bad with math, but they are quite adept at breaking the law until exposed using math.

Coincidentally, just a few days ago, we posted on my website the Article titled Vexler’s lawsuit interferes with our ability to commit fraud . This is why the Vexler case is crucial to have the case remanded to the lower court to stand trial on the merits of fraud. The evidence is insurmountable and irrefutable which can be seen at www.mockingbirdproperties.com/dcad right down to audio, video and depositions containing admissions of violating dozens of laws I intend to put the Chief Appraiser of Denton County in jail as he is responsible for the theft of billions of dollars in over taxation, and knowingly creating a false tax roll. Jail for the guilty and their co-conspirators is the necessary shock wave across the U.S. by prosecuting those who chose to commit fraudulent over taxation by overvaluation at the Central Appraisal Districts along with the school district superintendents who chose to commit bond fraud and accounting fraud.

The depth of the fraud and the evidence is considerable, so this link is to a Criminal Complaint that has been filed with the DOJ, FBI and recently the SEC in Washington. School District Bond Fraud is a Federal issue.

As a result of this Criminal Complaint, the Attorney General of Texas on December 7, 2025 ordered a 1,000 district investigation on the overvaluation. This AG is now running for Senate. You might want to read the Criminal Complaint carefully as it is the AG himself as the sole signator under the Texas Education Agency to ensure there is enough money to pay for the school district bonds and there is not. Texas has roughly $606 Billion in fraudulent outstanding school district bonds.

This is the Amicus Brief that was filed with SCOTX.

Governor DeSantis has not or does not want to connect the dots which is the absolute case for Governor Abbott who was the Texas AG in 2001. No government in the history of the planet can outrun the rule of 72 nor can it outrun the reverse amortization that they created. Kicking the can down the road only allows the cover for the fraud but does not stop the increase in the property taxes to pay for the cover of the fraud until one day the bond holder realize they are hold pennies on the dollar and the school districts start filing bankruptcy in mass. The criminal complaint lays out the evidence.

More than likely, Governor Abbott will win this upcoming election. More than likely, he will end up overseeing the bankruptcy of the hundreds of school districts during his next term as the fraud continues to surface.

This is the Articles section of my website where I am writing as fast as new information is quantified or I find another idea to help explain the issues to Mom and Pop and any Citizen who suffers from the inflation of fraud and the related over taxation. See Letters, Articles, & Discussions section of our website.

As you will see in the Amicus Brief, I believe in the black letter of the law and the U.S. Constitution. Also, see The Debt Model of socialism . I finished this article a few days ago, and to be blunt, there are socialists on both sides of the isle. The economic problems we face as a Nation, cannot be fixed if those on the conservative side can’t define and articulate the issues creating the fraud, or don’t want to.

We have done more to expose this fraud than every politician in the State of Texas combined, and I have not received ten cents in the process because I know that many of those who would want to contribute which are the thousands who have lost their homes due to tax lien foreclosures, can’t afford it. Where are they going to go to get their stolen money (over taxation) and homes back (tax lien foreclosure) which under law, they are entitled to be made whole.

In the Amicus Brief, you will see that roughly 42,000,000 households are in harms way of bankruptcy or losing the roof over their head.

The fraud can no longer be hidden. In this Article an extraordinary question is asked of opposing counsel, Preemption of Opposing Counsel .

Given that either the law exists or it doesn’t and no Constitutional Entity can allow fraud to escape, and given that opposing counsel is representing the CAD, its employees, and counsel itself, as an officer of the court…..If you don’t’ intend to allow the resolution and discovery by every Texan with regard to the property tax fraud and related school district bond fraud being committed upon them, why is that ?

This question is applicable across the U.S. in all counties (all appraisal districts) claiming to adhere to USPAP where the evidence proves the opposite and where the ability to seek adjudication has been prohibited.

No government (State or Federal) in the history of the planet can outrun the Rule of 72.

No government (State or Federal) can outrun the reverse amortization that they created.

On a slightly different note, Steve Moore’s comment that the economy is doing well, may be good intentioned but he is referring to Wall Street being the economy (Dow at 50,000) and clearly not Main Street. The Amicus Brief holds the truth with regard to the debt level per household and the evidence that the fraudulent school district bonds cannot be paid off. I’m certain that if Mr. Moore knew about this bond fraud and it’s metastasized compound cumulative effect, he would bifurcate Wall Street from Main Street which would also help add clarity for those who listen to Mr. Moore but who are experiencing a different reality.

President Trump has a messaging problem. Mr. Moore’s comments on your show are tone deaf to the bond fraud and compound cumulative liabilities (taxes) placed on the back of property owners which have been compounding since a least 2000 and have terms for the next 20 – 40 years from today, which taxes are raised to cover off the fraud that has been committed, and this assumes the continuous demand to raise more bonds, stops today, which it won’t. I don’t know what the Administration knows, but more than likely, those around President Trump don’t know the facts, but Mom and Pop are living the facts as outlined in the Amicus Brief.

I know that President Trump has a State of the Union coming up but if the messaging is tone deaf to the real estate tax fraud and related fraudulently bond debt suffered by over 42,000,000 households that would be an important lost opportunity. President Trump is doing what he believes is necessary with regard to the Tariffs to offset the intentional weakening of foreign currencies, but that is top line revenue. Given the amount of evidence on my website, and thousands of petition signatures that I have received, and the millions of video views, it is my opinion that President Trump needs to work the expenses side of the leger which are the fraudulent outstanding school district bond debt and the fraud of overvaluation and over taxation by the Central Appraisal Districts and demand repeal all property tax in favor of the Uniform States Sales Tax. The President can move this forward quickly and in unison across all states.

This is a link to the Bill that I was asked to write by Helen Kerwin Texas State Rep., Draft of Bill to repeal real estate tax in favor of Uniform States Sales Tax.

This Bill outlines exactly what President Trump should be focused on across the U.S. to restore the balance sheet to Mom and Pop so that they own the land beneath their asset and wipe out the fraudulently placed liability while simultaneously restoring Trust in our government.

I am available to help explain and expose these issues.

Best Regards.

Why We Need to Repeal ALL Property Tax: Talking Points & Letters to Write

Sat, 21 Feb 2026 18:20:12 GMT

Why We Need to Repeal ALL Property Tax:

Talking Points & Letters to Write

By Mitchell Vexler, February 21, 2026

Why we need to repeal ALL property tax:

1. Violation of 16 ^th Amendment

People are taxed out of their homes, adversely impacting senior citizens with homes paid off.
Financially bankrupting Homeowners forcing them to sell their home and move.
Young Adults are priced out of Home Ownership. Appraisal District software helps set fraudulent floor on home prices.
You will never own or have the opportunity to own the roof over your head.
Equity stolen. The real estate tax steals what would be your amortized equity and that is equity stripping.
Your real estate tax is their mechanism to fund fraudulent ISD Bonds and pay for the interest on those fraudulent bonds for as long as those fraudulent bonds exist.
The majority of school districts that raise bond money are bankrupt and property tax payers are paying to delay their eventual bankruptcy. It is literally shoving hard earned money into the pockets of lenders who invested in fraud.

2. 2008 bank crisis + this bond crisis = many times worse than Enron

See Amicus Brief filed with the Supreme Court of Texas.

Bonds do not pay teacher salaries or any M&O (Maintenance and Operations)
Large amounts of ISD bonds are purchased through Teacher Pensions
Large amounts of ISD bonds are purchased by institutions as a collateral requirement
AAA Credit Ratings based on “Unlimited Ad Valorem Pledges” or “Unlimited Tax” (no such thing)
Bond debt has skyrocketed and mathematically cannot be paid back as is required in law. The underwriting of the bonds cannot be backed up based on fundamental math.
ISD Bonds are insolvent which has bankrupted cities and schools & property owners.
The interest to service $2 billion in Bonds over 30 years is approximately $9 billion in additional cost not including new bonds.
This issue is playing out not just in Texas but across the U.S.

3. There is No Recourse or Due Process. Property Rights stripped, violates 5 ^th & 14 ^th Amendment.

CAD (Central Appraisal District) is responsible for accurately valuing our homes.
ARB (Appraisal Review Board) is supposed to support property owners in protesting their home value when a property owner does not agree with the CAD’s home value.
The CADs often use renegade value software that falls out of legal requirements in order to back the CAD’s pre-determined budget into a home value. This allows them to achieve higher revenue and has nothing to do with USPAP – Uniform Standards of Professional Appraisal Practice. See partial list of violations of law by the CADs and school districts.
The CAD and the ARB are working together, often to bully and confuse homeowners into accepting an overvaluation.
The CAD & School Districts claim immunity and use the Appraisal Review Board, as the exclusive remedy, which is a Constitutional issue because the ARB does not have the authority or ability in law to determine fraud thus the ARB itself is aiding and abetting fraud. In Federal law, there is no immunity for fraud .
Protest process is not fair or uniform and equal as required under law and in the Texas Constitution.
All past and future data has been intentionally corrupted by using software that allows the hand overwriting of values, meaning the software is designed to allow fraud to be committed.

SOLUTION: Bill to Repeal all Property Tax in Favor of the Uniform States Sales Tax (follow link)

Immediately end all property tax in favor of the Uniform States Sales Tax
In Texas, Sales Tax goes up to a maximum of 15% for 3 years until stabilization. There should be 0 (zero) bonds remaining after 3 years. And if they cannot be paid off in 3 years, the bonds and schools districts are put into bankruptcy and the liability removed from the back of all property owners, thus all property tax repealed. Then after year 3 years the Sales Tax drops to 11-12% moving forward because the fraud has been removed from the system.
No impact on food and medicine except for potential deflation.
STOPS all Bonds and requires ISD’s turn over all the accounting, including the bond CUSIP’s and amortizations schedules, within 60 days of passing the Bill to Repeal All Property Tax.
Within 60 days ISDs must prove ability to pay off all Bonds within 3 years or face immediate Bankruptcy.
Eliminates Billions in agencies’ waste fraud and abuse, thus reducing the revenues needed.
Puts money back into the classrooms and promotes quality teachers and higher teacher pay.
Requires transparency to the public, fully visible via transparent on-line check registers from the State Comptroller’s office.
All property owners will own their land and thus restore the amortization schedule from which to build their equity rather than having that equity stripped via fraudulent real estate tax and fraudulent school district bonds.

Everyone needs to take action now:

To get started, write a FOIA Letter to your school district superintendent.

From:

[insert name, address, email, and phone number]

To:

[insert District Superintendent name, address, email]

[insert date]

Dear School District Superintendent, [name]:

Under the FOIA (Freedom of Information Act) please provide the following:

A Bond Schedule stating all outstanding individual school district bonds, including term, interest rate, underwriter, purpose, conditions, and their corresponding CUSIP numbers from 9/1/2001 to 9/1/2026,
The amount of cumulative interest, outstanding interest and or compound cumulative interest on the outstanding bonds as of 9/1/2026,
The amount of interest to be paid in the future on the outstanding bonds starting 9/1/2025 to 9/1/2045,
The name of the Auditor and Auditing / Accounting Company, address, phone number and email address, hired by the School District.

I look forward to receiving the above documents.

Respectfully submitted,

[signature]

Or you can visit your school district website and try to gather the information on outstanding bond debt.

If you can get to the truth of the current outstanding school district interest and the current outstanding bonds, then divide that figure by the number of houses in the school district and you have the severity of the truth.

With regard to property valuations for ad valorem taxation purposes, property taxes assessed, and the outstanding municipal & school district bonds, ask yourself these questions:

What proof exists that the certified taxes are correct?

What proof exists that on an individual or global basis the certified taxes are correct ?

If not correct and used as a basis for a property tax and school district bonds, how do homeowners recover from that lack of authority?

Where is their data?

No one has met the requirement of proof.

Where is the verification of evidence?

Where is the verification that the process, as required in law, was adhered to?

Why is that, in the ARB hearings, we cannot question the process by which the ARB, or the appraisal district, comes to a number. (ARB or Appraisal Review Board in Texas is same thing as Board of Equalization in CA) This is the Vexler case now in front of the Supreme Court of Texas.

Billions of dollars of fraud have been put on the property owners back, which if recognized as fraud, they are not required to pay.

Intentional, willing suspension of disbelief exists.

Nothing meets the standard of what is required – That is the BIG CON!

We have the data and it is on the website free for all to see and use… at www.mockingbirdproperties.com/dcad and in the Articles, Letters & Discussions section.

Another step would be to write a letter to your Mortgage Lender with regard to Mail Fraud and send a copy to the FDIC chairman.

From:

[insert name, address, email, and phone number]

To:

[insert Mortgage Lender Company president name, address, email]

Copy:

Mr. Travis Hill, Chairman of FDIC

Federal Deposit Insurance Corporation
Division of Finance

3501 North Fairfax Drive

Building E, 5th floor
Arlington, VA 22226

assessments@fdic.gov

[Insert Date]

Dear [Mortgage Lender Company] president, [name]:

I respectfully submit this request for attention regarding systemic concerns of mail fraud being promoted by my mortgage lender where I receive a monthly mortgage statement which has been compiled with fraudulent school district bond financing and fraudulent property tax practices and which may implicate violation of federal securities laws in addition to mail fraud.

Background

Texas school district and charter district bonds are marketed nationwide to investors and are enhanced through the Texas Permanent School Fund Bond Guarantee Program.

According to the Texas State Auditor’s January 2024 certification (Report No. 24-011), the Program guaranteed $115.7 billion in outstanding bond principal as of August 31, 2023, and was within statutory limits.

While formally compliant, the Program masks a growing insolvency risk. The underlying property tax base is inflated by systemic over-valuation. In some counties, more than one-third of households face unsustainable tax burdens, with lien rates reaching 23%, even on debt-free homes. In Argyle, Texas, school bond obligations equal approximately $343,000 per household against a median home value of $450,000.

In Celina Texas, the situation is worse than Argyle. In Celina, the Total Current ISD Debt and Interest is $5,354,573,893, with each housing unit having approximately $328,058 in debt, and where its future population could never grow enough to pay off the bonds.

These problems are being see across the United States and not just in Texas.

Concerns

Potential Securities Misrepresentation

Official Statements and bond offering documents describe repayment sources as “unlimited tax” obligations. In practice, median household incomes cannot support repayment of principal and compound interest, raising the risk that “unlimited tax” language misleads investors in violation of Exchange Act Rule 10b-5.

Systemic Risk Beyond Texas

The analysis filed in Vexler v. Denton Central Appraisal District (Supreme Court of Texas) demonstrates that these practices are not isolated. The financial exposure resembles Enron-style off-balance-sheet structures, but on a larger scale, affecting public finance nationally.

Constitutional and Procedural Limits

Lower courts acknowledged evidence of fraud but held that review ends at appraisal review boards (ARBs). The Texas Supreme Court’s precedent in Patel confirms that administrative bodies cannot insulate constitutional or fraud claims from judicial review.

I respectfully request that my mortgage lender from which I receive monthly mortgage statements immediately:

Open a formal investigation into whether Texas school district bond disclosures misrepresent repayment security, thereby violating federal anti-fraud provisions.

Utilize their authority to obtain documents withheld by the Texas Attorney General’s office that were previously sought under FOIA and relevant state public-records requests.

Consider intervention by filing a statement of interest or similar action to ensure that federal securities law considerations are presented to the Supreme Court of Texas in Vexler v. DCAD.

Public Interest

This case has drawn significant public attention, with recent public briefings receiving more than 350,000 direct views and over 6 million aggregated impressions. These numbers reflect widespread concern over property tax insolvency and its impact on both homeowners and municipal bondholders nationwide.

Issue

Given the amount of overpayment on my mortgage via the fraud which I have calculated at $[insert amount], I am hereby making demand for the return of that overpayment. [Insert the amount of taxes assessed and paid to date due to the over-valuation of your property.]

Conclusion

You, as the mortgage lender, have a critical role in ensuring accuracy and integrity of your mailed mortgage statements as well as integrity of the municipal bond markets.

While Texas’s Permanent School Fund Guarantee Program may appear compliant under statutory caps, the disconnect between “unlimited tax” pledges and actual repayment capacity raises serious investor-protection concerns under federal securities law as does the mailing of statements which are comprised of fraud thus making those statements mail fraud.

I look forward to your immediate response.

Respectfully submitted,

[signature]

Vexler's lawsuit interferes with our ability to commit fraud!

Fri, 20 Feb 2026 16:32:53 GMT

Vexler's lawsuit interferes with our ability to commit fraud!

By Mitchell Vexler, February 20, 2026

While waiting for the response from opposing council as requested by the Supreme Court of Texas, to which we will respond to the response, I keep thinking that perhaps SCOTX now sees the issue which can be broken down as follows:

How can the administrative process, under Administrative Law, lead to fraud?

Ultra Vires is a due process violation. (A)

An Ultra Vires action is outside of Administrative Law. (B)

If fraud can occur under due process (as stated and claimed by opposing counsel) then that must be a due process violation. (C)

The net result is a State “taking” without due process which is mass fraud upon society by ignoring both Ultra Vires and Administrative Law. (D)

If A = B and B = and C = D, then A = D

The statute cannot be defended because the result is fraud.

The Appraisal process cannot be immune from scrutiny.

Definitions:

Administrative Law is a branch of law that governs the activities of government agencies, including their rulemaking, adjudication, and enforcement of laws. It ensures that these agencies operate within the law and provides a framework for the public to challenge agency actions.

Ultra Vires is a Latin term meaning "beyond the powers." In law, it refers to actions taken by a corporation or government that exceed the legal authority granted to them, making those actions invalid.

Due process in law refers to the legal requirement that the government must respect all legal rights owed to a person, ensuring fair treatment through the judicial system. It is primarily enshrined in the Fifth and Fourteenth Amendments of the U.S. Constitution, which protect individuals from being deprived of life, liberty, or property without appropriate legal procedures.

"Taking" refers to the government's seizure of private property for public use, which can be either a physical taking (actual occupation of the property) or a regulatory taking (where regulations severely limit property use). The Fifth Amendment requires that just compensation be provided to the property owner for such takings.

Property refers to anything that can be owned by a person or entity, encompassing both tangible items like land, buildings and cash (real property) and intangible items like stocks, copyrights and equity (personal property). It includes the rights to use, control, and transfer these items.

The Importance of the Vexler Case in Texas and across the U.S.

There is no redress in the case of fraud committed against a property (residential, land, or commercial) and its owner, by a taxing authority created under the appraisal review statute to show how the fraud has been created and manipulated to obtain resolution.
The Appraisal process, as claimed by opposing counsel, disallows investigation of fraud in the process which negates the very existence of Uniform Standards of Professional Appraisal Practice rendering the entire appraisal industry from American Institute of Real Estate Appraisers and the Appraisal Foundation meaningless because any Central Appraisal District can chose to override the requirements, laws, and math that would be the legitimacy of the valuation.
The statue, as unilaterally interpreted and exercised, prevents the discovery of fraud.
There is no due process, as unilaterally interpreted and exercised, of structured review.
Constitutional Question: Can the Legislature or lower courts constitutionally bar judicial review of systemic fraud claims by confining them to an administrative scheme that lacks discovery, subpoena power, or fraud-adjudication authority?
Why Should the Supreme Court of Texas Care: This is a classic “open courts” problem—if Appraisal Review Boards (ARBs) [same as Board of Equalization] are the exclusive forum and the Chief Appraiser is allowed to commit fraud wherein Ultra Vires is not enforceable (as claimed by opposing counsel), then property owners have no meaningful remedy for fraud. That is exactly the type of constitutional anomaly the Supreme Court of Texas exists to resolve. This is exactly the type of constitutional anomaly the Supreme Court of any State exists to resolve. The pattern and practice of intent to defraud is laid bare in any jurisdiction that claims to adhere to Uniform Standards of Professional Appraisal Practice. In Texas, the system itself, the Central Appraisal Districts (CADs), the IAAO (International Association of Assessing Officers), the TAAO (Texas Association of Assessing Officers), the Attorney General under the Texas Education Act, the State Comptroller under its oversight responsibilities and Property Valuation Study, and many others, violated the very laws and framework they are supposed to represent. These violations have enabled the fraud to start and to grow and are now necessary in order to feed the compound cumulative interest on the fraudulent school district bonds.

Again, I have stated in writing and on video many times, either the law exists, or it doesn’t .

No Constitutional Entity can allow fraud to escape.

Here is the most important question for opposing counsel representing the CAD, its employees, and counsel itself, as an officer of the court:

If you don’t intend to allow the resolution and discovery by every Texan with regard to the property tax fraud and related school district bond fraud being committed upon them, why is that?

This question is applicable across the U.S. in all counties (all appraisal districts) claiming to adhere to USPAP where the evidence proves the opposite.

No government (State or Federal) in the history of the planet can outrun the Rule of 72.

No government (State or Federal) can outrun the reverse amortization which is exactly what they created via the fraud. Compounded school district bond fraud which creates compound cumulative interest on top of the compounded bond fraud.

Although SCOTX is confined to Texas, this issue is a national issue because the pattern and practice of overvaluation and over taxation to feed the fraudulent school district bond debt is national. Tens of thousands of people have lost their homes due to property tax lien foreclosures. Over 42,000,000 households across the U.S. are in harms way of bankruptcy or losing the roof over their head as a result of this overvaluation and over taxation which was created to feed the fraud.

Bonds are part of the federal market, as they are often issued by the government to raise funds. When the government needs money, it sells bonds to investors, who lend money in exchange for regular interest payments and the return of the principal at maturity. Given the nature of the fraud, the government participants in the fraud, the scale of the fraud, and the compound cumulative interest being larger than the original fraudulent principal of the bonds, what are the bonds truly worth?

The Debt Model of socialism

Thu, 19 Feb 2026 17:54:09 GMT

The Debt Model of socialism

By Mitchell Vexler, February 19, 2026

According to the New York Federal Reserve, as of the end of 2025, total household debt in the U.S. reached approximately $18.8 trillion, which includes various types of debt such as mortgages, credit cards, and auto loans. This represents a significant increase from previous years.

Overview of Total Consumer Debt

As of the end of 2025, total consumer debt in the United States reached approximately $18.8 trillion . This figure represents a significant increase of $191 billion or 1% from the previous quarter.

Breakdown of Consumer Debt Types

Below is a chart summarizing the 4th Quarter 2025 Household Credit Report, available at newyorkfed.org.

Just a few more points to consider:

Roughly 42,000,000 households are in harm’s way of bankruptcy or losing the roof over their head.
There are roughly 4.2 million property tax defaults as of early 2026.
How do we know that what the government is claiming as M2 is the true amount of money in circulation?
The Gross Domestic Product (GDP) is not large enough to generate enough income taxes to pay for the interest on the U.S. National Debt, never mind paying down that debt.
The Median Household Income is not large enough to generate enough property taxes to pay for the interest on the outstanding fraudulent school district bond debt never mind to reduce the principal of the fraudulent school district bond debt.
As of the writing of this Article, the idiot, ignorant, socialist mayor of NYC laid out two potential paths to close what he says is a $5.4 billion budget gap in New York City. 1.) Albany would raise taxes on the richest New Yorkers. 2.) “The City” (the idiot transfers the blame to ‘the City” vs the idiot) would raise property taxes for the first time since the late 2000s. The City could generate $3.7 billion by raising the property tax by 9.5%. This is not just an idiot socialist and not just socialism, this is the reason that proves the Importance of the Vexler Case to Texas and the U.S. These socialists ignore the black letter of the law, create RICO (pay the tax or we will take the property) and have created Institutionalized Systemic Moral Hazard.

socialists can’t add. Income Tax + Sales Tax + Property Tax + Corporate Tax + Special Hotel Taxes + Excise Tax = more taxes to pay for the fraudulent bonds and interest on those bonds. Will mass bankruptcies and or civil unrest be necessary to break the chain of continuous theft (socialist policies and socialism)?

Another 9% on top of all these taxes, with regard to income properties, may be the profit level of that income property meaning the difference of surviving or bankruptcy. Why? With income properties, every net dollar as a component of the Net Operating Income (NOI) would be divided by the then true market cap rate i.e. a 7-cap meaning 7% Rate of Return (ROI) all cash. That means that a $5,000,000 property paying 3% property tax would pay $150,000 in property tax (leave aside the fraud of overvaluation and over taxation for the moment). Now an increase of 9% would be $13,500 on top of the $150K. That $13,500 divided by .07 = $192,857.14 of lost property value proving socialism is theft, proving the Institutionalized Systemic Moral Hazard, and proving RICO under both State and Federal laws. Making the matter worse, would be a discussion about free cash flow which may not exist in the immediate future for many of these properties. Demanding more taxes from the Rich, the property owners, or anywhere they obtain the cash to cover-up their fraud, is the gateway drug for the socialists to demand more taxes from the home and condo owners. This is a binary decision. You stop them or they will bankrupt you.

If the idiot were to claim he is not an idiot, then he should file the City of NY into bankruptcy to wipe the fraudulent school district bonds out and get the liabilities off the back of Mom and Pop. Detroit filed bankruptcy, so should NYC and so should every other city where the compound interest can’t be paid but for increasing property taxes in perpetuity which also means that there is zero probability of paying off the fraudulent principal.

One might ask, how is the above possible and who could TRUST whoever or whatever system allowed this to occur?

TRUST is a very interesting word, because a single dollar is only worth what you TRUST it will allow you to purchase and or exchange that dollar for. This statement on TRUST is applicable across the Globe. Keep this in mind as we work our way through this Article.

The Hidden Propaganda socialist Model

Inflation (I) as a direct result of printing money not backed by assets creates an illusion of an expanding GDP utilizing public spending.

Housing and Food (H&F) prices rise faster than an index at a multiple of the CPI index.

Purchasing power (PP) decreases because of inflation and the population becomes slaves to debt as a result of years of interventionist (socialist) policies.

The “real shopping basket” of Essential Goods (EG) had roughly a 40% - 60% increase from 2019 to 2025.

See article, Fed Analysis: CPI, The Ultimate Big Lie . The method of calculation has been modified so many times, it bears no resemblance to the initial concept. What is the true unemployment number?

As has been stated and shown in the Articles, Letters & Discussions section, the productivity being claimed in the delayed governmental reports is a statistical mirage.

In simple quantifiable terms, the formula is…

(I) ↑ (CPI) ↑ (H&F) ↑(HPP) ↑ (EG) ↑ (FI) ↑ (PPR) ↑ (C) ↑ = ↓ (PP) ↓ (RW) = Financial Disaster

Lower Purchasing Power + Lower Real Wages = Financial Disaster

In reality, even though I made up this formula, this model to one extent or another has been copied and utilized across the globe by many sovereign nations and states and can also be seen in NYC which is playing out today as seen in 6 above. Regardless of what the government officially calls itself (authoritative, socialist, communist, quasi-capitalist), allowing unnatural government interference to the detriment of all society ends badly, and as has been stated, “socialism ends when you run out of other people’s money to steal” .

We are at the end, where the compound interest on top of the compounded fraudulent debt cannot be paid down or off. The math is the math, and no government can outrun the Rule of 72, or reverse amortization which is what they have created meaning they allowed the compound cumulative effect of interest on top of fraudulent principal, printing of money not backed by assets and at a local level, printing money using you and your property as their collateral against their crimes. On a local level, if you pay school district taxes, you are the equivalent of the Federal Reserve’s actual printing press which also suffers the exact same fatal flaw in that the Median Household Income does not exist to pay higher income taxes or higher property taxes.

This is what the Federal Reserve has done. See Chain the Doors of The Federal Reserve and Credit Analysis and Systemic Moral Hazard .

One quick question

Where exactly is the money going to come from to pay off or pay down roughly $5.1 Trillion in outstanding school district bond fraud across the U.S., given that on average, 8.6% of a household (owners and renters) effective gross income (EGI) is paid toward property taxes?

Why socialism Fails and Why Printing Money Only Makes the Situation Worse

“When everybody owns something, nobody owns it, and nobody has a direct interest in maintaining or improving its condition. That is why buildings in the Soviet Union—like public housing in the United States—look decrepit within a year or two of their construction, why machines in government factories break down and are continuously in need of repair.”
— Milton Friedman

socialism promises fairness, equality, and moral virtues, but behind the fraud lies the ruth which is bad leaders (snake oil salesmen demonstrating symptoms of Munchausen’s Syndrome) and socialism’s fraudulent theory which the antithesis of human nature and basic arithmetic.

People want fairness and dignity. However, the system’s logic (socialist theory) undermines itself, when everyone receives the same reward regardless of their individual contributions, the incentive to work ceases, and both money and people will go where they are treated best, which is the great equalizer. For what other purpose would Zuckerberg be leaving California and moving to Florida?

“People don’t stop working out of laziness; they stop because their effort no longer is appreciated or matters. Once outcomes are guaranteed (which they never are because there are two sides to a general ledger), energy shifts from production to entitlement.”

Competition and personal ownership are the engines of progress and socialism destroys competition by removing incentive and creates inflation. Inflation is caused by money printing, not backed with hard assets, then requiring the creation of and transference of liabilities onto the Citizens at both the State and Federal level in order to sustain the fraudulent promises which ends up destroying purchasing power, savings, and free speech simultaneously.

Justice

The desire for justice never dies. See Motion for Re-Hearing filed in SCOTX November 24, 2025. As you can see within these few pages, the case at the Supreme Court of Texas is so much larger and important, not just to Texas, but across the U.S. and any Country or State that chooses to hide behind sovereign immunity and ignore Ultra Vires while simultaneously creating bond debt which has no hope of ever being paid off. The idiot socialists on both sides of the isle created their own circular argument of financial disaster. Add more fraudulent debt on top of compound cumulative interest, lie to the public, demand more of the public’s assets until there are no assets left to steal, and the system implodes upon the fraud, or worse there is a societal collapse. Justice must be served, to restore public TRUST . There is that persnickety little word again!

What is the ECP?

To understand the ECP, it is first necessary to outline the underlying concept. The Economic Calculation Problem (ECP) argues that socialism struggles to allocate resources efficiently without market prices, which are essential for determining supply and demand. This issue highlights the difficulties of central planning in a socialist economy, as it lacks the necessary information to make rational economic decisions. Economic calculation refers to the ability of businesses and entrepreneurs in a market to use available prices to predict or calculate the net profitability of economic projects by calculating expected profit and loss. The goal of a business or entrepreneur is to turn a profit. Entrepreneurs are the driving forces of change in an economy, as they constantly innovate in a myriad of ways both large and small to create a cohesive offering that the consumer will utilize and or purchase. Their expected profit is what determines which resources they use up. Higher expected profits mean they expect to generate more value for consumers, and can thus afford to buy more expensive, in-demand, and scarce resources. Lower expected profits mean lower expected value generation, resulting in a constrained ability to use up valuable resources. While entrepreneurs can be mistaken, their correct guesses facilitate a process which drives economic progress, and the price system indirectly allocates resources to where they are expected to produce the most value. socialism is the renunciation of a rational economy and government interference in private enterprise has proven to be completely misguided and expensive. Zerohedge had an interesting article on government interference / government subsidies https://www.zerohedge.com/personal-finance/when-government-subsidies-stopped-doritos-got-15-cheaper which is right to the point of ECP.

Conclusion

Capitalism will continue to outperform socialism in all cases as it has throughout history. As Mises wrote in his magnum opus Human Action , “Socialism is an alternative to capitalism as potassium cyanide is an alternative to water.”

socialism fails because it struggles with the Economic Calculation Problem (ECP), which means that without market prices and private property, it cannot efficiently allocate resources or determine the value of goods and services. This leads to inefficiencies, shortages, and waste, as central planners lack the necessary information to make rational economic decisions. socialism was the creation of a drunk and a fraudster and raises its ugly head only to leave a trail of destruction behind it. socialism creates cultural decay. See the article, Cultural Decay .

But wait! There is more.

Supercomputers

Over the years of being a permanent student of the markets, watching billions of dollars being spent on attempts to game the market with black box financial equations, I have realized that socialism and the markets for that matter cannot be solved by supercomputers. This is impossible at the metaphysical level because to simulate a market may actually change that same market, and may affect other markets due to correlation, including cross hedging, and thus rendering the simulation useless. It's an infinite recursion problem that makes markets inherently unpredictable, and this recursion issue appears in all systems where predictions about a system have some degree of influence on that system. I had this conversation earlier today about a waterfall event of profits occurring on a multi-tier financial limited partnership where a possible investor asked for a hypothetical scenario with what could be dozens of inputs all of which are made meaningless by what could be included and what could be excluded, rendering the entire hypothesis meaningless. This is why back testing options is not the most productive time spent because the output ignores what a human or group of humans may have done at that time or at multiple times throughout the options holding period. One of the inputs that can’t be measured is that of human psychology…being who had the weak hand and who was shaken out first.

The role of government includes enforcing laws and providing public safety. Anything else eventually leads to Institutionalized Systemic Moral Hazard due to lack of accountability, such as where the compound interest on the fraudulent debt (school district bonds and U.S. Treasuries) cannot be paid, never mind the paying off the fraudulent principal. Societies have collapsed throughout history, where the debt is so great, the purchasing power disintegrated.

See…

We Live in the World of Fraud and Fraudsters – How to Protect Yourself ,

The Importance of the Vexler Case to Texas and the U.S. ,

& the Amicus Brief .

Cultural Decay

Wed, 18 Feb 2026 15:00:18 GMT

Cultural Decay

By Mitchell Vexler, February 18, 2026

As an offshoot of our main focus being property tax fraud and school district bond fraud, and in addition to the Articles I wrote on socialist behavior ( links below ), a pattern of Cultural Decay in both corporations and people has emerged which is the fallout of socialism.

One would not think that the iconic Harley Davidson, the Conroe Hyatt Convention Hotel, voter fraud, covid, school district bond fraud and property tax fraud, personal morals could not be more distinct from each other, yet upon close examination, each suffers from a major common trait.

Harley

Harley-Davidson is facing significant financial challenges:

They have a 60% drop in motorcycle revenue and a 53% decrease in motorcycle sales compared to the previous year (revenue down, cost of operations up = hemorrhaging money).
Management and board have been clueless for the last 10 years. Now there is a golf entertainment executive as CEO.
Management claims economic instability, high interest rates, and tariffs are the problems.
Live Wire Motorcycle sold 33 units in 1 quarter and lost $75 million in the process.
The closure of multiple dealerships has led to operational losses totaling over $214 million. The dealerships fail because the head of the corporation failed.
Demographic shifts are not being recognized.
They have zero understanding of the customer base and failed to target an affordable bike to that base.
DEI – the mantra of socialists: There have been years of customer abuse at the hands of the entirety of the board and executive suite. It is not enough that the DEI program was allegedly terminated. Every participant, right down to the advertising company must be fired and an entirely new operation team assembled that can quantify all the above and take decisive action before it is too late. I used the word allegedly because Live Wire was a reaction to idiot virtue signaling and failed for all the reasons above stated. When you are in a hole stop digging.
Not only are U.S. sales down, but so are global sales. Competitors like Triumph, MV Agusta, and Royal Enfield are performing much better, which clearly points to 2 main issues that being cost of production (including debt & bloated corporate suite salaries) and market strategy, which in this circumstance, neither are being controlled. Harley is rudderless and aiming straight for the rocks.

Rudderless and aiming straight for the rocks is the constant in this Article as a ramification of Cultural Decay.

The Conroe Texas Hyatt Convention Center

Is the City of Conroe going to file or be forced into bankruptcy because of fraud committed on property taxpayers?

See article, Municipal Bankruptcy .

A short list of the issues, which pattern matches that of Harley. Hmmm!

With regard to the Hyatt Regency Conroe Hotel and Convention Center, there is no profit after debt service and debt service cannot be completed given the current structure, ownership, operator and debt load. The project is bankrupt.
One of the most ill-conceived real estate projects I have ever seen, and I have studied thousands of business models.
The Conroe Hyatt Regency (a conceived 4 Star Full-Service Hotel) was expected to generate an estimated revenue of $14.7 million in 2025, with operational costs around $12.6 million, indicating a potential net income of approximately $2.1 million (less than a 2 star select service hotel).
The restaurant is losing money.
The convention space is losing money, and the hotel is losing money.
What led to this fraud induced nightmare since 2019? The answer is Cultural Decay: kickbacks, payoffs, financial chicanery, PPP, fraudulent reports, using money from reserve accounts to pay off interest on debt with zero hope of recovery, etc.
Given the video of the dysfunctional city council violating the Civil Rights USC 1863 of the Citizens of Conroe as seen here, https://www.youtube.com/watch?v=NZEdUNtTgnY , Conroe is rudderless and aiming straight for the rocks of imminent bankruptcy and this is directly correlated to Cultural Decay.

Voter Fraud

In the immediate future we will see the results from the seizure of the Fulton County, Georgia’s 2020 voting records that took place via an FBI warrant, in January 2026. The socialist party of “amerika” has been preaching and screeching that voter fraud claims are baseless and debunked, yet somehow, we the taxpayers all ended up paying roughly $1 Trillion, being $64,000 per illegal immigrant per year, and now are stuck paying the compound cumulative interest on that fraudulent debt created at the hands of socialists.

Unlimited mail-in balloting which is organized “ballot harvesting,” counting ballots for weeks after election day, voting machines connected to the internet, ignoring chain-of-custody requirements, bias of the operators, civil rights violations, all prove the intent to defraud.

In an attempt to further cover up the fraud, now we are having to listen to the press and socialists wanting to prohibit voter I.D.

What was once considered reasonable Democrats no longer exists because they have been drowned out by the preaching and screeching of the socialists which is the evidence of Cultural Decay.

Why? To control the source of money which means to control you while simultaneously putting your money in their personal pockets and this is directly correlated to Cultural Decay.

School District Bond Fraud and Property Tax Fraud.

The documents linked above, along with over 1,000 evidentiary items (documents, audio, video, depositions) and the website of www.mockingbirdproperties.com/dcad , would not exist but for Property Tax Fraud and School District Bond Fraud, not just in Texas but across the United States.

Personal Morals

This story came about on February 12 ^th 2026 because a wannabe politician chose to use my name to further his pursuit of office and that shows a failing of his personal morals as his statement in writing and on social media was a lie to which I had no choice but to respond as follows:

“In response to Mr. Chambers’ defamation against a private citizen, I offer the email below, wherein based on Mr. Chambers’ ill-conceived recent outburst, he just proved my point. “He proved the financial problems of his intended constituents (all Texans) are not important to him”. He proved the financial crimes committed against the property owners which affect all Texans mean nothing to him.

Further as far as I know, I and those who have helped me, have done more to expose the school district bond fraud and central appraisal district fraud than every politician in the State of Texas combined.

The evidence of the numbers, that Mr. Chambers claims do not exist, proves that he never looked at the insurmountable evidence on the website ( www.mockingbirdproperties.com/dcad ), including the evidence has been presented to multiple Courts, and currently sits at the Supreme Court of Texas along with the FBI, DOJ, SEC, and Texas Rangers.

Travis Spencer has been very gracious to allow what I have learned and continue to learn on his platform to help expose the issues to all Texans and further, across the U.S., as the fraud is replicated via ignoring both State and Federal laws at both the school districts and central appraisal districts. Under law, people who have been defrauded are entitled to a return of that money, as well as prosecute for the crimes. How exactly are the property owners going to get their money back, when Mr. Chambers knows nothing about the issue and cares nothing about those who are losing their homes to tax lien foreclosure.

Unlike Mr. Chambers, I have received no money for my efforts, I am not running for office, and my sole desire is to help right a sinking ship due to mass fraud.

One does not command respect. One earns it! Mr. Chambers had the chance and failed on multiple fronts.

It bothers me that I have to put forth this statement given that Mr. Chambers served his country, which deserves honor, respect and a massive thank you. However, co-opting his service with an inability to answer questions on property taxes and articulate a clear answer while simultaneously trying to hijack my name, and ignoring the evidence on www.mockingbirdproperties.com/dcad , for the purpose promoting himself as a person who has the answers is not acceptable. Taking money in the form of political donations from Mom and Pop that can’t afford to make ends meet for a campaign built on false hope is not acceptable.

I trust I will never hear from Mr. Chambers again and this issue is now a matter of record which would not have been necessary, had Mr. Chambers shown integrity.

Secession?

In the context of the United States, secession primarily refers to the voluntary withdrawal of one or more states from the Union that constitutes the United States; but may loosely refer to leaving a state or territory to form a separate territory or new state, or to the severing of an area from a city or county within a state. This can occur due to various political changes, such as decolonization, dissolution, secession, or unification.

In today’s world where fraud is rampant, the black letter of the law ignored, debt which cannot be paid off, all coalescing to result in the intentional shredding of social fabric creating cultural decay from which there may be no alternative but secession. One would hope not.

However, one can also not deny the evidence being markets, precious metals, the day-to-day expenses of life that can’t be paid for, or simply the issues above listed.

Rollback the fraud and save the United State of America. Repeal all property tax in favor of the Uniform States Sales Tax such that no property is taxed violating the 16 ^th amendment which prohibits taxation on unrealized gains. “Market value” is taxation of an unrealized gain and violates the 16 ^th Amendment.

As I have stated in writing and on video many times, either the law exists or it doesn’t. This is the ultimate statement of fact.

No Constitutional entity can allow fraud to escape.

The most important question for opposing counsel representing the CAD, its employees and counsel itself as an officer of the court is this: If you don’t’ intend to allow the resolution and discovery by every Texan with regard to the property tax fraud and related school district bond fraud being committed upon them, why is that?

This question is applicable across the U.S. in all appraisal districts claiming to adhere to USPAP where the evidence proves the opposite.

No government (State or Federal) in the history of the planet can outrun the Rule of 72.

No government (State or Federal) can outrun the reverse amortization that they created.

The Thread of Inconsequential Actions

LINKS:

The Intended Manipulation of Noise, aka socialism, & You Are Paying for It

The Traitor Within – The Root Cause – Thomas Paine – Gold’s Resurgence

The Psychology of socialism

socialism is a Noun. A synonym for socialism is theft, Last Rat Standing

We Live in the World of Fraud and Fraudsters – How to Protect Yourself

Crisis of Confidence

www.mockingbirdproperties.com/dcad

www.realestatemindset.org

4.2 Million Property Tax Defaults

Tue, 17 Feb 2026 17:25:31 GMT

4.2 Million Property Tax Defaults

By Mitchell Vexler, February 17, 2026

Real Estate Mindset’s Travis Spencer released a video on February 14, 2026, titled, FIGHT TO END PROPERTY TAX – Rally to City Council. Here’s a link to it. As part of this video, Travis discusses that there are currently 4.2 million property tax defaults.

Statement: This video at Conroe city council lays bare the treatment of business that I have seen throughout my career all the way back to Windsor Ontario Canada and have witnessed in almost every City I have developed a project. This Conroe video is not just specific to Conroe. There is a very high probability that the Institutionalized Systemic Moral Hazard that infects Conroe is also in your community and why every taxpayer needs to get involved and shine the light on their local fraud before it is too late and your community ends up vacant and derelict. See the article, Municipal Bankruptcy .

History: There is a Pattern and Practice of socialist behavior by intentionally creating winners and losers based on politicians personal bias, animus, and ignorance, including but not limited to extortion, fraud, RICO, violation of Civil Rights USC 1863 (see the City of Conroe meeting video link above), embezzlement, and knowingly creating and accepting false reports. Tampering with Government documents is illegal under various laws, including 18 U.S.C. § 641, which prohibits the theft or alteration of government property, and 18 U.S.C. § 1519, which addresses the destruction or falsification of records in federal investigations.

The Texas Penal Code § 37.10 defines a person committing the offense of Tampering with Governmental Records as follows:

knowingly makes a false entry in, or false alteration of, a governmental record;
makes, presents, or uses any record, document, or thing with knowledge of its falsity and with intent that it be taken as a genuine governmental record;
intentionally destroys, conceals, removes, or otherwise impairs the verity, legibility, or availability of a governmental record;
makes, presents, or uses a governmental record with knowledge of its falsity;

Also see Property Tax Appraisal & Law Violations identified , Partial List of Violations Reviewed .

Property Tax Dollars have been used to support school district bonds which is the weapon against all Citizens. These same corrupt bonds are not used to enhance communities or business but end up destroying those businesses and individuals from within the corrupt system. The system allows overvaluation and over taxation from which corrupt city councils, like Conroe, take your money and move it around the board, including into their personal pockets, under the color of law, only to end up destroying the very businesses and people that originally created the wealth for the benefit of society. The end result is the simultaneous destruction of both the fabric of that community and the businesses that drive that community.

Community Involvement : Your involvement is no longer an option; it’s a requirement. Roughly 42,000,000 households across the U.S. are in harm’s way of bankruptcy and or will lose the roof over their head due to the property tax fraud and school district bond fraud. The unity among thieves, where they protect each other, further expanding the fraud, must be replaced with unity among the citizens wherein only a watchful eye can prohibit the thievery we are all witnessing. The best grass roots efforts are those assembled locally with very little money, if any, wherein the goal is outlined in writing with clarity and consistency of voice.

Look at the charts in the Amicus Brief .

The Importance of the Vexler case to Texas and the United States shows exactly how under color of law the system has morphed, by intent, over many years to prohibit adjudication of the black letter of the law, putting all Citizens in harms way of socialist policies.

To understand the depravity of socialists who create socialism (yes there are socialists on both sides of the isle) which is the antithesis of the Republic of the United State of America, please read:

It is your money and your future. Leaving decisions up to criminals who sit on city councils, school district boards, CAD boards, and their corrupt employees, who refuse to adhere to the black letter of the law and who believe, without evidence, that they are smarter than their constituents, is not under any circumstance in your best interest or the best interest of your family. The school district bond debt cannot be paid off, and the compound-cumulative interest on that debt has, according to the criminals, been transferred to you!

Why Silver

Mon, 16 Feb 2026 00:06:10 GMT

Why Silver?

By Mitchell Vexler, February 16, 2026

In addition to:

1. Got Metals

2. Your Money (METALS)… Your Future… Neither a borrower, nor a lender be

3. The Federal Reserve is a Failure - Thesis & Fact Part 2

4. Precious Metal Manipulation, Market Manipulation, Your Manipulation

5. Either the law exists or it doesn’t. We are about to find out .

and

6. Metals Moment - Analysis & What Do You Really Own

I now add:

1. Government for the sake of government is the definition of tyranny. Billionaires are now being taxed out of California, including Zuckerberg (socialist) heading to Florida.

2. Hedge against inflation.

3. Hedge against economic uncertainty.

4. Considered a safe-haven asset.

5. Significant industrial demand, particularly in technology and renewable energy sectors, may drive its value higher over time.

6. Physical demand is outpacing production.

7. Basel III

Risk Weighting : Silver is subject to an 85% Net Stable Funding Ratio (NSFR) requirement, which complicates its use as a capital asset for banks.

Market Dynamics : The lack of special provisions for silver, combined with its high paper-to-physical leverage ratio of 300:1, creates unique market pressures. This could lead to significant price volatility as banks unwind their paper positions.

Comparison with Gold:

8. Silver is not currently classified as a Tier 1 capital asset like gold as it is treated similarly to base commodities under Basel III regulations, which imposes stricter funding requirements on banks holding silver. This lack of special provisions for silver contrasts with gold's status, which allows it to be treated as a highly stable asset. However, given all the issues outlined above, there is a high probability that silver will outperform gold on a rate of return basis.

9. Increased volatility swings allows for better risk reward entry levels and ability to scale in.

10. Affordable.

11. Transportable.

12. If your silver holdings are large enough you can borrow against it.

13. You could diversify with 60% gold, 30% silver and 20% platinum.

14. The ultimate form of savings, outside of a very fragile banking system.

15. Silver is widely used in various industries due to its excellent electrical and thermal conductivity, reflectivity, and antimicrobial properties. Key applications include electronics (printed circuit boards and switches), solar energy (photovoltaic cells), medical devices, and water purification systems.

16. Industrial applications consumed 680 million ounces of silver in 2024, representing 59% of total global demand .

17. Warren Buffett made significant investments in silver, notably acquiring over 129 million ounces in the late 1990s, which he viewed as undervalued due to its industrial demand and limited supply. He prefers silver over gold because of its practical uses in various industries, aligning with his value investing principles. His regret is that he sold too early.

18. Don’t sell and you don’t have to worry about exit premiums.

19. You can shop for best premiums above spot with legitimate broker dealers.

20. Stocks and bonds generate income that can help offset inflation, but they carry contractual risks. Bonds have a high probability of default (aka School District bonds), and corporate bonds (High Yield Junk Bonds) can fail bringing their underlying stocks down with them. I would make the argument that printing money to cover interest on the fraudulent principal of the bonds is itself a default by the U.S. Treasury that prints the money (counterfeiting not backed by assets) at the behest of the Federal Reserve.

21. Silver does not have 3 ^rd party counter risk . It is a physical asset that does not depend on anyone else’s promises. But, unlike stocks or bonds, silver doesn’t produce income (unless you lease it out but that comes with other risk), so returns depend entirely on price appreciation which given what could be devaluation (debasement and or inflation) of the U.S. dollar and related assets, metals seem like an appropriate investment, under your direct ownership.

22. Cash has its own tradeoff. Cash should be available outside of the bank for emergency use. It offers immediate access but loses value to inflation over time. Silver maintains its spending power better, though it requires more effort to convert back to cash if and when needed.

23. President Trump designated silver as a critical mineral in November 2025, as part of the U.S. Critical Minerals List. This designation highlights silver's importance to the U.S. economy and national security. Isn’t it interesting that China produces 70% of the worlds electronics and now it has prohibitions of silver leaving the country. President Trump intends to bring the manufacturing back into the U.S.

24. Silver Price Crashes 3rd Hardest in 6 Years

Silver price crashed 10% Thursday, February 12, 2026 in its third-worst decline since 2020, losing $9 per ounce in a single session.

Price trades at $78 Friday, testing $80 resistance, while $70 support and $55 major support remain intact.

25. As I stated on video showing my chart, there is a support zone forming around the $70 level, defined by local lows from late December. Even if this level breaks, the next significant support zone appears around $55.

26. Could this be more manipulation? To a certain extent…probably.

The press needs a story: Fed policy, profit-taking after extreme rally being a 65% surge in January 2026 following a 150% gain in 2025; cross-asset correlation wherein silver dropped alongside tech stocks and crypto; liquidity concerns or margin requirements and or whatever the flavor of the day is being this bank said this and that bank said that all of which is just white noise.

27. What is next? I don’t know. What I do know is given the above and knowing that white noise exists to manipulate, investing for the long haul and not speculating (short term futures and options) in physical silver may be the appropriate course of action.

28. The COMEX is currently facing a significant imbalance between open interest and registered silver inventories , with about 400 million ounces of open interest against only 100 million ounces of registered silver. However, it is unlikely to run out of physical silver imminently, as deliveries often involve transfers of ownership rather than actual movement of metal from the vaults.

This significant discrepancy raises concerns about the ability to meet delivery obligations.

The upcoming March contracts are particularly critical. If a substantial percentage of contract holders demand physical delivery, the COMEX may struggle to fulfill these requests due to limited inventory.

29. Demands for cash by the big banks = 2008 type crash warning wherein the Fed is pumping tens of billions into the too big to fail banks. $80 billion + per bank roughly. JPM sold 500,000 tons of silver it does not own. The price tripled, creating a short squeeze and need for cash from which the Federal reserve, the corporate socialist printed money and moved the liability to the taxpayers. The stock market may fall by 30-50%, which decreases output which means that the debt continues to compound as does the liability on the back of the taxpayers which today cannot pay off the interest on the debt, never mind the debt, thus the setup for a massive liquidity crises which is why the Fed is pumping money now. However it won’t work because the calculations are void of the fact that the Median Household Income does not exist to pay for their financial crimes.

30. Countries are acquiring gold. See graphic prepared by Visual Capitalists.

31. The prospect of European (the UK, for example) civil war increases daily.

32. U.S. treasuries are not favored by foreign countries for a variety of reasons such as the seizure of Russian Assets. If the U.S. can seize assets and the U.S. can seize oil (Venezuela) then what else can it seize and for what reason? There is no doubt that the foreign policy of the U.S. was non-existent and that allowed the growth of China to perhaps jump the U.S. and that could be part of the plan to balance the nations. However, it does not change the lack of trust issue on both sides of nation builders.

33. U.S. is not building mines in the U.S. or Mexico, so one should question what is this Greenland play about? Is it a natural resource play? Canada would be an easier play for natural resources. Is it a way to prohibit shipping? The problem is that the bureaucratic reasons for the action are very seldom the true reasons, i.e. “This is for the kids” excuse for the $5.1 Trillion in school district bond fraud.

34. Copper is in a bull market.

35. Silver as a Geopolitical hedge.

36. Is there an Energy bull market in U.S.? TBD. Is there an Energy bull market in Asia? Yes. What can people truly afford to pay for? Compound Cumulative Interest on Fraudulent Debt cannot be paid for by property owners and income tax payers.

Due Consideration

Do you believe that your IRA, 401K, RRSP, are safe from government seizure or government peeling away the intended purpose? Do you believe that your retirement vehicle is hedged against inflation? Does inflation eat away at your retirement nest egg?

The Thread of Inconsequential Actions

Thu, 12 Feb 2026 21:01:05 GMT

The Thread of Inconsequential Actions

By Mitchell Vexler, February 12, 2026

Here is an email I sent on February 11, 2026 to an advocate, Scott in Kansas, in response to the Kansas Bill to Eliminate property Taxes:

Kansas lawmakers are considering a bill that aims to eliminate property taxes by the end of next year, replacing them with a retail sales surcharge. However, there are “concerns” regarding the implications of such a significant change in tax policy. The “concerns” are the lack of evidence and people making decisions based on emotion and not fact.

Kansas Bill to Eliminate Property Tax

Overview of the Proposed Legislation

Key Features of the Bill

1.) Elimination of Property Taxes : The bill seeks to completely remove property taxes.
2.) Introduction of Sales Surcharge : A new retail sales surcharge would be implemented to generate revenue.
1 & 2 are good and necessary, per the evidence at www.mockingbirdproperties.com/dcad where the same math is applicable in Kansas.

Concerns and Considerations

Impact on Local Governments : There are concerns about how local governments will be funded without property tax revenue. This “concern” is nonsense and is nothing more than trying to push the problem down the road and ignores the simple fact that the school district bonds cannot be paid for on the backs of the property owners. There is a high probability, that any school that has raised bonds utilizing fraudulent real estate valuations, is in itself bankrupt. Ignoring reality is the true concern.
Legislative Momentum : The bill has faced challenges and is not guaranteed to pass, as it is still under discussion among lawmakers. Again, ignoring reality is the true concern.
This is why every property owner and citizen must advocate for the repeal of all property taxes in favor of the Uniform States Sales Tax . See Bill to repeal real estate tax in favor of Uniform States Sales Tax . Nothing else will work and delay only puts more property owners in harm’s way of bankruptcy and or losing the roof over their head (38% of the household population).

Related Legislative Actions

In addition to the property tax elimination bill, other related measures are being discussed, including:

Limiting Property Tax Increases : A separate bill proposes to limit property tax increases to 3% at the county level unless approved by voters. This is more of the exact same kick the can down the road, ignore reality which may very well lead to civil unrest. These people that promote this garbage ignore the fraud that has occurred and want to perpetuate the fraud of overvaluation another 3% per year in an attempt to keep up the payments on the interest of the fraudulent bonds. They will either continue to fraudulently increase the property values or fraudulently change the tax (mill) rate. Either way their financial sins have been in their mind transferred to the property owners without recourse and that is not legal .
Property Tax Relief Fund : Another proposal aims to establish a property tax relief fund to assist counties that adhere to certain tax increase limits and this is more nonsense.

This is reality, applicable across the U.S., The Importance of the Vexler Case to Texas and the U.S.

Reality is the financial crimes committed against the Citizens of Kansas and across the U.S.

The evidence of what effects Kansas can be seen in this Amicus Brief .

The math and issues are applicable across the U.S., not just in Texas.

Best Regards.

[end of email]

The above email is extremely similar to another that was sent a few days ago, and I realized that I had communicated with several people where the exact same Thread of Inconsequential Actions is playing out across the U.S.

Here is a link to an the Article that I wrote in November 2025, with regard to the Legacy of Governor Abbott: The Legacy of Governor Abbott – Governor Abbott’s Empowering Texas Taxpayers is the Embodiment of Institutionalized Systemic Moral Hazard.

So now we have multiple governors and multiple politicians making noise, but in truth, what we have is noise with the intent of manipulating you and you are paying for it. See The Intended Manipulation of Noise, aka socialism, & You Are Paying for It .

As Property Owners, Citizens and advocates for your future and your family’s future, we must not succumb to the intended manipulation so that we don’t unknowingly participate in their fraud.

The way not to participate in their fraud on society is by quantifying reality and make every politician sign a clear concise short Contract. A Contract is how society has clarity on those in trusted positions. A Contract provides the guideposts for the legal system and both those in positions of trust and the legal system must be held accountable and not allowed to shift the blame around the map or participants.

Martin Gedes recently stated, “The core function of a court is not punishment or dispute resolution, but authoritative attribution — under conditions of procedural constraint.”

I have written about this and absolutely agree that the courts are to determine who authored what and what is to be done. In other words, what is the chain of command.

“ The courts determine:

attribution of acts to persons
attribution of intent to acts
attribution of liability to conduct
attribution of authority to officials
attribution of meaning to texts
attribution of jurisdiction to institutions
attribution of finality to disputes

A court takes a messy, contested reality and declares: this happened; this counts; this person is responsible; this rule applies; this institution had power; this outcome stands. In plain English: courts exist to decide who is responsible for what, and to make that decision stick.

That is an attribution engine. Everything else operates in support of that purpose.

Before a court can punish, compensate, or restrain, it must first attribute. Without attribution, there can be no lawful consequence.

And courts only function if their attributions are accepted as legitimate.

When attribution becomes sloppy, fictional, or unaccountable — ghost courts, unsigned process, retroactive jurisdiction — legitimacy collapses. Service rules, signatures, court constitution, standing, evidence rules: these are all controls designed to prevent false or coerced attribution.”

There are perceived “institutions” that push forth on to the public propaganda designed to bend the ear of courts which have severe consequences. Those “institutions and or lobbying groups” include media, academia, school districts, central appraisal districts, and bureaucracy all of which have a common thread. The common thread is the property taxpayer at the State level and the income taxpayer at the Federal level, when a portion of Federal dollars are re-deployed back to the State to fund any portion of the “institutions or lobbying groups”.

The courts job is to see through propaganda and rhetoric, in order to prohibit chaos, and enforce the black letter of the law.

Injustice arises from lack of due process, absence of jurisdiction, failure to consider evidence, misapplication of case law, attributing acts without proof, attributing authority without legal basis, attributing consent, where none existed, and unreasonable deliberation, all of which I have written about as can be seen:

Mr. Gedes went on to state:

“In other words, injustice often arises not from the absence of law, but from responsibility being assigned where it does not properly belong — or withheld where it should. This is no accident”.

Narrative warfare — manipulation, deception, misdirection — targets attribution layers. Smears, presumptions, silence, procedural fog: all are techniques for forcing attribution without evidence, and normalizing it before it can be challenged.”

This description by Mr. Gedes is the perfect description of the great con that we started to uncover at Denton Central Appraisal District in 2016, where evidence has grown across Texas and the U.S. We have documented every step of the process, as can be seen at www.mockingbirdproperties.com/dcad .

On January 30 ^th , 2026, the Supreme Court of Texas (SCOTX) requested a response from opposing counsel representing DCAD (Denton CAD). MAVEX will be responding to the response from opposing counsel. We expect that opposing counsel will put forth the same nonsense to prohibit adjudication of the fraud begin perpetrated against every real estate owner and every citizen in Denton County.

Perhaps the SCOTX now sees the Constitutional Issue brought forth which outlines:

There is no redress in the case of fraud committed against a property (residential, land or commercial) and its owner, by a taxing authority created under the appraisal review statute to show how the fraud has been created and manipulated to obtain resolution.
Appraisal process disallows investigation of fraud in the process which negates the very existence of Uniform Standards of Professional Appraisal Practice.
The statue, as unilaterally interpreted and exercised, prevents the discovery of fraud.
There is no due process, as unilaterally interpreted and exercised, of structured review.
Constitutional Question: Can the Legislature or lower courts constitutionally bar judicial review of systemic fraud claims by confining them to an administrative scheme that lacks discovery, subpoena power, or fraud-adjudication authority?
Why Should the Supreme Court of Texas Care: This is a classic “open courts” problem—if ARBs are the exclusive forum and the Chief Appraiser is allowed to commit fraud wherein Ultra Vires is not enforceable (as claimed by opposing counsel), then property owners have no meaningful remedy for fraud. That is exactly the type of constitutional anomaly the Supreme Court of Texas exists to resolve.

As I have stated in writing and on video many times, either the law exists or it doesn’t. This is the ultimate statement of fact.

No Constitutional entity can allow fraud to escape.

The most important question for opposing counsel representing the CAD, its employees and counsel itself as an officer of the court, is this: if you don’t’ intend to allow the resolution and discovery by every Texan with regard to the property tax fraud and related school district bond fraud being committed upon them, why is that ?

This question is applicable across the U.S. in all appraisal districts claiming to adhere to USPAP where the evidence proves the opposite.

No government (State or Federal) in the history of the planet can outrun the Rule of 72.

No government (State or Federal) can outrun the reverse amortization that they created.

As the saying goes, the pen is mightier than the sword and as I stated above, the math of the rule of 72 and amortization is mightier than any system trying to relax the rules so the errant system can continue. In other words, pushing the can down the road, via the thread of inconsequential actions which created unsustainable debt levels, will lead to terminal failure.

Wherein an errant system’s overriding goal is continuity of governance it degrades / manipulates laws to bypass the truth. The errant system itself may have started with good intent but the lessening of the requirements of law and the desire for financial or political gain create the errant system. When the errant system ignores the truth and demands payment from the population, that the population does not have nor did it vote for, chaos may be the result. Thus, my statement, either the law exists, or it does not .

As far as I know, we are the only source that has tied Uniform Standards of Professional Appraisal Practice (USPAP) to the Texas Education Agency, to the Texas Property Tax Code, to the Texas Constitution, to The Constitution of the United States of America, as well as the many bureaucratic entities associated with the CADs, and followed that path all the way into multiple law suits and criminal complaints in an effort to right the sinking ship of fraudulent property overvaluation and over taxation to service the fraudulent school district bonds.

It is not up to the individual to prove the market value of their property. Market value is an unrealized gain, and the 16 ^th Amendment prohibits taxation on an unrealized gain. The history of how this came about can be seen in the article, Thomas Paine – Quotes on Taxes & The Necessity of Taxation . The CADs violate dozens of laws including RICO. “Pay what we tell you to pay, or we will take the house”. The liability of the fraud created by the school districts is placed onto the property owners, many of which are unaware of the depth of the financial problem created by fraudsters.

Most individual property owners are unable and unaware how to defeat the fraud of overvaluation and disprove the valuation because even the Registered Professional Appraisers (RPAs) under Oath, deny their involvement in creating the values. The RPAs commit aggravated perjury and lie to the Appraisal Review Board (ARB) who themselves exist with no authority in law to adjudicate fraud or even have a basic understanding of USPAP. This is well documented including audio.

Conventional challenges by property owners fail because they operate inside the synthetic errant system of intent to defraud outside the purview of legitimate courts, rather than at the source of the fraud which is both the school districts and the CADs as they hide behind sovereign immunity and ignore ultra vires. The lack of accountability itself is the proof of intent to defraud.

Allowing the school districts to raise bonds, was the exact point of creation of the errant system which metastasized with intent to defraud wherein multiple government entities chose to turn a blind eye (The Thread of Inconsequential Actions) to what was mathematically quantifiable and politically visible as the politicians kept modifying laws to placate the public which only exacerbated the growth of the debt.

Under the 16 ^th Amendment to the U.S. Constitution, what we know is a CAD, in support of school district bonds, should not exist and neither should the bureaucracy surrounding the CADs. No CAD in the U.S. has the authority in law to commit fraud (overvaluation and over taxation) and allowing it to do so is further proof of intent.

The evidence we have is irrefutable and insurmountable, including the refusal of the Office of the Attorney General to adhere and comply with the law regarding the 15-page FOIA request. This non-response is a signal. We are asking the Supreme Court of Texas to remand the case to the lower court for adjudication on its merits.

Who can be named, identified, and made to own the act being relied upon by the CAD which defrauds the Citizens?

Where is the authority (person or written), that any Chief Appraiser (CA) or Central Appraisal District (CAD) (i.e. Denton Central Appraisal District (DCAD)) has relied upon, that allows the CA to commit fraud of overvaluation, over-taxation, RICO, and violate dozens of State and Federal laws?

“The system, the court, the policy, the process, the RPAs, we are just doing what we were taught, the report was generated, the automated process, the mass appraisal software, we didn’t know, the State Comptroller required” are not get out of jail free cards and none of which have their claimed authority in law. The alleged protective layers in combination, and separately, are further proof of intent to defraud not just by the system, but by the individual.

We are not activists under any circumstance. What we have done is a detailed audit into multiple bureaucratic entities, each with their own lawful requirements that have been ignored, which have led to the proof of Institutionalized Systemic Moral Hazard by allowing the fraudulent overvaluation and over taxation to the point of bankruptcy of the institutions (school districts) and the property owners.

The genesis of the fraud was the desire for the school districts to raise bond funds. In many cases the school district superintendents should be held liable for accounting fraud and bond fraud while the Chief Appraisers should be held liable for violation of many laws including both State and Federal RICO. See Partial List of Violations Reviewed .

The Thread of Inconsequential Actions is about the system or bureaucracy surrounding itself in an attempt to protect the system, but as detailed above, ends up being self-defeating under the weight of fraud and related fraudulent debt.

The system, whether by error or intent, along with the responsible individuals, both being under the requirements of the black letter of the law, must be held accountable. Without this accountability, chaos will ensue. The purpose of the courts is to prohibit chaos.

Preemption of Opposing Counsel

Wed, 11 Feb 2026 18:41:11 GMT

Preemption of Opposing Counsel

By Mitchell Vexler, February 11, 2026

On January 30, 2026, the Supreme Court of Texas (SCOTX) requested a response from opposing counsel representing DCAD (Denton CAD). MAVEX will be responding to the response from opposing counsel. We expect that opposing counsel will put forth the same nonsense to prohibit adjudication of the fraud being perpetrated against every real estate owner and every citizen in Denton County.

Perhaps the SCOTX now sees the Constitutional Issue brought forth which outlines:

There is no redress in the case of fraud committed against a property (residential, land, or commercial) and its owner, by a taxing authority created under the appraisal review statute to show how the fraud has been created and manipulated to obtain resolution.
Appraisal process disallows investigation of fraud in the process which negates the very existence of Uniform Standards of Professional Appraisal Practice.
The statue, as unilaterally interpreted and exercised, prevents the discovery of fraud.
There is no due process, as unilaterally interpreted and exercised, of structured review.
Constitutional Question: Can the Legislature or lower courts constitutionally bar judicial review of systemic fraud claims by confining them to an administrative scheme that lacks discovery, subpoena power, or fraud-adjudication authority?
Why Should the Supreme Court of Texas Care: This is a classic “open courts” problem—if ARBs are the exclusive forum and the Chief Appraiser is allowed to commit fraud wherein Ultra Vires is not enforceable (as claimed by opposing counsel), then property owners have no meaningful remedy for fraud. That is exactly the type of constitutional anomaly the Supreme Court of Texas exists to resolve.

As I have stated in writing and on video many times, either the law exists or it doesn’t .

No Constitutional Entity can allow fraud to escape.

Here is the most important question for opposing counsel representing the CAD, its employees, and counsel itself, as an officer of the court:

If you don’t’ intend to allow the resolution and discovery by every Texan with regard to the property tax fraud and related school district bond fraud being committed upon them, why is that?

This question is applicable across the U.S. in all counties (all appraisal districts) claiming to adhere to USPAP where the evidence proves the opposite.

No government (State or Federal) in the history of the planet can outrun the Rule of 72.

No government (State or Federal) can outrun the reverse amortization that they created.

Please see:

Amicus Brief filed in SCOTX

The Importance of the Vexler Case to Texas & The United States

Metals Moment - Analysis & What Do You Really Own?

Tue, 10 Feb 2026 17:15:03 GMT

Metals Moment
Analysis & What Do You Really Own?

By Mitchell Vexler, February 10, 2026

Although my focus is on property tax fraud and school district bond fraud, in an effort to help protect against the theft and erosion of property rights, precious metals including gold, silver and platinum, I am continuing to share my thoughts in videos and writings because they are all connected. Several people sent emails to me asking about investing in gold mining companies, perhaps as part of holding some physical metals. There is a much more important topic that occurs as a result of the idea of investing in “precious metals” companies and that is the emphasis of this Article.

To properly analyze a gold company, evaluate its operational efficiency, financial health, and the quality of its assets. Key metrics to consider include the All-in Sustaining Cost (AISC), Net Asset Value (NAV), and production levels, as these will help determine the company's profitability and risk profile.

Key Steps to Analyze a Gold Company

Operational Efficiency

All-in Sustaining Cost (AISC) : This metric includes all costs associated with producing gold, such as mining expenses, administrative costs, and capital expenditures. A lower AISC indicates better profitability and resilience against falling gold prices.

Financial Health

Net Asset Value (NAV) : This represents the total value of a company's assets minus its liabilities. It helps assess the company's worth based on its gold reserves and other assets.
Price to Net Asset Value (P/NAV) : This ratio compares the company's market capitalization to its NAV. A lower P/NAV may indicate that the stock is undervalued.

Production and Growth Potential

Current Production Levels : Evaluate how much gold the company currently produces and its operational efficiency.
Project Pipeline : Investigate future projects, including exploration and development plans. A strong pipeline can indicate long-term growth potential.

Market Conditions

Gold Price Sensitivity : Understand how changes in gold prices affect the company's revenues and profits. Gold mining stocks often have higher volatility compared to physical gold.
Geopolitical Factors : Consider how global events, such as trade tensions or economic instability, may impact gold prices and mining operations.

Risk Assessment

Cost Inflation and Regulatory Changes : Be aware of potential risks that could affect operational costs and compliance with regulations.

By focusing on these areas, potential investors can gain a comprehensive understanding of a gold company's potential and risks. One should not invest in anything if you truly do not understand it and cannot stomach the ups and downs of the investment, which is why learning charts and options is critical to create maximum flexibility with regard to the underlying position.

Companies that one might want to investigate: AU, NEM, B, BHP, RIO, FNV, AEM, MTA.V. plus many others.

Under no circumstances do we make recommendations as we could be wrong. The goal is awareness because of the financial chicanery that has occurred and how to think about protecting one’s wealth.

With regard to the financial chicanery, Jack McPherin of Epoch Times recently wrote an article outlining and questioning who owns the stocks. I borrowed and melded his article into my article, based on my personal experience, to make a very important point.

Most Americans believe that when they “buy” a stock, bond, or exchange-traded fund in a brokerage account, they become the legal owner of that security. The statement shows their name, and the shares appear as belonging to them.

But in the modern U.S. securities system, that intuition is often wrong in the way that matters most: legal title and control. What most investors hold is not a directly owned asset recorded in their name, but a contractual claim—what the law calls a “security entitlement”—against a financial intermediary.

That may sound like semantics until one asks a simple question: in a systemic financial collapse, who is first in line to retrieve those securities? In other words, the difference between owning an asset and holding a claim can determine whether investors’ assets are legally subordinated to other claims, and whether investors recover their assets at all.

The answer depends less on what your account statement says and more on how Wall Street’s plumbing and a little-known uniform state law which governing securities ownership, was built to perform under stress.

The Invisible Owner of Record

For most of the history of securities markets—from English common law through much of the 20 ^th century—investors who bought shares were recognized as their legal owners, often holding certificates in their own name. Trades were slower, more cumbersome, and paper-intensive, but ownership was straightforward. If you bought shares, you were typically the registered owner by default.

That is no longer how most securities ownership works.

The modern system is built around a centralized clearing and custody structure dominated by the Depository Trust Company (DTC), a privately owned institution controlled by the largest U.S. banks and broker-dealers. In broad terms, major brokers and banks “deposit” investors’ securities at the DTC, which holds them in pooled form.

The registered owner reflected on issuer records is typically not the end investor and often not even the brokerage firm the end investor uses. It is DTC’s nominee, Cede & Co.

Here is the practical consequence: when you “own” a stock through a brokerage account, you are generally what is called a “beneficial owner” credited on your broker’s books. The owner of record is upstream, and the securities themselves sit in a centralized system designed to reduce costs and manage institutional risk—rather than to preserve clear, direct ownership for ordinary investors.

If that sounds like a technicality, think of the difference between owning a car and leasing a car. A lease can give you many of the benefits of use, but it is not the same legal relationship to the underlying property. In the same way, a security entitlement can provide financial benefits from an asset while leaving the investor multiple steps removed from legal title and direct control.

This distinction, quietly normalized over decades, has created a fragile kind of “ownership” that many investors do not understand and that policymakers have not adequately confronted.

The modern financial market structures may put investors at serious risk during moments of systemic financial stress.

The Legal Structure That Decides Priority

Wall Street’s indirect holding system might be defensible if it merely replaced paper certificates with electronic records while preserving the investor’s core property rights. But that is not what happened. The deeper shift occurred in the law that governs these relationships being Article 8 of the Uniform Commercial Code (UCC)—which has been amended and adopted by every state legislature in the country. In plain English, UCC Article 8 establishes that the securities credited to customers at a brokerage are generally not supposed to be treated as the brokerage firm’s property. That sounds comforting, until one reaches the key exception clauses in the statute, which clearly states that under certain conditions, a broker’s secured creditor gains priority over the assets of the broker’s customer. This is not a fringe interpretation. It is explicitly stated in the law itself, which has been sharply criticized by leading securities law scholars. If a broker pledges its customers’ securities as collateral and their creditor gains legal “control,” that creditor stands ahead of the customers who bought the securities. Crucially, this applies even if brokers have acted improperly or illegally, as long as collusion with the creditor cannot be proven.

To most people, that should feel backward. If you pay for an asset, you should not lose it because your middleman used it—properly or improperly—to fund its own survival.

But under the modern regime, what many customers have is not a direct, registered ownership interest in a specific, identifiable security. Instead, they have a contractual claim defined by the intermediary system and the priority rules that put banks first during an economic crisis.

‘Customer Protection’ Is Not the Same as Ownership. Defenders of the current structure will point out that there are rules intended to protect customer assets. They are right. There are segregation requirements, reporting requirements, and oversight mechanisms. There is an entire framework that assumes customer property can be kept separate from a failing firm’s creditors.

The problem is that rules are not self-enforcing, especially in a crisis. And history shows that when financial firms face existential pressure, the temptation to treat customer property as a lifeline can become overwhelming.

I witnessed this nonsense first hand in a massive bankruptcy due to embezzlement and saw the amount of money that was lost, even though that money was in a cash account and not even in stocks held by PFG, https://en.wikipedia.org/wiki/Peregrine_Financial_Group .

The collapse of Lehman Brothers further illustrates the danger. In the years leading up to its failure, Lehman routinely violated customer segregation requirements by pledging customer securities to JPMorgan Chase to secure its own borrowing. When Lehman collapsed in 2008, JPMorgan asserted secured claims over those assets, freezing large quantities of customer property inside the bankruptcy estate. Many customers did not receive their assets for nearly five years as secured creditors litigated priority over pledged customer assets.

Lehman was not an isolated case. In 2007, Sentinel Management Group commingled and pledged hundreds of millions of dollars in customer securities as collateral for a revolving credit line, triggering years of litigation over whether a bank’s secured claim could override investor rights. Most customers were not made whole for nearly a decade.

And in 2011, MF Global filed false segregation reports and unlawfully tapped segregated customer accounts to meet margin calls, leaving tens of thousands of customers without access to funds they relied on for routine operations. Even when recoveries eventually occurred, the process took years.

Of course, in every one of these instances, attorneys were paid hundreds of millions to muddy the waters which siphoned off the return of the capital to the innocent.

These episodes differ in detail, but they share a theme: protections that investors assume to be absolute can fail in practice. And when they do, investors can be thrown into prolonged legal uncertainty. Even a “successful” recovery can be devastating when retirement savings, liquidity, or margin collateral are frozen for months or years.

Some readers may point to the Securities Investor Protection Corporation (SIPC) as a safeguard. SIPC does provide limited insurance when a brokerage firm fails. But like the Federal Deposit Insurance Corporation (FDIC) for banks, it was designed to manage isolated insolvencies—not systemic financial crises. Its reserves total less than $5 billion, a minuscule number compared to the tens of trillions of dollars held at major brokerage firms. More importantly, SIPC cannot prevent customer assets from being frozen or subordinated while insolvency proceedings unfold.

The uncomfortable truth is that “customer protection” in an intermediary system is not the same as being the registered owner with clear property rights. It is a set of promises and procedures that depend on compliance, monitoring, solvency, and the willingness of institutions to follow the rules when doing so is more costly than breaking them.

None of this is an argument for widespread panic, nor a claim that every investor is doomed. It is a diagnosis of a real property-rights vulnerability embedded in the architecture of modern finance.

If policymakers want markets that are resilient in the next crisis, they should start by being honest about what most investors actually “own.” Clear disclosure, access to direct ownership for those who want it, and a reexamination of legal priority rules that place intermediaries ahead of customers are not radical demands. They are basic questions of property rights, investor protection, and trust.

Financial systems run on confidence, and confidence cannot rest on assumptions that quietly collapse when stress arrives.

The above described situations are made even worse when the cross collateralization of what are supposed to be independent banks and lenders is taken into account. Then add on top of that the highly leveraged shadow banks. Now add on top of this, the recent Articles I wrote at https://www.mockingbirdproperties.com/dcad#ArticlesLettersDiscussions and the potential for financial devastation due to unseen and seldom discussed financial chicanery is laid bare.

The Very Important Point:

If it is not in your hands, you do not own it! Caveat Emptor…Buyer Beware.

The Intended Manipulation of Noise, aka socialism, & You Are Paying for It

Mon, 09 Feb 2026 16:44:32 GMT

The Intended Manipulation of Noise, aka socialism,

& You Are Paying for It

A CONTRACT FOR AMERICA

How to Fight

By Mitchell Vexler, February 9, 2026

So as not to be repetitive, there are several recent Articles below wherein I have written about how socialism should be codified into the U.S. Constitution as illegal. One would think this would be a simple task, because the U.S. is a Constitutional Republic and socialism is the antithesis of a Republic. The acts that create socialism violate many laws that are already codified into both State and Federal laws.

Specifically having to do with socialism, these are the most recent Articles:

Each Article builds upon the prior articles.

Although there are different types of socialism, they have one common nucleus. That is the theft of your money via fraud, transferred to someone who did not earn that money and wherein the person or entity that does the transferring siphons off a portion of ill-gotten gains either upfront or in the form of kickbacks into their pocket. It is the act of a socialist not to enforce the black letter of the law which further exacerbates the compound cumulative cost of the fraud being committed. Government entities have proven their ability to surround each other and turn a blind eye by pointing the finger and saying it is someone else’s fault, or they claim they don’t have authority to do anything about it, and the reality is they do and chose not to and that makes them a co-conspirator in a criminal conspiracy to defraud. 42 USC Section 1986 – Action for Neglect to Protect.

The main stream press sew propaganda based on emotion and not fact, intended to divide, wherein the noise is that of left vs right. Political center is overwhelmed by the screaming of the extreme left socialists to the point where what was the democratic party is now the socialist party of America. The socialists are wrong because they do not have the money to pay for their crimes and therefore the argument must be re-framed from left vs right to socialism vs capitalism. It is an irrefutable fact that it is capitalism that put a roof over the head of society.

The evidence is now laid bare daily to the fraud of socialism including and not limited to:

Billions stolen in California - including fake hospice care facilities
Minneapolis – Somali theft of taxpayer funds into non-existent day care facilities
U.S. Congress woman socialist Somali – laundering money through a fake winery
Minnesota – Bankrupt
Conroe Texas – Bankrupt
School District advertising for bond referendums partially paid for by General Contractors
School District bond fraud (roughly $5.1 Trillion) – the majority of these bond financed schools are Bankrupt wherein there is a high probability that the Superintendents have committed accounting fraud and bond fraud and are co-conspirators with the Chief Appraiser at the CAD where there is a high probability that the CA violated many laws both State and Federal. See pdf, Partial List of Violations Reviewed.
Federal Reserve – printing money not backed by assets = counterfeiting and transfers that money into the banking system while placing the liability on all taxpayers.
United Nations and all its offshoots – U.S. Tax dollars funding a socialist criminal organization practicing cancel culture, climate extortion, and narrative influence by adversaries.
World Health Organization – U.S. Tax dollars funding a socialist criminal organization which is purely driven by narrative influence.
Press such as NPR which cannot survive without taxpayer funding which was used to promote socialist policies and thus socialism. The socialist press is the enemy within.
The hearing this week, titled “Europe’s Threat to American Speech and Innovation,” examined how regulations like the EU’s Digital Services Act and the UK’s Online Safety Act enable government overreach, forcing platforms to censor content globally and punishing dissenters. Chaired by Rep. Jim Jordan, it highlighted arrests for online speech, including a comedy writer named Graham Linehan whose ordeal is a threat spilling over to US shores.
California’s multi-billion-dollar train to nowhere.
California’s multi-billion-dollar homeless fraud.
U.S. National Debt of which roughly $38 Trillion is due to socialist policies (defined below)
Which leads us to China, who is in the midst of de-dollarizing their holdings
Inflation that has already wiped out 97% of the purchasing power of the USD, $2 trillion in annual deficits that required more printing of money to pay for the interest on the deficit, $200 trillion in unfunded welfare liabilities and societal issues.
etc. etc. etc. etc.

socialist policies - socialism is legalized theft where the criminal socialist writes rules under the color of law (fraudulent property tax and school district bond fraud with no recourse of adjudication of the fraud ) to strip your money via overvaluation and over taxation, utilizing fraudulent reports with no quantifiable analysis, no accountability for their actions, no accountability of the disbursement of stolen funds, and no accountability of the criminals who stole the money.

WE the people, the majority, must be able to define the issue (as stated in the above paragraph), and en-mass via taxpayer advocacy and local involvement help the legitimate non-socialist politicians destroy socialism. It is socialism, or our way of life. It is theft vs morals. It is theft vs debt slavery. The choice is crystal clear. Unlike anytime in the history of the United States, the debt load has built up the interest carry such that even the interest carry cannot be paid for except by printing more money. This is 100% the fault of socialists (regardless of political affiliation as there are socialists on both sides of the isle) and socialism compounding over generations with no serious attempt to stamp it out.

The enemy within is the socialist which creates socialism which debt steals your future. The future is now because the debt cannot be paid off and neither can the compound cumulative interest. There are solutions to regain U.S. fiscal credibility, but it takes credible people to get the job done and the window of opportunity is quickly closing. We have socialist enemies within our border and socialist enemies around the globe. What these socialist enemies of the state fail to realize is that their own policies of the con will end when their theft of other people’s money ends. You don’t need bullets; you just need to understand compound cumulative interest.

It behooves all countries that have amassed debt and interest which cannot be paid off to create a joint simultaneous resolution, thus saving the global economy for all. We don’t have to agree on how others run their country. What we do have to agree upon is that the true enemy that is government debt, and those who wield the sword of that debt being the socialists regardless of what country they are in.

Have you ever noticed that in both Congress and the Senate (as well as at the State level), those with the smallest brain have the biggest mouth. They intend to preach and screech loud enough and convince you that you are wrong, as “we are doing this for the children” all while attempting to justify their existence, stealing your money and simultaneously destroying people’s ability to care for themselves throughout their lifetime. And, if you don’t do what they want, they threaten civil society to disrupt, intimidate and drown out criticism.

Unfortunately, we now have a psychological profile that fits perfectly to many socialists in our government which indicates:

A.) Narcissism being excessive self-focus leading to a distorted view of reality and alienation from others.

B.) Machiavellianism which is a tendency toward manipulation, often prioritizing personal gain over ethics.

C.) Psychopathy being emotional coldness and lack of empathy resulting in ruthless decision-making.

D.) Lack of Analytical Thinking wherein the politician is incapable of analyzing complex information.

E.) Lack of Emotional Intelligence prohibiting the recognition or understanding of others' perspectives.

The lens through which proper governance should be conducted is that of free market capitalism and any other narrative, just like that of the drunk Karl Marx, is a con and all avenues of the con leave the door open for the cancer of socialism to grow upon all of society.

socialism is about control regardless of the self-terminating fact that it ends when it runs out of other people’s money to steal. To this point I have received many emails with questions about stablecoins, central bank digital currencies, and BRICS currency policy. There is a lot of noise, intentional misleading statements and propaganda, which in combination, make understanding what this is about very murky. Although, I have analyzed the math of Bitcoin and appreciate its original intention, in my humble opinion until such time as any of these technological items are backed by hard assets, they are just about power and control through ill-conceived and or non-existent policy. In other words, let’s throw a bunch of coins and ideas on the wall and see what sticks and this is happening across the globe as each large geopolitical nation attempts to overrule the other as to the dominant method. The fight is not about technology. It is about who controls the money. Recognizing this one key fact, brings us right back to the socialists / globalists whose very existence is the intentional failing to adhere to the laws of the Constitutional Republic of the United States of America, and this is what creates socialism. This is also the reason why selling precious metals may not be in the best interest of those who are fortunate to have some tucked away for the future.

It is extremely important to recognize a major failing of the theory of money and its alleged control. Governments across the globe have run up debt which cannot be paid off, and this is what has led us to the current Crises of Confidence. See the article, Crisis of Confidence .

In addition to the current Crises of Confidence and given that the books are cooked on multiple government reports both State and Federal, one should ask, how do we know that the Fed and U.S. Treasury have not printed more money than they claim to have printed? We know that the Obama administration admitted it sent $1.7 Billion in cash to Iran. Where did that money magically appear from? Canada admitted that it sold its last gold reserves in February 2016, making it the only G7 country without any gold in its official reserves. The process of selling off gold began in the 1970s and continued until 2016. Where did that money from the sale go? Where are the transparent receipts? Who got paid to oversee the sale? What transparency? With regard to the U.S. official gold reserves, the last full audit on Fort Knox was in 1953. The U.S. Government is currently running $2 trillion annual deficits, a $38.6 trillion national debt, and allegedly over $200 trillion in unfunded welfare liabilities plus trillions in derivatives that are highly leveraged and responsible for the creation of the school district bond fraud. The point I am getting at is that regardless of the number of questions that spin from these facts, it is about power and it comes down to who controls the money.

The most important question, which cannot be currently answered is given the fact that multiple governments (State and Federal as well as other sovereign nations) over several decades have failed to adhere to the laws of finance being the Rule of 72, and created reverse amortization? What is to prohibit the same flawed illegal thinking by those wanting to control the money for their nefarious purposes under the to be created “universal coinage”? Until this question can be answered, precious metals are the hedge against socialist criminality.

Your active participation in your local community is no longer an option. It is a civil responsibility and as part of that responsibility is insisting upon what your politicians stand for. There are socialists on both sides of the isle who will lie straight to your face, run up the debt, leave office and pass their financial chicanery onto the next unsuspecting or useless fool. This cycle of rinse and repeat is at an end because the debt and compound cumulative interest cannot be paid off. We need serious people to get involved and quickly.

To this point of finding serious people for office and throwing the idiots out, I highly recommend a Contract to be signed by every person running for office in your community. If they won’t sign a contract that is acceptable to the local constituents, they are a socialist and only there to stroke their ego and steal your money. We don’t have time to waste on idiots who can’t define what a woman is (Jackson of SCOTUS) or state comptrollers that don’t understand an amortization schedule (Hegar in Texas). See article The Legacy of Governor Abbott – Governor Abbott’s Empowering Texas Taxpayers is the Embodiment of Institutionalized Systemic Moral Hazard . The world is in trouble because of the failure of those in positions of responsibility to adhere to the black letter of the Constitutional law.

Inside the above linked Article is a Contract for Texas. The Article is about the monumental mistake made by Governor Abbott and the careless disregard for the financial health of Texas. The entire executive branch without exception has failed. At the moment, without the procedural ruling by the Texas Supreme Court and by adjudication on the merits of the lower courts, it appears their intention is to continue to defraud (the very definition of a socialist policy and socialism), until something very unfortunate corrects their course, and the course of history throughout the United States and throughout any county that has failed to adhere to the black letter of the law and the corresponding laws of finance.

All options are on the table with regard to current politicians such as impeachment for violating the State laws. As an example, Governor Abbott (as can any governor across the U.S.) could impeach the State Comptroller or any Tax Assessor Collector who in the case of Denton County knowingly accepted falsified tax rolls. See Equity Stripping, Your Money, Your Future . It is troublesome to think that this may be a requirement, but when the interest is greater than the ability to pay off the debt or the compound interest, what is the alternative? Wait and hope that there is enough intelligence to re-cast the debt? Wait for dozens of cities and states to file bankruptcy, wiping out all bond holders? Put all the school districts that participated in the raise of fraudulent bonds into bankruptcy and wipe out all the bond holders?

The Contract can be modified to suit the requirement of your community. Working with a group of individuals with a common goal is the key to pushing the politicians. Take the story to all the citizens in your community via Facebook. Try and find honest press to help carry the story and advance the demands of the constituent citizens.

Kicking the can down the road is not an option for the politicians or the citizens. These financial crimes must be dealt with, or the crises of confidence will become insurmountable.

Your advocacy in your community is required.

We are constantly refining ways to help you get through the gauntlet of information as efficiently as possible and this is the latest attempt to simplify and put you in a position to help yourself and others.

How to Fight :

Understanding the issues – Daniela Cambone interview

https://www.youtube.com/watch?v=uY5EpJl5fUo

Importance of repealing all property tax in favor of the Uniform States Sales Tax

The Importance of the Vexler Case toTexas -method applicable across the U.S.

Property Comparisons – Step by Step with REM

https://www.realestatemindset.org/p/protest-property-value

Real Estate Tax Fraud - Step by Step with REM

https://www.realestatemindset.org/p/abolishpropertytax

Bond Fraud – Presentations – applicable across the U.S.

Reach Your Local Politician - Step by Step

https://www.ballotready.org/ (for upcoming elections)
Attend local School District board meetings
Attend local Central Appraisal District meetings
Attend City Council meetings
https://www.sos.state.tx.us/elections/voter/elected.shtml

Citizen Journalist Process – Step by Step

https://www.realestatemindset.org/p/fight

File a Criminal Complaint – Step by Step

https://realestatemindset.org/p/tax-protest-criminal-complaint

Bill to repeal all property tax – method applicable across the U.S.

Bill to repeal real estate tax in favor of Uniform States Sales Tax

Lawyer referral package.

Please forward this Article to every social media outlet and human you can. The more that know, the better off we will all be.

www.mockingbirdproperties.com/dcad

www.realestatemindset.org

The Traitor Within - The Root Cause - Thomas Paine - Gold's Resurgence

Wed, 04 Feb 2026 23:29:50 GMT

The Traitor Within - The Root Cause - Thomas Paine - Gold's Resurgence

By Mitchell Vexler, February 4, 2026

The Traitor Within :

In early 2025, both Travis and I attended a meeting in a County in Texas, wherein I was asked to help create a scope of work for a forensic audit to be conducted by the board of that CAD.

I did so as I knew the damage done to the community by the CAD was massive. I knew the Chief Appraiser had never read or taught USPAP, and the result was property tax fraud and school district bond fraud on a mass scale, and I knew that multiple school districts in that county were bankrupt.

It turns out that one of the people in that meeting who was, to my face, very intent on getting to the bottom of the issue, and who asked for the scope of work, was a traitor to the Citizens of that county and decided (convinced the board) to hire a company to do a fluff piece outlining the personality quirks of a dysfunctional CAD. By not conducting a proper forensic audit, his actions and repeated failings, cost the Citizens the truth, and the truth is in the math (USPAP) and the software from which the fraud being perpetrated can be determined and documented in detail within less than 10 days of forensic analysis, as we know exactly what to look for. This traitor wasted time, more taxpayer money, and did not give resolution to the taxpayers, or the proper readily available evidence to the DA or the State Attorney General.

With that said, I am hereby releasing for use across the United States, Canada, New Zealand, Greenland, UK, and any country that claims to utilize USPAP, the attached Forensic Audit of a CAD Scope of Work . You can change the names and criteria in the documents, but following this path will save a massive amount of money and time.

I want to point out two items:

1. An Audit can still be conducted on this CAD, which is guilty of violating dozens of laws, as is its now X-Chief Appraiser, and should be demanded by the Board, DA and Citizens. There will be multiple school district bankruptcies shortly and the metaphorical blood of the bankruptcies is on the hands of the traitor and DA who know that crimes were committed but so far have been silent and apparently have chosen to do nothing.

2. This is the exact reason why the involvement of every taxpaying citizen in every community across the U.S. is not an option. It is a civil responsibility. There are criminals and traitors among us (on both sides of the isle), and they cannot be allowed to steal our money, for their pet projects and to put into their pocket.

Across the United States, it is important for property taxpaying Citizens and CAD Boards to conduct forensic audits and demand your state’s Attorney General to prosecute and to file formal criminal complaints on the CADs and individual employees within the CADs with the FBI, DOJ, & SEC. These filings should be made very public and all the criminality brought into the light.

Repeal all property tax in favor of the Uniform States Sales Tax.

The Root Cause:

What is the root cause of the school district bond fraud? The answer is no accountability. Those in charge never cared one bit about their constituent’s ability to pay for the cost of the bonds nor did they bother to understand the ramifications of their actions. “The report we ordered and paid for said this will work”! Now those bonds and school districts face imminent bankruptcy, as do roughly 42,000,000 households, as a direct result of the compound cumulative effect of the interest on the fraudulent bond debt.

The power grid across the county needs updating because for at least 20 years proper capital improvements have not been made. Now comes the data centers (Private Enterprise) that in many cases do not pay property tax and requires enough power per data center to run a city. Isn’t it interesting that in order to upgrade the transmission lines, bonds will have to be raised.

Just one question:

We have proven the money does not exist today as 42,000,000 households cannot pay down the principle of the roughly $5.1 Trillion in outstanding fraudulent school district bonds, and housing is unaffordable for the majority of citizens as the tax requirement is roughly 8.6% of the households effective gross income as a result of compound cumulative fraud. So how exactly will the money exist tomorrow morning (literally) to pay for new bonds to improve the transmission lines across the country for private enterprise data centers that have yet to prove a return on investment or return of the investment?

Thomas Paine, the clairvoyant:

“... a thirst for absolute power is the natural disease of monarchy... To the evil of monarchy we have added hereditary succession... the first is a degradation and lessening of ourselves... the second , claimed as a matter of right, is an insult and an imposition on posterity.” - Thomas Paine, “Common Sense”

In modern translation, absolute power of the government picking winners and losers with taxpayer money, which is socialism, is a disease of the government.

To the evil of the socialist government or socialists within the government, we have added hereditary succession which refers to the practice of passing down leadership roles, such as the belief in replacing one socialist with another socialist, which can lead to unqualified individuals, ruling simply because of their birthright (Trudeau – Bush - Clinton) and unyielding allegiance to the proven failed construct of socialism. This concept is criticized for being an unjust and unnatural way to determine leadership, as it does not guarantee that the successor will be capable, or deserving, of a position in government.

The first , degradation and lessening of ourselves, is what you see playing out in socialist communities where civil conversation is no longer available. See It Is Your Money That Is Paying for Their War on Civility .

The second , socialism, is unjust because it imposes a legacy of rule on future generations without their consent. No one should have the right to establish a ruling family or socialist policies that is favored over others indefinitely

Looking back 250 years, it becomes clear that the sacred fire of liberty as penned in the writings of Thomas Paine which burned in those hearty souls being the Founders of the United States of America was not only a flame that couldn’t be extinguished—it was an idea which was destined to change the world and it must be protected by codifying socialism as illegal. If the cancer of socialism is allowed to grow, so will the probability of civil war and or succession.

Gold's Resurgence:

The resurgence of gold validates the thesis that demand for non-sovereign, inflation-resistant assets is exploding. Investors "seek refuge in assets that lie outside the policy sphere altogether" when political actors treat interest rates, exchange rates, and sovereign debt as tools for short and or long term manipulation.

Organic Growth is sustainable growth. Manipulation of the population, being taxation to sustain the fraud of socialism, is dangerous.

It is about fraud, which is not in the pundits or analysts’ discussion or thought process.

It is about credibility which can’t exist as long as fraud of socialism exists. Credibility comprises the objective and subjective components of the believability of a source or message. Credibility is deemed essential in many fields to establish expertise. It must play a crucial role in journalism, teaching, science, medicine, business leadership, social media, and governance. In today’s society, credibility is lacking in the very elements that are necessary for society to thrive, and in every instance that lack of credibility has as its root the fraud of socialism. Restoring credibility, including in our currency, means eliminating fraud. Restoring credibility in our local communities means repealing all property taxes in favor of the Uniform States Sales Tax.

Please read :

Please visit:

It is your money that is paying for their War on Civility

Tue, 03 Feb 2026 21:39:36 GMT

It is your money that is paying for their War on Civility.

The CADs use you as their printing press.

By Mitchell Vexler, February 3, 2026

In an Article, written by Brandon Smith, he stated:

History rarely “repeats” but our modern political dynamic rings rather familiar. Many of the tactics used by the leftists in Russia in the early 20th Century are being used today in the US. In fact, I would argue they are almost exactly the same and that a Bolshevik-style revolution is happening right now.

Interestingly, the Bolsheviks were a tiny minority within the Russian population. At their peak in 1917 they had only 400,000 "official" members. They were supported politically by an estimated 23% of the population, but that is still a small movement compared to the 150 million Russian citizens trying to live their lives from day to day.

Had Russian conservatives ( nationalists, Christians and defenders of private property rights ) stood up and acted en masse to stop the Bolsheviks early in 1917, their society could have avoided the full scale murder that would befall them from 1918 onward. They might not have aligned perfectly with their existing government, but the communist alternative was so much worse.

Instead, the conservatives waited until agents of the Cheka were at their doorstep, and by that time it was too late to effectively fight back. As Aleksandr Solzhenitsyn depressingly noted in his book “The Gulag Archipelago”, the majority of Russians stood against Soviet rule but they did not have the courage to take up arms when it mattered most. And so, a minority of militant communists were able to dominate a nation of hundreds of millions. As Solzhenitsyn warned :

“We didn’t love freedom enough. And even more – we had no awareness of the real situation…We purely and simply deserved everything that happened afterward.”

The communists, of course, did not achieve such success alone. As scholar Antony Sutton outlined with ample evidence in his book “Wall Street And The Bolshevik Revolution”, they enjoyed the financial and logistical backing of various global elites (from the Rockefellers to the Morgans to the Harrimans) through the course of the revolution and after their rise to power.

The purpose? To create the model for an atheist and relativistic authoritarian state. A system that the globalists intend to one day use to take over the entire world.

Their plan relies heavily on a lack of action by patriots.

The lack of conservative organization in response has been less than impressive, and I’m here to give a warning: We are approaching the point of no return.

Activists are funded by a massive shell game of NGOs hidden behind other NGOs. They are coordinated by hidden online discord servers. They receive their orders and share information in the field through encrypted Signal chats. They are trained in agitation and disruption by anonymous online meet-ups run by covert activist coordinators. They have engaged in violent attacks on ICE agents on hundreds if not thousands of occasions and few of them are ever prosecuted. This is not the behavior of a grassroots protest movement, this is the behavior of an army of covert operatives with special protections.

It’s important to understand that the “protests” are actually a highly coordinated guerrilla campaign – These are not sincere citizens exercising their civil rights. For now their stated motivation is to stop deportations of illegal migrants, but this is just an excuse for their insurgency. If ICE stopped operations tomorrow, the paid activists would simply fabricate another rationale for tearing the country apart. Placating them will accomplish nothing.

They are hostile combatants trying to assert dominance and grow their numbers through posturing. Their goal is the destruction of the western world. This cannot be allowed.

The clear solution would be for the government to shut down hostile NGOs, however, these institutions are protected by corporate personhood and have the same constitutional rights as individual citizens. The process of investigating them and prosecuting them takes time – time we don’t have.

Even if President Trump utilized the Insurrection Act and deployed the military, there are not enough troops to lock down more than a handful of US cities. Those people hoping that martial law will resolve the issue are kidding themselves. By extension, leftists stand to gain greater support: Martial law would represent proof to the rest of the world that the administration is indeed “fascist.”

The course of the war will not depend on government intervention, so don’t hold your breath waiting for effective enforcement. The reality is, most activist arrests end with them right back out on the street anyway. Their support apparatus has to be permanently removed, or THEY have to be permanently removed from the equation.

Everything will be decided by regular conservatives. If they organize in large numbers, if they create a funding apparatus to move people and supplies around the country quickly, and if they form proper leadership and training guidelines, then there might be a chance for peace simply by presenting a formidable deterrent. If not, at least the means to put down the insurgency will be available.

If conservatives stay at home and refuse to protect any piece of territory beyond their front gate, they will lose everything. It’s inevitable. The side that wants to win will always have an edge over the side that “just wants to be left alone.”

Protests will continue to spread to other cities using the same model we have seen recently in Minneapolis. NGOs will try to provoke more activist deaths at the hands of federal agents. The more the activists go unchecked by the general public the more emboldened they will become and the more their numbers will grow in the assumption that they are the majority.

In the event that the protests are stalled but the organizations are not crushed, activists will revert to assassinations and Weather Underground-style terror attacks until they demoralize the populace and gather strength again. The bottom line? If the political left is not made to truly FEAR consequences, they will not stop until they get their own Red Terror purge.

The end result is not going to be “balkanization.” That idea might have worked during the pandemic, but at this stage it’s far too late for a national divorce. The leftists will never allow conservatives to live in peace in red states. Letting blue cities rule over entire states of mostly red counties would only legitimize progressive extremists and hurt the conservative cause. This fight is for the entire country, not pieces of it.

It’s also not going to be a war of “factions”. This is prepper SHTF theory nonsense. The lines could not be more defined. The “false left/right paradigm” is a dead remnant of the Ron Paul era. It no longer exists, at least not where the bottom of the pyramid is concerned. The vast majority of progressives and Democrats are onboard with woke extremism. They’re onboard with the purge. They are loyal soldiers of globalism. Unity with them means enslavement.

Leftists, globalists and their allies are not going to discern between MAGA, libertarians and centrists. They will ultimately treat everyone as an enemy worthy of elimination.

They’re also not going to divide and in-fight the way some conservatives predict, at least not until they’ve gotten rid of us first.

In the end, the fate of the US and western civilization stands on the precarious shoulders of a conservative movement that has the means to fight, but not necessarily the will. They are forever waiting for the perfect Hollywood scenario in which they can defend themselves in good conscience in a fair fight where they are the clear and undeniable “good guy.” They are forever waiting for the perfect moment to rise up – A moment that will never come.

Patriots have also planned and trained for decades under the pretenses that conservatives would be the insurgents, not the counter-insurgency. Counter-insurgency is much more difficult and requires far more resources. But guess what? You don’t always get to choose the wars you fight. Sometimes the war chooses you and you have to adapt.

[end of article]

Al though the above article is tough to read and understand how one human can hurt another human is such a manner, the parallels to the property tax fraud and school district bond fraud are on the same track.

The parallels are:

A tiny minority within the population looking to steal your money to fund their pet projects that would not be supported politically if the population was fully aware of the crimes being committed against them.
A small movement compared to the 300 million American citizens trying to live their lives from day to day.
Had defenders of private property rights stood up and acted “en masse” to stop the intentional equity stripping, overvaluation and over taxation, society could have avoided the 42,000,000 households that are currently in harms way of bankruptcy and or losing the roof over their head.
Those concerned wait until foreclosures (including the bankruptcies of municipalities) were at their doorstep and by that time it is too late to effectively fight back. The majority of Citizens stand against property tax fraud and school district bond fraud but did not have the courage to participate in civic responsibilities when it mattered most. And so, a minority of criminals under the color of law are able to dominate a nation wherein the net result is roughly $5.1 Trillion of outstanding fraudulent school district bond debt.
“We didn’t love our freedom and money enough. And even more – we had no awareness of the real situation…We purely and simply deserved everything that happened afterward.”
They enjoyed the financial and logistical backing of various elites, under the color of law, but in violation of both State and Federal laws and Constitutions.
A system that the globalists / elites intend to one day use to take over your property, both physical and money, via taxation to the point where we are now… you are ground leasing your house and you are paying roughly 8.6% of your income in property tax.
Their plan relies on lack of action by the Citizens.
The lack of conservative organizations in response has been less than impressive, and I’m here to give a warning (which is the purpose of our efforts). We are approaching the point of no return, as the money does not exist today to pay down the compound cumulative effect of the fraudulent principal. No government on this planet can outrun the Rule of 72 or reverse amortization.
The CADs and school districts receive their orders and share information in the field through meetings where the public is not invited and go to workshops and seminars to learn how to break the law. They are trained how to lie to property owners, and they use the ARB as a weapon against the property owners. They have engaged in both physical and personal attacks and violations of law on property owners across the U.S. and few of them are ever prosecuted. This is the behavior of an army of covert operatives with special protections.
They are trying to assert dominance and grow their numbers through posturing. Their goal is the destruction of your economic future where your money is their money i.e. economic slavery. This cannot be allowed.
The process of investigating them and prosecuting them takes time – time we don’t have.
Everything will be decided by regular conservatives. If they organize in large numbers, if they create a funding apparatus to file Class Action lawsuits across the Country, and if they form proper leadership and training guidelines, then there might be a chance to save the American way of Life, Liberty and the Pursuit of Property (Happiness).
The clear solution is the repeal of all property tax in favor of the Uniform States Sales Tax .

This Article proves exactly why your participation in your local community is not an option but is an obligation, for yourself and your family’s future. Be an activist in your community for the benefit of society.

Please read :

Please visit:

www.mockingbirdproperties.com/dcad

www.realestatemindset.org

www.commonsenselaw.org

https://www.mockingbirdproperties.com/dcad#ArticlesLettersDiscussions

Please share this Article, as the more people that know, the better off we will all be.

Forensic Audit of a Central Appraisal District

Tue, 03 Feb 2026 20:14:16 GMT

F orensic Audit of a Central Appraisal District

Taxpayers who know something is wrong with the appraisal practices & property valuations within their appraisal district should push for a Forensic Audit.

Provided here is a suggested guideline for the Scope of Work Letter between the Forensic Accountant and the Central Appraisal District’s (CAD’s) Board of Directors.

[Note: substitute date and names.]

February 3, 2026

ABC Central Appraisal District (ABCCAD)

Chairman, John Doe

and

Jane Smith, Certified Forensic Accountant or Fraud Examiner

DEF Forensic Accountants (Company Name)

Statement:

In recognition of possible criminal activity at ABCCAD by prior Chief Appraiser, Board Members, Employees, and associated licensing entities including but not limited to Texas State Comptroller, TDLR, TALCB, IAAO, TAAO, ABCCAD has found it necessary to hire a Forensic Accountant whose role and responsibility in this hiring are defined herein.

A forensic accountant is a financial expert proficient in carrying out investigations into financial discrepancies, fraudulent activities, and complex transactions.

Their expertise is often sought after in legal proceedings and disputes that involve financial issues, contributing an additional layer of scrutiny to our financial systems which include the CAMA software and additional software such as Excel, Email, PowerPoint, written communications and social media being utilized by ABCCAD, its employees and the School Districts and Municipalities, which are the Taxing Entities.

The Forensic Accountant will meticulously examine financial records, along with other data and records, for evidence of white-collar crimes such as embezzlement, money laundering, securities fraud, violations of Uniform Standards of Professional Appraisal Practice, Texas Property Tax Code, Texas Constitution, and U.S. Constitution including but not limited to:

A. Review of Possible Violations

B. Preparing a Summary Checklist & Identify Broader Implications of the Violations

C. Review of Underlying Factors Resulting in Violations

SECTION A – Review of Possible Violations

Have there been violations made by the ABCCAD and its employees?

[Attention Reader: Items in blue are examples of known violations .]

Violations of Mass Appraisal Standards (USPAP Standards 5 & 6)

1. Violated USPAP Records Keeping Rule when conducting mass appraisal.

Failed to maintain work file in manner required.

2. Failed to comply with Ethics Rule by willfully/knowingly violating Records Keeping Rule.

Violation of Record Keeping = Violation of Ethics.

3. Failed to comply with USPAP 5-1(a) by not correctly employing recognized techniques necessary to produce a credible mass appraisal.

Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.
Created high volume of protests & high percentage value reductions from protests and appeals.
(specific example: commercial shopping center sample of 140, over 90% protested & received average reduction of over 30%)
(specific example: over 90% of all commercial property owners & over 40% of all homeowners protest their appraisal notices)

4. Failed to comply with USPAP 5-1(b) by committing substantial errors of omission and commission that significantly affected mass appraisal conducted by ABCCAD.

Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.
Created high volume of protests & high percentage value reductions from protests and appeals.
(specific example: commercial shopping center sample of 140, over 90% protested & received average reduction of over 30%)
(specific example: over 90% of all commercial property owners & over 40% of all homeowners protest their appraisal notices)

[ NOTE TO READER:
YES… the list of examples may be the same for many of the violations. This further demonstrates the compound cumulative nature, or the ripple effect, of using a single improper analysis, or using a single improper figure, or using a single improper method, etc., etc. Read carefully what has been violated and then read an example of how violation was identified. If subject property is improperly valued, then so are many others, one improper analysis or assumption leads to many other improper ones. And with this many (volume) violations and improper valuations, was this done by intent, was it orchestrated?

END OF NOTE]

5. Failed to comply with USPAP 5-1(c) by rendering mass appraisal in careless or negligent manner.

Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.
Created high volume of protests & high percentage value reductions from protests and appeals.
(specific example: commercial shopping center sample of 140, over 90% protested & received average reduction of over 30%)
(specific example: over 90% of all commercial property owners & over 40% of all homeowners protest their appraisal notices)
All of above demonstrate Appraisals (Notices of Appraisal) were completed in a careless & negligent manner, failing to use due diligence & due care.

6 . Failed to comply with USPAP 5-2 (e)(iii) by failing to consider location & economic characteristics when conducting mass appraisal.

Specific to a retail property has location and or exposure issues that have been documented by photos and by discussion with ABCCAD over many years.
ABCCAD also failed to consider historical pattern and on-going economic characteristics supported by sub-par & low performing operating statements and well below average lease occupancy compared to other/most centers.

7. Failed to comply with USPAP 5-2 (k) by failing to determine scope of work to produce credible assignment results (appraisal values).

Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.
Created high volume of protests & high percentage value reductions from protests and appeals.
(specific example: commercial shopping center sample of 140, over 90% protested & received average reduction of over 30%)
(specific example: over 90% of all commercial property owners & over 40% of all homeowners protest their appraisal notices)

8. Failed to comply w USPAP 5-4(b) by failing to develop mathematical models that w/ reasonable certainty, represent relationship between property value and supply and demand factors as represented by quantitative & qualitative approaches to value for mass appraisal.

Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.
Created high volume of protests & high percentage value reductions from protests and appeals.
(specific example: commercial shopping center sample of 140, over 90% protested & received average reduction of over 30%)
(specific example: over 90% of all commercial property owners & over 40% of all homeowners protest their appraisal notices)
All of above demonstrate Appraisals (Notices of Appraisal) were completed without a sound or well- developed model that with reasonable certainty, represent property value using quantitative & qualitative approaches to value.

9. Failed to comply w USPAP 5-4(b) by failing to employ recognized techniques for specifying property valuation models used.

Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.
Created high volume of protests & high percentage value reductions from protests and appeals.
(specific example: commercial shopping center sample of 140, over 90% protested & received average reduction of over 30%)
(specific example: over 90% of all commercial property owners & over 40% of all homeowners protest their appraisal notices)
With all of the above identified as an issue with ABCCAD’s appraisal process, proper techniques have not been employed in valuation models.
Specific to commercial shopping centers, ABCCAD has failed to use data obtained from the commercial shopping centers, year after year, to perform an objective income approach valuation for the Notices of Appraisal issued, or to be issued.
As evidenced by many protest experiences, for homeowners, ABCCAD has also failed to perform uniform & equal (equity) valuations and sales comparison valuations prior to Notices of Appraisal being issued. ABCCAD subsequently produces such valuations as part of a homeowner’s protest process, where the comparable properties may not be comparable, and then offers to settle with homeowner for a value that has nothing to do with the new evidence and values they just produced for the protest.

10. Failed to comply w USPAP 5-4(c) by failing to employ recognized techniques for calibrating the mass appraisal models used.

Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.
Created high volume of protests & high percentage value reductions from protests and appeals.
(specific example: commercial shopping center sample of 140, over 90% protested & received average reduction of over 30%)
(specific example: over 90% of all commercial property owners & over 40% of all homeowners protest their appraisal notices)
With all of the above identified as an issue with ABCCAD’s appraisal process, proper techniques have not been employed to review, test or calibrate the mass appraisal models.
More detailed evidence of this violation may include reviewing the results a Standard Deviation Analysis of subject property as the base versus the CAD’s selected comparables and versus its true comparables.

11. Failed to comply w USPAP 5-7(a) by failing to reconcile the quality and quantity of data available and analyzed within the approaches used and the applicability and relevance of the approaches, methods & techniques used in mass appraisal.

Absence of Uniform & Equal standard being applied.
Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.

12. Failed to comply w USPAP 5-7(b) by failing to use or implement appraisal testing procedures and techniques to ensure that standards of accuracy are maintained for mass appraisal.

Failed to employ testing procedures to ensure accuracy of valuations, as that would have required objective review of current year & prior year data to assist in establishing current year values.
How does ABCCAD test for accuracy on dirty data, or fabricated data, used to purposefully inflate value?
Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.

13. Failed to comply w USPAP 6 by reporting the results of ABCCAD mass appraisal in a manner that is misleading.

Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.
Created high volume of protests & high percentage value reductions from protests and appeals.

(specific example: commercial shopping center sample of 140, over 90% protested & received average reduction of over 30%)
(specific example: over 90% of all commercial property owners & over 40% of all homeowners protest their appraisal notices)

Violations of USPAP, Professional Appraisal Practice Rules

1. Violated USPAP Records Keeping Rule while working on commercial shopping centers values.

Failed to maintain work file(s) in manner required.

2. Failed the Ethics General Rule.

Individual appraisers and ABCCAD, have not promoted & preserved public trust inherent in appraisal practice.

3. Failed to comply with Ethics Rule of Conduct.

Individual appraisers and ABCCAD willfully & knowingly violated Record Keeping Rule.

4. Failed to comply with Ethics Rule of Conduct.

Individual appraisers and ABCCAD have not performed assignments with impartial, objective, & independence or without accommodation of personal interests.

5. Failed to comply with Ethics Rule of Management.

Have the individual appraisers (and ABCCAD) disclosed a fee, commission or thing of value received in connection with appraisal/assignment?

6. Failed to comply with Ethics Rule of Management.

Individual appraisers and ABCCAD have performed an assignment & issued Notices of Appraisal where the opinion of value was based on a predetermined result.

7. Failed to comply with Ethics Rule of Confidentiality.

Individual appraisers and ABCCAD have not acted in good faith with regard to the legitimate interests of the client(s) (taxpayers & tax jurisdictions) in the use of confidential information and in the communication of assignment results.
Individual appraisers and ABCCAD did not take reasonable steps to safeguard access to confidential information and assignment (appraisal) results that was in electronic form.

8. Failed to comply with Competency Rule.

Individual appraisers and ABCCAD either do not possess the knowledge & experience to complete appraisal competently, or they are willfully not using proper appraisal knowledge & skills to complete appraisals.

9. Failed to comply with Competency Rule.

Individual appraisers and ABCCAD have not recognized or complied with laws & regulations that apply to appraiser or to the assignments (the tax appraisals).

10. Failed to comply with Scope of Work Rule.

Must demonstrate that scope of work is sufficient to produce credible assignment results (appraisals)
Improper research and or application of research & techniques, improper analysis applied to arrive at opinion or conclusion.

11. Failed to comply with Jurisdictional Exception Rule.

ABCCAD cannot make this exception, Texas Property Code requires that ABCCAD use USPAP.

Violations of USPAP, Standards & Standard Rules, 1 and 2

1. Standards Rule 1-1, General Development Requirements, violations:

Fail to employ methods or techniques to produce credible appraisals.
Have committed substantial errors that significantly affect appraisals.
Have rendered appraisal in a negligent manner, affecting results of values across Appraisal District/County.
Ignored prior year(s) data collected & prior year(s) protest/appeal reductions.
Inserted improper data on Income Calculation Worksheets (for commercial property).
Inserted improper data into Comparison Grids (for commercial property or residential property)
Failed to use actual/proper comparable properties.
Issued improper Notices of Appraisal.
Created high volume of protests & high percentage value reductions from protests and appeals.
(specific example: commercial shopping center sample of 140, over 90% protested & received average reduction of over 30%)
(specific example: over 90% of all commercial property owners & over 40% of all homeowners protest their appraisal notices)

2. Standards Rule 1-2, Problem Identification, violated subsections e & h:

e) did not identify characteristics of property that are relevant to type & definition of value & failed to use reliable information when available.

h) did not determine scope of work to produce credible assignment results.

3. Standards Rule 1-4, Approaches to Value, violated:

Violated general rule (and subsections): Have not analyzed or utilized the actual data provided year after year to produce a credible assignment result (appraisal) on the Income Approach for commercial property valuations; have not consistently used truly comparable properties for sales comparison approach or the equity (equal & uniform) approach.

4. Standards Rule 1-6, Reconciliation, Subsection a violated:

a) have not used all the “quality” data (all the actual data) in analysis or valuation approaches and have not reviewed their proposed values & data to verify accuracy for/on values set on Notices of Appraisal.

Standard 2: Real Property Appraisal, Reporting

5. Standards Rule 2-1, General Reporting Requirements, Subsections a & c violated:

a) failed by misleading taxpayers on Notices of Appraisal (evidenced by volume of protests & appeals).

c) have in essence claimed extraordinary assumptions for most, or all, taxpayers, by issuing high values on Notices of Appraisal without proper comparable (uniform & equal) evidence, or proper support of increased value due to higher/enhanced “economic characteristics.”

6. Standards Rule 2-2, Content of Real Property Appraisal Report, violated:

Have violated content rule by misleading taxpayers with the value issued on the Notice of Appraisal.

7. Standards Rule 2-3, Certification, violated:

There is no signed certification to taxpayer, but there is a certification to taxing jurisdictions who empower ABCCAD to do tax valuations/appraisals.
Certification rule is violated because values are not true & correct; analysis is not accurate or unbiased; engagement is contingent on predetermined results; analysis, opinions & conclusions are not conforming with USPAP.

8. Standards Rule 2-4, Oral Appraisal Report, violated:

ABCCAD is in violation of USPAP rules with the Notice of Appraisal issued, the reports provided in protest hearing, and their verbal testimony of value with taxpayer & ARB panel, as if their opinion of value is fact.

Violations under TDLR
(Texas Administrative Code, Title 16 - Economic Regulation, Part 4 - Texas Department of Licensing & Regulation, Chapter 94 – Property Tax Professionals)

94.70 – responsibilities of a registrant – general

Registrants cannot violate any provision.
Registrants must not violate property tax professional code of ethics.
Registrants must not engage in any practices that constitute improper influence, conflict of interest, unfair treatment, discrimination, abuse of power or misuse of titles.

94.71 – responsibilities of a registrant – equal & fair treatment

Registrants must apply equally & fairly any appraisal or assessment according to USPAP & generally accepted appraisal or assessment practices applicable.
Registrant must not knowingly testify falsely or withhold any information, or influence someone to do so, in any investigation or proceeding.
Registrant must not knowingly mislead any member of the public who makes reasonable inquiry or request on tax matters.
Registrant must not predetermine the value or value range of a property or properties and then manipulate data to arrive to a predetermined conclusion (value).

94.72 – responsibilities of a registrant – conflicts of interest

Registrant must disclose in writing to appraisal district or taxing entity any financial interest in any private business or real property subject to appraisal district or taxing entity where he/she is employed.
Registrant must not use any agency resources for personal benefit.

94.100 – code of ethics

Registrant must be guided by principal that property taxation should be fair and uniform, and apply all laws, rules, methods, procedures, in a uniform manner, to all taxpayers.
Registrant must not accept or solicit any gift, favor or service that might reasonably tend to influence registrant in the discharge of official duties.
Registrant must not engage in an official act that is dishonest, misleading, fraudulent, deceptive, or in violation of law.
Registrant must not conduct their professional duties in a manner that could reasonably be expected to create the appearance of impropriety.

Violations of Texas Property Tax Code

Chapter 23, Appraisal Methods & Procedures:

Sec 23.01 (b) (2 ^nd clause/rule of Chapter 23) violated.

If appraisal district determines appraised value of property using mass appraisal standards, the mass appraisal standards must comply with USPAP. Same or similar appraisal methods & techniques shall be used in appraising the same or similar kinds of property. However, each property shall be appraised based on the individual characteristics that affect the property’s market value, and all available evidence that is specific to the value of property shall be taken into account in determining the property’s market value.
Violating the uniform & equal (comparable/median value/10% rule), but a basic and general rule, as they continue to ignore actual property performance data provided year after year when applying it to the Income Calculation Worksheet (the income approach).

Sec 23.012 Income Method of Appraisal violated. (used with commercial property)

This section states that ABCCAD can use comparable (trends & averages of others) income & expense data in valuing commercial property. This doesn’t mean they can pull an expense figure out of thin air. Example, using an operating expense number of $24,910 (or $2/sf) for subject shopping center is OBVIOUSLY not comparable data, when it is only one third the subject’s historical average. Figure is not historically accurate, nor a proper historical estimate of subject, and is not an objective or historical average operating expense for other comparable properties. The $24,910 ($2/sf) was supposed to represent all property operating expenses outside of, or except for, property tax and interest and $2/sf does not.

Sec 23.013 Market Data Comparison Method of Appraisal violated.

ABCCAD violates Sec 23.013 (a) by NOT using comparable properties in analysis of sales (market value).

Sec 42.26, Remedy for Unequal Appraisal violated.

ABCCAD violates Sec 42.26 by issuing value(s), and or not reducing value(s) in protest hearing, to a taxable value within 10% of the median value/sf of a group of comparable properties.

Violations of TALCB, Texas Appraiser Licensing & Certification Board

Violations under USPAP or TDLR are violations under TALCB.

SECTION B – Prepare a Summary Checklist & Identify Broader Implications of the Violations

Fraud at ABCCAD check list:

State(s) Property Tax Codes Violated: must comply with Uniform Standards of Professional Appraisal Practice (USPAP).
Violated Rule 5-1(a): not correctly employing recognized techniques to produce a credible mass appraisal
Violated Rule 5-1(b): committing substantial error of omission & commission that significantly affect mass appraisal
Violated Rules 5-1(c): rendered mass appraisal in a careless & negligent manner
Violated Texas Property Tax Code 23.01(e): must use "clear and convincing evidence"
Violated Texas Property Tax Code 23.012, Income Method of Appraisal: ignored and fraudulent income statements created
Violated Texas Property Tax Code 23.013: have not used TRUE like-kind properties when using sales data to render value
Violated Texas Property Tax Code 42.26: remedy for unequal appraisal, must be within 10% of median value of comparisons
Violated Texas Constitution Article 8, Section 1(a): property taxation (valuation) is not equal and uniform as required
Violated Texas Constitution Article 8 Section 20: properties valued for ad valorem higher than fair cash market value
Violated Texas Property Tax Code Chapter 5 Section 5.01: State has not taken responsibility for appraisal district(s) who failed to follow law in property tax appraisal process.
Violated Texas Property Tax Code Chapter 5 Section 5.04: State nor TDLR takes responsibility for failed standards
Tax Roll Certification was FALSIFIED
TDLR, Texas Administrative Code Chapter 94, Regulations for Property Tax Professionals: Violated, "No Enforcement"
TALCB, Texas Appraiser Licensing & Certification Act, Chapter 153: Violated, "No Enforcement"
Property Valuation Study (PVS) at the hands of the State Comptroller is a fraudulent mechanism used to raise property values to move funds between school districts to drive property values higher at the demand of the State Comptroller
Oath of Profession, violated when code of ethics and laws are broken, including TDLR, TALCB, professional organizations, IAAO, TAAO, Real Estate Foundation, etc.
Oath of Office violated: not following laws, many individuals failed at their duties, Chief Appraiser, Board Members, ARB members.
Texas Penal Code 37.11- Violated by defaulting in duties as public official is impersonating a public official 3rd degree felony
Texas Penal Code 7.01 – Violated, intentionally failed to report criminal activity
Texas & U.S. Administrative Procedures Act – Violated
U.S. Constitution 1st, 5th, 14th, 16th Amendments – Violated
School District Bond values based on the "implicit guarantee" of the real estate taxpayers, not true value under law
Bond investors i.e. 401K and Pensions are at considerable risk due to overvaluation and over taxation by the CADs
VIOLATED Title 42 U.S. Code Section 1986, Knowledge of Wrongful Act & Power to Prevent
VIOLATED Title 18 of Criminal Code, U.S. Code Section 1621, Perjury Defined
VIOLATED Title 18 U.S. Code Section 1512 c 1 2, who corruptly alters. Destroys or conceals a record (violations of RICO at State and Federal Levels

SECTION C - Review of Underlying Factors Resulting in Violations

Did the Tax Assessor Collector receive corrupt certifications from ABCCAD?

Was USPAP followed when performing Mass Appraisals?

Was the Initial Notie of Value fraudulent because the value was determined by not adhering to USPAP?

If the data was determined by not adhering to USPAP, and comparisons were created off of the corrupted data, then is it a fair statement that 76%+ of the database is corrupted?

Does the current property tax system as determined by intent, have a circular argument in that ABCCAD gives Certified Totals to the State Comptroller PTAD, where the State Comptroller, under law, is charged with “regulating the administration of property taxation,” including establishing and overseeing the CADs, in addition to providing technical assistance, yet, the State claims no authority of enforcement and has directed complaints be handled by the local CAD (ABCCAD) or local district court?

USPAP guidance is provided by IAAO, TAAO, Appraisal Foundation, Appraisal Institute and others and it is recognized in law by the Comptroller. Is it a true statement that ABCCAD and related government agencies make claims, they follow USPAP, but the evidence shows they do not adhere to USPAP or the Texas Property Tax Code?

Does the Chief Appraiser at ABCCAD have discretion to ignore USPSP, Texas Property Tax Code, The Texas Constitution, or the Constitution of the United States of America?

Is ABCCAD an unlawful agency that must be enjoined under U.S.C. 706(s)(A)?

The above three sections (A), (B), and ( C), concerning ABCCAD and its employees, along with their Violations in Appraisal, Licensing, Property Tax Code, USPAP General and Professional Standards, Mass Appraisal Standards (USPAP Standards 5 & 6), and the frauds at ABCCAD, form a checklist of questions requiring answers and will then form the basis of your report and said report will provide backup evidence in corresponding order for each line item.

More Background on Fraud Detection & Prevention:

The Forensic Accountant is not only an expert in accounting but also an accomplished investigator. Their primary function is to thoroughly scrutinize financial records in search of anomalies or irregularities.

By conducting detailed audits, the Forensic Accountant will piece together a complete, accurate financial picture, effectively sifting through layers of financial data and corresponding written law to uncover potential fraud or misrepresentation.

The Forensic Accountant will use their findings to establish patterns of behavior that may indicate fraudulent activity following leads and investigating suspicious transactions.

Beyond just the numbers, the Forensic Accountant is to interpret the financial data in the broader context, identifying hidden relationships and unearthing clues which can unveil the truth behind a potentially deceptive financial façade. These potential hidden relationships include by and between ABCCAD, the school districts, and municipalities within the appraisal district area.

This scope of work as well as the report in its entirety will be made public for the purposes of full transparency.

Fraud Detection and Prevention:

Unmasking fraud and preventing it from reoccurring stands as one of the cornerstone responsibilities of forensic accountants.

These experts not only detect fraud but also design and implement measures to prevent future instances.

They work closely with organizations to strengthen internal controls, conduct regular audits, and educate employees about potential fraud schemes.

In this role, forensic accountants serve as the vanguards against financial malfeasance, contributing significantly to business longevity and integrity.

Duties and Responsibilities:

In addition to answering the questions as outlined above, Investigate ABCCAD and associated entities and employee’s financial data including social network analysis, transaction flow diagrams, timelines, adherence to law (as outlined above), excel models, data mining software, statistical software, spreadsheets, computer forensic techniques and analysis of the CAMA (Computer Aided Mass Appraisal) software database logs of who made the entries, based on what USPAP and Mass Appraisal Standards criteria, and manipulation of the database files outside of the CAMA software. For purposes of speed and cost efficiency, Forensic Accountant may group (i.e. 100 examples of each) the analysis into:

A. Single Family Homes

B. Qualified Farm (AG) Land

C. Industrial Real Property

D. Retail Shopping Centers

E. Multifamily

F. Mobile Homes

G. Raw Land

H. Seniors Housing

With regard to the above grouping:

Determine the percent swings (%) in values between property types utilizing Standard Deviation.
Determine the non-uniformity of application of USPAP and Mass Appraisal Standards.
Determine the change in land values as compared to the building values.
For single family homes, determine the average debt to equity ratio for the median home price in its market area and appraisal district area and or county.
Determine what percentage of the time the ARB panels agreed with ABCCAD’s value determination. (ARB Panels should be operating and acting independent of the appraisal district.)
Determine the annual percentage increase of values for each of the categories above over the last 5 years. I.E. Year 2020, Single Family Total Units, SF total valuation, Average Cost er SF Unit.
Determine what the pension liabilities are at ABCCAD, who receives what pension and based on what criteria.
Obtain the one or more annual pre-determined budgets from one of more ABCCAD School Districts that was delivered to ABCCAD and or the Chief Appraiser. Determine if that School Districts has proper notes to their balance sheet, sources and uses, and bond schedule showing the payoff of prior bonds and the current status of all bonds being cost, due date, bond holder, bond issuer.

Determine if the following code sections were violated: (yes or no)

Violations of Texas Property Tax Code

Texas Property Tax Code, 23.01(b), if failed basic directives for appraising value, including that it must comply w/ USPAP
USPAP Standards 5 & 6, Mass Appraisal Standards, required by Property Tax Code
USPAP Standards 1 & 2, Real Property Appraisal Development & Reporting, required by Property Tax Code
USPAP Standard Appraisal Professional Rules, required by Property Tax Code
Texas Property Tax Code, 23.01(e), if have not had “clear & convincing evidence” as required to increase value when prior year was reduced.
Texas Property Tax Code, 23.01(f), if have not used TRUE like-kind properties (comparables) to render equitable value.
Texas Property Tax Code, 23.012, Income Method of Appraisal, if ignored income property’s $$ performance data.
Texas Property Tax Code, 23.013, if have not used TRUE like-kind properties when using sales data to render value.
Texas Property Tax Code, 42.26, remedy for unequal appraisal, must be within 10% of median value of comparables.
Texas Constitution, Article 8, Section 1, if property taxation (valuation) has not been equal & uniform as required.
Texas Constitution, Article 8, Section 20, if properties have been valued for ad valorem purposes at a value higher than their “fair cash market value” by ABCCAD.
Texas Property Tax Code, Chapter 5, Section 5.01, if State has not taken responsibility for appraisal district(s) who failed to follow law in property tax appraisal process.
Texas Property Tax Code, Chapter 5, Section 5.04, if neither state nor TDLR has taken responsibility for failed training or failed application of professional & legal standards (laws).

Violations of USPAP, Standard Rules 1 & 2 (Real Property Appraisal: Development & Reporting)

1. Standards Rule 1-1, General Development Requirements, violated:

Fail to employ methods or techniques to produce credible appraisals
Committed substantial errors that significantly affect appraisals
Rendered appraisal in a negligent manner, affecting results of values across Denton County

2. Standards Rule 1-2, Problem Identification, subsections e & h, violated:

Did not identify characteristics of property that are relevant to type & definition of value
Failed to use reliable information when available (even when in physical possession of it)
Did not determine scope of work to produce credible assignment results

3. Standards Rule 1-4, Approaches to Value, violated:

Have not analyzed or utilized actual data provided year after year to produce a credible assignment result (appraisal) on the Income
Approach for commercial property valuations
Have not consistently used comparable properties for sales comparison approach or the equity (equal & uniform) approach

4. Standards Rule 1-6, Reconciliation, Subsection a violated:

Have not used all the “quality” data (all the actual data) in analysis or valuation approaches
Have not reviewed or tested proposed values & data to verify accuracy for values on Notices of Appraisal

5. Standards Rule 2-1, General Reporting Requirements, Subsections a & c violated:

Failed by misleading taxpayers on Notices of Appraisal (evidenced by volume of protests & appeals)
Claimed extraordinary assumptions for most, or all, taxpayers, by issuing high values on Notices of Appraisal without proper comparable (uniform & equal) evidence, or proper support of increased value due to higher/enhanced “economic characteristics.”
(SPECIFIC VIOLATION, sec 23.01(e) of Property Tax Code)

6. Standards Rule 2-2, Content of Real Property Appraisal Report, violated:

Violated content rule by misleading taxpayers with the value issued on the Notice of Appraisal.

7. Standards Rule 2-3, Certification, violated:

Provided values based on inaccurate analysis, manipulation & bias; completed appraisals contingent on predetermined results
Failed to conform with USPAP throughout appraisal process, resulting in the issuance of inflated values on Appraisal Notices

8. Standards Rule 2-4, Oral Appraisal Report, violated:

ABCCAD is in violation of USPAP rules with Notice of Appraisal issued and reports provided in protest hearing, making their verbal testimony of value with the taxpayer, the ARB panel members, or any other informal communication also a violation.

Violations of TDLR
(Texas Admin. Code, Title 16 - Economic Reg., Part 4 - Texas Dept of Licensing & Reg., Chap. 94 – Property Tax Professionals)

94.70 – responsibilities of a registrant – general

Registrants cannot violate any provision.
Registrants must not violate property tax professional code of ethics.
Registrants must not engage in any practices that constitute improper influence, conflict of interest, unfair treatment, discrimination, abuse of power or misuse of titles.

94.71 – responsibilities of a registrant – equal & fair treatment

Registrants must apply equally & fairly any appraisal or assessment according to USPAP & generally accepted appraisal or assessment practices applicable.
Registrant must not knowingly testify falsely or withhold any information, or influence someone to do so, in any investigation or proceeding.
Registrant must not knowingly mislead any member of the public who makes reasonable inquiry or request on tax matters.
Registrant must not predetermine the value or value range of a property or properties and then manipulate data to arrive to a predetermined conclusion (value).

94.72 – responsibilities of a registrant – conflicts of interest

Registrant must disclose in writing to appraisal district or taxing entity any financial interest in any private business or real property subject to appraisal district or taxing entity where he/she is employed.
Registrant must not use any agency resources for personal benefit.

94.100 – code of ethics
(This is the section of regulations that TDLR Sr Investigator said TDLR may not have authority to enforce.)

Registrant must be guided by principal that property taxation should be fair and uniform, and apply all laws, rules, methods, procedures, in a uniform manner, to all taxpayers.
Registrant must not accept or solicit any gift, favor or service that might reasonably tend to influence registrant in the discharge of official duties.
Registrant must not engage in an official act that is dishonest, misleading, fraudulent, deceptive, or in violation of law.
Registrant must not conduct their professional duties in a manner that could reasonably be expected to create the appearance of impropriety.

2. Assemble and analyze evidence of criminal activity

3. Financial data interpretation and evaluation

4. Conduct interviews with personnel in order to uncover and collect evidence

5. Map a criminal hypothesis based on the information

6. Present the finding of the investigation to appropriate parties (Board of CAD, District Attorney, etc.)

7. Prepare documentation and evidence for court presentation

8. Clearly and professionally present evidence of financial irregularities and violations of law to appropriate parties.

9. Explain the research finding in layman’s terms and disclose investigative methods and procedures .

Litigation Support:

The forensic accountant will assist lawyers by providing a clear, concise interpretation of complex financial data as outlined above.

Expert Witness Testimony:

The forensic accountant may be called upon to present their findings in court, explaining complex financial concepts in a manner that judges, juries, and attorneys can comprehend.

Additional Scope of Work:

The above question from which answers are sought, form the basis of the hiring of this Forensic Accountant. Should it be determined between the parties that an additional avenue of investigation is necessary then at that time the parties may agree, in writing, to an addendum to this Scope of Work.

Agreed to this 3rd day of February 2026

By: John Doe

Chairman, ABCCAD Board of Directors

By: Jane Smith

Forensic Accountant

Professional Certifications attached

Precious Metal Manipulation, Market Manipulation, Your Manipulation

Mon, 02 Feb 2026 18:14:58 GMT

W hat Have We Learned?

Precious Metal Manipulation, Market Manipulation, Your Manipulation.

Are We Under Attack by Our Own Failings?

By Mitchell Vexler, February 2, 2026

These recent articles and videos could not have been more prescient to the Precious Metals Crash of January 30, 2026:

I am constantly amazed how one article leads to the next article as events unfold and the nexus of all the issues is fraud. This Article can be seen as the extension to Got Metals linked above.

First, can anybody tell me what changed with regard to the U.S. National Debt level or the school district bond fraud or the U.S. National Deficits, in the last 24 hours leading up to the January 30 ^th , 2026 precious metals crash? The only thing that changed is the U.S. National Debt grew larger and is increasing by the nano-second.

We anticipated and stated so on video, “face ripping volatility” and explained the Expected Move. See https://www.youtube.com/watch?v=yjA83U5xxnY . Then 2 days later we released another video, https://www.youtube.com/watch?v=3n3lhFNDU2M .

So, what happened to cause the crash on January 30th? This is going to be interesting!

As a reminder, Oil futures experienced a significant crash on April 20, 2020, when the price for West Texas Intermediate (WTI) fell to around -$37 (negative $37) a barrel, marking the first time in history that oil futures traded below zero. This collapse was primarily due to a drastic drop in demand caused by the COVID-19 pandemic and an oversupply of crude oil. Obviously, this did not last long. Had a tanker been available to purchase and stuffed with almost free crude, that value would have been a stellar rate of return.

How is the crash of precious metals, any different than the crash of crude oil? It isn’t, except for one thing, and that thing is manipulation, if not, outright fraud and criminal activity.

The Kevin Warsh story :

Now, let’s start with some of the noise that was proffered by the idiot press wherein the markets (indexes) and precious metals crashed because of the appointment of Kevin Warsh for the chairman of the Federal Reserve.

Warsh, a former Federal Reserve governor, who allegedly morphed into a persistent Fed critic and who allegedly is a believer in precious metals, as is Stan Druckenmiller and Scott Bessent, all of whom fall from under the auspices of George Soros. These 3 men, if held to their statements and presentations, may lead to a possible solution of the impossible, to pay off debt load created by the Federal Reserve and U.S. Treasury. See the above link to article, The Federal Reserve is a Failure. On the other hand, the very murky world of George Soros casts a long shadow on which society should take note and be very cautious of the Trojan Horse.

Why would President Donald Trump select Kevin Warsh to serve as the next chair of the Fed? It is because Mr. Warsh is a well-known critic of the U.S. central bank and President Trump wants interest rates lowered.

President Trump made the announcement on Truth Social at 6:48 a.m. Eastern, January 30, 2026, the day silver crashed 30% and then started to pull up at the close for the largest one day drop in its history.

Warsh was the youngest Fed governor in history when he joined the bank's board of governors in 2006, becoming a member of Fed Chair Ben Bernanke's inner circle during the global financial crisis of 2008.

Bernanke embraced Warsh after he had been a top economic-policy staffer for President George W. Bush, and the Fed chief was eager to maintain open communication with the Bush administration during the early stages of the financial crisis.

Warsh eventually broke with Bernanke and resigned his post in 2011, agreeing with Republican critics who argued that the Fed chair's unprecedented bond-buying program to keep long-term rates low following the crisis, known as quantitative easing, gave the central bank too much sway over financial markets.

Warsh has kept up this criticism of the Fed's balance sheet ever since.

Treasury Secretary Scott Bessent has echoed these criticisms in his public remarks.

Warsh is married to billionaire Estée Lauder (EL) heiress Jane Lauder. Since leaving the Fed in 2011, Warsh's work has included serving as a lecturer at Stanford University's business school and as a visiting fellow at the university's Hoover Institution, a conservative-leaning think tank. He is a partner in billionaire investor Stanley Druckenmiller's investment firm. He also has been on the board of directors for the shipping company UPS.

According to the press, “Economists say that having been selected by Trump, it is a given that Warsh will push for rate cuts in 2026. Can he convince his new central-bank colleagues to go along with easing”? The probability is high due to political pressure. However...

Also, according to the press “When the Fed rate cuts are enacted, borrowing costs tend to drop across the board for consumers” and this proves the inability or willful intent of the press to think. Government’s costs of borrowing are distinct from the long end of the curve which is based more on perceived risk and there is no shortage of perceived risk.

I want to address several items in the Kevin Warsh story :

The Federal Reserve is an employment shop for wayward economists who’s existence has spun the greatest financial fraud ever perpetrated on the planet. In 1913 the year the Federal Reserve was created the U.S. Dollar was valued at 1017 and today is 30. That is irrefutable proof that it is the Federal Reserve and U.S Treasury (printer) that has destroyed the U.S. dollar by 97% (inflation) and transferred that liability to the back of every taxpayer.
If Mr. Warsh, made a statement with reference to the fact in #1 above, he would establish a start of credibility and lay the ground work for the heavy lifting that is necessary to fix the National Debt not just of the U.S. but of many sovereign nations. I am very hesitant because in my lifetime, every Federal Reserve chairman failed as did the Federal Reserve in its entirety as this organization does not exist for the benefit of society and only exists for the benefit of the banks by transferring public wealth into the banking system in perpetuity. See Chain the Doors of the Federal Reserve .
No government on the planet and in the history of the planet can outrun the Rule of 72 nor can they outrun reverse amortization which is the creation of the Federal Reserve which is the printing of money not backed by assets to pay for the deficit which is used to cover off the compound cumulative interest of the U.S. National Debt.
When you start stacking the infrastructure problems. plus the defaulting private equity (i.e. Blackrock). plus the property tax fraud, plus school district bond fraud, plus the socialist fraud (Minneapolis, L.A., Boston, etc. etc.) the structural problems all correlate to the interest rates which resulted from printing of money not backed by assets. It is good if President Trump can bring the government’s borrowing rate down, but he can’t bring the long bond down (money available to the public), and as long as the Federal Reserve exists they will print the bank’s cocaine, therefore causing the compound cumulative deficits (M2, U.S. National Debt, school district bond fraud, unfunded liabilities) and transferring the liabilities to all citizens which do not have the money to pay for financial sins of the Federal Reserve and the governments who practice socialism on the backs of the very citizens who produce the goods and services, while they the government officials siphon off the money in between (i.e. Minneapolis).
Recasting the Fiat into some other currency is a wasted effort because there is nothing to stop the Fed from blowing the bubble again. As long as the Federal Reserve exists the crisis of confidence will grow to the point of self-termination because socialism ends when you run out of other people’s money and thus proof of the Institutionalized Systemic Moral Hazard by not enforcing the black letter of the law.

Do you really want to leave your money in a bank that can hand you back a share in their bankrupt bank via a bail-in?

Or would you rather have assets (Metals) outside of the banking system which is under your control and not subject to wherever the manipulation is coming from, including the Federal Reserve?

For those who want to understand more about the Fed I highly recommend SECRETS OF THE FEDERAL RESERVE - The London Connection, by Eustace Mullins.

To be crystal clear, society can’t fix what it can’t define, and either can the Federal Reserve or any well-intentioned employee of the Federal Reserve or U.S. Treasury or any government official for that matter. We want our government officials to be successful for the benefit of society, but placating the public by omission or pure lies, for what has turned out to be nefarious purposes only delays the inevitable default. I pray that Mr. Warsh and Mr. Bessent can devise a plan to peel back the fraudulent interest, and eliminate the fraudulent principal, thus allowing interest rates to fall which they would, but not if the fraud remains and is allowed to continue its trajectory of compounding. Long interest rates which affect homeowners and commercial borrowers are affected by perceived risk. If the risk is high, then so are the corresponding interest rates.

Mr. Bessent, this week, made a comment about not wanting to hurt homeowners. One should separate new home purchases from existing homeowners in older homes and I have the evidence of this topic on my website which is also stated in the Amicus Brief to the Supreme Court of Texas . If you want to keep housing prices high (new homes), then the only solution is to Repeal All Property Tax in favor of the Uniform States Sales Tax , put the school districts that can’t pay off their bonds within 3 years into bankruptcy and flush the $5.1 Trillion of bond fraud off the back of the taxpayers. This fact is outline in the Bill I created for Helen Kerwin the Texas State Representative which can be seen here, Bill to repeal real estate tax in favor of Uniform States Sales Tax . This is the only solution that fixes the problem and is applicable across the U.S. thus affecting every property owner and, in reality, every citizen. Now, the only question is what are you the politicians going to do about it? Are you the politicians going to be the puppet of the socialist Federal Reserve and it’s minion banks, or are you going to fix the problem and Terminate the Fed and start peeling back the fraudulent compound interest, while simultaneously wining the mid-term elections as President Trump would be the first President in history to stop the pending bankruptcy of roughly 42,000,000 households?

We know the problem and we know the solution. The interest clock is ticking, by the nano-second. What is it to be? Are we going to fix the well-defined problem ( www.mockingbirdproperties.com/dcad ) or are you the politicians, Federal Reserve, and state’s executive branches going to let the defaults occur, ending in massive bankruptcies and probably worse.

Pseudo Capitalism is not Free Market Capitalism .
No Constitutional Republic’s Government should pick winners and losers and to this point, picking bitcoin or any other coin, crypto etc. is not the place of any government. Picking winners and losers is one component of socialist behavior. Bitcoin is no longer what it was intended to be, and unless tied to commodities, is nothing more than a speculative instrument, which at this moment, there is justification for a $60,000 valuation based on technical analysis. We know the problem. Are you the politicians going to fix it?

Do you believe, as the press would have you believe, that the Kevin Warsh appointment caused the pullback in precious metals?

Do you believe, as the press would have you believe, that the Kevin Warsh appointment caused the pullback in Bitcoin?

One must acknowledge that there is an ongoing effort by both individuals within and external individuals and nations outside of our country with intent to destroy Western Civilization. The only reason social unrest is occurring is that it is being funded for the intent to destabilize society. Destabilizing society can also be done through compound interest and fraudulent bond debt. Destabilizing society can also be done, by triggering algorithms where in the expected circuit breakers are disconnected and this can only be for nefarious purposes. https://www.cmegroup.com/education/articles-and-reports/understanding-price-limits-and-circuit-breakers

A fast education on the facts :

There are currently 13 registered stock exchanges operating in the United States, with the New York Stock Exchange (NYSE) and Nasdaq being the two major ones. In addition to the major exchanges, several smaller exchanges exist, including; Chicago Board of Trade (CBOT) Commodities, Chicago Mercantile Exchange (CME) Futures and options trading, Philadelphia Stock Exchange (PHLX) Options trading, and (Cboe) Options Exchange Options trading. These exchanges facilitate trading in various financial instruments, including stocks, bonds, and derivatives. The Chicago Mercantile Exchange (CME) is crucial for precious metals as it serves as the primary market for trading futures and options in metals like gold and silver, influencing global prices and providing a platform for risk management. It allows traders to hedge against price fluctuations and facilitate liquidity in the precious metals market. The Chicago Mercantile Exchange (CME), particularly through its COMEX division, sets benchmark prices for precious metals like gold and silver through futures contracts, which are widely traded. These prices influence the valuation of physical bullion and other financial products, impacting global market prices.

The Month That Was.

January 2026 will be remembered as a historic month for precious metals, with extreme upside followed by a dramatic reversal, showcasing just how volatile bull markets can be. Silver delivered one of its strongest monthly performances on record, opening the year near $70 on January 1, 2026, before surging to a new all-time nominal price high of approximately $121 on January 29, 2026. Gold also posted remarkable gains, briefly touching nearly $5,600 per ounce during the week of January 26–29, 2026, confirming that investor demand extended across the precious metals complex. The month ended with a historic correction, as silver fell over 30% in roughly one day, plunging from a $121 per ounce high to an intraday low just below $75 within 30 hours between January 29–30, 2026. In less than 30 hours, silver collapsed from its January 29 high near $121 to an intraday low just under $75 on January 30, a brutal reminder of silver’s leverage-driven volatility. Even after that waterfall move lower, silver still closed the week and month near $85.26 per ounce on January 30, 2026, a level that would have seemed wildly bullish just a year earlier. Gold weathered the volatility better, finishing the week and month around $4,894 per ounce on January 30, 2026, after backing off its late-January highs. The gold-to-silver ratio snapped higher during the selloff, jumping from the mid-40s earlier in January to roughly 57:1 on January 30, 2026, reflecting silver’s outsized downside move rather than weakness in gold. Importantly, physical demand showed little sign of cracking during the paper-price chaos, with continued drawdowns from Western vaults and strong buying interest across Asia throughout late January. The takeaway is simple: January 2026 delivered historic gains, historic volatility, and a face ripping correction, but nothing negates the larger precious-metals trend driven by fraudulent debt, fraudulent compound cumulative interest which leads to currency debasement, and the tightening physical supply of precious metals and commodities.

The Chicago Merc handles trading for:

Precious Metals: Gold, silver, platinum, and palladium
Base Metals: Copper and aluminum
Ferrous Metals: Steel, scrap, and iron ore
Battery Metals: Cobalt, lithium hydroxide, and lithium carbonate

The CME Group is a large, worldwide organization. It consists of:

Chicago Mercantile Exchange (CME)
Chicago Board of Trade (CBOT) in Chicago
New York Mercantile Exchange (NYMEX) in New York City
Commodity Exchange Inc. (COMEX)
Kansas City Board of Trade (KCBOT)

It had a reported brand value of $2.4B in 2023. It is one of the globe’s premier financial exchange operators.

Balancing Act or Fraudulent Manipulation?

Consider Friday November 28 ^th , 2025 (oil) and now also January 30, 2026 (gold).

On the day of the halt (November 28 ^th , 2025), trading was interrupted across a huge swath of CME markets:

Futures
Derivatives
Currencies
Gold and silver

The official story:

The data center exceeded its cooling capacity; servers overheated; trading was halted. The global financial system ran into one of its strangest “technical failures” in decades when the Chicago Mercantile Exchange, the world’s most important derivatives market, went dark for more than ten hours. The official line was that a “cooling failure” at the Aurora, Illinois data center that hosts the CME’s servers caused the shutdown. Plenty of traders saw right through it, with some openly calling it intentional market manipulation. Given the outage hit just as silver was finally breaking out of the range it has been stuck in since its 1980 nominal high. This makes the timing extremely suspicious, irrespective of whatever narrative they’re pushing. The CME group, the derivatives and commodities futures exchange, have spent billions on hardware and software to ensure this type of situation does not occur. They run the CME, COMEX, NYMEX, and CBOT. All key pieces of plumbing in the global financial system. This “outage” specifically knocked out the CME’s core systems. Meaning derivatives trading across key asset classes including currencies, stock futures, and commodities all went offline. In the CME Group’s own words, there was a “critical failure” at the CyrusOne data center in Aurora . We eventually learned that this “critical failure” was, supposedly, a cooling system ceasing to function. The breakdown began just before 03:00 GMT , leaving traders essentially working blindfolded.

Could a “critical failure” be true? Yes.

However, the date of the event outlined above was November 28, 2025.

So, how does one explain January 30, 2026, just a few months later?

The more plausible explanation is Liar Liar pants on Fire. Why? Because the same corporate speak is being floated again. This leads to the question of manipulation and who benefits?

For systemically important financial entities like the CME, CyrusOne provide what’s known as 2N redundancy. In their own words, this means duplicating everything for a client, to ensure that no downtime occurs in the event of a problem. In practice, this means two completely independent infrastructure paths, each mirroring the exact same information, and capable of carrying 100% of the load . If one path fails, the other instantly takes over and keeps everything running. 2N means every mission-critical component is duplicated:

Two independent power feeds (each able to run the whole facility)
Two fully separate UPS systems
Two generator farms
Two electrical distribution paths
Two isolated network paths
Two completely independent cooling systems, each able to handle full thermal load on its own.

Knowing the above, it is clear that a Federal investigation is in order.

Was the CME Protecting The System, or a Systemically Important Client including the CME itself?

The consequences of the halt are enormous. Traders across multiple regions found themselves unable to close positions, modify exposure, execute hedges, or manage leverage. This is not a minor inconvenience; it can have enormous ramifications for anyone with open positions. At the same time, it could have been extremely useful for a large bank or hedge fund that suddenly found itself on the wrong side of a large derivatives bet. With pricing essentially frozen, losses could be paused and time bought to devise a strategy to swing markets back in the opposite direction. Who received the benefit?

Which brings us to The Crux of the Matter :

Trading in a major China-listed silver fund was halted for a full session on January 30 as regulators moved to contain price distortions ( allegedly ), while global silver prices fell sharply from record highs amid elevated volatility and tighter derivatives margin requirements.

China’s Shenzhen Stock Exchange suspended trading for the entire day on January 30 in the UBS SDIC Silver Futures Fund LOF, according to an official fund announcement. The notice stated that trading would be halted from the market open through the close as part of exchange risk-control measures.

Chinese financial media reported that the halt followed sustained abnormal trading conditions, with the fund’s secondary-market price diverging materially from its net asset value. Coverage described the suspension as a regulatory response to excessive premiums and repeated risk warnings rather than a change in the underlying structure of the fund.

Was this intentional? Was this action(s) criminal? Was this a coordinated attack on our financial system?

What are the ramifications? The algorithms kicked in and kept going as there was no circuit breaker at the exchanges. Independent exchanges and no circuit breaker at 10% down. How is this possible? I have seen circuit breakers on $5 stocks. What happened?? Who got the benefit?

Events Leading to the Failure: On January 30, 2026, the silver market experienced a dramatic crash, with prices plummeting nearly 33% in a single day. This sell-off was triggered by several factors as outlined herein.

Algorithmic Trading : The market faced cascading liquidations due to algorithmic trading systems reacting to the sudden price drop. These systems automatically sold off positions when certain price thresholds were breached, exacerbating the decline.

Regulatory Intervention : The CME Group had recently increased margin requirements for silver, which forced many leveraged investors to liquidate their positions, further driving down prices.

Technical Issues : While the CME's circuit breakers are intended to activate during extreme price movements, the rapid and severe nature of the selloff on January 30 allegedly overwhelmed the system. The combination of high volatility, forced liquidations, and algorithmic trading created a situation where the circuit breakers did not function effectively (whether utilized by the CME on silver or not) to halt trading and stabilize the market. However, as outlined above, this statement is nonsense if not outright manipulation of federal markets.

As a result of the precious metals crash, would our government, in order to save the Comex and LBMA, Chicago Merc and perhaps other exchanges, unwind all the trades of Friday and prohibit the manipulators from taking any metals out of the country?

This brings us to a question.

Are We Under Attack by Our Own Failings?

The Mavex case now at the SCOTX (see The Importance of the Vexler Case to Texas ) proves how the system was designed and or morphed to ignore the black letter of the law being the laws established under the Republic created under the Constitution of the United States of America and the Constitutions of all States in favor of both equity stripping money from all property owners at a state level and at the federal level allowing the printing of money not backed by assets both of which create inflation, compound cumulative interest and compound fraud. Could it not be said that we, as clear critical thinking individuals, have not been vocal and involved enough to force the politicians to adhere to the law and the failing of the Judges only makes society weaker to the point that gaping holes in our own security have been breached by foreign sovereign nations and individual who intend to destroy the American way of life and the U.S. Constitution?

In Minnesota, where immigrants both illegal and strategically placed by Obama and Biden are now being exposed for fraud around various social services, stealing billions from US taxpayers in the process. This is accomplished with fake companies, NGOs which distribute the loot between the immigrant thieves, the politicians such as Governor Tim Walz, Minneapolis Mayor Jacob Frey, and Democratic (socialist) Party itself, to keep operations going. How was this allowed to happen? The answer is no checks and balances by intent and a weak judicial body that has allowed laws to be ignored without understanding the ramifications of that weakness and from which our adversaries, both domestic and international, walked right through the legal gap to steal more taxpayer money.

Imperial Decree of Declaration of war against foreign powers :

The Imperial Decree of declaration of war against foreign powers was a simultaneous declaration of war by the Qing dynasty on June 21, 1900, against eleven foreign powers which held varying degrees of influence in China: Russia, the United States, the United Kingdom, Japan, France, Germany, Italy, Spain, Austria-Hungary, Belgium, and the Netherlands. The declaration of war was one of the Eight-Nation Alliance's formation, which then led to Boxer Protocol. This Imperial decree was officially issued in the name of Guangxu Emperor, bearing his official Imperial seal.

The 1901 protocol is commonly known as the Boxer Protocol or Peace Agreement between the Great Powers and China in English. It is known as the Xinchou Treaty or Beijing protocol in Chinese, where "Xinchou" refers to the year (1901) of signature under the sexagenary cycle system. The full English name of the protocol is Austria-Hungary, Belgium, France, Germany, Great Britain, Italy, Japan, Netherlands, Russia, Spain, United States and China – Final Protocol for the Settlement of the Disturbances of 1900, reflecting its nature as a diplomatic protocol rather than a peace treaty at the time of signature.

China has a long memory. In recent years, China has indicated a willingness to engage in economic warfare against Western countries, particularly in response to perceived threats and sanctions. This includes potential actions like selling off U.S. Treasury debt as a form of retaliation, reflecting a strategy of using financial means to assert its interests. China can use its investments in countries (i.e. Canada, Africa, Australia etc.) especially if those countries disagree with a current issue in China, as economic warfare as the investment in that country by China becomes debt enslavement.

Chinese state-backed hackers compromised the mobile phones of senior officials in Downing Street over several years, specifically targeting aides to former Prime Ministers Boris Johnson, Liz Truss, and Rishi Sunak from 2021 to 2024. This operation is part of a broader espionage campaign known as Salt Typhoon.

There is no definitive evidence, yet that China directly hacked the Chicago Mercantile Exchange (CME). However, there have been cases of individuals, like a former CME employee, who were involved in stealing trade secrets to benefit Chinese interests, which raises concerns about cybersecurity and intellectual property theft related to the exchange.

On Friday January 30, 2026, did we witness a coordinated attack on the stock market and precious metals market perhaps utilizing puts that were bought, knowing that the algorithms would kick in for the halting of UBS SDIC Silver Futures Fund LOF, and perhaps having control over the circuit breakers causing severe economic losses and setting up the winner to force delivery of the metals?

Did the CME participate in the manipulation in order to save itself or on behalf of a VIP client?

It might be a good idea for the exchanges (who’s credibility is now under high suspicion) plus the FBI, DOJ, and SEC to launch an immediate investigation into the hardware they are using to find the security breach.

China’s debt to GDP is roughly 300 and that is motive.

Gold and Silver as Savings, or Investment?
Gold and silver coins and bars have been used as a method of saving for centuries. In ancient Rome, centurions and foot soldiers would go to war and bury their savings for safekeeping. Farmers buried gold and silver coins during the civil war when soldiers were nearby to guard against looting. In 2023, a massive hoard of gold coins was found buried on a Kentucky farm. Banks have not always been seen as reliable or safe places to keep money, and as time progresses this is becoming more and more evident.

Banks are constantly plagued with scandals. On July 11, 2023, Bank of America agreed to pay $250 million in fines and compensation to settle claims that they systematically double-charged customer fees, opened accounts without user authorization, and more. In 2022, US Bank was fined $37.5 million for opening fake accounts in their customers’ names. In 2018, US Bank paid $613 million due to its failure to adhere to anti-money laundering standards. Wells Fargo created fake accounts in their customers’ names for years and was caught in 2016. They were fined $185 million.

Trust in the banking system has come under fire over the past decade as scandal after scandal, and multiple bank failures have wracked the US banking industry. In 2023, we witnessed a series of bank runs as consumer confidence plummeted, causing several major banks to fail.

The argument for placing savings in banks has grown weaker, with interest rates on many savings accounts returning minimal interest rates. The phrase “cash is trash” has become a meme in financial circles as the dollar continues to lose purchasing power, and the interest accrued in savings accounts amounts to small change.

Some investors do not view their portfolio in precious metals as an investment, but as a savings account. Silver and gold have been mediums of exchange worldwide for thousands of years. While some money is held in institutions for everyday expenses, more money is put into silver, gold, and or platinum as a store of value. For those wanting to maintain their purchasing power as best as possible and using gold or silver as a store of value and saving for the future, it only makes sense to have enough cash savings to manage through a crisis. Usually, the recommendation is to have three to six months’ worth of essential expenses in savings. The rest could be safely stored in precious metals for future use. Remember, whether you believe in the dollar or not, it’s still what we use to purchase goods and services and the dollar and its system, excluding the Federal Reserve, is worth saving if fraud can be peeled back out of the system.

Given what we have learned in this Article it is not unreasonable to target a precious metals asset allocation above 25% or portfolio net worth. It is also reasonable to do what you can do and tuck some precious metals away for the future.

I’m certain there are good financial advisors out there who are truly professional and who provide guidance and advice to individuals or businesses on managing their finances, including investments, retirement planning, and budgeting and help clients set financial goals and create strategies to achieve them. However, just like realtors, finding a good one with dependable knowledge is like finding a firefly. You know they are there, but very rare. The point being that you should recognize that your future and your family’s future is in your hands based on your education and education is the key to the right decisions. Does your financial advisor understand what a hedge is, cost of hedging, and how to protect the portfolio? Ask the questions before it is too late.

Given all the above, this is exactly why you scale into precious metals and it is important to read Got Metals & The Psychology of Socialism .

The reason you are watching the videos we produce, participating with comments, and also reading the Articles, Letters, and Discussions section is out of concern for your future and your family’s future. This simple fact should help you realize that you are an advocate for your family and clearly Advocacy is not an option, it is your civil obligation.

www.mockingbirdproperties.com/dcad

www.realestatemindset.org

www.commonsenselaw.org

Got Metals

Fri, 30 Jan 2026 21:20:21 GMT

Got Metals?

By Mitchell Vexler, January 30, 2026

If you acknowledge this list as “truths” or if you agree and can answer yes to a majority of these qualifying statements and questions, you should be…

investing in Metals, and
getting involved in repealing all real estate tax in favor of the Uniform States Sales Tax.

Truths, Statements & Questions:

China, Turkey, India have gold embedded in their culture.
Gold, Silver, Platinum, Copper is a commodity as is Wheat, Soy, Corn, Sugar.
Nixon removed the U.S. from the Gold Standard in 1971 allowing Fiat to be printed.
The Federal Reserve is a failure. See article linked below.
Gold Futures /GC can be traded.
Options on Gold Futures /GC can be traded.
Silver /SIL Futures can be traded.
Options on Silver Futures can be traded.
Platinum Futures /PL can be traded.
Copper Futures /HG can be traded.
Copper options on Futures can be traded.
Can I trade options on Gold, Silver, and Copper miners? (i.e. Wheaton, RIO etc. etc.)
If you own the physical, you can trade to hold the value constant and make $ in the process,
Banks are at risk. See Japanese Bond market.
Central Banks are buying and not selling = demand.
Gold has had monetary value for 5,000 years +.
There are ETFs for gold and silver being GLD GDXJ and SLV and SILJ.
There are futures on these ETFs.
Inflation created due to fraud (printing money globally and school district bond fraud across the U.S.).

See these articles:

Are there alternative currencies that do not suffer from massive debt issues? (NO)
Would you rather hold physical metals in your control or excess cash in the bank?
Is currency being debased?
Inflation caused purchasing power to go from 1017 in 1913 (the year of Fed creation) to 30 in 2025.
Is holding physical metals protection against dollar devaluation or dollar purchasing power? (YES)
Is Bitcoin a digital currency backed by commodities? (NO)
Total gold mined to date is roughly $30 Trillion.
Global debt markets and equity markets are roughly $350 Trillion not including derivatives.
Gold bars and coins are roughly $7 Trillion in the investment market.
How much of your portfolio is diversified with Gold?
How much of your portfolio is diversified with Silver?
How much of your portfolio is diversified with Platinum?
Should your portfolio be diversified by at least 15% of metals?
Gold mine supply has increased roughly 1.3% annualized over the last 10 years.
Does it take 6 to 10 years to ramp up mining supply? (YES)
Is demand greater than supply? (YES)
Of the $30 Trillion roughly $13.5 Trillion in the form of jewelry.
Gold is not perishable & it is not consumable, meaning it exists in one form or another = store of value.
Copper is consumed.
Will the U.S. government revalue gold to cover off the debt that cannot be repaid? BRICS is betting on it.
Will the U.S. government create a new precious metals revaluation portfolio to cover off the debt that cannot be repaid?
Will the U.S. government expand top line revenue by Tariffs to show an increase in GDP?
Will the U.S. government eliminate the fraud of property tax and school district bond fraud?
Will the U.S. government eliminate the fraud of socialism?
Will the U.S. dollar devalue due to fraud in the system?
Will foreign currencies devalue due to fraud in the system?
Do you agree with the content of the article, Fed Analysis: CPI, the Ultimate Big Lie ?
Did the Federal Government sanction the multi-trillion dollar property over valuation fraud from which in 2024 over 450 Billion was stolen from property owners? https://www.mockingbirdproperties.com/dcad
Did the Federal Government sanction the inflation that caused housing values to increase by approx. 100% in 5 years?
Are people in my neighborhood going to lose their home or go bankrupt due to overvaluation and over taxation?
Do I understand the Rule of 72?
If you receive 4.2% interest on a CD and inflation is running at 6%, are you losing purchasing power?
Will the economy grow fast enough that the interest expense around 6% of GDP, will go to 3% of GDP?
Will the U.S government institute yield control on the long end of the curve?
Will Central Banks continue to accumulate precious metals?
Will the FED be the buyer of 10-year treasury notes, at say 4%, with real inflation above 6% which equals negative real interest rates?
Will the U.S. Gov't balance the budget, given a $120 Trillion in off balance sheet liabilities, in 2026, 2027, or 2028? (NO)
Will we, the Citizens, force the government to reduce the growth of government in order to grow its way out of the debt?
Through technology can we generate more revenue with less cost of generating that revenue?
Will there be pullbacks in metal prices (YES)
Do I have the skill to trade the pullbacks?
Would I be better off scaling in over time?
Will metals demand continue to increase? (YES)
Do ETFs hold the physical they claim? (TBD)
Do the exchanges hold the physical they claim, which are not leased out multiple times over?
Are Central Banks increasing their metals holdings as compared to reserves? (YES, they are, on average 21%.)
Is gold a better conductor than silver? (YES)
Is silver a great conductor? (YES) (EV, Batteries, Circuitry, National Defense)
Will industrial demand continue to increase? (YES)
What percentage of gold to silver to platinum do I want in physical?
Can I participate in all directions (short or long or neutral) using options to generate theta decay? (YES)
Are metals moving in price due to geopolitical risk? (YES)
Have precious metals generally kept pace with inflation? (YES)
Have precious metals decoupled from returns on real estate? (YES)
Do I have the skill to trade mining companies?
Do I want to pay annual storage and insurance fees or do I want to have physical possession hidden away?
Could the U.S. revalue gold to 40% of M1 and M2? (TBD)
Could the U.S. revalue gold to 40% of M1 + M2 + U.S. National Debt + 60% of Unfunded Liabilities? (TBD)
Do other countries like Japan, Germany, UK, China, India, Russia, EU, have debt that is unsustainable?
Do I want bullion or coins?
Are the U.S. and global deficits getting worse?
Is there a supply-demand imbalance on silver?
How many U.S. banks have financial stress?
Does volatility of metals price matter over the short term as compared to banking financial stress and the bail-in law?
Given the above, would I sell my metals within the next 15 years?
Is it true that the only thing that stands between us ("We the People") and profitability is idiocy?
Can I ignore the volatility of the market?

So, do you now have a “GO” or “NO GO” decision to invest in metals?

If it’s a GO, consider…

Learning about options at TastyLive.com
Learn how to reach the bar charts for trading from Al Brooks Price Action, who wrote Trading Bar by Bar
Learning from Mack at Price Action Trading Systems
Following Lance Brietstein and SMB Capital on YouTube
Understanding an amortization schedule and how to utilize it
Getting involved to repeal all property tax in favor of the Uniform States Sales Tax

Still on the fence? Here is more food for thought:

If you own 500 ounces of silver, let's say about $50,000. (500 x $100 = $50,000.)

With volatility up or down 15%, do I care?

Upside possible price would be $50,000 x 1.15 or $57,500.

Downside possible price would be $50,000 x .85 or $42,500.

This is all really about 3rd party counter risk, expected volatility, and a crisis of confidence.

But regardless of your “GO” or “NO GO” decision, these facts still remain:

The cost to carry $5.1 Trillion in school district bond fraud is $28 Billion per month across the U.S. not amortized, meaning there is no paydown of principal.
Taxpaying population is 144,000,000.
This means the cost per taxpayer, per month, is $194.44… to pay for bonds that are literally not worth toilet paper, meaning the bonds have negative value to the taxpayers because the principle is increasing not decreasing, which means the liability is increasing and the Median Household Income does not exist to pay off or out on the bonds.

Why listen to the news, when quantifying your position is much stronger than the noise and intent to mislead of the press?

Expected Move is based on Volatility.

The Psychology of Socialism

Thu, 29 Jan 2026 20:47:02 GMT

The Psychology of socialism

By Mitchell Vexler, January 29, 2026

Following up on the article “ socialism is a Noun ” I kept thinking about the psychology of socialism and proof not just in fact that it was a con from inception but proof of why it self-terminates when it runs out of other people’s money to steal.

The cause of this article was a story on Forth Worth which appeared in Bisnow today, January 29, 2026 as follows:

[start excerpts from Bisnow]

“Fort Worth officials are (1) doubling down on their plan to bolster affordable housing in the city through a proposed bond program.

Fort Worth officials plan to ask voters to approve a (2) $10M bond proposition to support affordable housing initiatives.

The Fort Worth City Council (3) increased a planned bind proposition to support affordable housing initiatives from $5M to $10M during its Tuesday meeting , according to the Fort Worth Report . The item is slated to be one of six propositions that will go before Fort Worth voters in May as part of the city’s expected (4) $845M bond package.

If the bond proposition is approved, (5) the city intends to allocate $5M to single-family homeownership initiatives through a partnership with the Fort Worth Community Land Trust. The partnership will use $1M to buy land and existing properties for affordable housing.

The remaining $4M would be used to renovate those properties, Fort Worth Senior Capital Projects Officer April Rose said. That would create 20 to 25 affordable homes for buyers.

The $5M added to the proposition (6) could be used for affordable multifamily projects and short-term housing, according to Rose.

Councilmember Mia Hall (7) called Fort Worth's affordable housing situation a crisis earlier this month after local housing advocates pushed for an increase in the original bond proposition amount.

Donna VanNess, president of the nonprofit Housing Channel, said homeownership is out of reach for most middle-class households in Fort Worth.

“People just aren’t used to the fact that you can’t buy a house here and just be a teacher, fireman or whatever,” VanNess told the Fort Worth Report .

From 2017 to 2025, Fort Worth’s average home value increased by more than 62% to $305,476, according to the Tarrant Appraisal District. The city’s population grew by just 16% during that time.

The bond also includes (8) $59.9M for an animal care and shelter facility as well as (9) $14.6 for public libraries . The council has until Feb. 13 to add the bond package to the May 2 election.

Developers are also bringing affordable housing to the city (10).

The NRP Group opened the 67-unit Thrive on Crawford mixed-income development in Fort Worth earlier this month. Nearly 90% of the project’s apartments are reserved for tenants earning 30%, 50% and 60% of the area median income.

Chicago-based 3L Real Estate is spending $58M to convert the 300K SF office building at 115 W. Seventh St. in Fort Worth into a multifamily building that will include affordable rents. As part of an infrastructure reimbursement from the city's tax increment finance zone No. 8, 20% of the building's planned 330 units must be reserved to maintain below-market rents for 10 years. “

[end excerpts from Bisnow]

The news article unintentionally lays bare the failings of Fort Worth , and many other similar communities including Conroe, and including thousands of school districts, by virtue of what is irrefutably socialism that failed and will continue to fail as more of your taxpayer money is thrown into the abyss of failed socialist policies.

In corresponding order to the numbers in above, here is the fraud being committed against you, the property taxpayers and bond investors.

(1) “doubling down on their plan to bolster affordable housing”. What plan? Articulated where? What math was used to justify the alleged plan and what math was used to justify taking tax dollars and redistributing those dollars into private enterprise which is also selective enforcement?

(2) “$10M bond proposition to support affordable housing initiatives”. Where are the initiatives articulated? What math was used? Where are the operating statements and history of the properties and or projects where this money will allegedly be used? If that money is not used, then where does it go?

(3) “increased a planned bond proposition to support affordable housing initiatives from $5M to $10M during its Tuesday meeting”. Why? Where is the report outlining the issues?

(4) “$845M bond package”. What other hidden gems of unfettered theft are occurring within this “bond package” that you the taxpayer are paying for?

(5) “the city intends to allocate $5M to single-family homeownership initiatives”. “Intends” where does the money go if your intent is not real? How is the money to be distributed? Who verifies the money went to the appropriate source and how that money was utilized? Where are the checks and balances?

(6) “could be used for affordable multifamily projects”. “could be”? Words have meaning. Lack of words is intent to defraud by omission.

(7) “ called Fort Worth's affordable housing situation a crisis ” . Exactly how did this crises come about? How many hundreds of millions of dollars have been wasted on pet projects since the year 2000 and what is the result of that money being spent? So, to be crystal clear, the attitude and actions of City Council are…we are not liable for our actions, just give us your money and watch us continue to create once crisis after another! Those “who know not that they know not are fools and this socialist behavior is the culprit of tens of thousands of families going bankrupt in Ft. Worth, which leads to the question of... is the bond rating of Ft. Worth bonds correct? We have proven the majority of school district bonds are in reality sub-junk, as hundreds of school districts are bankrupt. See December 9 2025 - Press Release – Texas Attorney General . It is not a question of “if”, it is a question of “when” and the clock is ticking which is exactly why precious metals are running which is proof of a crisis of confidence. See the article, Crisis of Confidence .

(8) & (9) Animal no-kill shelters are a necessity because there are no bad animals, just bad owners and finding a good home for these animals is necessary. Public Libraries are a necessity because people need a place to get the education that is not received in school. 8 and 9 are not socialism. They are a social policy. See We Live in the World of Fraud and Fraudsters - How to Protect Yourself .

(10) “Developers are also bringing affordable housing” . As private developers are brining “affordable” housing, for what purpose does the City of Forth Worth take more tax dollars to support their failed redistribution of money over the last 30 years? Is there a single person on city council that can define “affordable”? Is there a single person on City Council that understands the math? See Daily Affordability is Unobtainable - What can you do about it . If council members can’t articulate the problem and rely on city staff, some of which have socialist agendas, then society ends up with exactly what they don’t want, which is socialism which ends in bankruptcy or worse being civil war. An interesting fact is that society is just 9 meals away from social unrest. Where do those people go, who are losing their homes because they can’t afford the property taxes, or have to decide between food and a roof?

The above 1-10 issues prove the hollow statements by Forth Worth City Council, and lack of questions by the press all of which is designed to mislead you the taxpayer into thinking that everything is fine, normal, nothing to see here, while simultaneously equity stripping the amortization from your mortgage and creating your property tax rate at roughly 8.6% of your gross income. The press is nothing more than parrots and they refuse to do real journalism, and you, the taxpayer, are being misled as a result of municipal bond fraud, school district bond fraud, and useless press. The politicians cannot be trusted, and either can the press, which means the Citizens are on their own and must get involved at a local level to turn the tide or face imminent bankruptcy. Roughly 38.7% of the household population in Fort Worth cannot afford the roof over their head. This is the Amicus Brief now at the Supreme Court of Texas.

Given the above, what is to separate Ft. Worth from the failed socialist policies of California?

But it gets worse, when you understand that those bonds transfer the liability of the fraud created by the officials onto your back for the next 30 – 40 years with compound cumulative interest and then they create more bonds almost on an annual basis so what you end up with is paying for their financial sins on a compound cumulative fraud on top of compound cumulative fraud. The Federal Reserve prints money not backed by assets which is called counterfeiting and Fort Worth is printing money via taking your money being 8.6% of your gross income today, but that 8.6% must grow because just like the Federal Reserve, the deficit grows as a result of the compounding interest. They both roll out the debt and roll up the interest, meaning the debts are compounding in addition to the interest compounding. This is exactly the proof that socialism self-terminates when you run out of other people’s money to steal. You are the amortization schedule for Ft. Worth, and most people are out of money to pay the interest or to pay the debt reduction thus the self-termination of socialism.

socialism is the cause. Your bankruptcy is the effect!

Capitalist systems are based on self-interested behavior and competition between individuals to make profit. It is this very competition that creates the best result for society.

socialism as a political concept (con) is based on the fair distribution of wealth (where there is no such thing because it picks winners and losers), the sharing of property, and equality, which there is no such thing. See socialism is a Noun. A synonym for socialism is theft, Last Rat Standing .

Human behavior suggests that humans are predisposed to altruism. One can be altruistic when one has money in their pocket. Altruistic can be a social policy and a social policy is not socialism. From infancy, humans try to help each other achieve their goals, including unfamiliar new people. People are motivated to help one another due to feelings of sympathy, and external rewards. This is achieved through capitalism, not socialism.

socialism is printing money and transferring the liability onto taxpayers.

Humans exhibit more altruism towards non-family members of their society. Feeling concerned for those of which we are interdependent is what advocacy and human nature is about. We want to help those in our wider social group, who depend on us, and on whom we depend. Advocacy starts at the local level because all real estate is local, local, local.

Human behavior can be temporarily manipulated until the truth of the manipulation becomes evident.

Altruism is built into human nature. Altruism occurs when people can afford the money or time to help others and altruism occurs as a result of capitalism.

socialism and socialist policies is what you are seeing play out live in Ft. Worth and dozens of other large cities, both red and blue, and society pays the price because the black letters of the law were not enforced thus creating Institutionalized Systemic Moral Hazard which created debts that cannot be paid off. See The Importance of the Vexler Case to Texas .

Advocacy is no longer an option; it is a civil responsibility.

Your Money (METALS)... Your Future... Neither a borrower, nor a lender be

Mon, 26 Jan 2026 15:37:38 GMT

Your Money (METALS)... Your Future...

Neither a borrower, nor lender be

By Mitchell Vexler, January 26, 2026

pdf for download

Issue: Capital controls

Issue: Crises of confidence (See article, Crisis of Confidence .)

Issue: Volatility of metals – Up. 20 delta Calls are greater value than 20 delta puts meaning the expected move is to the upside. 1, 2, or even 3, STDEV (standard deviation) moves can be expected and are buying opportunities.

Resource: Quantifying means don’t consider rumors. Rumors exist to manipulate.

Factors to consider with silver, gold and platinum (and commodities):

National security - Government
Industrial demand
Years of Price Suppression
Price Discovery, what you haven’t heard about
More paper derivatives than existing physical – Paper chasing paper. – Tens of Billions of dollars short of metal meaning the contracts can’t be covered. What banks are involved? Can they afford to take the hit? Will the FED be needed to bail them out? Have bailouts already occurred?
Trading Technicals
Geopolitical such as Greenland
Currency revaluation using a basket of commodities – gold, silver, platinum and maybe oil, wheat and corn for combined stability. M1 + M2 at 40% being backed by metals puts gold at roughly $40K per ounce and silver at 15:1 being roughly $2,600 per ounce.
No third-party counter risk
The global monetary system may be about to collapse (The Great Reset, or Basel Endgame).
The biggest credit bubble in history will soon pop being $300T not including derivatives.
There is no way the US can refinance its $28T in maturing treasuries in the next 4 years without an obscene amount of printing which will cause hyper inflation as it is just money being printed with not asset to back it up.
Trump tariffs are slowing the collapse. I said on video before President Trump was even elected for the second time that “he will be elected and he will be able to blunt the blow, but he won’t be able to stop it”. The reason I said this is because I understand the rule of 72, a reverse amortization schedule, bond fraud, accounting fraud, and socialist policies all of which end in equity stripping and the collapse of treasuries internationally because the median household income does not exist to pay off the debt.
Gold, silver, platinum, real estate without debt, and business without debt, and keep excess cash out of the banks, are the only meaningful method to stay out of the banking system
Physical possession placed somewhere undetectable outside the banking system is crucial.
The whole world right now is a game of fraud by fraudsters / banksters. See We Live in the World of Fraud and Fraudsters - How to Protect Yourself . Roughly 600 banks out of the 4,700 remaining in the U.S. are weak and would not exist but for the support of the Fed.
Crypto is nonsense until it is backed by physical commodities and even then, if the government has their hooks in it to be able to shut it off and take the assets from its owner, it must be considered the opposite of what it was designed to be with no central control. It is important to realize 1.) A federal court ruled that Prime Minister Justin Trudeau's government acted unreasonably by invoking the Emergencies Act to freeze bank accounts of individuals linked to the Freedom Convoy protests, finding it an unjustified infringement of individual rights. This decision has sparked significant debate about the government's use of such powers and its implications for civil liberties in Canada. 2.) President Trump has filed a $5 billion lawsuit against JPMorgan Chase, claiming the bank closed his accounts for political reasons following the January 6, 2021 Capitol riot. JPMorgan has denied these allegations, stating that account closures are based on legal and regulatory risks, not political motivations. 3.) The governments through socialist policies (see socialism is a Noun. A synonym for socialism is theft, Last Rat Standing .) blew the bubble to the point of incomprehensible debt which will destroy the system as we know it today. Now, recognizing the facts, as the government did this in today’s world, what is to stop them from doing it again under a new currency regime? 4.) See The Importance of the Vexler case to Texas proving Institutionalize Systemic Moral Hazard, which must be eliminated.
Real estate with debt (bank risk along with 3 ^rd party credit risk) and tenants that are highly susceptible to inflation, crypto, stocks and bonds will all lose significantly compared to precious metals.
The banking system has been designed to seize your assets to buoy up a collapsing banking sector, this is what they Fed has done since its creation in 1913 when the U.S. Dollar value was 1017 and today it is 30. That is both inflation and the loss of purchasing power.
A weakening currency will cause severe trouble.
The fed is printing money, not backed by assets, strictly to cover fraud and the reality of the rule of 72. They are then printing more money to cover the additional carry cost of more fraudulent bond debt, thus creating compound cumulative fraud upon compound cumulative fraud.
You have ZERO counter party risk with precious metals in your possession.

Ending the Federal Reserve , which has no accountability and no oversight, will end the fraud of money printing not backed by assets. It will end the support of roughly 600 of the remaining 4,700 banks. It will allow the interest rate to be set by the market and governmental interest rate to be set by the President. It will prohibit the Federal Reserve from printing money to cover the outstanding fraudulent roughly $5.1 Trillion in school district bond debt. It will expose the fraud for what it has become which is unsustainable meaning there will be pain but it falls under the definition of controlled demolition and many other countries need the same clearing of the fraud that we do, so there is an opportunity to clean the books with journal entries and wipe out the participants of the fraud.

Did you know that the cost to carry roughly $5.1 Trillion in school district bond fraud is $28 Billion per month across the U.S., not amortized, meaning no pay-down. $28,000,000,000 divided by the taxpaying population of roughly 144,000,000 people means the cost per taxpayer per month, to pay for bonds that are literally not worth toilet paper as the bonds have negative value to the taxpayers because the principle is increasing not decreasing which means the liability is increasing and the Median Household Income does not exist to pay off or out the bonds is costing you an extra $194.44 / month in perpetuity today not including more fraudulent bond raises in the future. What exactly did you get for all the money you spent on these school districts over the last 25 years?

Yes, many countries are experiencing a sell-off of government bonds, particularly U.S. Treasuries, due to concerns over deficits, debt, and geopolitical tensions, such as trade wars. This has led to rising yields and increased borrowing costs in various nations. Interest rates are established based on perceived risk, not the wishes of any socialist Central Bank or Federal Reserve that prints money at will to protect the banks, not the citizens.

Key Factors Influencing Bond Sales :

Geopolitical Tensions: Recent threats of tariffs from the U.S. government, particularly regarding European allies, have heightened fears of a trade war. This has led to increased volatility in bond markets.

Rising Yields: As investors sell off bonds, yields are rising sharply. For instance, U.S. Treasury yields have reached their highest levels in months, with the 30-year Treasury yield nearing 5%. Similarly, yields on Japanese and U.K. government bonds have also increased significantly.

Rule of 72 proves the flow of interest especially as a result of COVID. We would not be in an interest deficit today if the Government / Federal Reserve had froze the debt on the printing of the money to offset COVID. They could have and should have done zero rate bonds as if in a period of war. The Fed could have frozen all interest. They did not. Who got the money? You are paying for COVID for the next 30 years unless the government peels back the interest which they can and should do.

The question then becomes what are the ramifications of not freezing the interest during times of economic stress and printing money instead? Followed by who received benefit and who was hurt? Who took advantage of the crisis?

Given:

T-Bonds are worth less than face – M2 (see graphic below)
School District Bonds are worth less than toilet paper as the fraud is proven to be 85% of the 100% increase in property values in the last 5 years alone.
Car loans are defaulting*
ACA health insurance premiums cannot be paid given the recent rise costs on top of the fact that it was a con to begin with*
*Median Household Income does not exist to pay the interest on the debt never mind paying off the debt.
Bitcoin may be headed to $60K
https://fred.stlouisfed.org/series/M2SL
https://www.federalreserve.gov/releases/h6/Current/
The true value of U.S. Treasuries is influenced by their market value, which reflects current interest rates and investor demand, rather than just their par value. They are generally considered safe investments backed by the U.S. government, but factors like inflation, interest rates, and fiscal policy can affect their perceived value and yields.
https://fred.stlouisfed.org/series/FYGFDPUN Market value of Treasuries held by Private Investors is $30T
When interest rates rise, the value of existing Treasuries typically falls because new bonds are issued at higher rates, making older bonds less attractive. The exact decrease in value depends on the duration of the Treasuries, with longer-duration bonds generally experiencing a more significant drop in price.
https://fred.stlouisfed.org/series/CCLACBW027SBOG Consumer loans.

We then must ask…what happens when the Federal Reserve increases the Money Supply?

Since its establishment in 1913, the Federal Reserve has significantly increased the money supply, especially during crises like the 2008 financial crisis and the COVID-19 pandemic, when it printed over $3 trillion in 2020 alone. However, the exact total amount printed over its entire existence is too complex to determine due to various monetary policies and economic conditions and is estimated to be in excess of $28 Trillion. Since the 2008 crisis and through the pandemic, the total money supply has increased dramatically, with estimates suggesting that the Fed has created over $6 trillion in new money through various QE programs. Federal Reserve data show that in August 2019 there was $14.9 trillion total in circulation. By January 2022, there was $21.6 trillion . In other words, more than 30 percent of dollars in circulation in January 2022 had been created in the previous 30 months. Thus, the inflation we now all experience daily.

Inflation, grows over time and now I am going to show you why!

Estimating Treasury Value Changes:

To analyze the impact on Treasury values in an Excel spreadsheet, you can use the following approach:

Calculate the Price Change : Use the bond pricing formula, which considers the coupon rate, time to maturity, and the new market interest rate.
Spreadsheet Formula : You can set up a formula in Excel to calculate the new price of the Treasury bonds based on the new interest rate. The formula for bond price is:

Where:

= Price of the bond
= Annual coupon payment
= New market interest rate (8% in this case)
= Face value of the bond
= Time period until payment
= Total number of periods

Example Calculation:

Assuming a Treasury bond with a face value of $1,000, a coupon rate of 4.25%, and 15 years to maturity, I placed these values into Excel to see how the bond's price (face value of M2) changes with the new interest rate of 8% and then broke it down to every 1% increase in interest rates.

This analysis will help you understand the potential loss in value of your Treasuries due to the increase in interest rates.

The loss of the face value of M2 (money in supply) is another measure of inflation which is the reduction of your purchasing power because you will be paying for that 1% rise in interest rates (loss) as the Fed will print to offset that loss and you bear the price of the liability of that printing. The same valuation method is applicable to U.S. National Debt or bond debt at the school district level. It does not matter whether utilizing U.S. National Debt, School District Bond Debt, or M2, the reality is that printing money not backed by assets is fraud which liability is passed on to all citizens whether they realize it or not, and then the interest on that fraud is growing compound cumulative for which more money is printed to pay for the interest and that liability is also placed on the backs of all citizens, thus forcing those citizens into bankruptcy or losing the roof over their head and increasing the probability of civil war or secession or worse among nations. This single paragraph proves beyond any doubt that the Federal Reserve, just like the school district bonds, is a fraud and these frauds, if not dealt with quickly, will bring down the economic system, the U.S. dollar, and have a major impact globally because many other countries bought off the garbage the Federal Reserve was selling and created the same Institutionalized Systemic Moral Hazard as did our Federal and States governments. The interest on the loss of purchasing power is also what you are paying for because the debt is not being paid off but rolled out and interest thereon rolled up.

Who got the benefit of the printing of the money at the demand of the Federal Reserve?

Answer: The banks participating in the existence of the Federal Reserve!

The Rule of 72 proves the flow of interest especially as a result of COVID or any other contrived emergency which is used as the excuse to print money not backed by assets. We would not be in an interest deficit today if the Government froze the debt on the printing of the money to offset such alleged “economic” emergencies as COVID. They could have and should have done zero bonds or zero interest as if in a period of war, which would have prohibited the stacking of compound cumulative interest on top of compounded fraudulent principal. They did not. Who got the money? You are paying for COVID for the next 30 years unless the government peels back the interest which they can and must do or the system will implode because socialism self terminates when you run out of other people’s money to steal and we are not at the point of printing money to pay the interest on the interest of what the banks / Federal Reserve has stolen. At a minimum, this interest can and must be clawed back so that the system has a chance to pay down the principle based on the existing GDP. At a minimum the existence of the criminal conspiracy to defraud being both the Federal Reserve and the State’s school districts must be terminated and the school districts bonds filed into bankruptcy. Unfortunately, the bond holders lose because they chose to invest in fraud.

The four irrefutable tenets of finance that cannot be denied:

1.) No government on the planet is bigger than the Rule of 72.

2.) No government on the planet is bigger than reverse amortization (not paying off the bonds).

3.) Printing of money not backed by assets has never worked in the history of economics.

4.) socialism self-terminates when it runs out of other people’s money to steal.

City councils such as Conroe, Minneapolis, and hundreds of others across the U.S. are corrupt both morally and financially and this is due to socialist policies where the government picks winners and in almost every instance, the picking ends up in losers and thus the loss to the taxpayer being both real estate taxpayers and sales taxpayers not just on the original theft but on the interest upon that original principal theft/debt until such time as it is paid off, which both Federal and States governments have proven they are incapable of doing. There is a high probability that Conroe will be the first city in the history of Texas to file bankruptcy, and deservedly, as the fraud has been laid bare for all to see. If the State of Texas steps in to bail them out, it is not the States money, it is your money and it does not change the compound cumulative cost of carry interest which continues to grow. We documented what happened in Conroe from the cement contractor for the Hyatt being on Council, to the CBRE report not being credible, to massive fees being paid for a PPP, to raping reserve accounts with no authority to pay interest with no possible way to return the money. Bankruptcy of the City and bonds is the only solution just like the City of Detroit. Institutionalized Systemic Moral Hazard wherein the courts fail to enforce the law, will lead to economic ruin because the rule of 72 and compounding is a much greater force than any judge or government. No judge and no government can bend the laws of physics or finance. This is why I have been pounding the table through the Amicus Brief to the SCOTX and the lawsuit with crystal clear evidence that “Either the law exists or it doesn’t…choose wisely!”

It is the avoidance of enforcing the laws, whether intentional or not, or regardless of the understanding of economics, is the reason society is in this mess. Thomas Paine was clear of the concept 250 years ago. See Thomas Paine – Quotes on Taxes & The Necessity of Taxation .

In support of Milton Friedman’s very notable efforts, I add this one question of proof that he was 100% correct. If socialism is so good, can you please explain how the CCP became the world’s largest owner of hotel rooms?

I have studied thousands of business models in my career and to cut to the chase, socialism is a business model. It is a business model of fraud by fraudsters. The list Articles and Interviews provided below are among the most important Articles I have written because based on my experience and understanding of business models, I peeled this dirty onion deeper than what has been previously studied over the generations and the conclusion is irrefutable.

socialism (it does not deserve a capital) is self-terminating and socialism ends when it and the socialists run out of other people’s money. socialists under Article 1 of the U.S. Constitution have the right to flap their gums, however socialism is a con and a cancer upon society which allows for the unfettered theft of all taxpayers and the creation of the economic catastrophe all societies will face and as such must be codified into law as illegal so that it never happens again.

Is the Federal Reserve, just like the school districts, a socialist enterprise? First, what is socialism?

In short, socialism is an economic and political philosophy encompassing social ownership of the means of production, as opposed to private ownership. It is a means to transfer wealth from those who earn it to those who do not, quite often in tandem with emotional extortion of those who earn it. Those in government on both sides of the isle who allow socialism to occur are just as guilty because not only did they refuse to adhere to the black letter of the law but they took your tax dollars into their pockets in the process.

Consider “ JEFFERSON’S OPINION ON THE CONSTITUTIONALITY OF THE BANK”, from February 15, 1791, copied from The Writings of Thomas Jefferson, ed. by H. E. Bergh, Vol. III, p. 145 ff.

“The bill for establishing a national bank, in 1791, undertakes, among other things,--

1. To form the subscribers into a corporation.

2. To enable them, in their corporate capacities, to receive grants of lands; and, so far, is against the laws of mortmain.

3. To make alien subscribers capable of holding lands; and so far is against the laws of alienage.

4. To transmit these lands, on the death of a proprietor, to a certain line of successors; and so far, changes the course of descents.

5. To put the lands out of the reach of forfeiture, or escheat; and so far, is against the laws of forfeiture and escheat.

6. To transmit personal chattels to successors, in a certain line; and so far, is against the laws of distribution.

7. To give them the sole and exclusive right of banking, under the national authority; and, so far, is against the laws of monopoly.

8. To communicate to them a power to make laws, paramount to the laws of the states; for so they must be construed, to protect the institution from the control of the state legislatures; and so probably they will be construed.

I consider the foundation of the Constitution as laid on this ground--that all powers not delegated to the United States, by the Constitution, nor prohibited by it to the states, are reserved to the states, or to the people (12th amend.). To take a single step beyond the boundaries thus specially drawn around the powers of Congress, is to take possession of a boundless field of power, no longer susceptible of any definition.

The incorporation of a bank, and the powers assumed by this bill, have not, in my opinion, been delegated to the United States by the Constitution.”

Society, including Judges and Congress, were warned by Thomas Jefferson, Thomas Paine, George Washington, Milton Friedman, and dozens of other critical thinkers and all were ignored to the point of where we now are as a society which is the self-termination of socialist policies of which the Federal Reserve and the school districts are proof that their actions have caused over 42,000,000 households to be in harms way of bankruptcy or losing the roof over their head. See the Amicus Brief to the SCOTX .

The inflation policy of the Federal Reserve is a lie. In The Case Against the Fed, Murray Rothbard argued in 1994 that, although a supposed core function of the Federal Reserve is to maintain a low level of inflation, its policies (like those of other central banks) have actually aggravated inflation. This occurs when the Fed creates too much fiat money backed by nothing. He called the Fed policy of money creation "legalized counterfeiting" and favored a return to the gold standard.

It is important to realize that attorneys, who are officers of the court and held in esteem, are often at the center of the fraud i.e. Jerome Powell. Their job requires them to A.) adhere to the law, B.) understand the history, and C.) be able to use simple math. They failed not just at the Fed but throughout government both at the State and Federal levels. Therefore, these attorneys are either complicit in aiding and abetting for the purpose of having a job to be held in esteem, or completely ignorant by intent. There is no rosy picture to be painted here because the evidence is irrefutable. This is exactly why the actions of legitimate Judges is so crucial and why I keep stating that either the black letter of the law exists or it doesn’t…choose wisely! If the black letter of the law does not exist, and or has no protections under law, then it is the judges themselves which have allowed the support of the creation of Institutionalized Systemic Moral Hazard and thus promoted the very existence of the fraud upon society being that of the Federal Reserve and the School Districts.

These are just a few of the headlines within the last 2 weeks of pure socialism and the theft of your tax dollars by fraud:

New York Scammers – Adult Day Care.
Minneapolis – Feed the Future – Day Care – Medicaid – Medicare – Violence in the streets.
Baltimore admits tax dollars going to non-profits without vetting or review.
Los Angeles now under investigation.
Conroe Texas Hyatt Regency Convention Center. See article, Municipal Bankruptcy .

Overvaluation and over taxation of property taxes is fraud and the ramification of socialism and socialist policies.

Printing money to cover the interest on the fraudulent principal which equals fraud upon fraud causes inflation if not hyper-inflation.

Every instance mentioned above and thousands more across the U.S. and in your county, all create inflation and you are paying for it. All of society is paying for it.

In Venezuela, inflation hit 800 percent in 2016, 4,000 percent in 2017, and 130,000 to 2,000,000 percent in 2018.

In Iran 1 U.S. Dollar is the equivalent of 1.4 million Rial and inflation in December was over 42.2% and is now increasing at a clip of over 3% / month. This is why people are rioting in the streets.

UK, Germany, European Union, Minnesota, Seattle are all coming apart at the seams and this is due to inflation. The inflation was caused by socialism which is caused by socialists.

Revolutions are created by inflation and inflation is caused by socialism and socialism is created by socialists. socialism self-terminates when socialism runs out of other people’s money to steal and that self-termination often ends in civil war. Any society is just nine meals away from civil war. If you can’t afford food, or can’t find food, civil war is the result.

The value of your house has not gone up 100% in the last 5 years. This is an illusion. The taking of your real estate tax dollars went up 100% to help cover the fraud of socialism created by the socialists who transferred your money into the pockets of socialists.

Even the Federal Government is being ripped off as a large portion of the income tax dollars paid to the Federal Government is sent back to the States to pay for the fraud of socialism.

Treason is also a noun, meaning the betrayal of allegiance toward one's own country, especially by committing hostile acts against it or aiding its enemies in committing such acts. The betrayal of someone's trust or confidence. The offense of attempting to overthrow the government of the state to which the offender owes allegiance, or of betraying the state into the hands of a foreign power; disloyalty; treachery. Are the actions of the Federal Reserve treasonous? This is an interesting question to ponder. However, let me try and bridge the gap.

Overview of the Sackler Family's Actions

The Sackler family, owners of Purdue Pharma, has been heavily criticized for their role in the opioid crisis in the United States. Their actions have led to numerous lawsuits and widespread public condemnation.

The Key Issues:

Promotion of OxyContin

Purdue Pharma introduced OxyContin in 1996, marketing it as a safe and effective painkiller.

The Sackler family was aware of the drug's addictive potential but downplayed these risks to increase sales.

Financial Gains

From 2000 to 2015, the Sackler family reportedly made around $4 billion from OxyContin sales.

They prioritized profits over public health, continuing to promote the drug despite growing evidence of addiction and abuse.

Legal Accountability

Multiple lawsuits have been filed against the Sackler family, alleging they knowingly misled doctors and patients about the risks of OxyContin.

In 2018, several family members were named as defendants in lawsuits from various states, highlighting their direct involvement in Purdue's deceptive practices.

Response to the Crisis

The family has been accused of stigmatizing those affected by addiction, referring to them in derogatory terms.

Sought Profit from Crisis

They also sought to profit from the addiction crisis by developing treatments for opioid addiction, which critics argue is hypocritical.

Cultural Impact

The Sackler family has faced significant backlash, being labeled as one of the most reviled families in America . Their actions have sparked discussions about corporate responsibility and the ethics of pharmaceutical marketing.

Did the Federal Reserve since it’s creation in 1913 not follow the exact same blueprint as the Sackler family’s Purdue Pharma?

By 2021, facing more than 3,000 lawsuits from states, cities, and Native American tribes, Purdue filed for bankruptcy protection. Its first settlement proposal, valued at $6 billion, sought to shield the Sackler family from future civil lawsuits.

In August 2024, the U.S. Supreme Court rejected that plan, ruling that non-bankrupt individuals cannot receive immunity through a corporate bankruptcy case. The family then returned to the negotiating table, agreeing in January 2025 to the $7.4 billion settlement now awaiting court approval.

Under the deal, Purdue will be restructured into a public-benefit corporation, directing future profits to addiction recovery and education. But for many victims and legal experts, the settlement feels hollow. Financial accountability has come—but criminal accountability has not.

The Legal Question: Why No Criminal Charges?

The most enduring mystery of the opioid crisis is why, despite overwhelming evidence of harm, no Sackler has been criminally charged. The answer lies in the narrow way U.S. law defines corporate crime.

Under the Food, Drug, and Cosmetic Act (21 U.S.C. § 331) and the Controlled Substances Act (21 U.S.C. § 801 et seq.), prosecutors must prove that a specific individual knowingly and intentionally misled regulators or distributed a dangerous drug unlawfully. Proving that level of intent at the executive level is extraordinarily difficult.

Can the Federal Reserve be seen as the drug pusher of trillions of dollars of printed money also utilized by foreign countries, for which its existence is dependent upon? You may as well be the judge, because you and society are paying for it.

This Article follows a recent series of important Articles & Interviews that should be read by every citizen in the U.S. Canada and any country across the world that is suffers from the increased indignity of socialist activities.

Those Articles & Interviews include :

Just like judges can be impeached, so can City Council members be removed for cause. It takes an active local community to get the job done. It takes dozens of active local communities to get the job done on a national level. The corruption is irrefutable and traceable, and you are paying for it.

Please feel free to forward this article, the above articles and videos, as the more people (including government officials) that know, the better off we will all be. Your active participation in community is no longer an option. It is a civic duty and your civil right.

Repeal all property tax (including hotel taxes) in favor of the Uniform States Sales Tax.

socialism is a Noun. A synonym for socialism is theft, Last Rat Standing

Fri, 16 Jan 2026 17:57:24 GMT

socialism is a Noun

A synonym for socialism is theft

Last Rat Standing

By Mitchell Vexler, January 16, 2026

socialism (it does not deserve a capital) is defined as a political system advocating that the means of production and distribution are owned or regulated by the community as a whole.

Words that you may have heard of being representative of socialism are collectivism, communalism, communism, leftism, progressivism, Marxism, Bolshevism, Leninism, Trotskyism, welfarism, Maoism, neo-Marxism, social democracy, consumer socialism, utopian socialism, classless society, collective ownership, public ownership, state ownership, Stalinism, Sovietism Marxism-Leninism, Eurocommunism, totalitarianism, radical socialism, state ownership, rule of the proletariat, and state socialism.

All of these synonyms can be replaced with 1 word, and that word is THEFT.

Theft of your money or theft of any person / victim who earns money and pays taxes, where those taxes go into pet projects which the victims did not vote for and most of which are to fund or cover the compound cumulative interest on the non-stop production of fraud created by the fraudsters (socialists).

It is no coincidence that the 2 largest purveyors of fraud in the U.S. are the Federal Reserve and the School Districts which own the Central Appraisal Districts, both of which utilize the mantra of printing money. One, the Federal Reserve via its right hand, the U.S. Treasury, prints money, not backed by assets, at will. The other being the School Districts which print their money by committing accounting fraud and bond fraud, demanding continuous bond raises, delivering pre-determined budgets for their owned CAD to contrive additional property valuation fraud and thus over taxation for you the victim to pay for in perpetuity and as a result the median household income (MHI) shrinks at an alarming rate. In other words, the FED, School Districts and CADs are socialist organizations that execute the plan socialism while simultaneously paying themselves which is again, transferring your money via fraud into their pockets.

I have studied thousands of business models in my career, and to cut to the chase, socialism is a business model. It is a business model of fraud by fraudsters. Today, we are going to discuss one of the most important Articles I have written because based on my experience and understanding of business models, I peeled this dirty onion deeper than what has been previously studied over the generations and the conclusion is irrefutable.

socialism is self-terminating and socialism ends when it and the socialists run out of other people’s money and therefore mathematically proves its inability to be self-sustaining for hundred of years as the rule of 72 is much stronger than the viability of a socialist policy. socialism is a con and a cancer upon society, and as such, must be codified into law as illegal.

These are just a few of the very recent scams being exposed including:

New York Scammers – Adult Day Care,

Minneapolis – Feed the Future – Day Care – Medicaid – Medicare – Violence in the streets, and

Baltimore - admits tax dollars going to non-profits without vetting or review.

Overvaluation and over taxation of Property Taxes is fraud and is the ramification of socialism and socialist policies.

Printing money to cover the interest on the fraudulent principal equals fraud upon fraud and causes inflation.

Every instance mentioned above and thousands more across the U.S. and in your county, all create inflation and you are paying for it. All of society is paying for it.

In Venezuela, inflation hit 800 percent in 2016, 4,000 percent in 2017, and 130,000 to 2,000,000 percent in 2018.

In Iran 1 U.S. Dollar is the equivalent of 1.4 million Rial and the inflation in December was over 42.2% and now is increasing at a clip of over 3% per month. This is why people are rioting in the streets.

UK, Germany, European Union, Minnesota, and Seattle are all coming apart at the seams and this is due to fraud, being the fraud of inflation. Inflation is caused by socialism which is caused by socialists.

Revolutions are created by inflation and those that promote socialist policies. socialism self-terminates when it runs out of other people’s money to steal. Society is nine meals away from civil war. If you can’t afford food, or can’t find food, civil war is the result.

The value of your house has not gone up roughly 100% in the last 5 years. This is an illusion. The taking of your real estate tax dollars went up roughly 100% to help cover the fraud of socialism and put your money in the pockets of the socialists.

Even the Federal Government is being ripped off as a large portion of the income tax dollars paid to the Federal Government is sent back to the States to pay for the fraud of socialism.

This Article is now part of a recent series of important Articles all of which should be read by every citizen in the U.S. & Canada, and any country across the world, to help people understand that socialism is the scourge of any society.

The reason why these articles are so important is that our goal is to expose the fraud that touches the lives of every property owner and also, directly or indirectly, every single Citizen.

It has become clear in recent years that many people paid for an education that did not create a return on their investment. It is also clear that many so-called bastions of education have now been exposed as incubators for socialists. Isn’t it interesting, and not at all coincidental, that on average, across the U.S. 83% of all property taxes collected including municipal tax collections go toward education in 2 components being operations and maintenance (O&M) and interest and sinking fund (I&S) both of which are now proven to be counterproductive to the education of students. We have shown conclusively how the theft of your money by the school districts occurs. See School Districts and Accounting Fraud - Presentation to President Trump and Elon Musk and article, For the Kids .

The psychology of a socialist is detailed in “Chain the Doors of the Federal Reserve” linked above and further expanded below.

In this Article, an extension of Chain the Doors article and the writing of Thomas Pain presented in Thomas Paine - Quotes on Taxes & The Necessity of Taxation , I would like to dig deeper to show why socialism is the antithesis of capitalism and the U.S. Constitution and why socialism should be codified as illegal.

Without exception and without question, stealing private property is immoral and illegal. socialists via taxation, and as you are seeing play out in Minneapolis, want to make this acceptable. Very similar to Munchausen syndrome, which is a factitious mental condition where a person pretends to be ill or deliberately produces symptoms of illness to gain attention and sympathy and then states, in this case, give me what I need (a vote & money) to solve the very problem they created. This is what happens when governments and judges do not enforce the laws.

To crystallize the thought, money is property. Physical assets are property. Businesses are property. Your mortgage is property from which over time the amortization on your mortgage being the principal reduction is property. Bank accounts are property. In all 5 instances, which in totality are your life, the socialists want to steal your money.

Therefore, as socialists promote socialism (A) and socialism is theft (B) then socialists are thieves (C).

If A = B and B = C then A = C.

Not just theft of property but theft of Constitutional Rights and theft of the fabric of civilized society, being morals and respect for individual rights.

Could it be that the warped moral view of socialists is a direct result of an education system that does not teach how to survive and prosper in the real world thus making / brainwashing people to be dependent on the handouts from the government rather than participating in the only system that has worked for 5,000+ years which is capitalism?

Are the students to blame or are the teachers & politicians who are the preachers and screechers that create the fraud from which to take your tax dollars to support the fraud they created? The goal is to explain to those who have been misled to at least consider the truth of socialism which is that it leads to death and destruction and no rational person would want that upon themselves or their families.

The legal view of a socialist, which is not legal under Constitutional law, is that preventing others from stealing your private property is somehow tyrannical. This is beyond rational thought and can only be the ramification of intentional brainwashing from which those in positions of power, regardless of political party affiliation, including the press, receive the benefit of profit and or perceived power.

The organized retail theft rampant in the most socialist US cities like San Francisco, Los Angeles, Portland, Minneapolis is a ramification of socialist policies. The socialists make the argument that they are just the poor working class needing to prevent starvation and homelessness so stealing $5000 purses via smash and grab is perfectly acceptable. This is beyond rational thought.

The need for socialists to support theft and immigration for votes (which costs the taxpayers roughly $1 Trillion per year - $64K per illegal immigrant), also conveys that socialists are not capable of building an economy, or products and services, from scratch. socialism has never, in the history of the planet, worked because it terminates when it runs out of other people’s money to steal.

The socialist mantra: "The capitalist is stealing from the worker under wage labor slavery and the worker is not receiving the full value of their labor by pocketing what worker created".

Proof of the idiocy of the socialist cult mantra:

In truth, the worker and the capitalist employer voluntarily agree beforehand to wages and the work to be done, so it is not stealing.
The Worker would not be able to produce any goods or service of value if they are not working for their employer.
The worker can quit and engage in self-employment.
Setting up a business, making agreements with suppliers, arranging financing, and setting up a pipeline for customers, which is often what capitalists do, is labor and is much harder than a worker being involved in just one component of the company.
The worker can quit and join or start a coop if they believe that that type of work arrangement works better.

Society can’t fix what it can’t define and that is the main emphasis of these articles. In the furtherance of defining the issue, what was in the 1980’s and 1990’s a “democratic party”, no longer exists. This is not to say there are not reasonable Democrats who would like to participate in a legitimate political party to voice their opinion. This is to say that reasonable Democrats have been cast aside and overshadowed by pure socialism and that means pure theft. The truth is laid bare in the finances of the DNC which are now negative. If they can’t steal it, they are broke… just like Karl Marx the drunk and con who convinced people he would regale them about his socialist theory if they would by him a drink.

Gustave Le Bon, in his work "The Psychology of Socialism," argues that socialism and radicalism function similarly to religious movements. He suggests that political controversies often stem from contrived emotional responses rather than rational deliberation. This perspective highlights the role of psychology in shaping political ideologies and movements.

socialism as a cult involves extreme devotion to a leader or ideology, often characterized by manipulation and control over members' thoughts and behaviors. This can lead to a lack of critical thinking and a strong group identity, which may be reinforced through propaganda and social pressure.

Socialism cults often revolve around a charismatic leader who promotes a vision of a collective society. These groups may exhibit extreme devotion to their ideology and leader, which can lead to a strong sense of community among members. Key characteristics include beliefs that diverge significantly from mainstream society, use of manipulative techniques to maintain loyalty and control over members, and the focus is on communal ownership and the idea of working towards a common goal.

The psychology behind socialist cults can involve several factors including that members often find a sense of identity and purpose within the group, which can be appealing, especially in times of social uncertainty. A clear pattern of cognitive dissonance emerges as its members may experience discomfort when their beliefs are challenged, leading them to reinforce their commitment to the group via emotional outbursts, or violence. It is a combination of emotional outburst, violence, and non-willingness to participate in conversation which attempts to strip the rest of society from their first amendment rights of free speech. It goes one step deeper in that there are socialists working among government entities that undermine the purpose of the entities and knowingly with intent (claiming sovereign immunity) break the law (Ultra Vires) to support the socialist cult. This is the prime example of the wolf in sheep’s clothing.

Charismatic leaders play a crucial role in socialism cults. They often create an idealized image where the Leaders are portrayed as heroic figures, which can enhance loyalty. Propaganda is used to manipulate and maintain a positive image of the leader and the ideology. The leaders may invoke nationalistic sentiments to strengthen group cohesion while simultaneously failing to provide one stitch of evidence against the simple fact that socialism dies when it runs out of other people’s money to steal, including the theft of money from its own members.

See if you can figure out where this brilliant quote came from…."They'd come on a fishing boat and gorged themselves on coconut. So how do you get rats off an island, hmm? My grandmother showed me. We buried an oil drum and hinged the lid. Then we wired coconut to the lid as bait. The rats would come for the coconut and they would fall into the drum. And after a month, you've trapped all the rats. But what did you do then? Throw the drum into the ocean? Burn it? No. You just leave it. And they begin to get hungry. Then one by one, they start eating each other, until there are only two left, the two survivors. And then what? Do you kill them? No. You take them and release them into the trees. Only now, they don't eat coconut anymore. Now they only eat rat. You have changed their nature." This is the back story to Last Rat Standing and exactly what happens with socialism and socialists.

We are proving the truth with irrefutable evidence, on just a few inter-linked issues with fraudulent property tax at the nucleus, so that society, being rational thinking people, can deal with the fraud of the socialists and insist that the Republic of the United States stand strong under its Constitution and demand a written contract from every politician that outlines what that politician stands for and if that politician does not adhere to the contract can be removed for cause.

What we have discovered is very much applicable in Canada, and any other Country that claims to use Uniform Standards of Professional Appraisal Practice, in which USPAP has been rendered meaningless by intent to defraud, which proves the policy is that of socialism executed by socialists.

The Constitution of the United States of America or socialism???

Over 100 million people have died due to socialist, Marxist, and communist regimes—not from war, but from their own governments' brutal policies.

socialism is cloaked in promises of equality, justice, and “free” service including free education, healthcare, housing, and jobs. Its appeal is emotional, targeting the hopes of the marginalized and the frustrations of the working class. Beneath the promises, lies the historical reality of oppression, economic collapse, and human suffering.

With Cuba and many other countries listed herein, socialism has consistently failed not just economically, but leaves behind a legacy of destroyed economies, starved populations, and crushed freedoms.

The False Promise of Equality

socialism is all promise and no delivery, because it is a con. It centralizes power into the hands of the few, creating the very hierarchy and inequality it claims to abolish. The result is not a classless society, but a society where the government becomes the new elite, often ruled by a dictator, while the people suffer under authoritarian control and economic misery. socialism demands a revolution to tear everything down first (i.e. Minneapolis & Portland), in order to create its new communist infrastructure and you can also see this playing out live, Germany, European Union, and the UK, and further played out in our hemisphere in Cuba. You can see a portion of my story in Cuba in the Article called We Live in a World of Fraud and Fraudsters.

After Castro took over in 1959, he nationalized 70 percent of farmland. The result? Between 1957-58, the period before Castro, and 1963-64, by which time the nationalization had been done, the production of beef, pork, poultry, eggs, milk, corn, rice, root vegetables malanga and yucca, and potatoes all fell by a double digit, and typically a high double-digit, percentage. Output of their biggest crop, sugar, fell by 35 percent. Why didn’t Cubans starve? The Soviet Union bailed them out. The CEA report notes that Puerto Rico and Cuba had relative equal national incomes in 1950 but, by 2000, Cuba’s national income relative to Puerto Rico’s had fallen by almost two thirds. I saw stores in Cuba where the locals go, and even basic toiletries were not available.

The Soviet Union: Death by Utopia

The USSR was the first major experiment in socialism after the 1917 Bolshevik Revolution. Under Stalin, the state controlled all means of production, abolished private property, and forced collectivization of farms. The result was beyond catastrophic:

The Holodomor (1932–1933) – A man-made famine in Ukraine caused by forced collectivization. An estimated 3.9 million people starved to death.
Stalin's purges, gulags, and mass arrests led to millions of deaths and imprisonments, often without trial.
Shortages became the norm. Citizens stood in long lines for bread and toiletries. Just like

By the time it collapsed in 1991, the Soviet socialist system had claimed over 20 million lives through executions, famines, and forced labor.

Mao’s China: The Socialist Engine of Death

Under Chairman Mao Zedong, the Chinese Communist Party unleashed two of the deadliest campaigns in human history:

The Great Leap Forward (1958–1962) – Mao's forced collectivization and industrialization effort caused the deadliest famine in world history, killing an estimated 30–45 million people.
The Cultural Revolution (1966–1976) – A purge of perceived “capitalist” elements, during which millions were tortured, killed, or driven to suicide, and priceless cultural heritage was destroyed.

All of this was carried out in the name of socialist ideology. The people were promised prosperity. What they received was death and devastation.

Venezuela: The Collapse in Real Time

Venezuela, once one of Latin America’s richest countries, embraced socialism under Hugo Chávez and continued under Nicolás Maduro. Promising to redistribute oil wealth and end poverty, the regime nationalized industries, restricted private property, and eliminated market competition.

The result?

Inflation surpassed 1,000,000% in 2018, making its currency practically worthless.
Food shortages became widespread.
90% of the population fell below the poverty line.
Hospitals lacked basic medicine.
Children died of malnutrition.
Millions of Venezuelans fled the country, creating one of the largest refugee crises in the Western Hemisphere.

Far from bringing justice, socialism in Venezuela robbed an entire generation of hope.

Cuba and North Korea: Islands of Oppression

Both Cuba and North Korea remain socialist examples of totalitarian control:

Cuba , under Fidel Castro, jailed dissidents, eliminated press freedom, and kept the population under tight surveillance. To this day, internet access is restricted, dissent is punished, and scarcity remains the norm.
North Korea represents perhaps the most extreme example. Ruled by dictatorship, its citizens face starvation, public executions, and complete isolation. Meanwhile, the regime invests in nuclear weapons and luxury for the ruling class.

Why socialism Always Fails

socialism destroys the incentive to innovate, produce, and excel by removing profit and competition. It replaces market decisions with bureaucratic ones, often by force. Worse, it concentrates immense power in the hands of the state and as we have seen that power that is almost always abused.

My Father taught me that “absolute power corrupts absolutely”.

socialism is a con, and in every case, without exception, it led to:

Authoritarian control
Economic collapse
Suppression of dissent
Loss of personal freedom
Mass death

The Human Toll: Over 100 Million Dead

According to The Black Book of Communism , a publication by European scholars, the death toll from socialist regimes in the 20th century exceeds 100 million. These are not deaths from war, but from starvation, executions, prison camps, and purges and all were committed in peacetime by governments against their own people.

To the socialists, it is ok if you disagree with your position in life or even this Article. However, if you are a rational thinking person, then ask yourself if there is anything in this Article that is not true. As it is true, then what does that say about you as a person wanting to put yourself, your family, and alleged friends in harms way of a horrific con that has ended in death?

To the alleged Republicans, it is time to look at the policies you created and if they were for socialist reasons and ended in socialist non-stop compound cumulative interest on fraudulent bond debt, then you either move immediately to destroy those polices (all property tax) or the only thing that separates you from the socialists in Minnesota is the violence. If any new policy is a socialist policy, that is, for the benefit of the government and not the citizens, then that attempted policy should never see the light of day or be approved.

The Vexler case is now at the Supreme Court of Texas with the published statement that either the black letter of the law exists or it does not. See The Importance of the Vexler Case to Texas . The reason for this case is the refusal of the courts to deal with the legal dead zone they created and that is exactly for what the Supreme Court of Texas and the Supreme Court of the United States exists, Either the law exists or it doesn’t. We are about to find out .

Conclusion:

socialism delivers control, coercion, and collapse.

socialism promises free, but the truth is... the world can’t afford free.

socialism must be codified into law as illegal. It is a cult.

Call it what it is, and let’s deal with it.

Society, regardless of political affiliation (if any) should realize that a social policy is not socialism. A social policy could and should be a policy to eliminate hunger, or a policy to eliminate cancer. These social policies are set forth and defined by the government but financially executed without government involvement. The market must do the lifting, not the government.

Please forward this article to every social media outlet, government official, friends, family and neighbors that you can. The more people that know, the better off we will all be, and sooner rather than later. www.usdebtclock.org

Repeal all property tax in favor of the Uniform States Sales Tax.

Your involvement as a taxpayer and property owner is crucial.

www.mockingbirdproperties.com/dcad

www.realestatemindset.org

Chain The Doors of the Federal Reserve

Wed, 14 Jan 2026 20:20:15 GMT

C hain The Doors of the Federal Reserve

By Mitchell Vexler, January 14, 2026

On a few videos it was stated that I could take a 3 year old child and sit with that child on the floor and play head or tails. Heads interest rates go up by .25% or tails interest rates go down by .25% and that the young lady would be more predictive than the entirety of 23,000 employees at the Federal Reserve.

In the recent Daniela Cambone interview https://www.youtube.com/watch?v=uY5EpJl5fUo , which was based on What Do We Know and What are We Facing , I stated that the two largest purveyors of fraud are the Federal Reserve and the Central Appraisal Districts on behalf of the school districts which owns the CADs.

On yesterday’s video Travis found a clip of Milton Friedman in 1994 basically stating that it would be ideal to abolish the Federal Reserve, saying “I’ve long been in favor of abolishing it.” https://www.youtube.com/watch?v=8kD1YE7Pack .

I also have strong feelings about the Federal Reserve and have written several articles and documents referencing the Federal Reserve. See the DCAD page of the Mockingbird Properties website ( www.mockingbirdproperties.com/dcad ), including the Articles, Letters, Discussions section and The Federal Reserve is a Failure - Thesis & Fact Part 2 .

In the 1994 interview Milton Friedman stated, "it would be preferable to abolish the Fed entirely and just have government stick to a monetary growth rule."

Friedman answered, "Yes, it's preferable. And there's no chance at all of it happening." A Nobel prize winning economist (when a Nobel prize meant something) understood both issues, what they are and the ramifications as the creator of inflation that the Fed has become. I urge everyone to look on Wikipedia to see who Milton Friedman was. https://en.wikipedia.org/wiki/Milton_Friedman .

Since it’s founding in 1913 when the U.S. dollar was 1017 as compared to its value today at 30 meaning a 97% reduction in purchasing power which is the inflation that the Fed created by virtue of its right hand the U.S. Treasury printing money that was not backed by assets. Regardless of the reason for some of the money printing including war, the net result is government induced financial sins which created the non-stop inflation, erosion of your purchasing power and the liability to pay off their debt on your future. After all, it is easy to wage war or “we need a new building for the Federal Reserve” at an alleged upfront cost of $2.5 Billion (not including interest) when you can just tell the central bank to print the money at will, or as was just announced, the criminal investigation against the chairman of the Federal Reserve as a result of the revised alleged cost of the under construction Federal Reserve building being $3.1 Billion. The Federal Reserve does not need or deserve a new building, or its existing building, and neither does any Central Appraisal District (CAD). All these buildings are a monument to their ego which does absolutely nothing for society. What these new structures do is perpetuate socialist policies at the expense of every citizen. The Federal Reserve only exists based on the corruption / devaluation it creates, which is for the benefit of the banks and not for the benefit of society. In truth the bankers that wanted the creation of the Fed knew what they were doing and understood the power of compound interest. The idiot politicians did not and now all of us pay the price via the devaluation of our purchasing power which is directly correlated with the continued compounding of interest that we all pay for and now for which the 2025 deficit requiring more money printing was $1.8 Trillion.

Just for clarity, in 1994 when Mr. Friedman stated that the Fed should be closed, after many years discussing the failures of the Fed, the U.S. National Debt was approximately $4.643 trillion. This amount represented about 64.5% of the country's GDP at that time. Today the U.S. National Debt stands at roughly $38,604,000,000,000 which is 128X Debt to GDP + we have roughly $127 Trillion of Unfunded Liabilities. See https://www.usdebtclock.org/ .

The Fed's performance has clearly become a house on fire. From 2008 to 2011, the central bank printed as much new money as entered the U.S. economy in the previous century and it grew the value of the financial instruments it bought as an instrument of this money generation by $1.35 trillion in just part of 2008. Just to be clear, the value it created is your (the totality of society) liability.

The Fed exists for the sole purpose of protecting the banks, which in itself is a creator of Institutionalized Systemic Moral Hazard and is now widely seen as a serial manipulator of market balloons, tech stocks, housing values, and the Consumer Price Index. (See the article, The Data is Cooked! )

The shenanigans at the Fed have mostly benefited the elite financiers who owned or trade assets which props up the stock market and which is clearly disconnected from main street Mom and Pop. The Fed does not exist for the benefit of society. It exists for the benefit of the banks, and you are paying for it. Examples of the shenanigans include: the Federal Reserve's damaging policies for the nonfinancial classes are paying interest on reserves and thus encouraging banks to quietly profit by not lending capital to Americans who might need it to build businesses or for any other personal goal; constantly propping up the financial sector, making it harder for other businesses to compete for capital; and near zero-interest-rate policies that make it harder for normal working people or big institutions to do well by saving, which ends in compelling society to become speculative investors and destroys the very fabric of a cohesive society.

Since its creation, the Fed has been anything but stable. It is schizophrenic and has never been on the right side of a decision. It is foreign thought within the organization to understand an amortization schedule and paying off debt is contrived heresy. Did you know that the Great Depression occurred 16 years after the creation of the Fed in 1913?

socialism is an alleged system of organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy. I used the word alleged because in the history of the planet socialism has never worked as it is a failed construct to begin. socialism is terminal in that it ends when it runs out of other people’s money to steal. socialism does not produce goods and services, it steals from those who do and the socialists are magically paid as the grifters in the middle.

The Fed has placed its aggressive form of financial cancer, a price-fixing machine, around the Globe and when the U.S. gets sick, so will the World. This situation is made even worse when the European Union, UK, and Germany are in the process of committing economic suicide via socialist policies and de-capping their industrial companies in favor of green environmental standard which can’t be met and for which their citizens can’t pay the cost of. Those that participate in this socialism will fail first. The sole goal of the U.S. is to avoid this economic catastrophe and printing money is not the answer. Credibility is the answer and credibility is established by admitting the problems of the fraud at the Fed, CADs, and School Districts, and first, stop the interest and then, claw back the interest on the fraud. President Trump is working top line revenue but that needs to be met with repealing all property tax in favor of the Uniform States Sale Tax, in combination with the closure of the FED and peeling back the interest on the fraud. If, between top line revenue and restoring the health of property owners we can get the debt to GDP on track for an immediate $10 Trillion in U.S. National Debt Reduction being closer to 80, rather than the current 128, Debt to GTP, then the current U.S. dollar and system can be saved. The alternative is the gold / metal standard and a repricing of precious metals to back the U.S. dollar which would have lost all credibility as a result of printing of money not backed by assets.

Given the above, the evidence shows that the Federal Reserve is not neutral on any decision and is a political device of complexity. Complexity by design creates dishonesty. The Fed is dishonest and is the weapon of socialism that threw its garbage, not only across the U.S., but across the Globe.

Major changes to the Federal Reserve’s monetary policy, pattern and practice, are unlikely to come quickly via Washington which is oblivious to the ticking by the nano-second of the growth of the compound interest. As throughout our history, real lasting change must come from the ground up and requires the involvement of every critical thinking individual.

As an add-on to the existence of the Fed and its chicanery, Fannie Mae and Freddie Mac (GSEs) are managed by the Federal Housing Finance Agency (FHFA) now under conservatorship, meaning they were bankrupt and had to be taken over. How did they get to conservatorship? Both entities are where retired socialists (aka what used to be called democrats) go after leaving public service, i.e. Barney Frank, who are grossly incapable of running a business or a government as they don’t understand anything about capitalism and they don’t care as long as you provide their drug of choice which is your money to fund their fantasies. So now you are asking what is the connection between the Fed, Freddie, and Fannie? The Federal Reserve's role is more about regulating the banking system (conning the public) and managing monetary policy (which has failed), while Fannie Mae and Freddie Mac focus on providing liquidity in the mortgage market which they can’t do without the existence of the Fed which is the adjuster of interest rates and controller of the money supply. Fannie and Freddie would not exist if the Fed did not exist and the market would be free capitalism, not simulated capitalism which is caused by the interference of the government in corporate business matters. The manipulation and printing of money is the root of the problem. The CADs and school districts also print money to support their bonds. You are the printer of their money in both the Fed, CADs, and School District bond fraud as the liabilities of these frauds in both instances are to be paid for by you… according to the fraudsters which also funds the fraudsters personal pockets as well as the providers of the loans and providers of the bonds.

Relationship Between the Entities

Conservatorship : Since 2008, both Fannie Mae and Freddie Mac have been under conservatorship due to financial instability. The FHFA manages their operations during this period. It was the Fed that allowed and promoted the mortgage-backed security crisis which became evident in 2007. It was the MBS crisis that brought down the market and Freddie and Fannie simultaneously. As I said, the Federal Reserve has never been good for society. All it did was allow the transfer of your money to their pocket.

Support from the Federal Reserve : While the Federal Reserve does not run Fannie Mae and Freddie Mac, it provided liquidity support through the purchase of their debt and mortgage-backed securities to allegedly “stabilize the housing market”. It did not stabilize the housing market at all. The end result was inflation from which the CADs further inflated by fraud the value, such that all property owners are paying property taxes not based on appraisal methods but based on supporting the fraud and the interest thereupon. The results of this criminality can be seen in this Amicus Brief .

A critical thinker would ask, what is the root cause of the socialist behavior? Let’s remember that the founder of socialism was a drunk named Karl Marx who convinced people to buy him drinks while he was opining to his theory of how community should work. What all those people did not and do not realize is that they were being played by an individual with psychosis known in today’s world as a guilt trip. A guilt trip is the experience of guilt due to another person's communication that leads to the emotional response. Guilt tripping, causing a guilt trip, is a form of emotional blackmail that is often intended to manipulate a person by preying on their feelings of guilt or responsibility. It is considered by many to be a toxic behavior that affects a person's well-being and relationships. Karl Marx was a drunk who preyed on the feelings of the patrons at the bar to pry money from those patrons to buy him liquor.

George K. Simon, the author of Understanding and Dealing with Manipulative People, interprets the guilt trip as a special kind of intimidation tactic. A manipulator suggests to the conscientious victim that they do not care enough, are too selfish, or has it easy. This usually results in the victim feeling bad, keeping them in a self-doubting, anxious and submissive posture. There are many forms of this psychosis that you might recognize which are codependency, emotional blackmail, gaslighting, mind games and presumption of guilt.

Socialist psychology emphasizes the importance of social interest and collective well-being which is the same pattern and practice being spouted by the admitted mayor of NY, a devout socialist, who when he leaves office will do so with much more money in his pocket and leave NY in shambles from which it may never regain. Study the 1968 riots in Detroit and Montreal. Guilt-tripping, the socialist mantra, is a form of emotional manipulation that can undermine healthy relationships by inducing feelings of guilt to control others.

In some contexts, guilt can be used manipulatively, especially in interpersonal relationships. This can manifest as "psychological socialism," where individuals shift blame to equalize responsibility, even when one party is more at fault. This tactic can undermine genuine accountability and create toxic dynamics.

The impact of these guilt trips on the victims (everyday normal thinking citizens) can have significant psychological effects, including emotional distress where the victims experience anxiety and low self-esteem, relationship strain due to manipulative guilt which damages trust and communication, and social alienation where individuals may feel isolated if they believe they are constantly being judged or blamed. Understanding that you, the everyday normal thinking person, are the victim of these intentional guilt trips is the first step to demand healthier interactions based on mutual respect and accountability. socialists, under the 1 ^st amendment to the U.S. Constitution have the absolute right to speak. What they do not and should never have acquired is the right to create socialism, as socialism is the exact opposite of what is required under the Republic of the United States of America as created under the Constitution to the United States of America.

Stop and think about the propaganda that has been blasted at you during the Obama and Biden administrations and all the evidence that exists now that proves their failings both personally and for each citizen of our country. It is clear that the world would have been better off if these people and their administrations never existed, meaning their existence was not for the benefit of society, it was for personal benefit (just like Karl Marx) and as I am now weaving the picture for you of intimidation, guilt, anxiety, and self-doubt and their requiring your submissiveness, you can start to see the exact nexus of this guilt trip being used by socialists ending in socialism which is an alleged system of organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy (just like Karl Marx planned and controlled his economy which revolved around the supply of liquor). As I stated above, never in the history of the planet has socialism ever worked as it is a failed construct to begin with and ends simultaneously when it and the socialists run out of other people’s money to steal. How socialism ends, is usually in civil war, famine, and death for the system to cleanse itself of the debt and debauchery. We are seeing this playout live in front of our eyes in Germany, UK, and the European Union, and we the U.S. were well on that track as a result of the socialists Obama and Biden and their co-conspirators. The failings of the Republican party and legitimate judges are their refusal to enforce the black letter of the law which has the effect of allowing the cancer spread by socialists to fester into socialism which chokes the ability of society to function, and which said socialism should never have existed in the shores of the U.S. because it is not allowed under the U.S. Constitution if the Constitution were properly enforced.

This is why I have stated in what may be one of the most important videos I was involved with, in a direct plea to President Trump to codify into law making socialism illegal in the United States, https://www.youtube.com/watch?v=cMLUnhR4uqo .

“Do you wish to know [when] that day is coming? Watch money. Money is the barometer of a society’s virtue. When you see that [commerce is conducted], not by consent, but by compulsion—when you see that in order to produce, you need to obtain permission from men who produce nothing—when you see that money is flowing to those who deal, not in goods, but in favors—when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice—[then] you may know [that day has arrived]”…written by Francisco d’Anconia.

Francisco d’Anconia was a copper magnate, heir to the centuries-old d’Anconia fortune, and one of the most enigmatic figures in Atlas Shrugged. As a child, he was a prodigy—charming, mischievous, and intellectually gifted. As an adult, Francisco appears to the world as a reckless playboy who behaves scandalously and squanders his wealth. In reality, he is an undercover agent of John Galt ’s strike, deliberately destroying his empire to prevent looters (aka socialists) from feeding off his productivity. His public façade of decadence masks a ruthless dedication to principle. Francisco endured hatred and ridicule to carry out his mission, sacrificing his reputation to dismantle the system that punishes ability (aka socialism).

The United States and the World are now suffering the pains of the results of socialism. Financial pain will be felt as the fraud is peeled back out of the system. However, that pain is trivial in comparison to letting the compound cumulative fraud continue as dictated by the existence of socialism. It ends very badly when the market no longer believes in the creditworthiness of the government and courts which acted in favor of socialism to keep the con going. Controlled demolition is the answer as compared to complete financial annihilation with massive down drops occurring on a daily basis in the financial markets. The common enemy is socialism and that applies even to the socialists who are too brainwashed to realize they have been manipulated by the Karl Marx’s of the world.

There are those that believe that bitcoin, or perhaps some rival cryptocurrency, will replace the Fed and that these coins will allow the transmission of value across the Globe as a means of free market action. There are those that believe real money and the real store of value is, and always was, precious metals which has been the case for the past 5,000 years. What both participants (digital coins or precious metals) are failing to realize is that their common enemy is the printing of money as a result of socialist policies and resulting socialism, not backed by assets which is a de-facto default, which causes inflation, and which causes loss of purchasing power. The courts, in great error, utilize the concept of sovereign immunity to protect the corrupt entities. The corrupt individuals at those entities (the socialists on both sides of the isle) fight adjudication by ignoring Ultra Vires which is why we are at the Supreme Court of Texas now, which is to prove that either the law exists or it does not. See Motion for Re-Hearing filed in SCOTX .

The two largest purveyors of fraud in the U.S. are the Federal Reserve and the School Districts which own the CADs and this is the Civil Rights issue of our generation. The taxes necessary to feed these frauds and fraudsters amount to a higher percentage of income as income decreases or that places a proportionately higher burden on lower-income taxpayers and that is the definition of a regressive tax and in this case it is a higher tax to pay for the fraud above what a normal tax would be but for the existence of the fraud and fraudsters. You can substitute the word regressive with tax on fraud and end at the exact same problem which is socialism. Under no circumstance can clear thinking Mom and Pop afford to sit idle and be victims of the screeching the socialists. Apathy is what the socialists want to create as it leaves the gap large enough in society for socialism to exist. socialism is easy to kill…take away the money and that is accomplished in mass by clear thinking people who get involved and insist that the black letter of the law be followed and the accounting and a accountability is true, thus the largest Civil Rights movement of our generation as it is your Civil Rights including the 1 ^st , 5 ^th , 14 ^th , and 16 ^th Amendments to the U.S. Constitution which have been stripped by the socialists.

In my humble opinion, the true solution is to Chain the Doors of the Federal Reserve and repeal all property tax in favor of the Uniform States Sales Tax. The benefits are numerous, including prohibiting secession, prohibiting civil war, eliminating equity stripping, eliminating the frauds seeing play out in Minnesota and shortly across the U.S., restoring the Republic under law as codified in the U.S. Constitution, and eliminating socialism from the shores of the United States. See the chart, Benefits of Eliminating Real Estate Tax in Favor of Uniform State(s) Sales Tax.pdf .

If we do not lead, we will succumb to the design of socialism which is terminal.

The Federal Reserve is a Failure - Thesis & Fact Part 2

Tue, 13 Jan 2026 19:40:29 GMT

T he Federal Reserve is a Failure

Thesis & Fact Part 2

Also see “ Thesis & Fact – Derivatives ” (Part 1)

By Mitchell Vexler, April 19, 2025 (as re-edited & re-posted here January 13, 2026)

See the Report from the Office of the Inspector General:

https://oig.federalreserve.gov/reports/Cross_Cutting_Final_Report_9-30-11.pdf

The Report is well written and very detailed. Notice the Date of September 2011.

Report concerns the analysis of failed State Member Banks and how to define processes to prohibit such failures in the future.

Below is the September 30th letter from Associate Inspector General Castaldo outlining the cause of the bank failures.

Prior to the letter above, a September 28th letter that was written to Associate Inspector General Castaldo. This September 28th letter outlines multiple recommended courses of actions, of which to this day, none were followed .

Let me restate the exact text from above response which is the reason for the failure of the Federal Reserve which is clearly stated in this Report and which is the failure to enforce any requirements as seen below :

In the draft report, the OIG recommends that the Director of Banking Supervision and Regulation (BS&R) consider taking various actions to address common elements that contributed to State Member Bank (SMB) failures. Specifically, the OIG recommends that BS&R consider the following recommendations: (1) supplement current examiner training programs with case studies from recent SMB failures, (2) develop standard examination procedures to evaluate compensation agreements, and (3) provide supplementary guidance on commercial real estate (CRE) concentrations. Also suggested for BS&R’s consideration are to: (1) continue to work with other federal banking agencies to identify opportunities to enhance Prompt Corrective Action (PCA), (2) define the appropriate supervisory response for highly concentrated SMBs that continue to pursue aggressive growth strategies, and (3) implement a supervisory approach that encourages strong and consistent supervisory action during stable economic periods.

BS&R generally agrees with the specific recommendations and matters for consideration. The recommendation to enhance examiner training with case studies from recent failures will be considered as examiner education programs are reviewed and revised. Some case studies have already been presented by Federal Reserve staff via the Banking Supervision Learning Center. With regard to compensation agreements, interagency work is underway to prescribe regulations and guidelines to address incentive compensation based on the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This work, along with the recommendation to develop standard examination procedures for all SMBs will be considered in any future revisions to examination processes. Further, work is underway to update interagency guidance related to CRE concentrations.

The above response is political ass-covering, double speak, and a giant middle finger to Congress and the Citizens of the United States of America.

What did the Federal Reserve do about the requirements… NOTHING . Except, continue to blow the fraud bubble even larger.

Where are we today? We are facing the largest economic catastrophe the globe has ever known which is the creation of the fraud and debt bubble and the derivatives thereon all of which are cumulatively compounding.

By not following this single well written Report, at a minimum the Federal Reserve should have its doors chained shut for Contempt.

Let’s consider some more recent events.

In March 2023, the Federal Reserve responded to the failures of Silicon Valley Bank (SVB) and Signature Bank. It joined other regulators in lifting the $250,000 per account deposit insurance for customers of those two banks, described in more detail in “How does deposit insurance work?”

What is a lender of last resort?

Banks, in general, take deposits from their customers (who often can take their money out whenever they want) and put the money into loans or securities (often longer-term commitments that sometimes cannot be easily sold). In normal times, when most depositors are content to leave their money in the bank, this works well. Banks are required by law to maintain a portion of deposits in cash so that they can meet customer demands for withdrawal.

However, if depositors withdraw a lot of money at once, the bank may not have enough cash on hand to satisfy them. This can happen if depositors lose confidence in the bank’s ability to meet all withdrawal demands so every depositor tries to be at the head of the line – a run on the bank, a phenomenon explained by economists Douglas Diamond and Philip Dybvig for which they shared a Nobel Prize in 2022. If the bank cannot borrow money, it may be forced to call its loans or sell other assets quickly, sometimes at a loss, to raise cash. A lender of last resort – a central bank like the Federal Reserve – provides loans to banks so they can meet depositor demands. The banks pledge collateral – bonds, loans or other assets – so the central bank isn’t at risk of losing money.

What is the Bank Term Funding Program?

The Bank Term Funding Program (BTFP) is a lender of last resort facility. It was created in March 2023, after the failures of Silicon Valley Bank and Signature Bank, to lend to other banks that had big unrealized losses on their holdings of government bonds and were, therefore, at risk of large-scale withdrawals of deposits. The facility allows banks to exchange assets such as U.S. Treasuries for cash at their full-face amount, regardless of the current market value. These loans are allegedly for up to one year at an interest rate equal to the one-year overnight index swap (OIS) rate, plus 0.10 percentage points. This rate varies daily. As of April 28, 2023, the BTFP rate was 4.92%. As of May 8, the BTFP rate was 4.81%. As of May 3, banks borrowed $75.8 billion through the Bank Term Funding Program, down from $81.3 billion the week before.

The Treasury has earmarked $25 billion to backstop the BTFP, but the Fed said it does not anticipate it will have to draw on that, which was at that time.

The Fed said in January 2024 that the BTFP would stop making loans, as scheduled, on March 11, 2024. It also adjusted the interest rate on any new loans to be no lower than the interest rate that the Fed pays on bank reserves. Until that change, some banks borrowed heavily at the BTFP and deposited the funds as reserves at the Fed at a higher interest rate to make a profit. As that maneuver became more attractive, bank borrowing from the program rose from about $100 billion in June 2023 to $161.5 billion in mid-January 2024.

What is the discount window?

The Fed traditionally exercises its lender of last resort function through the discount window, a permanent facility that lends cash to banks, often for just a few days or weeks. The banks pledge collateral to the Fed but, unlike the BTFP, the Fed will not lend against the full-face value of the bond or loan; instead, it lends up to the market value of the security or loans and, in some cases, takes what’s known as a haircut to make sure the collateral is sufficient to cover the loan. Until recently, the Fed imposed a haircut between 1% and 5% on Treasuries, agency debt (Fannie Mae and Freddie Mac), and mortgage-backed securities, but it eliminated those haircuts after the Silicon Valley Bank collapse. The discount rate, the interest that banks pay on these loans, is set by the Federal Reserve Board.

The discount rate, the interest that banks pay on these loans, is set by the Federal Reserve Board. As of May 8, it was 5.25%.

Banks are sometimes reluctant to borrow at the discount window because, if word gets out, it may suggest that the bank is in trouble. Borrowing at the discount window soared from $4.6 billion on March 9 to $152.9 billion on March 15 and fell to $67.6 billion on April 12. This decrease was largely offset by increased borrowing through the Bank Term Funding Program. As of May 3, discount window borrowing was $5.3 billion, down sharply from $73.9 billion the week before, because the Fed’s substantial loans to First Republic were moved to another category on the Fed’s books—one that consists of loans to banks that have been taken over by the FDIC, including SVB, Signature Bank, and First Republic. These loans totaled $228.2 billion as of May 3.

The Bank Policy Institute, which represents U.S. banks, speculated that borrowing at the discount window was heavier than at the BTFP because banks had pre-positioned collateral at the discount window or because they were simply more familiar with borrowing at the discount window than through the new facility.

What are swap lines?

Many banks overseas borrow and lend in U.S. dollars. At times of financial stress, foreign banks often face demands for U.S. dollars that they can’t easily meet. Foreign central banks can print their own currencies – euros, yen, Swiss francs, British pounds – to lend to their cash-strapped banks, but they can’t print U.S. dollars. During the Global Financial Crisis, the Fed began a series of agreements with foreign central banks under which the Fed would swap U.S. dollars for foreign currencies with other central banks; the foreign central banks pay interest to the Fed. At the program’s peak, swaps totaled more than $580 billion, more than a quarter of all the Fed’s assets. Until March 2023, the Fed conducted these swaps once a week. As of May 3, the Fed had $410 million in these swaps outstanding. On March 19, 2023, it said it would begin daily swaps at least through the end of April “to improve the swap lines’ effectiveness.”

What about interest rates?

On March 22, the Fed raised its target for short-term interest rates by another ¼ percentage point to a range of 4.75% to 5%, but it significantly changed its guidance on future interest rates moves. Fed Chair Jerome Powell said in his press conference: “[W]e no longer state that we anticipate that ongoing rate increases will be appropriate to quell inflation; instead, we now anticipate that some additional policy firming may be appropriate.” In its statement, the Fed’s policy committee said, “The U.S. banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain.”

What role did the Fed play in supervising Silicon Valley Bank?

The Federal Reserve – primarily the Federal Reserve Bank of San Francisco – was Silicon Valley Bank’s primary regulator. Signature Bank, a New York bank that also failed in March, was regulated primarily by the Federal Deposit Insurance Corporation (FDIC). Both banks also were overseen by state regulators.

What did the Fed’s review of its supervision of SVB find?

On April 28, Vice Chair for Supervision Michael S. Barr released a lengthy review of the Fed’s supervision and regulation of SVB. The Fed highlighted four causes of the bank’s failure:

SVB’s board of directors and management failed to manage their risks.

Fed supervisors did not fully appreciate the extent of the vulnerabilities as SVB grew in size and complexity.

When supervisors did identify vulnerabilities, they did not take sufficient steps to ensure that SVB fixed those problems quickly enough.

The Federal Reserve Board’s response to a 2018 law—the Economic Growth, Regulatory Relief, and Consumer Protection Act, which lightened the oversight of some mid-sized banks—and the shift in top Fed policymakers’ guidance to supervisors impeded effective supervision by reducing standards, increasing complexity, and promoting a less assertive supervisory approach.

No one knows the future, but as I have stated and shown there are ways to help model potential outcomes. Mahalanobis Study, Monte Carlo, Rule of 72, Amortization Schedules, Black Scholes, Bond Analysis etc. How could these tools not have been deployed in a uniform manner across the Member Banks unless by intent to ignore??

The Federal Reserve has failed to adopt and adhere to any rules and regulations and even if they did, a “situation” would arise to in their mind adjust to a “temporary rule”. From time to time attempts to call for goal posts one of which was using the Taylor Rule by John Taylor as suggested by Alan Meltzer and discussed by Greenspan, but the result over time has been…we will just move the goal posts all while be completely oblivious to the ramifications of their actions.

In the world of the Federal Reserve, monetary policy is…just make it up, get a check and hope for the best, all while being the world’s largest purveyor of fraud. The Federal Reserve has no discipline because it’s existence is 100% to keep banks in business regardless of how careless and unprofitable those banks are.

The Federal Reserve has never been on the right side of an issue because its existence is a failed social construct to begin with. Then adding in the Rule of 72 and prohibiting the failure of unprofitable banks, simply blows the bubble of fraud even larger. The Great Depression of the 1930s and the Great inflation of the 1970s and the Great Recession in 2008 are more scars left on society.

The Fed made massive purchases of housing securities to bail out the industry that produced the crisis. Former Chairman Alan Greenspan warned against and ended purchases of government backed mortgages. Then Bernanke-Yellen Fed ignored that advice.

The Fed pays excessive attention to current data announcements and future consequences, which are mathematically quantifiable, be dammed. An example is the focus on monthly reports of employment growth. These numbers are subject to major revision. During the sluggish recovery after 2009, revised data the following month often reversed the direction of change. Markets responded because they expected the Fed to respond. The Fed was aware of the poor quality of the information but continued to rely on it because of the excessive attention it gives to current events. What did the Fed do to insist on the most accurate data available? Nothing. This leads to the CPI being the big lie. See article, Fed Analysis: CPI, The Ultimate Big Lie.

As part of the excessive attention given to monthly and quarterly data, several Fed staffs produce forecasts of quarterly GDP, inflation, and other variables. Their forecasts are no better than a monkey throwing darts at a board. Unfortunately, we are in a world where the monkeys have created a debt and fraud bubble so large that there simply is not revenue to pay it off and this is not just an American problem, but a Global problem.

The Fed’s forecasts of predicting stronger economic recovery than what actually occurs is a wish to help keep the illusion of their importance and fraud hidden from the Public. Such false predictions are proof positive that there are no models being created and or those models are buried to keep the narrative moving. Either way, that is fraud by omission.

For every action there is an equal and opposite reaction. Any huge increase in regulation, starting with Sarbanes-Oxley, Dodd-Frank has only added to the problems as they are nothing more than a cover-up designed to smooth the feathers of the Public and from which the Fed will maneuver around to keep the illusion going.

There are those who believe the Fed served a useful purpose in 2008 to prevent a possible financial crisis. I disagree as they were the cause of the 2008 financial crises. Debt upon Debt and then levered up can only end in disaster. The Fed did not solve the 2008 crisis and by its existence, has allowed those debt, simply under the Rule of 72 to balloon into the Trillions and then has printed more money on top of that, as you will see below.

The chief beneficiaries of Fed policy (easy money i.e. QE Quantitative Easing) gained from the rise in the stock markets are the speculators, short-term traders and the public who gets induced into debt (housing purchases) they cannot afford based on math that does not work. What they fail to understand is that unlike the stock market where the perceived valued can rise by accepting a higher price to earnings ratio, the economy benefits from the rise in asset prices when new investment is created. The Federal Reserve straight lines cocaine into the arteries of the banks under the illusion that the banks will push that money back into the economy from which new investment will be created. They are simply wrong because you can’t have new investment when the existing debt load placed upon the builders of investment is so great the current debt cannot be paid off. The cocaine being the Federal Reserve itself is the failed social construct.

The Fed’s decision to maintain low interest rates permitted the Federal government to finance enormous budget deficits at the low rates. When interest rates rise, holders of government debt will experience large losses as we saw in 2023.

The Fed’s policy of keeping short-term interest rates at historically low values was supposed to encourage borrowing. That failed. In keeping interest rates low, the Fed neglected the other side of the loan market—the lenders. Lenders could not find many profitable opportunities at the low rates that covered the risk on commercial loans. Also, they faced high costs of banking and financial regulation. Many small and medium-sized banks went out of business.

Former Chairman Paul Volcker showed how the Fed could achieve good results by following a medium-term strategy and by controlling money growth. The Bernanke-Yellen Fed’s mistake was the decision to replace that successful policy with an alternative that is extraordinarily detrimental to society and that is allowing the fraud of hidden bank failures and the printing of money to cover up the fraud.

The Fed has existed since 1913 and has been a disaster for the World since day 1. Doing the same thing over and over again and expecting a different result is the definition of insanity. The Federal Reserve does not work for the Public, they exist for the banks.

Question:

Can a monetary policy be defined and enumerated such that all of society can understand the logic, and can that policy be transparent. The answer is yes and it can be done with a handful of people, not 23,000 and that handful would answer directly to the President. The Federal Reserve is way beyond repair.

There is now an opportunity Globally to restructure / workout and work down derivatives which are not backed by hard assets (paper chasing paper) which was allowed to be created and left un-daunted by the Fed and that is one more reason why the Fed must be shut down. They are incapable of fixing anything and very capable of destroying everything.

Possible Solution:

Going back to isolationism and dismantling all the global neoliberal economic system which is compelling the country to unceasingly provide additional mountains of US Dollar to the neoliberal globalized economy; which additional mountains of USD comes from additional mountains of debts via printing from the Fed. This is the dismantling of the current international monetary system and the re-establishing of the American Culture and allowing other Countries to re-establish their Culture which they subbed out.

Could it be that led by his instinct, Donald TRUMP before he became President for the 2 ^nd time, has foreseen that the world is undergoing a real mutation and therefore has chosen to place his country on the track of a peaceful re-establishment of the American Culture, so as to stop the continuous production of war and strife across the Globe.

Isn’t it interesting that huge crowds of people, including economists, globalists, grifters, and press, condemn, the very notion of American Culture while being completely ignorant of the economic damage that printing money has caused. It seems that President Trump understands that the world is changing and by so doing, deserves a complete dismantling of the today’s international monetary and financial order based on the US Dollar.

Throughout the Globe, there is already too many US Dollars which is too much debt created by the United States.

Again, there is now an opportunity Globally, to restructure / workout and work down derivatives which are not backed by hard assets (paper chasing paper) which was allowed to be created and left un-daunted by the Fed and that is one more reason why the Fed must be shut down. They are incapable of fixing anything and very capable of destroying everything.

On Dec. 23, 1913, President Woodrow Wilson signed the Owen Glass Act, creating the Federal Reserve. As we note its centennial, what has the Fed accomplished during the last 100 years?

The stated original purposes were to protect the soundness of the dollar and banks and also to lessen the jarring ups and downs of the business cycle. Oops.

Under the Fed’s supervision, boom and bust cycles have continued. Three of them have been severe: the Great Depression, the stagflationary period of 1974-82, and the current “Great Recession.” Bank failures have occurred in alarmingly high numbers. Depending on what measurements are used, the dollar has lost between 95 and 98 percent of its purchasing power. (Amazingly, the Fed’s official position today is that inflation is not high enough, so the erosion of the dollar continues as a matter of policy.)

Having failed to achieve its original goals, the Fed also has had a miserable record in accomplishing later goals. The 1970 amendments to the Federal Reserve Act stipulated that the Fed should “promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” In baseball parlance, the Fed has been “0-for-three.”

First, the premise that the central bank can “fix” unemployment is erroneous. It is based on the Phillips curve—the discredited academic theory positing a trade-off between inflation and employment. Unemployment is fundamentally a price problem, not a monetary problem; therefore, the cure for unemployment is a free market in wages, not any particular monetary policy. The Fed’s current policy of persisting in “quantitative easing” until the official unemployment rate reaches a targeted level is the wrong medicine.

Second, central bank tampering with interest rates is the fundamental cause of, not the cure for, the boom and bust cycles; thus, the Fed should cease from tampering with interest rates.

Finally, focusing on “stable prices” is looking at the problem backwards. The Fed shouldn’t try to influence prices any more than a nurse should influence the readings of a thermometer. The “fever” that causes prices to rise and purchasing power to fall is sick money. “Heal” the money (i.e., do away with a fiat currency and abolish fractional reserve banking) and prices will take care of themselves.

Politically, the Fed is repugnant to the American system. Its chairman is commonly referred to as the second most powerful person in the country. In a democratic republic, should the second most powerful policymaker be unelected?

The Fed is unaccountable. Former congressman and presidential candidate Ron Paul tried to get Congress to mandate an audit of the Fed for years, but a majority of his colleagues seem afraid to take this simple, prudent step. Here, let me share an experience I had in 1981: A young congressman (later the governor of his state) gave a talk in which he asserted that Congress essentially was helpless because of the Fed’s enormous power. Afterward, I approached him and said that the creator is superior to the creation, and that since the Fed was created by an act of Congress, it could be reformed or abolished by an act of Congress. The congressman turned ashen and fell silent. You can decide for yourself whether congressmen are afraid of the Fed or are using the Fed to get themselves off the hook, but unless something changes, Congress will allow the Fed to remain unaccountable.

The Fed is unconstitutional. Thomas Jefferson argued that Congress has no authority to create a bank and give it a monopoly over our money, because such actions “are not among the powers specially enumerated” in the Constitution. I agree. The Constitution plainly designates the people’s elected representatives as the guardians of their money (“Congress shall have Power…To coin Money, [and] regulate the value thereof…”—Article I, Section 8.)

The Fed is a rogue entity. The Fed has arrogated to itself arbitrary powers to create however much money it wants and buy whatever financial assets—whether government, private, or even foreign—it chooses. The Fed even keeps its own Inspector General in the dark.

It is anomalous that there should be such a powerful, unrestrained institution as the Fed in our body politic. The Fed’s centennial is nothing to celebrate. Instead, this institution of awesome, arbitrary powers makes a mockery of constitutional checks and balances. It poses a threat, not just to our currency and economic well-being, but to liberty itself. It’s a tragedy that this institution has lasted as long as it has.

Below are excerpts from Wikipedia, https://en.wikipedia.org/wiki/Criticism_of_the_Federal_Reserve .

Creation

Main article: History of the Federal Reserve System

An early version of the Federal Reserve Act was drafted in 1910 on Jekyll Island , Georgia , by Republican Senator Nelson Aldrich , chairman of the National Monetary Commission , and several Wall Street bankers. The final version, with provisions intended to improve public oversight and weaken the influence of the New York banking establishment, was drafted by Democratic Congressman Carter Glass of Virginia . ^[3] The structure of the Fed was a compromise between the desire of the bankers for a central bank under their control and the desire of President Woodrow Wilson to create a decentralized structure under public control. ^[4] The Federal Reserve Act was approved by Congress and signed by President Wilson in December 1913. ^[4]

Inflation policy

In The Case Against the Fed , Murray Rothbard argued in 1994 that, although a supposed core function of the Federal Reserve is to maintain a low level of inflation , its policies (like those of other central banks ) have actually aggravated inflation. This occurs when the Fed creates too much fiat money backed by nothing. He called the Fed policy of money creation "legalized counterfeiting " and favored a return to the gold standard . ^[5] He wrote:

[I]t is undeniable that, ever since the Fed was visited upon us in 1914, our inflations have been more intense, and our depressions far deeper, than ever before. There is only one way to eliminate chronic inflation, as well as the booms and busts brought by that system of inflationary credit: and that is to eliminate the counterfeiting that constitutes and creates that inflation. And the only way to do that is to abolish legalized counterfeiting: that is, to abolish the Federal Reserve System, and return to the gold standard, to a monetary system where a market-produced metal, such as gold, serves as the standard money, and not paper tickets printed by the Federal Reserve. ^[6]

The Federal Reserve has been criticized as not meeting its goals of greater stability and low inflation. ^[7] This has led to a number of proposed changes including advocacy of different policy rules ^[8] or dramatic restructuring of the system itself. ^[9]

Milton Friedman concluded that governments do have a role in the monetary system, ^[10] he was critical of the Federal Reserve due to its poor performance and felt it should be abolished. ^[11] ^[12] Friedman believed that the Federal Reserve System should ultimately be replaced with a computer program . ^[9] He favored a system that would automatically buy and sell securities in response to changes in the money supply. ^[13] This proposal has become known as Friedman's k-percent rule . ^[14]

Others have proposed NGDP targeting as an alternative rule to guide and improve central bank policy. ^[15] ^[16] Prominent supporters include Scott Sumner , ^[17] David Beckworth, ^[18] and Tyler Cowen . ^[19]

Congress

Several members of Congress have criticized the Fed. Senator Robert Owen , whose name was on the Glass-Owen Federal Reserve Act , believed that the Fed was not performing as promised. He said:

The Federal Reserve Board was created to control, regulate and stabilize credit in the interest of all people. . . . The Federal Reserve Board is the most gigantic financial power in all the world. Instead of using this great power as the Federal Reserve Act intended that it should, the board . . . delegated this power to the banks. ^[20] ^[21]

Representative Louis T. McFadden , Chairman of the House Committee on Banking and Currency from 1920 to 1931, accused the Federal Reserve of deliberately causing the Great Depression. In several speeches made shortly after he lost the chairmanship of the committee, McFadden claimed that the Federal Reserve was run by Wall Street banks and their affiliated European banking houses. In one 1932 House speech (that has been criticized as bluster ^[22] ), he stated:

Mr. Chairman, we have in this country one of the most corrupt Institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve banks; . . . This evil institution has impoverished and ruined the people of the United States . . . through the corrupt practices of the moneyed vultures who control it. ^[23]

Many members of Congress who have been involved in the House and Senate Banking and Currency Committees have been open critics of the Federal Reserve, including Chairmen Wright Patman , ^[24] Henry Reuss , ^[25] and Henry B. Gonzalez . Representative Ron Paul , Chairman of the Monetary Policy Subcommittee in 2011, is known as a staunch opponent of the Federal Reserve System. ^[26] He routinely introduced bills to abolish the Federal Reserve System, ^[27] three of which gained approval in the House but lost in the Senate. ^[28]

Congressman Paul also introduced H.R. 459: Federal Reserve Transparency Act of 2011, ^[29] ^[30] This act required an audit of the Federal Reserve Board and the twelve regional banks, with particular attention to the valuation of its securities. His son, Senator Rand Paul , has introduced similar legislation in subsequent sessions of Congress. ^[31]

Great Depression (1929)

Money supply decreased significantly between Black Tuesday and the Bank Holiday in March 1933 when there were massive bank runs across the United States

Main article: Causes of the Great Depression

Milton Friedman and Anna Schwartz stated that the Fed pursued an erroneously restrictive monetary policy, exacerbating the Great Depression . After the stock market crash in 1929, the Fed continued its contraction (decrease) of the money supply and refused to save banks that were struggling with bank runs . This mistake, critics charge, allowed what might have been a relatively mild recession to explode into catastrophe. Friedman and Schwartz believed that the depression was "a tragic testimonial to the importance of monetary forces." ^[32] Before the establishment of the Federal Reserve, the banking system had dealt with periodic crises (such as in the Panic of 1907 ) by suspending the convertibility of deposits into currency. In 1907, the system nearly collapsed and there was an extraordinary intervention by an ad-hoc coalition assembled by J. P. Morgan . In the years 1910–1913, the bankers demanded a central bank to address this structural weakness. Friedman suggested that a similar intervention should have been followed during the banking panic at the end of 1930 . This might have stopped the vicious circle of forced liquidation of assets at depressed prices, just as suspension of convertibility in 1893 and 1907 had quickly ended the liquidity crises at the time. ^[33]

Essentially, in the monetarist view, the Great Depression was caused by the fall of the money supply. Friedman and Schwartz note that "[f]rom the cyclical peak in August 1929 to a cyclical trough in March 1933, the stock of money fell by over a third." ^[34] The result was what Friedman calls "The Great Contraction "—a period of falling income, prices, and employment caused by the choking effects of a restricted money supply . The mechanism suggested by Friedman and Schwartz was that people wanted to hold more money than the Federal Reserve was supplying. People thus hoarded money by consuming less. This, in turn, caused a contraction in employment and production, since prices were not flexible enough to immediately fall. Friedman and Schwartz argued the Federal Reserve allowed the money supply to plummet because of ineptitude and poor leadership. ^[35]

Many have since agreed with this theory, including Ben Bernanke , Chairman of the Federal Reserve from 2006 until 2014, who, in a speech honoring Friedman and Schwartz, said:

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. ^[36] ^[37]

Friedman has said that ideally he would prefer to "abolish the Federal Reserve and replace it with a computer." ^[38] He preferred a system that would increase the money supply at some fixed rate, and he thought that "leaving monetary and banking arrangements to the market would have produced a more satisfactory outcome than was actually achieved through government involvement". ^[39]

In contrast to Friedman's argument that the Fed did too little to ease after the crisis, Murray Rothbard argued that the crisis was caused by the Fed being too loose in the 1920s in the book America's Great Depression .

2008 financial crisis

Main article: 2008 financial crisis

Some economists, such as John B. Taylor , ^[40] have asserted that the Fed was responsible, at least partially, for the United States housing bubble which occurred prior to the 2007 recession. They claim that the Fed kept interest rates too low following the 2001 recession . ^[41] The housing bubble then led to the credit crunch . Then-Chairman Alan Greenspan disputes this interpretation. He points out that the Fed's control over the long-term interest rates (to which critics refer) is only indirect. The Fed did raise the short-term interest rate over which it has control (i.e., the federal funds rate), but the long-term interest rate (which usually follows the former) did not increase. ^[42] ^[43]

The Federal Reserve's role as a supervisor and regulator has been criticized as being ineffective. Former U.S. Senator Chris Dodd , then-chairman of the United States Senate Committee on Banking, Housing, and Urban Affairs , remarked about the Fed's role in the 2007-2008 economic crisis, "We saw over the last number of years when they took on consumer protection responsibilities and the regulation of bank holding companies, it was an abysmal failure."

Fractional reserve banking

Main articles: Fractional-reserve banking and Austrian business cycle theory

The Federal Reserve does not actually control the money supply directly and has delegated this authority to banks. If a bank has a reserve requirement of 10% and they have 10 million dollars in bank deposits , they can create 100 million dollars to loan out to borrowers, or make other investments if it is an investment bank . It is essentially going on margin 10:1 without having to pay interest on the margin, because it is in effect money that they created themselves. According to this critique, this is the primary cause of credit cycles or business cycles , because money supply creation is not under any single entity's control and is decentralized among many banks that are trying to maximize profits individually. ^[ ^{citation needed} ^] The Federal Reserve indirectly controls this process by manipulating the Federal Funds Rate that sets the tone for interest rates on new debt throughout the economy, and intentionally puts the economy into a recession (hard landing) or slow the economy without a recession (soft landing) to tame inflation . ^[44]

Republican and Tea Party criticism

During several recent elections, ^[ ^when? ^] the Tea Party movement has made the Federal Reserve a major point of attack, which has been picked up by Republican candidates across the country. Former Congressman Ron Paul (R) of Texas and his son Senator Rand Paul (R) of Kentucky have long attacked the Fed, arguing that it is hurting the economy by devaluing the dollar. They argue that its monetary policies cause booms and busts when the Fed creates too much or too little fiat money . Ron Paul's book End the Fed repeatedly points out that the Fed engages in money creation "out of thin air." ^[45] He argued that interest rates should be set by market forces, not by the Federal Reserve. ^[46] Paul argues that the booms, bubbles and busts of the business cycle are caused by the Federal Reserve's actions. ^[47]

In the book, Paul argues that "the government and its banking cartel have together stolen $0.95 of every dollar as they have pursued a relentlessly inflationary policy." David Andolfatto of the Federal Reserve Bank of St. Louis said the statement was "just plain false" and "stupid" while noting that legitimate arguments can be made against the Federal Reserve. ^[48] University of Oregon economist Mark Thoma described it as an "absurd" statement which data does not support. ^[49]

Surveys of economists show overwhelming opposition to abolishing the Federal Reserve or undermining its independence. ^[50] ^[51] According to Princeton University economist Alan S. Blinder, "mountains of empirical evidence support the proposition that greater central bank independence produces not only less inflation but superior macroeconomic performance, e.g., lower and less volatile inflation with no more volatility in output." ^[51]

Ron Paul's criticism has stemmed from the influence of the Austrian School of Economics. ^[52] More specifically, economist Murray Rothbard was a vital figure in developing his views. Rothbard attempted to intertwine both political and economic arguments together in order to make a case to abolish the Federal Reserve . When first laying out his critiques, he writes "The Federal Reserve System is accountable to no one; it has no budget; it is subject to no audit; and no Congressional committee knows of...its operations." ^[53] This argument from Rothbard is outdated, however, as the Federal Reserve presently does report its balance sheet weekly as well as get audited by outside third parties. ^[54]

Rothbard also heavily critiques the Federal Reserve being independent from politics despite the Federal Reserve being given both private and public qualities. ^[54] The acknowledgment of the Federal Reserve being a part of government that exists outside of politics inevitably becomes a "self-perpetuating oligarchy, accountable to no one." ^[53] This ignores the fact that the Federal Reserve Board of Governors is a federal agency, appointed by the president and Senate.

Money supply should be controlled by Congress

Father Charles Coughlin

In the 1930s, American Catholic priest Charles Coughlin called on Congress to take back control of the money supply , as it is given authority under Article I, Section 8 , in the Enumerated Powers , to coin money and regulate the value thereof. ^[55]

"There is written in the Constitution of the United States that Congress has the right to coin, issue, and regulate the value of money."

— Father Charles Coughlin

Private ownership or control

According to the Congressional Research Service :

Because the regional Federal Reserve Banks are privately owned, and most of their directors are chosen by their stockholders, it is common to hear assertions that control of the Fed is in the hands of an elite. In particular, it has been rumored that control is in the hands of a very few people holding "class A stock" in the Fed.

As explained, there is no stock in the system, only in each regional Bank. More important, individuals do not own stock in Federal Reserve Banks. The stock is held only by banks who are members of the system. Each bank holds stock proportionate to its capital. Ownership and membership are synonymous. Moreover, there is no such thing as "class A" stock. All stock is the same.

This stock, furthermore, does not carry with it the normal rights and privileges of ownership. Most significantly, member banks, in voting for the directors of the Federal Reserve Banks of which they are a member, do not get voting rights in proportion to the stock they hold. Instead, each member bank regardless of size gets one vote. Concentration of ownership of Federal Reserve Bank stock, therefore, is irrelevant to the issue of control of the system (italics in original). ^[56]

According to the web site for the Federal Reserve System, the individual Federal Reserve Banks "are the operating arms of the central banking system, and they combine both public and private elements in their makeup and organization." ^[57] Each of the 12 Banks has a nine-member board of directors: three elected by the commercial banks in the Bank's region, and six chosen – three each by the member banks and the Board of Governors – "to represent the public with due consideration to the interests of agriculture, commerce, industry, services, labor and consumers." ^[58] These regional banks are in turn controlled by the Federal Reserve Board of Governors , whose seven members are nominated by the president of the United States and confirmed by the Senate. ^[59]

Member banks ("about 38 percent of the nation's more than 8,000 banks") ^[60] are required to own capital stock in their regional banks. ^[60] ^[61] Until 2016, the regional banks paid a set 6% dividend on the member banks' paid-in capital stock (not the regional banks' profits) each year, returning the rest to the US Treasury Department . ^[62] As of February 24, 2016, member banks with more than $10 billion in assets receive an annual dividend on their paid-in capital stock (Reserve Bank stock) of the lesser of 6% percent and the highest yield of the 10-year Treasury note auctioned at the last auction held prior to the payment of the dividend. Member banks with $10 billion or less in assets continue to be paid a set 6% annual dividend. This change was implemented during the Obama administration in order "to implement the provisions of section 32203 of the Fixing America's Surface Transportation Act (FAST Act)". ^[63] The Fed has noted that this has created "some confusion about 'ownership'":

[Although] the Reserve Banks issue shares of stock to member banks...owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan…. ^[64]

In his textbook, Monetary Policy and the Financial System, Paul M. Horvitz, the former Director of Research for the Federal Deposit Insurance Corporation , stated,

...the member banks can exert some rights of ownership by electing some members of the Board of Directors of the Federal Reserve Bank [applicable to those member banks]. For all practical purposes, however, member bank ownership of the Federal Reserve System is merely a fiction. The Federal Reserve Banks are not operated for the purpose of earning profits for their stockholders. The Federal Reserve System does earn a profit in the normal course of its operations, but these profits, above the 6% statutory dividend, do not belong to the member banks. All net earnings after expenses and dividends are paid to the Treasury. ^[65]

In the American Political Science Review, Michael D. Reagan ^[66] wrote,

...the "ownership" of the Reserve Banks by the commercial banks is symbolic; they do not exercise the proprietary control associated with the concept of ownership nor share, beyond the statutory dividend, in Reserve Bank "profits." ...Bank ownership and election at the base are therefore devoid of substantive significance, despite the superficial appearance of private bank control that the formal arrangement creates. ^[67] ^[68]

Transparency issues

One critique is that the Federal Open Market Committee , which is part of the Federal Reserve System, lacks transparency and is not sufficiently audited. ^[69] A report by Bloomberg News asserts that the majority of Americans believes that the System should be held more accountable or that it should be abolished. ^[70] Another critique is the contention that the public should have a right to know what goes on in the Federal Open Market Committee (FOMC) meetings. ^[71] ^[72] ^[73]

See also:

· America's Great Depression

· Black Friday (1869) Covers the gold scandal of 1869

· The Case Against the Fed

· Causes of the Great Depression

· Criticism of the United States government#Criticism of agencies

· End the Fed

· Federal Reserve Police

· Fractional reserve banking

References:

^ Weissert • •, Will (2012-01-18). "The Gold Standard: Ron Paul Gives New Life to an Old Issue" . NBC 5 Dallas-Fort Worth. Retrieved 2024-02-23.
^ Taylor, John B. "Taylor: Federal Reserve Monetary and the Financial Crisis: A Reply to Chairman Ben Bernanke" . WSJ. Retrieved 2024-02-23.
^ Wicker, Elmus (2005). The Great Debate On Banking Reform - Nelson Aldrich And The Origins Of The Fed . Ohio State University Press. pp. 4–6. ISBN 9780814210000 .
^ Jump up to: ^a ^b Johnson, Roger T. (February 2010). "Historical Beginnings... The Federal Reserve" (PDF). Federal Reserve Bank of Boston . Archived from the original (PDF) on 25 December 2010. Retrieved 30 December 2014.
^ Murray Rothbard (2007). The Case Against the Fed . Ludwig Von Mises Institute. pp. 27–29, 146. ISBN 978-0945466178 .
^ Murray Rothbard (2007). The Case Against the Fed . Ludwig Von Mises Institute. p. 146. ISBN 978-0945466178 .
^ Selgin, George; Lastrapes, William D. (2012). "Has the Fed been a failure?". Journal of Macroeconomics . 34 (3): 569–596. doi : 10.1016/j.jmacro.2012.02.003 .
^ Salter, Alexander (2014-11-21). "An Introduction to Monetary Policy Rules" . Mercatus Center. Archived from the original on 2019-03-01. Retrieved 2019-03-01.
^ Jump up to: ^a ^b "Mr. Market" . Hoover Institution. January 30, 1999. Archived from the original on September 23, 2018. Retrieved September 22, 2018.
^ Friedman, Milton; Schwartz, Anna J. (1986). "Has government any role in money?" (PDF). Journal of Monetary Economics . 17 (1): 37–62. doi : 10.1016/0304-3932(86)90005-X . Archived (PDF) from the original on 2020-09-04. Retrieved 2020-08-30.
^ Milton Friedman – Abolish The Fed . Archived from the original (YouTube) on June 11, 2015. I have long been in favor of abolishing it.
^ "My first preference would be to abolish the Federal Reserve" on YouTube
^ Friedman, M. (1996). The Counter-Revolution in Monetary Theory. In Explorations in Economic Liberalism (pp. 3-21). Palgrave Macmillan, London. "It is precisely this leeway, this looseness in the relation, this lack of a mechanical one-to-one correspondence between changes in money and in income that is the primary reason why I have long favored for the USA a quasi-automatic monetary policy under which the quantity of money would grow at a steady rate of 4 or 5 per cent per year, month-in, month-out."
^ Salter, A. W. (2014). An Introduction to Monetary Policy Rules. Mercatus Workıng Paper. George Mason University.
^ Sheedy, Kevin D. (2014). "Debt and incomplete financial markets: a case for nominal GDP targeting" (PDF). Brookings Papers on Economic Activity . 45 (1): 301–373. doi : 10.1353/eca.2014.0005 . S2CID 7642472 . Archived (PDF) from the original on 2020-10-08. Retrieved 2020-06-01.
^ Benchimol, Jonathan; Fourçans, André (2019). "Central bank losses and monetary policy rules: a DSGE investigation". International Review of Economics & Finance . 61 (1): 289–303. doi : 10.1016/j.iref.2019.01.010 . S2CID 159290669 .
^ Sumner, Scott (2012). "The case for nominal GDP targeting". Mercatus Research. doi : 10.2139/ssrn.3255027 . S2CID 219385932 .
^ Beckworth, David; Hendrickson, Joshua (2020). "Nominal GDP targeting and the Taylor rule on an even playing field". Journal of Money, Credit and Banking . 52 (1): 269–286. doi : 10.1111/jmcb.12602 . S2CID 197772130 .
^ Cowen, Tyler (2016-08-23). "Why nominal GDP targeting is an especially good idea right now" . Marginal Revolution. Archived from the original on 2019-03-01. Retrieved 2019-03-01.
^ Mullins, Eustace (2009). The Secrets of the Federal Reserve . Bridger House Publishers. ISBN 978-0-9656492-1-6 . Archived from the original on 2005-11-26. Retrieved 2014-12-30.
^ "Owen criticises reserve board" Archived 2018-10-19 at the Wayback Machine , The New York Times (July 25, 1921)
^ Flaherty, Edward (6 Sep 2000). "Myth #10. The Legendary Tirade of Louis T. McFadden" . Political Research Associates. Archived from the original on 2 October 2006. Retrieved 30 December 2014.
^ McFadden, Louis (June 10, 1932). Congressional Record, June 10, 1932, Louis T. McFadden .
^ "Banking: Fight over the Federal Reserve" . Time. 14 February 1964. Archived from the original on December 9, 2010. Retrieved 20 August 2010.
^ Uchitelle, Louis (24 August 1989). "Moves On in Congress to Lift Secrecy at the Federal Reserve" . The New York Times. Archived from the original on 30 May 2013. Retrieved 20 August 2010.
^ Ron Paul (2009). End the Fed . Grand Central Publishing. ISBN 9780446568180 . The Fed was the cause of the Depression.
^ E.g., H.R. 2755 (110th Congress); H.R. 2778 (108th Congress); H.R. 5356 (107th Congress); H.R. 1148 (106th Congress)
^ "H.R. 2755: Federal Reserve Board Abolition Act" . GovTrack.us. 15 June 2007. Archived from the original on 1 January 2010. Retrieved 24 June 2009.
^ "H.R. 459: Federal Reserve Transparency Act of 2011" . GovTrack.us. 26 January 2011. Archived from the original on 23 July 2012. Retrieved 18 July 2012.
^ Jennifer Bendery (26 July 2012). "Nancy Pelosi: 'Audit The Fed' Bill Is Likely Going Nowhere" . HuffPost. Archived from the original on 29 July 2012. Retrieved 27 July 2012.
^ Stiles, Megan (December 18, 2015). "Senate Vote on Audit the Fed Scheduled for January 12th" . Campaign for Liberty. Archived from the original on December 23, 2015. Retrieved December 23, 2015.
^ Milton Friedman; Anna Jacobson Schwartz (2008). The Great Contraction, 1929–1933 (New ed.). Princeton University Press. pp. xviii, 13. ISBN 978-0691137940 .
^ Milton Friedman; Anna Schwartz (2008). The Great Contraction, 1929–1933 (New ed.). Princeton University Press. p. 28. ISBN 978-0691137940 .
^ Milton Friedman; Anna Schwartz (2008). The Great Contraction, 1929–1933 (New ed.). Princeton University Press. p. 11. ISBN 978-0691137940 .
^ Chang-Tai Hsie; Christina D. Romer (2006). "Was the Federal Reserve Constrained by the Gold Standard During the Great Depression?" (PDF). Journal of Economic History. Archived (PDF) from the original on 2016-02-22. Retrieved 2015-12-23.
^ Bernanke, Ben S. (8 Nov 2002). "Remarks by Governor Ben S. Bernanke" . Federal Reserve. Archived from the original on 24 March 2020. Retrieved 1 Jan 2007.
^ Milton Friedman; Anna Jacobson Schwartz (2008). The Great Contraction, 1929–1933 (New ed.). Princeton University Press. p. 247. ISBN 978-0691137940 . Archived from the original on 2020-01-16. Retrieved 2018-09-19.
^ O'Toole, Kathleen (9 September 1997). "Greenspan voices concerns about quality of economic statistics" . Stanford News Service. Archived from the original on 14 February 2009. Retrieved 24 June 2009.
^ Ebeling, Richard M. (1 March 1999). "Monetary Central Planning and the State, Part 27: Milton Friedman's Second Thoughts on the Costs of Paper Money" . fff.org. Archived from the original on 21 October 2014. Retrieved 30 December 2014.
^ Taylor, John B. (10 January 2010). "The Fed and the Crisis: A Reply to Ben Bernanke" . The Wall Street Journal . Archived from the original on 27 January 2015. Retrieved 19 November 2012.
^ Henderson, David (27 March 2009). "Did the Fed Cause the Housing Bubble?" . The Wall Street Journal . Archived from the original on 4 October 2019. Retrieved 3 August 2017.
^ Jim Lehrer (September 18, 2007). Greenspan Examines Federal Reserve, Mortgage Crunch . PBS Newshour. Alan Greenspan. NewsHour Productions LLC. Archived from the original on August 31, 2017. Retrieved August 26, 2017.
^ Labonte, Marc; Makinen, Gail E. (19 March 2008). "Federal Reserve Interest Rate Changes: 2000-2008" (PDF). assets.opencrs.com. Archived from the original (PDF) on 30 December 2014.
^ "Here We Go Again: The Fed is Causing Another Recession" . 21 June 2022. Archived from the original on 4 July 2022. Retrieved 4 July 2022.
^ Ron Paul (2009). End the Fed . Grand Central Publishing. ISBN 9780446568180 . out of thin air.
^ "A lonely voice against the Fed now leads a chorus" . The Washington Post. 2009. Archived from the original on 2019-01-05. Retrieved 2019-01-28.
^ "What Happens If We End the Fed?" . U.S. News. 2011. Archived from the original on 2019-01-05. Retrieved 2019-01-04.
^ Andolfatto, David (2011-03-23). "Ron Paul's Money Illusion (Sequel)" . MacroMania. Archived from the original on 2019-01-04. Retrieved 2019-01-04.
^ "Ron Paul's Money Illusion: The Sequel" . Economist's View. Archived from the original on 2019-01-05. Retrieved 2019-01-04.
^ "Fed policy" . igmchicago.org. Archived from the original on 2019-01-06. Retrieved 2019-01-04.
^ Jump up to: ^a ^b Blinder, Alan (2010). "How Central Should the Central Bank Be?" (PDF). Journal of Economic Literature. 48 : 123–133. doi : 10.1257/jel.48.1.123 . Archived (PDF) from the original on 2017-08-13. Retrieved 2019-09-05.
^ Paul, Ron (2011). Mises and Austrian economics : a personal view . Terra Libertas. ISBN 978-1-908089-33-5 . OCLC 822300912 .
^ Jump up to: ^a ^b Rothbard, Murray (2007). The Case Against the Fed. Ludwig Von Mises Institute. ISBN 9780945466178 .
^ Jump up to: ^a ^b "The Fed - Does the Federal Reserve ever get audited?" . Board of Governors of the Federal Reserve System. Archived from the original on 2021-04-16. Retrieved 2021-04-20.
^ "Charles E. Coughlin" . Archived from the original on 2018-08-10. Retrieved 2023-09-05.
^ Woodward, G. Thomas (31 July 1996). "Money and the Federal Reserve System: Myth and Reality" . Report No. 96–672 E. Congressional Research Service, Library of Congress. OCLC 39127005 . Archived from the original on 5 November 2008. Retrieved 30 December 2014.
^ The Federal Reserve System: Purposes and Functions (PDF) (9th ed.). Federal Reserve. June 2005. Archived (PDF) from the original on 21 February 2015. Retrieved 30 December 2014.
^ "What We Do" . New York Fed. March 2010. Archived from the original on 31 December 2014. Retrieved 30 December 2014.
^ "Federal Reserve Board - Board Members" . Board of Governors of the Federal Reserve System. Archived from the original on 18 March 2018. Retrieved 30 December 2020.
^ Jump up to: ^a ^b "Federal Reserve Bank Ownership" . Factcheck.org. 31 March 2008. Archived from the original on 21 December 2014. Retrieved 30 December 2014.
^ "12 U.S.C. § 282 et seq" . Cornell University Law School.
^ "12 U.S.C. § 289(a)(1)(A)" . Cornell University Law School.
^ "Federal Reserve Board issues interim final rule regarding dividend payments on Reserve Bank capital stock" . Board of Governors of the Federal Reserve System. 18 February 2016. Archived from the original on 25 November 2020. Retrieved 30 December 2020.
^ "Who owns the Federal Reserve?" . Federal Reserve. Archived from the original on 25 March 2020. Retrieved 30 December 2014.
^ Horvitz, Paul M. (1974). Monetary Policy and the Financial System (3rd ed.). Prentice Hall. p. 293. ISBN 9780135998861 .
^ Not to be confused with Michael Edward Reagan , the son of President Ronald Reagan .
^ Reagan, Michael D. (March 1961). "The Political Structure of the Federal Reserve System". American Political Science Review. 55 (1): 64–76. doi : 10.2307/1976050 . JSTOR 1976050 . S2CID 147189298 .
^ Mittra, S. (1970). Money and Banking: Theory, Analysis, and Policy. New York: Random House. p. 153.
^ Poole, William (July 2002). "Untold story of FOMC: Secrecy is exaggerated" . St. Louis Federal Reserve. Archived from the original on 2008-12-28. Retrieved 2009-06-24.
^ Zumbrun, Joshua (9 December 2010). "Majority of Americans Say Fed Should Be Reined In or Abolished, Poll Shows" . Bloomberg L.P. Archived from the original on 2015-01-27. Retrieved 2017-03-06.
^ Poole, William (6 October 2004). "FOMC Transparency" (PDF). Federal Reserve Bank of St. Louis Review. 87 . Federal Reserve Bank of St. Louis: 1–9. Archived (PDF) from the original on 30 December 2014. Retrieved 30 December 2014.
^ "Remarks by Chairman Alan Greenspan - Transparency in monetary policy" . Federal Reserve. 11 October 2001. Archived from the original on 11 May 2009. Retrieved 24 June 2009.
^ "Remarks by Vice Chairman Roger W. Ferguson, Jr.—Transparency in Central Banking: Rationale and Recent Developments" . Federal Reserve. 19 April 2001. Archived from the original on 11 May 2009. Retrieved 24 June 2009.

I Don't Know What They Think They Know, What I Do Know is This

Fri, 09 Jan 2026 18:13:30 GMT

I Don't Know What They Think They Know,

What I Do Know is This...

By Mitchell Vexler, January 9, 2026

State(s) Property Tax Codes are being criminally violated, not just one or two sections of the code, but on an epic level, including a failure to comply with Uniform Standards of Professional Appraisal Practice (USPAP) which is required in the code of law.

See

Wheel of Fraud

and

www.mockingbirdproperties.com/dcad

and

Violations Reviewed

and

Interview with Daniela Cambone, https://www.youtube.com/watch?v=uY5EpJl5fUo .

I don't know what they think they know, but what I do know is this:

Property Tax Codes, Constitutions, & USPAP are similar in all States.
Violated Rule 5-1(a) by not correctly employing recognized techniques to produce a credible mass appraisal.
Violated Rule 5-1(b) by committing substantial error of omission & commission that significantly affect mass appraisal.
Violated Rule 5-1(c) by rendering mass appraisal in a careless & negligent manner.
Texas Property Tax Code 23.01(e) says Chief Appraiser must use "clear and convincing evidence".
Texas Property Tax Code 23.012, Income Method of Appraisal is ignored and fraudulent income statements created.
Texas Property Tax Code 23.013 is violated by not using TRUE like-kind properties when using sales data to render value.
Texas Property Tax Code 42.26, remedy for unequal appraisal is violated when appraisal value is not within 10% of median value of comparisons.
Violated Texas Constitution Article 8, Section 1(a) as property taxation (valuation) is not equal and uniform as required.
Violated Texas Constitution Article 8 Section 20 as properties have been valued for ad valorem taxation higher than fair cash market value.
Violated Texas Property Tax Code Chapter 5 Section 5.01 - State has not taken responsibility for appraisal districts fraud see FIOA Request to Texas Attorney General .
Violated Texas Property Tax Code Chapter 5 Section 5.04 - State nor TDLR has taken responsibility for failed standards. TDLR is licensing future criminals.
Tax Roll Certification is fraudulent.
Violated TDLR, Texas Administrative Code Chapter 94 Regulations for Property Tax Professionals.
Violated TALCB, Texas Appraiser Licensing & Certification Act, Chapter 153.
Used 313 Agreements to deceive the real estate tax paying public via school districts funding private solar fields.
Employed School District kickback schemes involving HVAC Contracts, Building Contracts, Food Contracts.
Used TIF (Tax Increment Financing) to fund private development, picking winners and losers by the municipalities at the expense of the property taxpayers.
Violated Oath of Profession when code of ethics and laws are broken - TDLR, TALCB, IAAO, TAAO & professional organizations
Violated Oath of Office by not following laws; many individuals failed at their duties, Chief Appraiser, Board Members, ARB members etc.
Broke Texas Penal Code 37.11 - defaulting in duties as public official is impersonating a public official 3rd degree felony
Broke Texas Penal Code 7.01 - intentionally failed to report criminal activity.
Violated Texas & U.S. Administrative Procedures Act.
Violated American Procedures Act.
Violated U.S. Constitution 1st, 5th, 14th, 16th Amendments.
Violated Title 42 U.S. Code Section 1986, Knowledge of Wrongful Act & Power to Prevent – Those in charge, i.e. Chief Appraisers, School District Superintendents and their employees and boards, know they are breaking the law, were told and shown they are breaking the law, and chose to do nothing about it.
Violated Title 18 of Criminal Code, U.S. Code Section 1621- Perjury Defined is applicable to every Registered Professional Appraiser when they intentionally choose to lie and mislead the ARB panels.
The ARB panels are comprised of people who are not trained to detect fraud, can’t add, have no training in the requirements of USPAP and were created to appease the public meaning they are the closed end for the Appraisal District and do not exist for the benefit of the property taxpayers. They are irrefutably part of the con. See the Amicus Brief and Importance of the Vexler Case to SCOUTX.
Title 18 U.S. Code Section 1512 c 1 2 says who corruptly alters, destroys or conceals a record is subject to criminal prosecution.
School District Bond values have been based on the implicit guarantee of the real estate taxpayers; they are not true value under law.
Bond investors, i.e. 401K and Pensions, are at considerable risk due to overvaluation and over taxation by the CADs.
Result of all of this across the U.S. in past 5 years is approx. $22.5 Trillion of equity stripping property owners by over valuation of roughly $450 Billion in over taxation via FRAUD.
Fraud / Chaos = Instability = Compounding Cumulative Violations of Law.
Real Estate Property Taxes = Ground Zero. Central Appraisal Districts ignore by intent every single real estate appraisal law written.
No U.S. Homeowner signed and agreed to pay ground rent. No State in the U.S. has the authority to charge a ground rent. (16th Amendment)
Local Taxing Entities create fraudulent demand for debt, where School districts are approximately 83% liable for the debt demand. (Look at your local Bond Elections.)
The "implicit guarantee" of the real estate taxpayer is an "implicit guarantee" of bankruptcy of the Taxing Entities and the Taxpayer.
37% of the Households (multifamily and single family) are in harm’s way of bankruptcy or losing the roof over their head.
What is the Probability of Default of a school bond, when 72% of the Households can't afford the deemed median price of a home?
With a modest Probability of Default being 15.3% the Loss Given Default on the School District bonds would be approximately 40%.
School Districts with no Bond Schedule, no Balance Sheet with notes tied to Bond Schedule, no future Cost Benefit Analysis, all of which is Intentional Omission.
School Districts Audits are fake. Who audited the maintenance contracts? Audit is meaningless if the auditor does not look at the evidence.
Taxing Entity Debts that are not retired but rolled up and interest rolled out both grow Compound and Cumulative which Equity Strips all real estate property owners. (RICO)
Central Appraisal Districts violating State and U.S. Constitutions. See article, Is This Sustainable?
Pre-Determined Budgets are given to CAD's Chief Appraiser from which fraudulent property values are created to meet the budget. The software is rigged to allow criminals to manipulate government documents and laws from which to created fraudulent values including changing sq. ft., age of structures, quality, fraudulent income, all of which cause a cascade of fraud.
What is to stop any Chief Appraiser from inflating property values to infinity in 2025? What is the legal governor as the laws are ignored? Property values are decreasing in 2025 and yet the demand for school district bond fraud and operations is increasing causing the demand of taxpayer funds to increase and none of which has anything to do with proper valuation as required under USPAP.
In Texas the State Comptroller adds another layer of fraud in the form of the Property Valuation Study (Pre-Determined Budget). See Criminal Complaint filed.
16th Amendment to U.S. Constitution prohibits a tax on unrealized gains. Market Value is an Unrealized Gain. See articles, Why is Property Tax Illegal and We Live in the World of Fraud and Fraudsters – How to Protect Yourself .
The Taxing Entities, of which the School District is one, own the CADs.
The Federal Reserve should have the doors chained. It exists and manipulates the markets for the purpose of backstopping the banks. The U.S. dollar has lost 97% of its purchasing power since the creation of the Federal Reserve in 1913. This is not a coincidence it is a result of printing money not backed by assets which causes inflation which erodes purchasing power. The school districts have done the exact same thing in terms of printing money using your income and your property tax as their vehicle of printing money in violation of the 16 ^th Amendment to the U.S. Constitution.
The Federal Reserve adds money to the banking system to replace what was destroyed by fraud and government's bad investments. The School Districts increase the demand for bonds to cover off prior bonds, which are growing compound cumulatively, and then add more bonds on an almost annual basis… this is the definition of a Ponzi scheme.
U.S. National Debt approximately $38 Trillion with a $1.8 Trillion deficit requires printing of money to cover the deficit and that leads to inflation. (The current Administration is working to bring the deficit down via mass re-negotiating globally, but this takes time.)
U.S. National Debt + Unfunded Liabilities + Local Taxing Entities Debt means each taxpayer in the U.S. owes approximately $1.3 Million.
GDP in 2025 would have to double to $51 Trillion in order to pay down just $2 Trillion of U.S. National Debt. Probability ZERO.
Create a crisis - immigration for votes. Cost > $1 Trillion per year at $64K per illegal immigrant. Hotel Rooms at $352/night in NY = $10K per/month. Both your federal tax dollars and local real estate tax dollars are paying for these crimes.
The CPI is a fraud in that it does not include the cost of illegal immigration.
Printing Money = Inflation. Federal Reserve creates inflation and the CADs create a fraudulent tax on inflation.
Printing Money leads to hyper-inflated stock values with Price to Earnings Ratio well beyond reasonable P/E of 16 – 20.
Inflation leads to higher interest rates. Interest rates have increased 300% in 3.5 years. Higher Interest Rates make the problem much worse.
Demand drops. as consumers have to decide whether to pay rent, mortgage, or forego medicine or food.
Offshoring industry = major suppliers in economic distress. The Global economy depends on the U.S. Consumer.
China is in economic distress. Copied the fraud of the U.S. and Canada plus created Ghost Cities.
Germany is committing economic suicide and quickly approaching economic depression.
London is on the verge of Civil War.
France is on the verge of Civil War.
Layoffs are occurring globally - autos, consumer goods, electronics.
Birthrate drops.
To keep profits up, goods produced have inflation - food, groceries, cars, fuel, energy, housing all products.
To keep up, or even, with cost of living (inflation), salaries inflate, wage strikes increase.
The gains from the wage strikes vanish by the fraud committed by the Local Taxing Entities and the Central Appraisal Districts. This continues the circle of fraud. You got paid more as an employee and your local CAD took that money from you immediately in the form of higher property taxes, which by law is not an income tax but clearly that is what it has been illegally highjacked into.
Housing - Home Price to Income Ratio, which should be 28%, is stretched in many areas to 65% which is bankruptcy of the Homeowner(s).
Creation of a Crisis = Inflation + Covid + Printing Trillions = More Inflation. The idiot bureaucracy does not understand or does not care about cause and effect They believe in lining their pockets first, and that is socialism, and there are socialists on both sides of the isle. He who knows not that he knows not is a fool.
Inflation leads to the government to print more money = devaluation of the currency.
Office buildings start to vacate which leads to demolition and in very few instances adaptive re-use.
Consumer pullback = Business pullback - Nationally and Globally.
Social and political divisiveness is rising.
Economic Volatility = Destroyer of Wealth.
Supply Chain shocks.
Farm Revenue is down due to cost of operations inflated up.
Globalists, who benefited from the fraud, demand centralized decision making. The above proves they are wrong and are socialists. Socialism should be codified into Constitutional law as illegal.
War, created to cover-up the violations of laws, fraud, graft, and corruption of those who profited from the fraud = Globalists.
National focus and decentralization is required to put the power back in the hands of Mom and Pop. See article, Socialism vs the Collective Society .
Unwind the debts in a civilized manner before the Market does it for you. Restore Stability. See Benefits of Eliminating Real Estate Tax in Favor of Uniform States Sales Tax and Draft of Bill to Repeal Real Estate Tax in Favor of Uniform States Sales Tax .
Make food affordable again. The Trump administration including Dr. Oz and Robert Kennedy announced a new food pyramid based on healthy foods. This is very good. However, people are chemically addicted to hyper-manufactured food because of price. Healthy foods are great if you can afford them and know how to prepare them to maintain their vitamin content. Did you know there are 7 elements of real estate tax in your cappuccino?

Solution Required = Repeal all property taxes in favor of the Uniform States Sales Tax.

Here are some Benefits of Eliminating Property Tax in Favor of Uniform States Sales Tax:

Fraud in overvaluation eliminated.
Fraud in over taxation eliminated.
Market Value vs Assessed Value eliminated.
Central Appraisal Districts eliminated.
Board of Directors at CADs eliminated.
RPAs at CADs eliminated, "we destroy spreadsheets and working papers".
Real Estate Tax Liens eliminated.
Property Tax foreclosures eliminated.
Violations of State Property Tax Code, State Constitution eliminated.
Violations by the CADs and Taxing Entities, of The U.S. Constitution 1st, 5th, 14th, and 16th Amendments eliminated.
No State would own the land beneath the property owner’s asset.
Property Valuation Study by State Comptroller eliminated.
Special Use Property Taxes, i.e. Hotel Guest Taxes, eliminated.
Commercial Property Taxes eliminated.
School District Bond Fraud eliminated.
Fraudulent School District Bonds based on "implicit guarantor" of real estate taxpayer eliminated.
Property Tax Consultants portion of business model (fraud by the CADs) eliminated.
Inflation, and taxation on inflation created by the overvaluation and over taxation, eliminated.
Equity Stripping eliminated.
People would have money to afford healthier food.
In 30 years, via amortization of the property, the owner would own the home outright with real value for retirement.
Property owner would have investable funds to invest in an index fund, spend, or pay down mortgage.
School Boards would have to answer to both the State and Local homeowners - Clarity in Balance Sheet and Funding.
No School District would ever have access to the bond markets again.
There would be Uniformity and application of laws.
If left at the local level, then the school program should be switched to a fee-based system.
Bond Debt would be brought down to a sustainable level via workout program to zero.
School Districts that have bond debt which cannot be paid off within 3 years would be forced into bankruptcy wiping out the balance of the bond debt, just like Detroit.
School Districts would be forced to stay within their allotment of funds based on legitimate budgets.
True Valuation Appraisals according to USPAP would be done without interference at a private level.
Truth in borrowing would exist.
Truth in lending would exist.
School and Municipal Boards are held accountable both fiscally and legally.
Money that would have gone directly to the tax coffers (based on the fraud) would instead be spent proportionally in the local economy from which to pay for the legitimate services of the municipality and school districts.
Businesses remain in business without the threat of taxation extortion.
HOA's in certain jurisdictions hold the right to foreclose on homeowners for unpaid HOA dues, eliminated.

Solution Required = Repeal all property taxes in favor of the Uniform States Sales Tax.

Resources:

https://www.realestatemindset.org

https://www.youtube.com/@realestatemindset/videos

https://www.youtube.com/watch?v=uY5EpJl5fUo , Daniela Cambone Interview

https://www.mockingbirdproperties.com/dcad

https://www.mockingbirdproperties.com/dcad#ArticlesLettersDiscussions

https://www.usdebtclock.org/ This is the real time U.S. Debt Clock. Not including unfunded liabilities

Daily Affordability is Unobtainable - What can you do about it

Wed, 07 Jan 2026 21:55:51 GMT

D aily Affordability Is Unobtainable

What can you do about it?

By Mitchell Vexler, January 7, 2026

How were trillions upon trillions of dollars stolen from this and future generations? Why are major cities rapidly decaying, with infrastructure disintegrating, corruption running amok, middle class shrinking, with most of the population struggling to afford the roof over their head and unable to pay for the basics such as a utility bill each month? Why are we seeing mass layoffs all over the nation? Why are property taxes continuing to rise year after year and the actual property values are decreasing? Why are the streets full of drug addicts and homeless people, and why are millions living in their vehicles???

Read:

We Live in the World of Fraud and Fraudsters - How to Protect Yourself

Proper Analysis = Proper Thought, Why the deep dive into proper analysis (especially part II)

A Bankrupt Population is a National Security Risk

Socialism is a National Security Risk.

You are not alone:

Messages Received From Concerned Americans

Crisis of Confidence

What do we know and what are we facing

What you can do about it:

You Can Make a Difference! A Holiday Wish for All.

How to Audit Your School District & Central Appraisal District

The Trials & Tribulations of Advocacy for Permanent Change – Part II

We made a big difference and so can you:

December 9 2025 - Press Release – Texas Attorney General

Either the law exists or it doesn’t. We are about to find out.

With just the videos on Real Estate Mindset’s YouTube channel, along with videos with Daniela Cambone of ITM Trading, available at these links...

https://www.youtube.com/@realestatemindset/videos

https://www.youtube.com/watch?v=uY5EpJl5fUo&list=PLnaZPq6_SQa346R3dyLqNM6irhTrFr4Us&index=5

plus, the information on www.mockingbirdproperties.com/dcad , including the site's section of Articles, Letters & Discussions, https://www.mockingbirdproperties.com/dcad#ArticlesLettersDiscussions , we should reach an audience of 1,000,000+ people per day, but that can’t happen without your help pushing them into every social media outlet you possibly can.

Please push and post the videos and the articles . If someone out there is an AI creator, or content creator, or an interested individual, the videos and all the content on www.mockingbirdproperties.com/dcad and in this Article are all free.

The more people that know, the better off we will all be, but quickly because roughly 42,000,000 households are in harm’s way of bankruptcy and or losing the roof over their head. We want people from Across the U.S. and Canada to be knowledgeable and sign the petition.

https://www.mockingbirdproperties.com/sign-petition

The only way to combat the throttling of the YouTube algorithm is by viewers insisting they want to learn about the topic and view the videos to gain knowledge, which is why we are doing what we are doing. Our goal is to inform all, including politicians, and then obtain advocacy at the local, State and Federal level.

The only way to insist, and get, permanent change starts with knowledge of the issues. The problem being property taxation as a result of socialism…resulting from Institutionalized Systemic Moral Hazard. The change comes from demanding a contract from politicians while simultaneously demanding from the courts true Constitutional results and filing criminal complaints against any politician who does not adhere to the State and Federal Constitutions as well as holding the criminals joint and severally liable.

Together we will make a permanent difference. Be an advocacy army of one and of many for permanent change .

We Live in the World of Fraud and Fraudsters - How to Protect Yourself

Mon, 05 Jan 2026 20:18:59 GMT

W e Live in the World of Fraud and Fraudsters

How to Protect Yourself

For context, this Article was 30 years in the making, took several days to write and starts with a portion of a longer story.

Many years ago, I was asked by a close friend to determine the viability of building hotels in Cuba. My friend worked for a very large world scale conglomerate and was extremely familiar with the inner workings of Cuba and had many friends there. I visited the island a few times and each time learned more about the people and the government and as a result also learned about our government.

My education was eye opening. I was in Miami roughly 24 hours before arriving in Havana after my flight from Canada. While in Miami, CNN was on the television. Once I checked into my hotel room in Havana I decided to turn the TV on and found only a few stations in total, one of which was CNN. The CNN I saw in Havana was not the same CNN I saw in Miami. It had been edited for either the tourists or the local population. For me, this was like walking straight into the twilight zone and I could not believe what I was seeing. Looking back on this situation, as time progressed how interesting it is that CNN became Criminal News Network by creating propaganda as did the Castro regime edit and manipulate its own propaganda. Birds of a feather, stick together!

I knew my Grandfather had warehouses in Cuba in the late 1940s. There is more about the story and who my Grandparents were at https://www.mockingbirdproperties.com/we-are-builders .

Being from Canada, the stories I was told about Cuba were nothing like the 3 ^rd dimension I had just stepped into. The island has extreme beauty including a rain forest which is juxtaposed to the brutality of a communist dictator and the resulting extreme poverty. A poverty that most tourists don’t get to see. Meetings were setup that gave me the opportunity to learn firsthand directly from Cubans what their daily lives were like since Castro’s takeover in 1959.

The following night after my arrival, my friend took me for a walk down an alley in Havana. There were many apartments along the alley and two reasonably well-dressed men stood out which could have been an issue as I did not speak Cuban Spanish, but fortunately my friend was fluent in the language, very well known, and gregarious. A woman was standing in the doorway of her home, took one look at me and said “Americano?”. My friend answered on my behalf as I was shell shocked from so many inputs of information coming non-stop since my arrival and that was nothing as compared to everything I was about to learn and witness. She invited us into her very tiny home where she lived with her daughter, for a Cuban coffee. I remember sitting at a table that was built for 2 people and there were 4 of us, and within 5’ from where we were sitting was a TV with rabbit ears just like on the I Love Lucy show. I was able to communicate with her through my friendly interpreter and came to learn of her struggles including lack of quality food, lack of quality housing, no access to computers, no phone, very limited access to knowledge from outside Cuba, could not afford makeup, and there was no makeup in the stores, no panty-hose, only minimum daily essentials like toothpaste, Cubans are not allowed on the hotel properties where foreigners stay (this is to control the education of the population), lack of quality eye care and hospitals, lack of clothing, empty store shelves, cars from the 1940s and 50’s as Cubans can’t afford new cars, and no hurricane protection. Needless to say, I was very thankful for the conversation and what an experience. With regard to the eye care, I happen to know a Canadian eye surgeon named Dr. Tayfour who donated both his skills and equipment annually to look after many who needed his help. If you ever have the opportunity to go to Cuba, take an extra suitcase filled with sundries, blue-jeans, inexpensive costume jewelry, and you will have instant friends and the best hotel service.

In my mind, the thought was this is where time goes to die, but after two days of this education and learning about how destitute the vast majority of Cubans are which is roughly 13,000,000 people, I started asking questions while also taking pictures to catalogue what I was seeing.

I saw many things including, bullet holes in buildings in Havana (from the Revolution – Castro’s takeover), a replica of the Whitehouse built by Castro as a giant middle finger to President Kennedy, downtown Havana blackened by suit from flaring off raw oil which exists below the island (the Canadians wrongly assisted Cuba to obtain the oil which was black-market and which funded the Castros to become billionaires at the expense of 13,000,000 people, buildings falling down, Cayo Coco where the Russians dammed up the swamp that prohibited water from draining creating an even bigger and more dangerous swamp where the hotel guests were treated to daily fogging of DDT, properties built by the Russians that resembled stark barracks as part of some perverse trade pact between communists. I met a dolphin trainer and was allowed to swim with dolphins that were trained to put munitions / mines next to boats should an invasion of the island occur and witnessed the separation of the Cuban population from the tourists many of which were from Canada, Germany and the U.K. Each one of these experiences is a story by itself.

To give you an idea of the psychology of a communist dictator, Castro destroyed a multi-billion dollar sugar cane industry because he was so concerned about Kennedy invading. He had the railroad ties pulled up and sunk along the coast with the thought of sinking the American frigates. This bastard destroyed industry, murdered opposition, and destroyed the lives of 13,000,000 people. You might want to watch the movie For Love of Country, the Auturo Sandaval Story.

Fidel Castro was a Cuban politician born to a wealthy farmer, who decided he knew better then the population to suit is own ego, and employed the false ideologically of a Marxist. He also served as the first secretary of the communist party of Cuba from 1965 until 2011. Isn’t it interesting that many socialists clamoring for your attention also come from wealthy background and also believe they know better than you, and just like Castro leave a trail of chaos, death, and destruction behind them. Fidel Castro's speeches often emphasized collectivism as a means to achieve social justice and equality, portraying it as a necessary response to imperialism and capitalism. He argued that a collective approach would lead to a more democratic society, where the interests of the community and the working class were prioritized over individualism. Last week Mamdani used they exact same rhetoric. Those who are not taught to study history are doomed to repeat it! ( Link is to the database of speeches by Castro .) Without exception, every speech was an assault on humanity.

If this is not maddening enough, what I witnessed was a Cuban army with World War II rifles (mostly at the airport for show) that could not hit the broad side of a barn and a WWII navy vessel that looked like had not moved in years as it was a rusting hulk. If I saw this, then why would a U.S. sniper team not take the island?? Why was anybody not rescuing millions from misery within our own hemisphere? What was I missing?

I was there to help determine if hotels could and should be built. So, I pressed on and asked for economic documents and statements of taxation as if hotels would be built. From the Minister of Tourism, I was handed a document which clearly stated that such businesses were allowed to make 12% return on investment and after that all profits were split 50-50 (the deal at that time and assuming the Castro brothers did not decide to take the properties, like they did with the Dupont Residence, or the Hemmingway House or hundreds of other properties).

What did I learn? I learned that Castro convinced people about the “Revolution” based on socialism fantasy which was a dictatorship from the start and which could not have existed without the interference of Russia, Venezuela, Canada, Germany, UK, and a host of other smaller countries wanting to cozy up to a dictator with their economic support. Foreign governments supported Castro against the health, safety and welfare of the Cubans. The Castro family are psychologically demented in that they had a beautiful island with people willing to work, but over the decades the skills and trades of the population were lost, as a result of the government assigning jobs to the citizens that they did not want. I met a doctor who ended up managing a marina.

Cuba is currently facing lawsuits related to billions of dollars ($7 Billion) in unpaid commercial debts from the 1980s, particularly after a UK High Court ruling favored a fund seeking $72 million from the country. Additionally, there have been various legal actions under the Helms-Burton Act concerning properties confiscated by the Castro government. The Helms-Burton Act allows U.S. nationals to sue for damages related to property confiscated by the Cuban government. If successful, these lawsuits could significantly impact Cuba's ability to reenter international capital markets, which until Cuba is a free market economy, must never happen. The outcomes of these cases may set important legal precedents regarding the rights of creditors and the enforcement of international debts. Cuba's ongoing legal challenges reflect its complex relationship with international finance and property rights stemming from the Castro era.

If socialism is the answer, then why is every person in Cuba except those in charge, poor? If socialism is the answer, then why does Cuba, and more specifically the Castros and Castro regime, owe billions to individuals and foreign governments? If socialism is the answer, then why did foreign governments, utilizing their taxpayer’s money, give or loan money to the Castros? How ignorant of these governments not to put a stop to these crimes. No government should make loans to another government where socialism or dictatorship is involved as it will only end in no return on the investment and no return of the investment, while utilizing taxpayer’s money for fraud and murder, and the continued destruction of the citizens of the socialist or communist country.

There is not a single person on this planet who can show the success of a socialist government because socialist governments instantly turn into money losing dictatorships (as intended by the pied pipers of socialism) where the dictators and his/her cronies take the money and everybody else suffers indebted slavery. In my humble opinion, the U.S. had multiple opportunities to correct the situation and for whatever reason blew it. Canada’s actions of supporting Castro show extreme lack of intellect of the Canadian government who are just bonified idiots who know not or care not about their actions or the Canadian Citizens and intended to project their delusional importance upon the international stage. There simply is no excuse.

The point to the above very shortened story is the evidence learned firsthand and is just one small component of proof that socialism has never worked and never will work, because it goes against human nature and the laws of capitalism. socialism (not capitalized intentionally) steals from those who produce to give to those who claim to have the population’s best interest in mind, except the reality is that it lines the pockets of politicians / dictators who are the true definition of a wolf in sheep’s clothing. Beware of the politicians bearing gifts! You can’t afford free!

In 1990 I left Canada as I did not fit in given its socialist policies which have only become worse under the Trudeau regime and now Carney’s cronies. Debt, lack of free market capitalism, and ego maniac morons in government who can’t balance a checkbook is Canada’s problem. Now in Cuba, I was slapped in the face with socialism, communism, murder of opposition, extortion, dictatorship, flow of criminal funds (Havana to the Bahamas), and the destruction of generations of Citizens both physically and financially. It is interesting to point out that in Cuba, Canada, U.S., U.K., Germany, Japan, etc. etc. etc. etc. all share a universal problem, compound cumulative effect of interest on debt which is never retired but rolled out and interest rolled up, which is why I recently stated that all countries need to work together to back the fraud down to save the entire system from collapse and regain credibility. Or is it their intent to let the system collapse from which to create a new currency?? The problem is credibility because governments have a built-in socialist ego problem where they create problems that don’t exist, then attempt to fix the problems they created, all on the backs of every citizen in that country.

Now, imagine waking to find your bank account empty. Every dollar you saved for retirement, or housing, and or peace of mind…gone. Now imagine looking out the window and seeing a fraudster driving a new Lamborghini bought with your money or taking your money to the airport in a backpack to take to his home country to be used in the furtherance of terrorism, laughing as he waves a government-issued check. This is not hypothetical and is very real as you are about to read, the on-going and newest breaking socialist fraud:

First A.) one should define fraud from which B.) obtain the ability to recognize fraud and then C.) pin the tail on the fraudster.

Therefore:

A.) Fraud is defined as intentional deception to deprive a victim of a legal right or to gain unlawfully or unfairly from them. It can be prosecuted under criminal law or addressed in civil law, allowing victims to seek compensation for their losses.

B.) Let’s lay some groundwork to understand the depth of fraud. When you understand the business model of fraud, it becomes crystal clear that the fraudsters are not smart as they simply copy the same blueprint of fraud and intent to defraud from one source to another as seen by studying socialism from one country to another such as Canada, and now seen spreading across the European Union, the UK and Germany all of which are economically disintegrating in front of our eyes meaning they have run out of other people’s money which they stole to in violation of the very laws that the fraudsters are in office to protect.

Socialism must be codified into law as illegal, a threat to national security and a violation of the U.S. Constitution. Socialism on its face is a fraud because its basis, as created by a drunk, is the means of producing and distributing goods, through a classless society, which are owned collectively or by a centralized government that often plans and controls the economy. To be crystal clear, there is legitimate justification for socialism and every country that has tried it has and will fail as socialism violates every tenet of human nature and capitalism and it is capitalism which has allowed most of the planet to have a roof over their head. Socialism has and will lead to the bankruptcy of any entity / country that attempts to adhere to such idiocy. So, one must ask, why do these countries and politicians become pied pipers of socialism? The answer is that these pied pipers offer no benefit to society in that they make nothing, produce nothing and then try to convince society that they, the pied piers (aka conmen i.e. Castro, Obama, Sanders, Biden, Mamdani, Trudeau, Waltz and con women Clinton, Pelosi, Harris Cortez, along with their infrastructure of cronies), can make things better by offering “free” stuff which by definition can never happen. The new Mayor of New York City, Zohran Mamdani, said, "We will replace the frigidity of rugged individualism with the warmth of collectivism." He changed the words of Castro slightly, as pied pipers often do (Obama), but the end result is the theft of money from every citizen and visitor in and to NY. Somebody is paying for the fraud created by the socialist and that is all of us, who actually produce goods and services under the capitalist model, which is the only model that will ever work when it is employed without government manipulation. The end result of socialism is the hollowing out of the people who did the work…the very people that the socialists claim to care about. Their wealth was transferred to those who did not do the work and the politicians who gain massively as a result of their personal con against society until one day the debt and interest on that debt becomes so great, it can never be paid off, and all credibility and hope is lost which then turns into civil war or worse, being war between countries who go to war to cover up from the public the debt and compound interest for which there is no ability to repay.

As an initial example let’s look at the COVID fraud scheme which shut down our entire nation. Remember the mantra of the Clintons, Obama, Biden, Newsom, Bass (brain dead mayor of LA) and their minions, “never let a disaster go to waste” including the disasters created by these socialists. While we were all locked down (except for government officials), masked up, and worrying about the price of eggs, and our employment, and in my case, how am I going to keep my tenants in business, one of the sophisticated networks of fraudsters in Minnesota was stealing billions of dollars from programs (Under Color of Law) meant to feed hungry children. As these criminals are neither creative nor intelligent, there is a high probability given they edit copy then edit paste what they see from other socialists, as we will see that this exact fraud is being perpetrated across the U.S. and Minnesota is the first large scale criminal hub to be recognized because people are waking up the loss of their taxpayer dollars and economic lives.

The "Feeding Our Future" scandal is not just a story about greed. It is the smoking gun of a much darker political operation. Federal prosecutors have charged 70 people in a $250 million conspiracy, and the FBI is reportedly eyeing fraud that could total over $2 billion across multiple sectors including autism therapy, housing, and daycare. The vast majority of these defendants come from the Somali community in Minnesota. What wars or terrorism is that money being used to fund?? To understand how a fraud of this magnitude happens, you have to look past the people cashing the checks and look at the architects who built the bank. This industrial-scale theft traces directly back to Barack Obama. It was his administration that deliberately flooded Minnesota with tens of thousands of refugees, creating a dependent, insular enclave primed for exploitation. It was his policy of "equity" (another fraud) that paralyzed oversight. And it is his political heirs who are now frantically trying to bury the evidence, which they can’t because the math and law provide the evidence and eventually the truth will surface.

Between 2008 and 2016, the Obama administration oversaw the admission of over 54,000 Somali refugees into the United States. But they didn't just scatter them across the 50 states. They targeted specific swing states and counties, with Minnesota being the primary dumping ground.

By the time Obama left office, Minnesota was home to the largest Somali population in the country, now estimated at over 80,000 people. This concentration was strategic. By clustering refugees in Minneapolis, the Democratic machine created a voting block that could be harvested for elections and a demographic that demanded massive government outlays. They called it "diversity." (another fraud which destroyed the Democratic Party in favor of the “progressives”). It was demographic engineering on the back of you the taxpayer. The Obama administration poured federal grants (your money) into "refugee services," creating a lucrative industry of nonprofits and community organizers whose entire existence depended on keeping the flow of refugees—and federal dollars (your tax money) moving. This established the infrastructure for the on-going fraud we see today. When you import a population from a failed state with no tradition of Western civic duty, and you teach them that the government (Federal and State) is a bottomless trough of free money, you don't get assimilation. You get perdition that your Federal, State, Municipal, and School District Taxes pay for. Perdition refers to a state of complete destruction or ruin, often used in a religious context to describe eternal damnation or the loss of the soul. These people are lawless, soulless, running amok in your society and you are paying for it because your politicians created the fraudulent need and then allowed it to happen year-after-year after year to the point where your money has been stripped with no benefit to society whatsoever and worse being funneled offshore.

The "Equity" Shield (another fraud) of how the criminals (your politicians and yes there are socialists on both sides of the isle) paralyzed the Police where the insidious nature of the Obama-era strategy was not just in the importation of people, but in the weaponization of race to silence dissent. Under the guise of "equity," as promoted by socialists and the Republicans that refuse to stop it (aka socialism which is pure fraud), the Obama administration pushed for relaxed standards in federal contracting, specifically favoring "minority-owned" nonprofits without vetting of finances, ability, or actual existence. This created a regulatory environment where asking questions became a career-ending risk. If the equity shield does not work, then we the socialists will deploy censorship and de-platforming any opposing view and this criminal behavior is now playing out live in U.K. Germany, Europe to the point of pending civil war and hunger.

Within the "Feeding Our Future" (the creation in name of a solution to a problem that does not and did not exist and under which there is no accounting or accountability) wherein fraud by the fraudsters claimed to be serving thousands of meals a day to children who also did not exist. At one site, they claimed to be feeding 2,000 children daily in a second-story apartment. So why didn't the Minnesota Department of Education stop it? Because when they tried, they were called racists and or perhaps they did not want the bright lights of investigation brought upon the Department of Education itself…hold that thought as there is more on the school district bond fraud further down in this Article. The fraudsters, emboldened by the racial grievance culture Obama cultivated, sued the state for discrimination. Terrified of the "racism" label, the state resumed payments. This is the direct result of a decade of Obama-era policy that equated oversight with oppression. The bureaucrats were more afraid of a lawsuit from the ACLU (another organization that started with good intent in the 1920s that morphed into another blood sucking socialist tick) than they were of letting billions of dollars in taxpayer money walk out the back door. This brings us to the Judges who exist and are required to adhere to the law, not make it up to suit their political affiliations and or ideology. To make the point, just yesterday, Hanna Dugan, the then judge who assisted criminals in evading ICE, resigned in disgrace. ( Link to news article .)

Without exception, every Judge that manufactures a result ignoring the black letter of the law should be treated as co-conspirator in a criminal conspiracy to defraud and should be removed from the bench and disbarred at a minimum, because they are supposed to be the gatekeep of the State and U.S. Constitution and have failed by intent. The United States of America is a Republic and not a fiefdom and any judge that does not understand this very basic tenet should be disbarred. There is no room for discretion as the U.S. Constitution is superior (Article VI Clause 2 - Supremacy Clause) and every single decision made by any Judge that does not adhere to the U.S. Constitution must bring into account every ruling made by that Judge for oversight and possible new trials as the credibility of that Judge is forever questionable.

Sedition is overt conduct, such as speech or organization, that tends toward rebellion against the established order. Sedition often includes subversion of a constitution and incitement of discontent toward, or insurrection against, established authority. Sedition may include any commotion, though not aimed at direct and open violence against the laws. Seditious words in writing are seditious libel. A seditionist is one who engages in or promotes the interest of sedition. Every participant who under the Color of Law that allowed and even promoted the violation of Constitutional law, should be charged at a minimum with sedition, and if money went to the benefit of a foreign country, then Treason.

What is described above, is the depth and delusion of the criminality of fraud and it always starts and stops with politicians who hide behind sovereign immunity when caught after creating the debt enslavement of all Citizens while simulating free market capitalism.

One need not look any further than the Palisades in California to see the result of socialism, fraud, greed, stupidity and the infrastructure necessary to create the Institutionalized Systemic Moral Hazard of which California is the supreme poster child. As more fraud is now starting to be exposed, so will the further exposure of the governor of California and the mayor of LA. These creatures of ignorance exist until such time as the Citizens unite and throw them, and their like-minded bureaucrats, out of office in mass. Or wait for next year’s fire season. Oh, right, what is there left to burn?? It is important to note that if a mayor or governor of a state in Russia did what the California governor and mayor of LA did, they would have been shot. This is the difference between communism and a Republic where the laws in a Republic are supposed to be applicable to all.

Just in case you the reader think I am picking on what was once the democratic party that no longer exists and is now irrefutably the socialist party of America controlled by “progressives” with the combined IQ of my shoelaces, my position for alleged republicans who refuse to enforce the Constitutional State and Federal laws is apparent as seen here: the Criminal Complaint filed against State of Texas and the FOIA request made to Texas Attorney General .

Every Citizen should be greatly bothered by any political party or judge that refuses to adhere to Constitutional law because in the end, all citizens regardless of party affiliation end up paying for the fraud created by politicians who refuse to understand the ramifications (the what if scenarios and cost related thereto) of what they are voting on in favor of a power grab being the fastest low lying fruit of public manipulation. These creatures from the black lagoon must be held accountable for their actions.

The fraud must be exposed then peeled back out of the system, as painful as that may be both at the Federal and State levels, to fix the problem permanently and to restore the credibility of the U.S. dollar & Treasuries along with the restoration of economic stability, or war will be the likely result. See Part II in article, Proper Analysis = Proper Thought .

Now that you are beginning to see the picture of the fraud and fraudsters, let’s review many of the frauds touching your life on a daily basis:

School District Bond Fraud, see School Districts Fraud – The Balances Sheet and its Analysis .
Real Estate Tax Fraud, see the Amicus Brief .
Robo-calls asking for donations to charities that don’t exist. If AI is so good, why can’t it eliminate this scourge on society?
Check washing
Phone calls, Text messages, Email Scams (aka FRAUD…follow the money)
Bank Transfer Scams
Investment Scams
You too can be a real estate millionaire Scam
Business Impersonators
Government Impersonators
Medicare Scams
501.3 (c) non-profit Scams
PAC – Political Action Committee – many of which are SCAMS for personal financial gain
Employment Agency Scam
Fake Charity Scam
Woke is a Scam
DEI is a Scam
ESG is a Scam
BLM is a Scam
Multilevel-Marketing Pyramid Scam
The sale of your personal data on the dark web
Bank bail-in, wherein if your bank goes broke, they can take your money and hand you back a share in their bankrupt bank.
Real Estate Tax Lien Fraud
AI created videos including AI generated videos and recordings, which contain inuendo and void of facts are misleading at best. If the creator is unwilling to get on camera, then one must question the credibility of the video.
Biometrics. Fraudsters create the circumstance and offer you the solution for your own security being let us the fraudsters / politicians, take your eyeball / retina scanning, fingerprint, and blood sample, to help protect you from who???? The point being you give up your freedom because of a problem created by a fraudster.
Accounting Fraud, Bond Fraud, Rating Agency Fraud, Bank Fraud.
Federal Reserve Fraud. The purchasing power of the U.S. Dollar has devalued 97% since 1913 which was the creation of the Federal Reserve. See article, Crisis of Confidence .
Private Equity Fund Fraud
Compound Cumulative Fraud
Add on fees / taxes Fraud – hotel tourism taxes
If fraud was eliminated income taxes would go down by roughly 60%
Income and Expense Fraud
Balance Sheet Fraud
Education Fraud. You paid for an education. Aside from debt, what did you receive?
Stock and Bond Fraud – Tricolor placed multiple loans on a single car
Survivor Support Group Scam
Social Security Scam
QR phishing Scam
Charitable Foundation Scam
Feed the Children Scam
UNICEF Scam
Cultural Fraud. Members of certain societies, which are heavy in population per acre, will sell investments to their own family, friends and society members with no due diligence and no remorse.
Main-Stream Media news fraud. Half truth news is propaganda for purposes of a narrative.
The Democratic Party should be sued for false advertising as they are raising money under a false narrative. The definition of “democratic” is characterized by or advocating democracy. There is absolutely nothing democratic about excluding and demonizing any person in society, therefore the name of the Democratic Party should be changed to what it has become, which is the socialist party of America. They screech “we are concerned about democracy” and what is meant is that they are screaming about their democracy meaning their ability to steal your money and put it in their pocket. In truth, they care nothing about you and only care about their socialist policies from which they can steal and commit more fraud. This entire list would not exist but for socialist policies. The lack of young people’s ability to buy a home or afford rent is on the back of socialist policies and those who promote them and yes that includes members in all political parties because they are either incapable or too lazy to understand the economic impact on society of their actions.
Universities that claim to be there for the education of all, yet exist for the benefit of their endowment (Yale & Harvard), and are incubators of socialists who’s lives may very well end up in ruin because the socialists can’t look after themselves without stealing others hard earned money.

What is the end result of all these scams?

1. Financial Loss

2. Loss of Societal Trust

3. Equity Stripping (See article, Equity Stripping, Your Money, Your Future .

We can’t fix what we can’t define. The net result of socialist policies is defined above.

Now ask yourself, how could all this fraud exist if the government and courts were doing their job? Who receives the benefit of allowing fraud to exist? In every instance without exception who receives the compound interest on the fraudulent principal?

If Socialism is not codified as a national security risk, could we not end up as did Cuba, Venezuela, the U.K., Germany, or European Union?

This brings us to item C.)

Pin the tail on the fraudster .

Be very cognizant of the fact that the government may not be in a position to rescue you, either physically or financially.

Obtain the evidence against the fraudsters. See FOIA request to Texas Attorney General .

When you have the evidence assembled, you have the obligation to file Criminal Complaints. See Criminal Complaint filed against State of Texas .

Join forces with others in your neighborhood to file suit against the entities and people responsible for violating the law. This is a checklist to compare and use with regard to property tax fraud, Partial List of Violations Reviewed .

See article, “ Proper Analysis = Proper Thought, Why the Deep Dive into Proper Analysis ” Part 1, and especially Part II.

What can you do to protect yourself both physically and financially?

With regard to physical rescue of your person, family and neighbors, obtain some medical training, stock up on useful items such as https://www.ready.gov/sites/default/files/2024-05/ready_supply-kit-checklist.pdf

In areas that are prone to natural or man-made disasters (i.e. California), have a bugout bag or bugout box / tool kit in each vehicle.

There are many items available including generators, batteries, tools, tow straps, etc. all of which should be considered and created specific to suit the household and also taking into account family pets (food, water, medicine) as well. A bugout bag or box does not mean you have to leave as you can choose to bug-in but you have the resources to survive.

With regard to financial protection first and foremost is Transparency. Learn to read an income and expense statement, learn to read a balance sheet, ignore any hype, do not give anybody any money where you do not fully understand what is happening. Credit card debt should be eliminated as fast as possible to get control of your financial situation. Do not trust AI videos. If the source of the data and who created the video is non-existent, then lend zero credibility to the document or video as it is probably a deep fake. The deep fake videos, with no real person should come with a warning MAY BE HAZARDOUS TO YOUR HEALTH. If you do not know who is making the statements on a video and the creator of the video is too afraid to explain themselves on camera, then they are manipulating you. Reframe your own guidance and point of reference and ask yourself, is this a socialist policy? Who is paying for this social engineering? Your own due diligence for your financial protection is job one. Whether you purchase or lease a car, motorcycle, or house, download an amortization schedule and learn about it in detail. Can you truly afford the purchase over the long term and if yes, can you afford to pay down an extra amount of money per month toward principal? This can save you hundreds of thousands of dollars over the term of your mortgage. The amortization schedule, which is such a major portion of your future, is the same amortization schedule that government debt is supposed to adhere to, meaning the retirement of debt. However, as has been proven, the bond debt is not being retired but rolled up and out with more debt being added annually. The Rule of 72 proves the compound growth of interest plus debt and that is why the Federal government is printing money to cover the interest on the federal debt and why the school districts via the State governments are printing money via the equity stripping of your mortgage in the form of overvaluation and over taxation. Change your frame of reference and you get to the truth of socialism which ends in disaster whereas true capitalism raises all of society as the burdens of socialism are eliminated.

If you want to donate to help a person in need then go directly to the person and bypass those charities that have infrastructure (whether legit or not) to support. Overhead means that only pennies will get to those in need and money is often siphoned off into personal benefits of those at the head of the organization as seen in the above list of scams. You would be throwing your hard-earned money into the pockets of those who did nothing to deserve it….socialism and fraud at play.

Have emergency cash on hand.

Have several hundred dollars in silver coins on hand for bartering if necessary.

If you can afford to have precious metals and or hard assets with no debt, this is highly advisable. The debt load that the U.S. and many other Countries face is not sustainable.

As a Citizen it is your obligation to get involved in fixing these problems. See article, You Can Make a Difference, A Holiday Wish for All . Your involvement for the sake of your children and society is crucial and not an option.

As a Citizen, it is your obligation to understand that many governments across the world suffer from the same delusion of socialist policies and those policies failed and now we are seeing the evidence float to the surface. Instead of potential wars to extricate ourselves and others from their failed policies of debt creation being the illusion of growth, we need other countries to recognize the truth and peel back the fraud they all created. Countries need each other as trading partners. The U.S. can lead by outlawing socialism within our shores. Other countries may or may not follow but we stand resolute in the U.S. Constitution and the promotion of Constitutional Law.

Get involved to repeal all property tax in favor of the Uniform States Sales Tax.

Hold your politicians accountable . If the politicians want your vote, then make them sign a CONTRACT stating what they stand for. If their policies are socialist (the creation of debt at the expense of any and all citizens), then expose them for the fraudsters they are.

To the young people who now wonder in anger, rightfully so, why they can’t afford a house or an electric bill, it is ok to think you are smart. It is ok to have an opinion. However, it is your duty as a citizen to think about the evidence and data which is causation of your anger and be civilly minded correcting the causation. If you think that I or anyone is wrong about their position, that is also ok, but your job is to sit down with a pen with paper and prove it. Then, take your data driven results public for all to see and debate. When you can’t disprove the data, you should have the intellectual integrity to admit that you are independently wrong or were misled and or manipulated by socialist teachers (including politicians on both sides of the isle) who desired to mold you in the pattern of their personal failings, and that there is another way of thinking. Think clearly with data and you will create a good life for yourself and your family. Think like a socialist and the probability is that you will end up poor and miserable, just like those who lied to you, other than the politicians, many of whom end up rich and miserable.

In Summary :

Socialism is a mathematical impossibility as it ends when other people’s money ends.

Simulated free markets (not true capitalism) by the interference of government picking winners and losers, backstopping banks and those who lose money, ends when the debt load is so great the treasuries, debt, and currency collapse as they have throughout history.

The Government’s main job is safety of its Citizens, not participating in an economy (i.e. via the Federal Reserve which exists to backstop failed banks, or purchasing public company stocks to keep the illusion going), meaning it’s job is to clear the deck of idiot bureaucracy so businesses and citizens can run the ball of Capitalism which builds stability in any economy for the long haul. Laws for the protection of the government end up protecting the socialist mantra “this is for the benefit of you the people” and because we are the government you can’t touch us as we commit fraud upon you. (See the Amicus Brief .) Anything other than true capitalism is doomed to failure. It is not a question of if, it is a question of when.

Socialism is distinct from a social policy . A social policy is, by way of example, the elimination of hunger. As a social policy, money can be set aside at a local level to deal with this issue in a very transparent manner. It becomes pure socialism when money is taken from tax dollars without no accountability, no transparency and under the auspices of “feed the children” as seen in Minnesota, and shortly, across the U.S. Same can be said for school districts where they screech “we need the bond money for the children” which we have proven is a pure fraud to the tune of $5.1 Trillion in fraudulent outstanding school district bonds. Social policies can be dealt with at a local level whereas socialism is a cancer that replicates itself quickly across society and which must be eradicated and thus eliminating the fraud of socialism.

I’m proud to be an American and America can only survive as a Constitutional Republic where the laws are applicable to all, or America will fracture apart and that should not be allowed to happen. This is why we do what we do.

Proper Analysis = Proper Thought, Why the deep dive into proper analysis

Tue, 30 Dec 2025 18:44:04 GMT

Proper Analysis = Proper Thought

Why the deep dive into proper analysis

By Mitchell Vexler, December 30, 2025

Part I

Why the deep dive into proper analysis? Gold, Silver, and the connection to debt.

Ignore comments that are not backed up with mathematical probabilities.

No Hype. (Don’t fall for the hype.)

Who is creating the volatility and for what purpose?

Possible:

World silver production: ~800M ounces

Probable:

Demand seems to be outstripping supply. Industrial + FOMO (fear of missing out)

Paper chasing paper (short without the ability to purchase the physical & short paper contracts not backed by physical) which is leverage upon leverage and then add the 3 ^rd party counter risk which is more leverage upon leverage.

X Banks were short gold and silver contracts. There is no way to know specifically because the damage on silver was done within the last 20 days and such data does not appear on the income/expense statements or balance sheets of the publicly traded banks and may be considered off balance sheet especially with regard to the 3 ^rd party counter risk.

Is it just the bank or the 3 ^rd party credit / counter risk such as CDS, Re-Insurers, & participant banks that they are trying to protect?

Who? Does the Fed even know who they are?

What you’re looking at isn't just a large short position.

The notional value of gold futures is calculated by multiplying the contract size, which is typically 100 troy ounces, by the current market price of gold. For example, if gold is trading at $4,383 per ounce, the notional value of one gold futures contract would be $438,000 (100 ounces x $4,383).

Margin Cost is $X depending on volatility. Supply issues add complexity for which brokers will not take the risk thus increasing the margin in excess of 1%.

Leverage is Margin divided by Notional $Gold Value divided by 100 Troy Ounces.

Currently physical is hard to source and slow to deliver.

The damage of those who participated in the shorts may be irretrievable, but for the Federal Reserve stepping in to stop a vortex of participants stemming from the banks to the 3 ^rd party counter risk from imploding due to bad positions. Should the Fed step in? NO! Will the Fed step in on behalf of the U.S. Treasury? Probably. Eventually the truth will surface.

Global silver production is effectively capped at 800M ounces per year.

The paper chasing paper ounces short is TBD. We don’t know and we don’t have access to such data including the Commitment of Traders.

Whatever the shortage of paper chasing paper in the participant bullion banks i.e. 4.4 BILLION ounces to cover these positions (308 Billion Notional as of today), these banks would need to contract purchase every single ounce of silver mined out of the ground for the next 5.5 years never mind what real demand and use exists today for the Silver i.e. Solar, Batteries, & EV, which takes up 60% of the existing production. In other words, the existing physical demand is just a very small component of the paper chasing paper and that paper chasing paper is the crux of the problem. It was never real to begin with.

The "free float" of investment-grade silver is tiny.

How is this even allowed? It’s called unallocated accounts and rehypothecation.

The bullion banks have likely leased the same physical bar of silver to 10, 20, maybe 50 different clients. HMMM does this not sound like Tricolor the auto company that had multiple bank loans on one car?!!!!!!!!

This is not a Hunt Brothers moment in 1980s. They were trying to corner the market by buying physical.

This maybe institutional naked shorting on a scale that defies coverage, meaning the physical does not exist to cover their extraordinarily levered paper chasing paper. (No gold or silver is physically backing up the paper.)

This is not a "Force Majeure" (act of God) event. This is 100% purely manmade greed and manipulation on steroids.

Will the LBMA (London Bullion Market Association) survive? TBD

Is there a need for a clearing house to clear paper chasing paper in Metals. No. A clearing house for cash settlement is necessary.

IF YOU DON’T HOLD IT, YOU DON’T OWN IT.

I understand Critical Minerals but if you prohibit the export of silver and silver is currency, then how is banning the export of any precious metal not currency control?

Part II

What are the issues and volatility shown in my spreadsheets telling us?

See the Daniela Cambone video, The $23 Trillion Property Scam That Will Bankrupt America – Vexler.

Link to video: https://www.youtube.com/watch?v=uY5EpJl5fUo .

The current system of school district bond issuance in Texas bears a striking resemblance to the "MEO" bills and economic fraud of the 1930s Germany regime.

Both systems rely on artificial value creation to sustain government spending that the real economy cannot afford. Here is how they match:

1. Artificial "Value" to Back Debt

* MEO Bills: The German regime created "MEO" bills—promissory notes with no real gold or currency backing—to fund massive military rearmament. They essentially invented "money" out of thin air to pay for projects they couldn't afford [00:52].

* Texas school boards use "Appraisal Fraud" which creates fraudulent School District Bonds, which accomplishes the exact same thing of creating false value, no different than the German regime. By artificially inflating property values (sometimes by 30% or more in a single year despite low inflation), school districts create a higher "tax base" on paper [00:10]. This higher paper value allows them to issue massive new bonds that the actual incomes of the residents cannot support [13:42].

Just like the paper chasing paper in the Silver market, the majority of the paper has no value as its ability to made good based on physical does not exist meaning extreme over leverage not backed by assets.

2. The "Ticking Clock" of Debt

* MEO Bills: By 1939, billions in MEO bills were coming due. Germany had no real money to pay them, making conquest and the seizure of foreign resources the only way to avoid domestic collapse [08:06].

* Texas School Bonds: School districts are issuing new bonds just to pay the interest on old bonds [11:19].

This creates a "Ponzi scheme" dynamic where the debt grows exponentially. Godley, Texas, where the bond debt per household is roughly $120,000, while the average home value is only $160,000 — meaning the debt is nearly equal to the total asset value [13:34].

3. Concealment and "Noble Causes"

* MEO Bills: These were hidden from the public and international observers to maintain the illusion of an "economic miracle" while secretly preparing for war [00:52].

* Texas School Bonds: The point being that "the noblest causes" (doing it "for the children") are used as propaganda to mask what I have shown as "accounting fraud" and "bond fraud" [11:52]. The school superintendents and chief appraisers work together to set predetermined budgets and then manipulate "effective age" and property cards to meet those numbers [08:00].

4. The Threat of "Total Collapse"

* Comparison: Just as the MEO bill fraud made WWII an "inevitable necessity" to avoid German bankruptcy, Vexler warns that the $5.1 trillion in fraudulent bond debt nationwide is a "ticking time bomb" [25:11].

If the "controlled demolition" of this system (repealing property taxes) doesn't happen, it will lead to a "crisis of confidence" and a financial crash far worse than the 2008 housing bubble [33:10].

Key Stats:

* We estimate that 21.25 trillion dollars of property overvaluation has occurred in the last five years alone [04:52] from which over $450 Billion in over taxation, money being stolen from the houses has occurred in 2024.

* In some Texas districts, taxpayers are on the hook for repayments that are many times the original amount borrowed [15:46].

As a further example European Union, United Kingdom, Ukraine, Germany, Minneapolis Minnesota, Conroe Texas, all did exactly what the MEO bills did in Germany which is to create money / debt which is the cause of the problem (fraudulent bonds) that leads to both Institutionalized Systemic Moral Hazard, and the symptoms of property tax lien foreclosures, bankruptcy and or losing the roof over their head for roughly 37.8% of the household population being approximately 42,000,000 households and in the case of the Countries mentioned… they march toward war to cover up their fraud, just like Germany did in 1939.

The School Boards use inflated appraisals and equity strip property owners in terms of paying down their mortgage, and place future debts upon the property owners from which there is no revenue to be obtained to continue the fraud, making property owners economic slaves to the debt created by criminals (RICO).

No school district should ever be allowed access to the bond market and use property values from which to gain tax revenue.

The school district’s credit card must be cancelled.

Perpetual tax debt = debt slavery.

Institutionalized Systemic Moral Hazard ends when the school districts no longer have access to property valuation fraud by the Central Appraisal Districts.

Repeal all property tax in favor of the Uniform States Sales Tax. See Benefits of repealing property tax on my website.

They stole your money to transfer that wealth to those who did not earn it and that is the definition of socialism.

Socialism ends when you run out of other people’s money and that is now because the Median Household Income does not exist to pay for the fraudulent debt.

Demand from your politicians the termination of the school district’s credit card.

Massive Property Tax Fraud Exposed - $5.1 Trillion Bond Scam – www.mockingbirdproperties.com/dcad

What have we learned. There is a direct correlation to the property tax fraud, silver scam and printing of money via the U.S. Treasury & the Federal Reserve. The nexus is the creation of false value being fraudulent property valuation from which to steal tax revenue, fraudulent paper chasing paper from which there is no physical to back up the paper, and fraudulent printing of money causing inflation which is a hidden tax.

This is the reason why every person watching this video, SILVER BAN BEGINS – Prices COLLAPSE , must be active to make the politicians aware and then push them into admitting the necessity of controlled demolition before the politicians push the world into meaningless and unnecessary wars.

Your life and your children’s lives depend on your involvement.

How to Audit Your School District & Central Appraisal District

Fri, 26 Dec 2025 18:28:40 GMT

H ow to Audit Your School District & Central Appraisal District

By Mitchell Vexler, December 26, 2025

1. Find a local active Facebook group you can work with to expose the data / evidence and have a place you can communicate with other active members of society. Be active and let everyone know in your community about this group and your efforts. Once the team is set up, issue a Preservation of Records to each person who has knowledge including School District Accounting Firm, SD Supervisors, SD Board, State Comptroller, State Attorney General, State Auditor. Post every document and communication on the Facebook page. Create a website and post every document there. Find a local reporter who has an interest in the story and evidence.

2. Find a local accountant, Certified Fraud Examiner, or a person who for the prior 3 years can chase down:

A. Revenue

B. Expenses – Who received the checks / money?

C. % of line item expenses as compared to revenue- Review largest expense items.

D. Detailed balance sheet analysis including investment pools where details are not provided (hidden investment pools), who participated, are they tenured, where are the investments, where did the money for the investments come from, who received benefit, etc., etc.

E. Review internal emails between School District Superintendent, Chief Appraiser, and SD Board Members. Chase down gaps in correspondence where emails may be missing.

F. Detailed kickback analysis. Who paid for the bond raise advertising? Who received the contract to build the school? Where are the conflicts of interest?

3. Send a Certified Mail or FedEx containing a Freedom of Information Act request outlining exactly what you and or your group is looking for from the SD Superintendent.

By law, they must respond. Keep the FOIA request as short as possible. Use the FOIA request found on www.mockingbirdproperties.com/dcad as a possible template. If they don’t respond, that speaks volumes. Each Board Member and SD Superintendent can be held joint and severally liable, and a Judge will make them turn over the evidence and the defendants will end up paying the cost of legal fees.

4. The audit process is a crucial component of any business. Make no mistake, your school district is in the extortion business. An extortion business designed to transfer your money into their pocket without providing the service for your children that you demand, and if you don’t pay, they will take your property. The audit provides assurance that financial statements are accurate and reliable.

Understanding the Audit Process

Before delving into the specific phases of the audit process, it's essential to understand the overall concept of auditing. Auditing is a systematic examination of an organization's financial statements and records, conducted by independent professionals known as auditors, and yes, an auditor does not need to be licensed and neither does an investigative journalist. This process involves assessing the fairness and accuracy of financial information, identifying any potential fraud or errors, and ensuring compliance with applicable laws and regulations.

Auditing serves as a critical function, providing credibility to financial information and enhancing the accountability of corporate and or governmental entities. It involves a comprehensive review of financial records, internal controls, and management practices, with the aim of providing an opinion on the accuracy of financial reporting. The audit process follows a systematic approach and is governed by a set of generally accepted auditing standards (GAAS), or in the case of the government itself the Yellow Book of auditing standards, ensuring consistency and reliability.

When conducting an audit, auditors perform several key procedures to gain a thorough understanding of the organization's financial health. These procedures include analyzing financial statements, testing internal controls, sampling transactions, and verifying the existence and valuation of assets and liabilities. By conducting these procedures, auditors are able to assess the organization's financial position and provide an independent opinion on the fairness of the financial statements.

Importance of Auditing

Auditing plays a vital role in business by providing numerous benefits. Firstly, it enhances the confidence of the taxpayers, bond investors, creditors, and regulators, by providing an independent assessment of financial statements. This, in turn, facilitates proper investment decisions and efficiency.

Furthermore, audits help in identifying areas of improvement, enabling organizations to address weaknesses in their financial reporting processes and internal controls. By highlighting areas for improvement, audits contribute to the overall efficiency and effectiveness of an organization's operations.

Audits also serve as a deterrent to fraud and misconduct. The presence of auditors reviewing financial records and internal controls acts as a strong deterrent to fraudulent activities, promoting ethical behavior and protecting the interests of shareholders.

In addition to these benefits, audits also provide valuable feedback to management. Through the audit process, management receives insights into the organization's financial health, internal controls, and compliance with laws and regulations. This feedback helps management make informed decisions and improve the overall governance and risk management of the organization.

The Initial Phase: Audit Planning

The audit process begins with detailed planning. During this phase, auditors gather relevant information, set objectives, and develop an audit strategy to guide their work. It involves a careful assessment of the organization's operations, risks, and controls, ensuring that the audit is conducted efficiently and effectively.

Identifying the Scope of Audit

One of the key tasks in audit planning is to determine the scope of the audit. This involves identifying the specific areas to be audited, such as financial statements, internal controls, or compliance with laws and regulations.

Risk Assessment in Audit Planning

What is the source of revenue? Taxpayers

What is the source of over taxation? The Central Appraisal Districts and the Chief Appraiser’s property over-valuations for ad valorem taxation due to School District or Municipality bloated budgets and large debt service requirements. (Property values have been increased to cover off the fraudulent spending.)

Who colludes with the Chief Appraiser to create higher property values than established in law (and USPAP)? The School District Superintendent.

Who is at risk? You!

Risk assessment is a critical component of audit planning. It involves identifying and evaluating the risks that may impact the organization's financial statements. Auditors use various techniques, such as interviews, inquiries, and analytical procedures, to gain an understanding of the entity's risk profile. This information helps them to plan the audit procedures and allocate your team resources effectively.

Developing an Audit Strategy

Based on the scope and risk assessment, auditors develop an audit strategy tailored to the organization's specific needs. The strategy outlines the approach to be taken, the audit procedures to be performed, and the resources required. It serves as a roadmap for the audit, ensuring that the work is conducted in a systematic and efficient manner.

Use www.mockingbirdproperties.com/dcad and www.realestatemindset.org as the roadmap for your investigation.

The Execution Phase: Conducting the Audit

Once the planning phase is complete, auditors move on to the execution phase, where they gather evidence, test internal controls, and perform substantive procedures to validate the accuracy of the financial statements.

Gathering and Analyzing Evidence

The gathering and analysis of evidence are crucial steps in the audit process. Auditors use various techniques, such as examination of documents, observation, and confirmation with third parties, to obtain the necessary evidence to support their conclusions. The evidence is then analyzed to determine whether the financial statements are free from material misstatements.

Testing Internal Controls

A significant aspect of the audit process is testing the effectiveness of internal controls. Internal controls are the policies and procedures established by management to ensure the reliability of financial reporting. Auditors evaluate the design and implementation of these controls to determine their effectiveness in preventing or detecting errors or fraud. This analysis helps auditors assess the level of risk associated with the financial statements and guides the selection of appropriate audit procedures.

Audit Sampling Techniques

Due to the volume of transactions and the limited resources available, auditors often use sampling techniques to gather evidence. Sampling involves selecting a representative portion of the population for examination. Various sampling methods, such as statistical sampling or judgmental sampling, can be employed depending on the circumstances. Auditors carefully design their sampling plans to ensure that they obtain reliable and meaningful results.

The Final Phase: Audit Reporting

The last phase of the audit process involves finalizing the audit report and communicating the findings to the organization's management and if necessary a Judge and Jury. Keep the public informed all the way along.

Preparing the Audit Report

The audit report is perhaps the most critical deliverable of the audit process. Consider the Report a portion of a Trial Brief. It provides an independent opinion on the fairness and accuracy of the financial statements. The report typically includes an introductory paragraph, a description of the scope and objectives of the audit, a summary of findings, and the auditor's opinion. The format and content of the report are governed by auditing standards and must adhere to certain reporting requirements.

Communicating Audit Findings

Once the audit report is finalized, auditors communicate their findings to the organization's management and relevant stakeholders. The communication may include a discussion of significant issues identified, recommendations for improvement, and any other matters of importance. This step ensures that the impact of the audit is fully understood and that appropriate actions are taken to address any identified deficiencies.

Conclusion

In conclusion, the audit process is a comprehensive and systematic examination of an organization's financial statements, as well as statements made in public by the Boards and SD Superintendent, and related records. From the initial planning phase to the final reporting phase, auditors follow a structured approach to ensure the accuracy, reliability, and compliance of financial information. Understanding the different phases of the audit process helps organizations and stakeholders appreciate the importance of auditing in building trust, enhancing transparency, and promoting sound practices. If your school district and appraisal district are participating in a criminal conspiracy to defraud, you have the civic duty to expose them because it is your money they are stealing.

Messages Received from Concerned Americans

Fri, 26 Dec 2025 18:15:31 GMT

Messages Received from Concerned Americans

A Sampling of Recent Messages Attached to Petition Signatures

TR in Minnesota

“We are imaging financially! Over the past 45 years our property taxes have risen almost 1,000% while our income and wages have remained basically flatlined. Now when we are retiring our property taxes are like having another house payment. We are like renters to the government. This is immoral, that we never own our home and the land that it is on. But have to pay ever increasing property taxes to live here in our own home. Half of our money is taken between state income taxes, federal income taxes, sales taxes, hidden taxes on everything we buy, multiple taxes on our utility bills, gasoline taxes, automobile taxes, and the list goes on and on. Between federal and state income taxes and sales taxes along we are paying almost 50% of our income. This is robbery! This needs to stop. People need to be able to get their house paid and have no taxes owed on it in order to continue to live there. There should be a day when property taxes are no longer required to stay in your home. And we should be able to leave our lifelong endeavor of buying a home to our children without them having to pay more taxes on their inheritance.”

RF in Texas

“I stand solidly with Mitch and Travis with what has been found and verified in the taxing fraud by the CAD districts. I personally filed a grievance in Fort Bend County District Attorneys office. They admitted to the Bond debt fraud but said there was no way of substantiating evidence, being criminal activity or plain ignorance. They could and would not investigate any further. It's pure fraud.”

MM in Vermont

“In June of this year the appraiser stated that the value of my home will go from $176,000 to $300,000 and will be notified this spring.”

DI in Texas

“Senior Citizen that is opposed to Property Tax and is in favor of States Sales Tax.”

LW in Texas

“Between property taxes and P&C insurance I will not be able to stay in my home long term once I’m retired. It is theft to keep taxing us annually on our properties.”

LL in Washington State

“ I’m a retiree on a fixed income, I can’t keep paying these bond taxes, as every year they increase! I’ll be out on the street soon if this continues.”

CO in New York

“Foreclosed on for 12k of late taxes prop assessed”

JN in Texas

“I would like to be a home owner and not indebted to government through prop taxes forever.”

LA in Nevada

“My real estate taxes recently increased my mortgage payment by $50.00 a month on a $300,000 condo that has lost equity over the last year. I am a retired citizen on a fixed income and this is outrageous.”

SW in Pennsylvania

“Reassessments are going to be done for 2027 in Lancaster County plus 10% mileage rate. I’m 70 years old with only SS as income. I will be pretty much homeless when this occurs. The fraud must end and those responsible in jail.”

EO in California

“We will own nothing and will not be happy. At 75 years old I will never be able to retire. I am not a bank! I have always voted no to all bond increases.. Thank you for discovering this corruption.”

RB in Illinois

“I estimate that in the 22 years I have lived in my house one third of its equity has been taxed away. At the present rate of increase in the next decade the remaining equity will be wiped away.”

W in New Mexico

“The Corporation a.k.a. The State of New Mexico seized my home and 7.5 acres of land for not paying property taxes even though I bought the property and materials with cash. I invested over $250,000.00 in remodeling cost.”

JS in Texas

“Bought home in 2020, Sold home in 2022 due to property valuation increase”

SR in Texas

“My prop taxes & ins will prevent me from ever retiring”

JC in Illinois, Commercial Property Owner

“Please Help my local assessor and board are out of control”

CR in Oregon, Homeowner & Commercial Property Owner

“ I live in Jefferson County Oregon and Pay roughly 60,000 a year in property taxes. I have two kids in public school. They were in private school but I couldn’t afford it anymore.”

JH in Wisconsin, Homeowner & Commercial Property Owner

“Hi! Our taxes in Vernon County have recently been raised to above purchase price for all properties that we own. I originally called appraiser to dispute, not knowing the details in these documents on this site. The appraiser basically tried to convince me that the property tax values are being raised to current market values. They obviously used massed appraisal standards as he did not step foot inside any of my properties. I was not able to be present during the limited time the city set aside, to dispute publicly, as my wife and I were on vacation. Essentially we are now paying taxes on equity that we do not even have access to unless we try and sell, refinance, or try and get a HELOC.”

FA in New York

“I am 88 years old and have paid property taxes since I purchased my first home in 1967.. My present home is paid for and my 2025 - 2026 tax bill is $8000 dollars. I am retired and live on a fixed income. The town and county is scheduled to reassess all properties in 2026. This method of taxation must be ended.”

RM in Texas

“I would like to know if my county (Kaufman) is involved in this property tax scheme. My mortgage just went up another 207.00 dollars and I suspect it's the property taxes, AGAIN!”

WJ in Texas

“ Kaufman county appraisal fraud and deleting protests”

JC in Kansas

“Please fix this before we all go broke.”

RR in Washington State

“Help the law abiding Americans! Please! I worked to hard just to have these corrupt politicians and organizations to steal my money.”

AZ in Washington State

“ I’ve been following you for the last year on multiple podcasts i watch/listen too. I recently bought a house in woodinville washington. I bought the house 3 months ago at 1.45m. the house had zero offers and was listed at 1.6m. since I’ve even in the house (3 months) I received two separate property tax increase notices. I petitioned the first notice and it was declined. two weeks later I got a second notice raising my taxes again. King county is claiming my house is valued 400k more that the our chase price from 3 months ago. I want to fight this is court and plan to do so.” “I will be contacting the chief appraiser tomorrow.”

TS in Kansas

“My property taxes are outrageous and as is the spending on the education in the school system, which is pitiful and getting worse every year.”

TC in Minnesota

“ The county assessor came by a month ago, did his overview, etc and said values are going up substantially. Simultaneously, a school bond issue is up for vote. Seems a suspicious.”

DI in Texas

“My property taxes have cost more than the selling price of my home. I am a senior soon to be on fixed income. Please help!”

DR in Texas

“Since 2020 Brazoria county appraisal district has gotten VERY aggressive with increasing property values. In 2023 124%, in 2024 35%, in 2025 44%. I have to contest the increased valuations every year to try to keep them in check, but it feels like I am fighting a losing battle. Eight months after the BCAD and myself agree on a valuation I get my property taxes notice that my property has increased 100%, or 44%, or 35% since my protest hearing! It’s gotten ridiculously out of control.”

KG in Oregon

“Property taxes in the USA are OUT OF CONTROL!! They prevent home ownership, intentionally, in my opinion, harming seniors, young adults & all Americans. Abolish them, please!”

JP in Texas

“Property taxes in Texas have risen far beyond the rate of inflation, making it increasingly difficult for residents to afford to stay in their homes. It’s becoming nearly impossible to live within our means. For this reason, I fully support this petition to abolish property taxes—especially when they appear to violate constitutional rights. Specifically, under the 16th Amendment, taxes should not be assessed on unrealized gains. Yet, we are being taxed as if we are benefiting from “equity” based solely on inflated property valuations—gains we have not actually received. On top of that, there is little transparency regarding how these tax revenues are being used year after year. Enough is enough. If immediate action isn't taken to address these irregularities, the situation could spiral into a broader economic problem for everyone in Texas—and that’s an outcome no one wants.”

DW in Michigan

“Purchased home in May 2024 property taxes are levied twice a year. The first tax for 2025 already increased several hundred dollars second half will be coming soon no idea how much it will increase. If this continues I will have to try and sell this property help”

LM in California

“I am a 63 female and retired, inherited a building in Alhambra, CA property tax was 2500.00 up until 2021, then it was secretly appraised for 1.8 million which now property tax is over 40 THOUSAND dollars then they went back to 2018 added the 1.8 million reassessment along with fines and penalties THEN said I was late paying and added more penalties and fees THEN threw it into auction for no payment, it is my livelihood so I paid 133,000.00 to get it out of auction this was Friday 9/26/25 on 10/8/25 I received 3 more tax bills totaling over 19,00.00 due 10/30/25. I have been trying to communicate with the Los Angeles county assessors office in person over 25 times in 1 year just to be told nothing, absolutely nothing.”

L in Minnesota

“my taxes went up 30% last 3 yrs tried to fight but was told it wouldn't change a thing price and value increases can directly from Tim Walz, were told not to change anything. I brought house that sold, from appraiser, all were less than what my taxes were. Tim Walz implemented new software 4 yrs ago calculation values and taxes.”

BE in Illinois

“Keep fighting!!!!”

DH in Texas

“Taxes are not rated the same, open land in country should not be compared to commercial land on I 45”

DK in Texas

“I am tired of the fact that even though my home is paid off I have still have to set aside approximately $400 per month to pay my property taxes every year.”

BN in Texas

“Need help to stop foreclosure because of property taxes.”

DG in Ohio

“It is unconstitutional, unethical and immoral to tax a person's property. It can cause a homeowner to become homeless or a commercial owner to lose his ability to earn a living”

KI in Texas

“Abolish all property taxes.”

CH in Texas

“The tax fraud in this nation has grown to ridiculous levels.”

MP & SW in Texas

“ I believe this is definitely happening in Red Oak, TX. Our property taxes have been raised consistently over the past 3-4 years. Last year we had to dispute the valuation because it increased our mortgage payment dramatically. Red Oak is a growing community and the school district has been pushing all kinds of BONDS. This definitely happening here. Please help!”

KF in Montana

“I am a renter and the property taxes in MT have literally doubled in 1 year and people are struggling to pay their property taxes (even with a rebate offered by the state gov). I cannot afford to buy because of the inflated home costs and property taxes in this state. I am wondering if the appraisal system in MT is also in a similar situation.”

SE in Texas

“Stop the waste, fraud and abuse. This is not what America was founded on and leveraging our properties for decades to pay for unnecessary projects and waste our money is morally wrong.”

MC in Oregon

“Property tax is a fraud especially for seniors which I am.”

CF in Mississippi

“Please stop the insanity”

JC in Hawaii

“In 2024 my exemption was dishonored and my home's value was artificially increased 725% in order to manufacture new indebtedness to the State to create the appearance that it is able to pay its debts. This manufactured tax is so high, it amounts to charging me rent on the home I own outright, and if I am unable to pay it, the State will confiscate my home and sell it to pay its bondholders, destroying the security I made for myself through decades of sacrifice. It is illegal and immoral, and a callous breach of trust and duty that makes the public servants a bunch of pirates.”

NB in Colorado

“This year my condo unit in Glenwood Springs Colorado was hit with the county assessors with a $100,000.00 increase to the property's taxable valuation”

TT in Alaska

“I rent, but my son is living in and paying property taxes on my home. The home is valued at a much higher rate now since I first obtained the home. Its older now, but new when I moved in. It is now valued at over $400,000. Purchased in 1998 and needs a little work.”

JL in Arizona

“Why should landowners pay rent (taxes) on land they have already paid for?”

BA in Ohio

“Since I bought my house in 2016, my taxes have tripled from roughly $3,000 to over $9,000. It’s time to change this broken system. Thank you for your hard work!”

GR in Arizona

“stop this theft”

BS in Texas

“Property tax is driving elderly out of their homes”

EY in Washington State

“My property taxes doubled since 2020”

PF in Texas

“This seems weaponized and we want accountability held.”

CG in Wisconsin

“We will lose our home if this deception continues”

NG in New York

“We desperately need property tax reform-thank you for what you are doing to help mom and pop property owners.”

JR in Texas

“Appraisal unrealistic for property in disrepair, Ownwell protested with photos and NO ADJUSTMENT. Property purchased 2016 $380k. Appraised NOW $820k. WOULD NEVER bring that. NO COMPS for a duplex.”

EP in Texas

“Our property tax increases will become unsustainable based on absurdly high valuations of our property. “

JS in Texas

“Taxes going up faster than I can afford.”

LB in Pennsylvania

“I inherited this home that was my late mother's for 32 years. I am disabled now and this tax increase will force me to have to sell. If it doesn't sell, I will be homeless and the city will own my home.”

KE in Texas

“I can’t retire without selling my home because I can’t afford TX property taxes. I’m 69.”

MS in Texas

“Tired of the corrupted appraisers who value my land and house at an absurd amount for property taxes purposes”

PR in Texas

“I fully agree as I have been victimized by the Comal County District Appraisal District Office which has access to MLS and exaggerates its valuation process. You will notice that Property Appraisals always go up by multiple percentage points, but never go down!”

BW in Texas

“My home is appraised for over $300K and it is not worth half that much due to unfinished remodeling. No one has ever came inside my home to see that it was gutted out, but they tag an appraisal of $300K. I have been threatened that my house would be sold on many occasions because I couldn't afford to pay the taxes some years. I bought my property outright and never had a mortgage because my home was built from the ground by my family's own hands. I truly appreciate what you are doing for the working class and elderly. Thank you so much.”

12 Days Prior to Christmas 2025

Thu, 25 Dec 2025 18:03:49 GMT

12 Days Prior to Christmas 2025

By Mitchell Vexler, December 25, 2025

Daniela Cambone – 12 days ago, $23 Trillion Dollar Property Scam That Will Bankrupt America,
https://www.youtube.com/watch?v=uY5EpJl5fUo .

What do we know and what are we facing? (dubbed my “manifesto” by Daniela)

https://www.mockingbirdproperties.com/what-do-we-know-and-what-are-we-facing , 50 points of issues.

Bankruptcy of Conroe Hyatt Regency – Real Estate Mindset Video with Travis, Runaway Bond Fraud Bankrupts City (Conroe)

https://www.youtube.com/watch?v=g-OjRYJ6x4o & the article, Municipal Bankruptcy

https://www.mockingbirdproperties.com/municipal-bankruptcy , 50 points of issues with the Conroe Hyatt.

You Can Make a Difference – A Holiday Wish for All

https://www.mockingbirdproperties.com/you-can-make-a-difference-a-holiday-wish-for-all

Food Banks in Texas:

The Feeding Texas network is made up of 20 food banks and over 4,000 local partners. Together, the network fees more than 4 million Texans annually and is the largest hunger relief network in Texas. The need to feed 4,000,000 meals would not exist if property taxes were eliminated. Also see my July article about this.

https://www.mockingbirdproperties.com/hunger-assault-repeal-the-real-estate-tax

Miscalculations of Financial Stability Oversight Committee Report

https://www.mockingbirdproperties.com/letter-to-chair-bessent-miscalculations-in-the-financial-stability-oversight-council-report , pages 29-38 are wrong and that invalidates most of the document. U.S. Treasury.

Attorney General Paxton – 1,000 district investigation

https://www.mockingbirdproperties.com/december-9-2025-press-release-texas-attorney-general

Crisis of Confidence

https://www.mockingbirdproperties.com/crisis-of-confidence , as a follow up to the video with Daniela and a video with Travis.

VIOLATIONS.PDF
https://irp.cdn-website.com/39439f83/files/uploaded/Partial_List_of_Violations_Reviewed-052224.pdf

AMICUS BRIEF

https://irp.cdn-website.com/39439f83/files/uploaded/Amicus+Brief-Case+25-0615+Supreme+Court+of+Texas-UN-SIGNED.pdf

Kansas State Government just gave the Chiefs $2.775 billion in Star bonds, then told Kansans it wouldn't cost them a dime in taxes. “Sales tax would pay for it.”

This is a lie.

The 33 page term sheet, which I read, is fraud in motion which fails on its face because as a starter, politicians and stadium ownership both state “it won’t cost a dime in taxes” yet the initial funding is from property taxes, the future payments on the debt is comprised of property taxes, and the futures payments on the interest is comprised of property taxes. Add this new Stadium “investment” to other existing bond fraud in the that can’t be paid for (State or Municipal) and the end result in non-stop equity stripping of your own home mortgage, your bank account, and an increasing tax (mill) rates and or fraudulent overvaluation and over taxation as a result of more compounded bond fraud.

The State, as part of this deal, demanded a suite box, food, and drink. Is there anything illegal here? What about the political contributions? What about analyzing the shelf life of the Stadium and realizing that placing debt for 40 years on an effective 15 year shelf life is bankruptcy in the making. The question is who’s bankruptcy.

There will not be any return on investment…only liabilities to be fought out in court.

Hmmm…2 different States being Texas and Kansas, yet the exact same perpetration of fraud on the property owners and that is an irrefutable pattern and practice of intent to defraud which when compounded from project to project is Institutionalized Systemic Moral Hazard which keeps increasing until you and the City and or State end up Bankrupt just like the City of Conroe Texas as a result of their Hyatt Regency Hotel and Convention Center.

Merry Christmas, Happy Chanukah, and Happy New Year.

You can make a difference.

Municipal Bankruptcy

Mon, 22 Dec 2025 18:08:27 GMT

Municipal Bankruptcy?

By Mitchell Vexler, December 22, 2025

Prepared for: SEC Washington & Texas Attorney General Ken Paxton

Issue: Conroe Texas - Hyatt Regency Convention Center 1001 Grand Central Pkwy, Conroe, TX 77304.

Evidence: Curve fitted reports to achieve the desired goal which ended up in fraudulent bonds.

Emblematic of: School District bond fraud. See the Amicus Brief.

Outline:

With regard to the Hyatt Regency Conroe Hotel and Convention Center, there is no profit after debt service and debt service cannot be completed given the current structure, ownership, operator and debt load. The project is bankrupt.
One of the most ill-conceived real estate projects I have ever seen, and I have studied thousands of business models.
The Conroe Hyatt Regency (a conceived 4 Star Full Service Hotel) is expected to generate an estimated revenue of $14.7 million in 2025, with operational costs around $12.6 million, indicating a potential net income of approximately $2.1 million (less than a 2 star select service hotel).
The restaurant is losing money.
The convention space is losing money, and the hotel is losing money.
The ADR (Average Daily Rate) would need to be at least $325 and north of 80% occupancy to put the property into the black. The cost of carrying the debt adds to the overall cost of the project.
City of Conroe reserve funds (your tax dollars) have been used to cover debt service payments, meaning more money was flushed down the drain rather than face reality.
The hotel has a substantial debt of approximately $144 million. This does not include the present value of the future bond liabilities or other debts.
Projections of profitability were fantasy. Who got the fees?
There is no evidence in the CBRE report that the math ever worked.
There is no evidence of proper “what-if” due diligence being done. Capital allocation is literally 100%, with no margin of safety. This occurred as a result of greed that became multiplied by the people and entities involved.
The alleged proforma income and expense statement is pure fiction. How could a 4 Star full-service hotel succeed when all the evidence in the marketplace only supports a 2 star limited service product?
Creating value where none existed in the initial land acquisition, marking the value up, and then creating a ground lease can be seen as compounding the fraud. In addition, the math on ground lease becomes problematic when the revenue generated from the hotel can’t keep up with the annual increases in ground rent plus all the other inflationary items.
Allegedly there is $2.1 million in NOI which would indicate a value around $18 million. However, that appears to be before the current debt payments for the bonds, and ground lease payment which allegedly is over $3.8 million on the bonds.
From the municipal financials, I do not believe the City has the money anywhere to stroke a check for the entire amount of the bonds to zero them out.
To meet the debt payments the property needs to be producing at lease $14.7 million in NOI. Therefore, the property is short 85% of the minimum needed NOI.
There is not a single entity in the chain that acted in the best interest of the City or the taxpayers including the City of Conroe.
They acted on the sole basis of their pocket and or ego.
We will see how this plays out but there is a high probability that the bond holders will file suit against the City of Conroe, and discovery will be done which will show more than what we uncovered and turned over to the SEC. Criminal charges may be forthcoming, and the City of Conroe may need to file bankruptcy as Detroit Michigan did.
The project and reports were curve-fitted to promote an outcome which was not then or now ever in the realm of probability.
Neither the City nor the Taxpayers have the money to pay the debt created for this Hyatt Regency Convention Hotel.
If there are 3 Vendors who are owed money, they can file the property and ownership into involuntary bankruptcy.
There are multiple people and entities that may have to file bankruptcy.
Criminal Charges and Civil lawsuits against the Bond Underwriters, Public / Private Partnership promoter, Co-Conspirators within the City, for Accounting Fraud, Bond Fraud, State and Federal violations of laws including RICO – Creating a false debt and demanding payment. They demanded payment from the property owners / taxpayers, used reserve funds which appear not to have been part of the hotel funds, and the debt appears false from inception. Given the number of entities and people involved, the SEC and AG might look at this situation as a conspiracy to defraud and issue an immediate preservation of records to any and all participants.
Hyatt received a management contract for many years. Why did Hyatt as the operator not warn of the issues? It is not good enough to state they relied on CBRE. Were they blinded by the fees – regardless of profitability of the hotel?
The author of the CBRE report, claims “I’ve done a lot of forensics” and then blames the problem on lack of working capital. Yet, the report may be seen as grossly inaccurate, or worse. How could the report not have the necessary working capital included? Who was the author of the report working for and when? How much money was paid in fees to those entities and people involved? As the bankruptcy of a City is at risk, a preservation of records including emails should be a top priority.
“Are we going to have to think about having a bond election to cover the $16 million dollar bonds?” Raising money to cover defaulted bonds is a Ponzi scheme not to mention multiple violations of securities laws. Which raises the question of the disclosures on the initial bond raise. Was the ground lease, proforma short of working capital, proforma plug numbers, fee schedule, contractor involvement, financial engineering disclosed to the potential bond buyers? What due diligence did the bond rating agency do? What due diligence did the bond underwriter do?
Who gets hurt by this Institutionalized Systemic Moral Hazard and the fallout from the crimes? A) Property Taxpayers, B) Sales Taxpayers, C) Bond Holders – Pensions and Municipal Bond Investors, D) Society – Municipalities participating in these schemes cannot be trusted. DAs who refuse to open an investigation cannot be trusted.
Who should be held liable? Perhaps, given the evidence so far, the AG and SEC should open a criminal investigation on every entity and person in the chain including Hyatt, CBRE, City of Conroe, City of Conroe Council, PPP Entity Garfield, Bond Rating Agency, Bond Underwriters, co-conspirators etc.
With the 650 page report plus the testimony seen in this video, there is no other conclusion than intent to defraud and they did it because they believe the taxpayer would never find out. Regardless of maybe an initial potential position of “build it and they will come” there are fiduciary obligations, ethics, oath of office and laws which should be examined and adjudicated by a jury and a Judge. This pattern and practice of Institutionalized Systemic Moral Hazard is playing out not just in Conroe but across the U.S. regarding 1.) Public Private Partnerships, 2.) School District Bond Fraud, and 3.) Economic Development Commissions. The common nexus between all 3 is the fraudulent overvaluation and over taxation of property tax which in consistently being increased year over year (up on average 100% in 5 years) to cover up the frauds (initial principal) plus the compound cumulative interest on that principal, and this is more fuel to the evidence that I have already delivered to the FBI, DOJ, SEC, Attorney General of the State of Texas, and the Courts.
I can’t be any clearer. Property Tax is illegal and under the U.S. Constitution and creates Institutionalized Systemic Moral Hazard leading to more bond fraud which is illegal under all States laws.
Who would loan any City that has committed Bond Fraud? Who would loan a School District that has committed Bond Fraud? Why should the taxpayers ever agree to a property tax to back what may be adjudicated as a conspiracy to defraud in the case of the Hyatt Regency Conroe? The taxpayers have every right to insist the City file for bankruptcy and demand that their DA prosecute those responsible. Typically, the District Attorneys do not want to prosecute their boss, being the City which is a problem and one more reason why Property Taxes must be eliminated because it stops all these frauds and fraudsters from spending money that is not theirs and never was theirs to spend as the voters did not have a vote in what project their money was being spent. The DAs have allowed and contributed by non-enforcement of the laws, to the Institutionalized Systemic Moral Hazard we all now recognize is occurring. Repeal all property tax and the CADs, ARBs, School District Supervisors, Boards, Tax Assessor Collector, & Economic Development Commissions are all wiped out thus eliminating higher increases in tax rates, and the resulting tax lien foreclosures, and or 37.8% of the household population going bankrupt or losing the roof over their head because the median household income does not exist to pay for their crimes. The only solution is the repeal of property tax in favor of the Uniform States Sales Tax allowing all property owners to own their property in perpetuity. See Benefits of Eliminating Real Estate Tax in Favor of Uniform States Sales Tax.
Economic development commissions and PPPs are notorious for lack of transparency, ineffective use of incentives, and difficulty in measuring the success of their programs. These issues lead to wasting tax dollars and failure to achieve intended economic growth outcomes as well as kickbacks in the form of political contributions and or construction contracts.
Most Public Private Partnerships are nothing more than financial engineering on the back of Mom and Pop. If the project cannot be viable without financial engineering and without conventional financing or on a cash only basis, by those looking to sponsor and or promote the project, then the project should not be built in the first place. The Conroe Hyatt Regency is the poster child for alleged responsible parties turning a blind eye to reality in order to transfer the public’s tax dollars into their pockets and believing they are protected from exposure, thus the creation of Institutionalized System Moral Hazard.
EDCs & Public Private Partnerships lack accountability, and many commissions operate without sufficient oversight, leading to a lack of accountability for their actions and decisions. This results in inefficient use of tax dollars and failure to meet development goals.
Economic development commissions and PPPs frequently rely on tax incentives to attract businesses. However, these incentives usually do not significantly influence a company's decision to relocate or expand.
Picking winners and losers leads to current businesses being disadvantaged by their own politicians who control the EDCs and your tax dollars go to support a business that you have no vote over or say over.
Studies suggest that a large percentage of investments subsidized by tax incentives would have occurred without tax incentives or promotions, indicating a waste of public tax dollars. If the projects could not survive without the tax incentives, then they should not be done.
Commissions often engage in competitive very public bidding wars to attract businesses, which can lead to a zero-sum game where one area gains at the expense of another. A public bidding war makes for interesting press but the public pays for the shenanigans which is part of the intent to defraud. This competition drains local resources without generating net economic growth.
EDCs are nothing more than a make work program that is paid for by your tax dollars without any true oversight from which a go / no go decision can be properly made. What person on an EDC or PPP has any knowledge of hotel operations or ability to determine fact from fiction? What incentive do they have to determine fact from fiction? What due diligence, internal or external, was made by the promoter of the PPP or EDC to determine that the CBRE report lacked information? Who hired who, when and why? Without proper assessment, apparently by intent, the project could never achieve the intended outcome and as a conceived project was bankrupt before the shovel went in the ground. I have seen this before with a hotel in Dallas wherein I attended both Board of Variance and City Council meeting with a 37 page detailed warning. The warning was ignored. The developer after stating to Council, “I’m a rich man and I will do what I want”, went vertical, never finished the project, and now the City and the owner who bought the property has a pending demolition issue. The developer lost roughly $53 million and the neighborhood is stuck with a blighted steel skeleton. It is interesting that the person acting as the liaison between the City of Dallas and that hotel developer used to work as a planner for the City of Dallas. What did he know about hotel operations? Nothing, but he certainly knew enough to get paid, regardless of outcome. Hmmm… just like the EDC, PPP, those who wrote the reports and those who promoted the Hyatt Regency in Conroe. On this same vein, the CADs often write self-congratulatory letters between its membership in organizations and those who are on the payroll. Complexity creates dishonesty and without the home owners’ involvement in local municipal and school district issues, the door to steal your money is herein proven to be wide open, in clear violation of dozens of laws.
The purpose of a proforma in the hotel environment is to stack multiple financial statements from varying departments of income to determine the viability of future financial performance, including every unusual or nonrecurring transaction. It is the consideration of “what if” scenarios. A proper proforma helps assess the anticipated impact on cash flows and overall financial health. Utilizing plug numbers in a proforma / report such as a simple restaurant income is $X / month, it meaningless as the plug number did not take into account revenue per hour, operating expenses per hour, seat count, type of restaurant, employees per hour – per seating, average ticket per seating, cost of goods per seating, special events, available parking etc. Nothing about the Hyatt Regency (a 4 Star hotel) in Conroe Texas from the initial financial reports to the finished product was or is viable today and it all started with a failed idea promoted up the chain for the purpose of generating fees.
Ineffective programs with limited transparency by intent (complexity) leading to misallocation of funds without liability creates Institutionalized Systemic Moral Hazard. There is only cost and no benefit to the taxpayers that provided the capital both current and future to pay for the bonds. Thus, fraud on the taxpayers.
Limited transparency is by design, and the intent is to transfer taxpayer’s money into fees and pet projects and perhaps political contributions. Either way the truth is hidden from the taxpayers until the bonds can’t be paid for and the City, in this case Conroe, may be facing its own bankruptcy as a result. Do you know where your city has put your money? How many hundreds of billions across the U.S. are in similar positions as Conroe?
The initial conceptual decisions are made based on the delusion that the taxpayer revenue is bottomless and those responsible for the crimes would not be prosecuted and would claim, “we didn’t know”, or “I did forensics and I did a good job” or any myriad of other lies to cover up the criminality.
There is no reason to run a new detailed 100 page + proforma today because it is shockingly simple; Liabilities > Assets = Bankruptcy. Those who participated in the fraud should be prosecuted both civil and criminal with the goal to claw back as much money as possible for the taxpayers.
The Hyatt Regence Conroe is not a one-off situation. The pattern and practice as stated herein is clear and there is a high probability that if your city has an EDC, PPP and utilized property tax dollars as giveaways, for pet projects, your tax payer money was shoved down a black hole with no return on investment and you the taxpayer are on the hook to pay for the liabilities these criminals created.
Look at the property tax record on the hotel owned by the City. Part of the process to obtain the PPP is to forgive the tax and monetize that today with discounted value. The money did not then, in the CBRE Proforma, or now exist to pay the property tax. https://actweb.acttax.com/act_webdev/montgomery/showdetail2.jsp?can=800760&ownerno=0 Although $0 tax is charged or due, notice the claimed value of $45 million as compared to the cost to build and as compared to the bonds outstanding and the cumulative interest due on those bonds. In addition to the property tax (effective 100% rebate) another unfair advantage for competing businesses is a rebate of the hotel sales tax which in Texas is an additional 6% on top of the 8.25% sales tax. The Conroe City Council for the Hyatt Regency pursued property tax rebates as well as hotel occupancy and sales tax rebates. With zero real estate tax, and even if zero sales tax, the hotel is not economically viable. While we are on the topic of hotel sales tax, Texas cities impose combined state and local hotel occupancy taxes ranging from 15% to 17.5%. These additional sales taxes exist to feed other non-productive entities such as the EDCs and Tourism Bureaus. These high rates do the exact opposite of the sales pitch given by the Tourism bureaus and EDCs in that they deter tourists, thus reducing overall visitor spending in local economies while those working in the bureaus and EDCs get paid. The EDCs and Tourism bureaus do not exist for the benefit of the hotel operators; they exist for their own benefit as there is no efficiency of the dollars spent to attract additional tourism. High hotel taxes siphon funds away from local businesses, affecting overall economic health. The complexities (dishonesty) associated with hotel sales tax in Texas and any other State that utilizes unfair taxation, impacts both operators and local economies.
This hotel would never have been built if the property tax did not exist, EDCs did not exist and the promoters of the PPP were held accountable and if the citizens of every community were actively involved in their civil responsibilities. Instead, Conroe will likely be the first city in Texas to file bankruptcy. They deserve it for the crimes against the taxpayers. The bond holders deserve to lose their entire investment because they bought into a fraud with no due diligence, promoted by every entity that touched this project.
Since the creation of the Federal Reserve in 1913 two horrific situations occurred. In 1914 income tax and since 1913 the purchasing power of the U.S. dollar has disintegrated 97% as a result of inflation. Inflation is a hidden tax and a fraud on society. When the U.S. went off the gold standard (true money being gold exchangeable for currency) is when the problems became abundantly clear as there were no assets backing the paper that was printed. As I have stated, the exact same situation of fraud on the public also occurred since the creation of property tax. The CADs, school districts, municipalities, all print money being your tax dollars, and place those receipts into pet projects from which there is little to no economic benefit as the compound cumulative interest on the debt places society into economic slavery. This is exactly what the Conroe Hyatt Regency is. Its bankruptcy is a forgone conclusion. The Citizens of Conroe must act to ensure that the Conroe Hyatt Regency is not their economic slavery.
It was stated “the value of the property is approximately $21 million. In my humble opinion the statement is wrong because there is no demand for a 4 Star or 3 Star full-service hotel and there are enough 2-star select-service hotels already in Conroe. The demand to fill the hotel even at a 2-star price simply is not there which means the cost to carry vacant rooms, restaurant, and convention space will outstrip the income even from 2-star hotel pricing. There may be an investor thinking they can buy the property by the pound out of bankruptcy and do something with the current structure, but that idea also failed in Dallas. Hyatt could not make it work, so who will loan on such another ill-conceived project?

What evidence exists that demand for a 4 Star Hotel in Conroe Texas exists? None. Without answering one simple question, the net result may be the bankruptcy of the City of Conroe.

Public Private Partnerships, Economic Development Corporations, Bond Underwriters, Rating Agencies, School Districts, CADs, ARB panels and the list of co-conspirators who write reports that are curve fitted to the intended outcome, one way or the other are defrauding the taxpaying public as can be currently seen in Conroe or the creation of “low income housing” in Dallas that costs more than new Class A multifamily (Hotel to Jail to Low Income Housing), or providing tax incentives for a manufacturing plant (Samsung) that would locate in that jurisdiction anyway, or the creation of windmill farms that would not exist but for government subsidies, etc. etc. The point being there are many cities guilty of the infrastructure allowing in unison for the crimes of fraud to be perpetrated against the taxpayers, such as PPP, EDC, CAD, School Districts, Interfund transfers, false reports, ARB panels with no authority in law or capability to determine fraud, comingling of accounts, fraudulent accounting, bond fraud, DAs refusing to prosecute. The net result by not adhering to the black letter of the law is Institutionalized Systemic Moral Hazard and as a result bankruptcies on a mass scale.

The only way to address the issues outlined herein is the repeal of all property taxes in favor of the Uniform States Sales Tax.

Additional Information:

The Amicus Brief for Case 25-0615, Supreme Court of Texas

Other related Articles, Letters, Discussion

You Can Make a Difference! A Holiday Wish for All.

Wed, 17 Dec 2025 17:55:29 GMT

You Can Make a Difference!

A Holiday Wish for All.

By Mitchell Vexler, December 17, 2025

Grocery store empty shelves, food shortages, emergency rail grain supplies, emergency boat grain supplies, food caravans, food banks, all have one thing in common which is failed socialism.

Socialism has never and will never work, as it never was an economic model. It was a con created by a drunk who dreamt up this nonsense to convince people at a bar to buy him more drinks. Without exception it has failed in every country that attempted it as evidenced by economic stagnation, shortages, and authoritarian regimes. Countries like the Soviet Union, Venezuela, Cuba, North Korea, China, and Canada are all examples where socialist policies led to widespread failure and hardship and now under the “globalist” ideology (just another word for socialist) and policies (the cancer of socialism) spread throughout Europe, Germany, Australia, United Kingdom, Canada, and we the United States came dangerously close as a Nation to succumbing to socialism had the past election gone the other way.

For more on the topic of socialism click here... https://www.mockingbirdproperties.com/dcad#ArticlesLettersDiscussions .

Socialism is guilty of fatal conceit as socialists believe the system they desire and those that run the system and their co-conspirators can make better decisions for the people than they can for themselves, and of course, because they the socialists believe the population is so dumb and they are so smart, we will transfer the populations earned wealth, by fraud and coercion, to our pockets.

Those who seek control of an organization or population, who produce no goods or services in exchange, are socialist organizations or people.

There is a major hurdle to the con…socialism only works until you run out of other people’s money, and then to cover up their crimes, society ends up in civil war and a war of nations because of the socialists.

The cancer of socialism and its incestuous cousin authoritarianism, which is a political system characterized by the rejection of political plurality, the use of strong central power to preserve the political status quo, and the reductions in democracy, separation of powers, civil liberties, and rule of law. Hmmm! Interesting, as this is exactly the case now at the Supreme Court of Texas ( link to Motion filed ) wherein the courts recognize that fraud was committed but so far have chosen not to allow the case to be adjudicated on its merits, relying on a body known as the ARB (Appraisal Review Board) to be the sole determiner of property value, yet that body has no authority in law to circumvent the fraud of the Chief Appraiser, the Central Appraisal District, and the Board of the CAD, all of which choose to hide behind Ultra Vires and Sovereign Immunity, which doctrines of law would not exist but for to prohibit such abuse of power creating the fraud under the color of law. Thus, a true legal dead zone exists for which the Supreme Courts are designed to prohibit, both at a State and Federal level.

So what we have in Texas and throughout the United States are thousands of mini-socialist-fiefdoms known as CADs and their related co-conspirators who choose to take your money in the form of property taxes, roughly 80% of which goes to school districts and portioned off into operations and then to pay for outstanding fraudulent school district bonds and interest thereon which grows compound cumulative as the bonds are just rolled out and interest rolled up with even more debt being added on an annual basis. The fees, ratings agencies, accounting firms, law firms, bond underwriters, ethically challenged licensed appraisers and employees of the CADs, plus kickbacks to construction companies, and politicians who promote this criminal activity, are all elements within the fraud being perpetrated against society from which the end result is a failed school system perpetrating bond fraud and equity stripping your money from your house and then telling you that you are responsible for their fraudulent debts for the next 40 years. Yet, there is a problem. The median household income does not exist to pay for their crimes. Thus, the irrefutable proof of fraud.

Holidays should be a happy time, but never forget the less fortunate who have a difficult time feeding their family because they, like all of us, are victims of socialism.

Are you or anyone prepared to go bankrupt to support your school district which is failing in education, equity stripping your home and your future via the outstanding fraudulent school district bond debt?

If you knew that a child is going hungry and the difference between whether that child goes hungry or not is real estate tax, what would you do to help that child from not going hungry?

Food Banks in Texas:

The Feeding Texas network is made up of 20 food banks and over 4,000 local partners. Together, the network fees more than 4 million Texans annually and is the largest hunger relief network in Texas.

How many people received assistance to buy food? 4,000,000 per year.

Population of Texas is 31,853,800.

How many are hungry and or can’t afford a meal = >12.6%.

Feeding Texas provided over 545,000,000 meals in 2023.

How much are the Median Property Taxes per home?

(sample list)

Feeding Texas provided SNAP application assistance to over 57,000 households in 2023.

Texas has the highest rate of senior food insecurity in the nation with 13.6% of Texas seniors at risk for hunger. Seniors face unique challenges in the fight against hunger, such as health conditions, transportation problems, fixed income and social isolation. Food insecurity for seniors can also have drastic impacts on their health and result in high medical costs for them and our medical system. After a lifetime of hard work, many seniors find themselves facing an impossible choice — to buy groceries or afford medical care.

In Texas, 1 in 4 Latinos are experiencing food insecurity. The overall food insecurity rate for Latinos in Texas is 24%.

According to the Texas State Comptroller office under Glenn Hegar’s term:

In fiscal year 2022—from September 1, 2021, to August 31, 2022—property tax revenues reached $80.8 billion, accounting for 47.5 percent of total state-local tax revenue.

The following fiscal year—September 1, 2022, to August 31, 2023—saw property tax revenues increase to $81.4 billion.

State sales tax generated the next largest state-local tax revenue, totaling $43 billion (25.2 percent of the total) in 2022 and $46.6 billion (26.3 percent) in 2023.

Local sales taxes, meanwhile, generated $12.2 billion in revenue, or 7.19 percent of total state-local tax revenue, in 2022. In the subsequent fiscal year, local sales taxes generated $13.3 billion, or 7.51 percent of all taxes.

Other state taxes, such as the franchise tax, gas tax, and business personal property tax, generated $34.2 billion in 2022, accounting for 20.1 percent of total state-local tax revenue. That number increased slightly to $35.6 billion in 2023, and the percentage remained the same.

Additional findings by the Comptroller show that single-family residential property comprised nearly half of all taxable value—a property’s assessed value subtracted by exemptions—in the 2022-2023 biennium.

The number of property-taxing units rose from 4,421 in 2021 to 4,549 in 2022 and 4,644 in 2023. Property-taxing units are local jurisdictions established by the Texas government to levy taxes.

School districts continue to collect the largest share of Texans’ property taxes. Of the $81.4 billion in property tax revenue collected in 2023, 48.5 percent was due to school district taxation, that being $39 Billion in property taxes against the households. Then, the levered school district bond debt accounts for roughly 81% of the bonds raised from the tax receipts which the criminals believe you will pay for over the next 30-40 years on a per annum taxed basis even though the current payment monthly grows 11X over 30 years. Mom and Pop do not have the money today to pay for their fraud, never mind tomorrow.

Utilizing the State Comptroller number of $39 Billion which is then levered up into School District bonds at roughly 20:1 and for terms up to 40 years under Texas law, you then end with an impossible amount of principle to pay off (today) and thus the circular argument of needing to increase real estate tax in perpetuity which is assured mutual destruction or simply face reality now, stop the hemorrhaging and repeal the real estate tax in favor of the Uniform States Sales Tax and put every school district that cannot pay off its bonds in 3 years into bankruptcy ( see the Bill delivered to Helen Kerwin the Texas State Representative ).

Summary (according to the Texas State Comptroller’s office):

$39,000,000,000 ($39 Billion) of real estate taxes charged against the houses

multiplied by

12.6% of the population that are hungry

equals

$4,914,000,000 of the tax $

divided by

4,000,000 (4 million) people that are hungry (12.6% of 31,853,800 population)

equals

$1,228.50 per hungry person, to feed them,
except for that the School District Taxes are being used to pay the interest on the fraudulent principle

Eliminate Hunger.

Repeal the real estate tax and generate $1,228.50 for 4,000,000 people to make sure no one in the State of Texas goes hungry.

Mom and Pop have been equity stripped. (See the Amicus Brief .) Mom and Pop are paying 50, 60, 80% of the value of their home mortgage, in excess of their mortgage, in real estate tax to cover off the interest on the outstanding fraudulent principle debt created by the school districts, and then being expected to pay for the compound cumulative interest added to new fraudulent principle plus interest in perpetuity. To pay this off, is impossible, as the Median Household Income does not exist.

As if 4,000,000 people being hungry in Texas is not enough to make blood boil, then how do feel being financially abused by a socialist organization comprised of your school district and central appraisal district?

You can make a difference. All real estate is local. Make others aware of the crimes being perpetrated against them using social media especially Facebook local boards. See Violations.pdf at www.mockingbirdproperties.com/dcad (the website is word searchable). File criminal complaints against those where the evidence is crystal clear. File lawsuits against the individuals and organizations responsible, joint and severally liable. Join forces with others to share the legal expenses. Run for district boards and municipal councils. Protest in mass. Question those responsible directly in social media and press. No one can sit back anymore and not get involved. We know the above works because we have done it as recently seen in Johnson County with a 100% success rate in stopping the bonds by a handful of people, with no out of pocket money, where the opposition spent roughly $130,000 of taxpayer money to promote their crimes.

A Holiday Wish for All:

Repeal all property tax in favor of the Uniform States Sales Tax.

End the socialist nightmare.

Feed those who have been strangled by the socialists.

We look forward to a better future.

Happy Holidays.

Letter to Chair Bessent - Miscalculations in the Financial Council Oversight Stability Report

Mon, 15 Dec 2025 16:40:02 GMT

Letter to Chair Bessent

Miscalculations in the Financial Stability Oversight Council Report

December 15, 2025

The Honorable Scott Bessent

Chair

Financial Stability Oversight Council

U.S. Department of the Treasury

1500 Pennsylvania Avenue NW

Washington, D.C 20220

Sent via Courier &

SBLFInstitutions@treasury.gov

press@treasury.gov

Re: Miscalculations within the Financial Stability Oversight Council Report

Dear Chairman Bessent:

Please forgive the bluntness of this letter, but the Financial Stability Oversight Council Report of December 2025 has a conclusionary fatal flaw, especially regarding pages 29 – 38 which has ramifications in other areas of the Report. The fatal flaws to the Report include fraudulent property tax, school district accounting and bond fraud and the related State and Federal crimes.

Just a few quick facts:

Roughly $450 Billion was stolen in 2024 alone as a result of over $21 Trillion in fraudulent property over valuation in the last 5 years.

Property taxes average 8.6% of the median household income.

The only thing separating 36.8% of home owners (42,000,000 people) from bankruptcy is $9,000 of which roughly $7,000 is property tax.

You may want to examine the following:

Amicus Brief now at the Supreme Court of Texas

https://irp.cdn-website.com/39439f83/files/uploaded/Amicus+Brief-Case+25-0615+Supreme+Court+of+Texas-UN-SIGNED.pdf

The importance of the Vexler Case to Texas and the United States

https://irp.cdn-website.com/39439f83/files/uploaded/The+Importance+of+the+Vexler+Case+to+Texas-090325-940.pdf

Petition to the SCOTX

https://irp.cdn-website.com/39439f83/files/uploaded/2025.08.20-Petition+No+25-0615.pdf

Motion for Rehearing - SCOTX

https://irp.cdn-website.com/39439f83/files/uploaded/2025.11.24-25-0615-Motion+for+Re-Hearing-15+pgs.pdf

Letter to Kash Patel Director of FBI

https://irp.cdn-website.com/39439f83/files/uploaded/Letter+to+Mr.+Kash+Patel+Director+FBI.pdf

Criminal Complaint

https://irp.cdn-website.com/39439f83/files/uploaded/1st_Amendment_to_the_Criminal_Complaint_Mavex_vs_State_of_Texas_Individuals_3_17_25.pdf

Freedom of Information Act request to Attorney General Ken Paxton

https://irp.cdn-website.com/39439f83/files/uploaded/090825-FOIA+Office+of+Attorney+General-signed.pdf

School District Accounting Fraud with Balance Sheet Analysis – The Federal Government is also being defrauded by hundreds of billions across the U.S.

https://irp.cdn-website.com/39439f83/files/uploaded/School_Districts_Fraud_-_The_Balance_Sheet_and_its_Analysis.pdf

Presentation to SEC and FBI - Ramification of Insolvent Bond

https://irp.cdn-website.com/39439f83/files/uploaded/Ramifications+-+Insolvent+Bonds-082025-504pm.pdf

Letter to SEC

https://irp.cdn-website.com/39439f83/files/uploaded/082125-Email+Letter+to+Mr.+Gulde.pdf

Institutionalized Systemic Moral Hazard

https://www.mockingbirdproperties.com/systemic-institutionalized-moral-hazard

A Bankrupt Population is a National Security Risk

https://www.mockingbirdproperties.com/a-bankrupt-population-is-a-national-security-risk

Violations of State and Federal Law

https://irp.cdn-website.com/39439f83/files/uploaded/Partial_List_of_Violations_Reviewed-052224.pdf

Credit Analysis and Systemic Moral Hazard

https://irp.cdn-website.com/39439f83/files/uploaded/Credit+Analysis+and+Systemic+Moral+Hazard.pdf

For the Kids

https://www.mockingbirdproperties.com/for-the-kids

December 9, 2025 – Press Release by Attorney General Ken Paxton

https://www.mockingbirdproperties.com/december-9-2025-press-release-texas-attorney-general

What do we know and what are we facing?

https://www.mockingbirdproperties.com/what-do-we-know-and-what-are-we-facing

This is a partial list of the most poignant video interviews on the crimes of property tax fraud and school district bond fraud where I outline the issues.

https://www.mockingbirdproperties.com/property-tax-fraud-media-outreach

www.mockingbirdproperties.com/dcad is the library of evidence, documents, transcripts, depositions, video, audio, reports, and analysis showing the pattern and practice of property tax fraud not just in Texas but across the U.S. especially with regard to any school district that raises bonds which are being used to pay interest and not permanently retire outstanding bonds (at the expense of the students and teachers) and that is the definition of a Ponzi scheme. The courts recognize that fraud has occurred but provide no mechanism to adjudicate the fraud as a result of Ultra Vires and Sovereign Immunity neither one of which definitions would exist if not for the ability to provide adjudication for fraud thus the legal dead zone and the creation of Institutionalized Systemic Moral Hazard.

As you will see after reading the documents linked above, the ramifications of ignoring the fraud created by Institutionalized Systemic Moral Hazard, are extremely problematic and unfortunate in that there are solutions if acted upon quickly. As you know, compound interest ticks by the nano-second.

I am available to discuss, at your convenience.

Best Regards.

Mitchell Vexler, President

Mockingbird Properties

1913 Justin Road, Suite 117

Flower Mound, TX 75028

214-725-9013

mitch@mockingbirdprop.com

www.mockingbirdproperties.com/dcad

Crisis of Confidence

Fri, 12 Dec 2025 18:04:14 GMT

Crisis of Confidence

By Mitchell Vexler, December 12, 2025

What is the connection between Bitcoin, Trading, Federal Reserve, the Texas statewide investigation of over taxation, s ocialism, the repeal of property tax, and Precious Metals?

In a recent video with Daniela Cambone, and in a few past videos with Travis Spencer, when I voiced my opinion that Bitcoin is purely speculative until it is backed by a commodity, a few people asked why. In these videos there is never enough time to delve into the depth of issues and, generally, my focus is on the repeal of property tax in favor of the Uniform States Sales Tax. With that said, there is an opportunity to answer the question as to why, in my opinion, Bitcoin and many other coins are speculative, until backed by a commodity or group of commodities.

For those interested in the math of Bitcoin:

https://www.coindesk.com/markets/2014/10/19/the-math-behind-the-bitcoin-protocol

Back in 2010, following the release of Bitcoin trading in January of 2009, I was curious and decided to study the business model and thus the math of Bitcoin. My conclusion was that the concept of the private and public key method of calculation (aka the Protocol) which includes the scalar multiplication was extraordinarily good. Further, the stated purpose of decentralization of financing was ideal given the 2007 mortgage-backed securities crisis and the fact that economic crises are occurring at a faster pace, meaning the cycles are getting closer. The concept and viability were recognized. However, Bitcoin was not truly tradeable being both long and short until December 2017, and even then, not every brokerage firm would allow shorting. From the standpoint of trading, for me, that raises a red flag. Then the news, manipulation, and hype kicked in, and my internal counter to all the noise was...what is Bitcoin and what is its true worth if one wants to own it? Is Bitcoin an asset, or is it a speculation under the belief it may become an asset? Is Bitcoin decentralized as conceived?

An asset is anything owned by an individual or business that has monetary value and can provide future economic benefits. This includes both tangible items like cash and property, as well as intangible items like patents and trademarks. Is Bitcoin, today, an asset? Yes.

But what is the value of the asset? This is where it gets interesting. Price is what you pay, and value is what you receive. As of recent, Bitcoin can no longer be considered decentralized as the U.S. government has established a Strategic Bitcoin Reserve, which was announced by President Trump in March 2025 to treat Bitcoin as a national reserve asset. This reserve will be funded by Bitcoin already owned by the federal government, with the aim of positioning the U.S. as a leader in digital assets. Does the U.S. Government intend to control and or demand the exposure of the Bitcoin leger transactions? Does the U.S. Government intend to turn Bitcoin into a digital currency to replace the U.S. Dollar? Why would Bitcoin be considered necessary to replace the U.S. Dollar? Is Bitcoin itself a commodity? Is the interest of the U.S. Government investing in Bitcoin, and other digital assets such as Ethereum, Solana, and Cardano, a part of its strategic approach to digital assets, that is being done to generate revenue to pay down the U.S. National Debt or to shore up the balance sheet with inflated asset prices to bring the debt to GDP down? When analyzing business models, having the answers is crucial, and in addition to the above questions, I have more questions.

Given the fact that the purchasing power of the U.S. dollar has decreased by 97% since 1913 when the Feder Reserve was created, and we are now faced with the high probability of the necessity of printing more money, for what purpose is the U.S. Government investing in these coins?

For a “coin” to have true value, not of a speculative nature, it should / could be backed by commodities such as what Tether has done backing its value with precious metals, U.S. Treasuries, and also Bitcoin. Why is Bitcoin not backed by commodities, which would smooth out the volatility of Bitcoin’s market pricing? A trader who has the money to trade Bitcoin can do well. An investor, who bought into the hype early and held, has done well but also has had to withstand 50% pullbacks which is very difficult to stomach. If an investor was a trader who could long and short intraday while holding the underlying, that combination would be very interesting. However, most people do not fit these descriptions or have the skill-set necessary to engage, so what are people speculating in? Would Bitcoin even exist but for the probability that a new currency or digital method is necessary to cover the fraud of the Federal Reserve printing money to pay for interest on fraudulently created principal expenses which has driven the debt to GDP over 120%?

Price is what you pay, and value is what you receive. Therefore, given the above questions, what exactly is value of Bitcoin or any coin not backed by a commodity such as precious metals, corn, soy, beef, lean hogs, sugar, and wheat, all of which are futures and are tradeable with instant price discovery?

Now to these questions, let’s add the recent announcement by Attorney General Paxton wherein a statewide investigation to over 1000 “Texas cities”, which should have included school districts with regard to the over taxation, is allegedly going to be conducted. The release from the Office of the Attorney General is poorly written and weak as it points to the municipalities and is intended to point to the school districts where roughly 83% of the tax receipts go. I don’t know if this is intentional, or if the people who wrote it, do not understand, but either way, the issues we have brought forth in criminal complaints, law suits, and now at the Supreme Court of Texas are being recognized for what it is, which is the property tax fraud being committed by the Central Appraisal Districts at the command of the School Districts, which are committing accounting fraud and bond fraud. (Here's the a link to the press release,

https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-launches-statewide-investigation-nearly-1000-texas-cities-ensure .)

So far in this Article we have discussed Bitcoin, Trading, Federal Reserve, the Texas statewide investigation of over taxation.

Socialism is the means of distributing goods (produced by others) under the auspices of owned collectively by a centralized government that often plans and controls the economy. Socialism was the creation of a drunk, and it has never worked in the history of the planet because socialists produce nothing but transfer wealth from those who earn it to those who produce nothing, meaning themselves, the socialists. Socialism creates chaos.

How is it that property taxes have gone up over 100% in 5 years when according to the Federal Reserve inflation in the last 5 years was short of 15%. The answer is 85% fraud created by the school districts and CADs. This is transferring your money (tax dollars) based on the fraudulently created value of your property to the pockets of the school districts of which the CADs are at a minimum aiding and abetting a criminal conspiracy to defraud. Then the school district bonds, where your property is the collateral for the bonds’ principal and interest, under which you are paying roughly 8.6% of your gross income (your property tax bills), which is commanded to continue the fraud because the median household income does not exist to pay off the bonds, or the outstanding compound cumulative interest. Isn’t it interesting that this is the definition of not just fraud but of socialism??

So, how does one protect themselves? First, be the advocate and join others to insist that property taxes be repealed in favor of the Uniform States Sales Tax which returns the balance sheet to the property owners such that when the property is paid off it is 100% theirs, and this stops the Equity Stripping that has occurred. See various articles posted and supporting documentation at https://www.mockingbirdproperties.com/dcad#ArticlesLettersDiscussions .

People can do as they please with regard to investing in Bitcoin or any other coin. However, perhaps a blended percent of portfolio is more appropriate. Gold has been valued by humans for thousands of years, with its use dating back to ancient civilizations like Egypt around 3000 BC, where it was crafted into jewelry and used in burial artifacts. The first known use of gold as currency occurred in Lydia around 564 BC, leading to its widespread adoption in trade and as a symbol of wealth throughout history. Generally speaking, precious metals have kept pace with inflation. “Coins” have existed since 2009 and as shown above, have more questions than answers.

What is the real underlying problem connecting the issues of Bitcoin, Trading, Federal Reserve, Texas statewide investigation of over taxation, socialism, repeal of property tax, and Precious Metals, raised in this Article?

The real problem is a Crisis of Confidence . A crisis of confidence refers to a situation where individuals or society lose faith in their ability to achieve goals or trust in institutions, leading to feelings of doubt and uncertainty about the future. Both State and Federal governments have allowed for the creation of Institutionalized Systemic Moral Hazard, where the black letter of the law is ignored in favor of ignoring and promoting the continued fraud of printing money at the Federal level and overvaluation and over taxation at the State level, both of which create inflation, which is a hidden tax. Printing money and creating compound interest on that printed money causes the transfer of wealth from those who earned it to those who did not (government and banks), and that is the definition of socialism.

There are solutions which can, and should, be painful including compound cumulative interest roll back, debt jubilee, bankruptcy of the school districts, bond devaluation etc. The underlying point is, do you trust the banks given the propped-up values based on the fraud of printing money and overvaluation? Remember your money becomes their money when you deposit your cash. Remember the U.S. Government instituted the bank bail-in which allows a failing bank to convert its debt into equity to stabilize its finances, using funds from its creditors (you) rather than relying on taxpayer money. This approach was introduced to prevent bank failures without government bailouts, ensuring that the financial burden falls on the bank's creditors instead of the public.

Therefore based on the Institutionalized Systemic Moral Hazard which creates the Crisis of Confidence , regardless of political party affiliation, would you rather have financial security of a 5,000 year old proven commodity, in your personal possession, even if buried somewhere, or would you like to be in Bitcoin, that is not tied to any commodity yet? Food for thought. However, one should recognize that either scenario is a result of a Crisis of Confidence and we are all the pawns in the government’s game of socialistic monopoly.

December 9 2025 - Press Release - Texas Attorney General

Tue, 09 Dec 2025 18:04:59 GMT

December 9, 2025 - Press Release - Texas Attorney General

Attorney General Ken Paxton Launches Statewide Investigation of Nearly 1,000 Texas Cities to Ensure Municipal Transparency and Stop Illegal Tax Increases

Attorney General Ken Paxton has launched a major initiative to ensure the hardworking people of Texas receive municipal budget transparency and that municipalities do not engage in unlawful tax increases. As part of the review, Attorney General Paxton has requested financial documents and information from nearly 1,000 Texas cities to date, and that number will continue to grow.

SB 1851 is a recently enacted state law that bars cities who do not strictly follow Texas’s financial statement audit and transparency requirements from raising taxes above the no-new-revenue rate. To enforce that law, Attorney General Paxton previously sent letters to La Marque, Odessa, Tom Bean, and Whitesboro to stop their unlawful tax raises. During those investigations, it became apparent that cities across the state routinely fail to comply with these long-standing requirements. Under his new authority, Attorney General Paxton has launched this initiative to not only act in response to citizen complaints, but also actively request documents and audit information from Texas cities to ensure they are in compliance with the law. Any cities not in compliance put themselves at significant legal risk, and any city who has received an email information request from the Office of the Attorney General should promptly respond.

“Local officials will not be allowed to ignore the law, cover up their finances, and burden Texans with never-ending tax increases,” said Attorney General Paxton. “Our cities and municipalities must prioritize transparency and minimizing the tax burden of every citizen across the state. While many cities have already complied with these requirements, I’m launching this review to ensure that the law is universally followed, taxpayers are respected, and local government is accountable to all Texans.”

Attorney General Paxton’s review includes some of the largest cities in the state, including Houston, Galveston, San Antonio, Dallas, Fort Worth, Lubbock, Wichita Falls, McAllen, Beaumont, Amarillo, El Paso, Corpus Christi, Laredo, Texarkana, Brownsville, Waco, and Tyler. Additionally, the Office of the Attorney General has created a complaint form that Texans can fill out if they believe local officials are violating SB 1851’s audit requirements. The complaint form can be found here:

https://www.texasattorneygeneral.gov/sb1851-complaint-form

Municipality Noncompliance with Audit Requirement (SB 1851)

Municipalities should be aware of the following:

Section 103.001 of the Local Government Code requires a municipality to have its records and accounts audited annually and to have an annual financial statement prepared based on the audit.
Section 103.003 of the Local Government Code requires that the annual financial statement, including the auditor's opinion on the statement, be filed in the office of the municipal secretary or clerk within 180 days after the last day of the municipality's fiscal year.
A municipality is in violation of this law may not adopt an ad valorem tax rate that exceeds the municipality's no-new-revenue tax rate:

(1) for the tax year that begins on or after the date of the attorney general's determination; or
(2) for a subsequent tax year that begins before the date the municipality has had an annual audit completed and financial statement prepared or filed the financial statement and auditor's opinion on the financial statement with the municipal clerk, as applicable.

If you believe a municipality is in violation of Section 103.001 or 103.003 of the Local Government Code you may file a complaint below.

https://www.texasattorneygeneral.gov/sb1851-complaint-form

Direct Link to Press Release:

https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-launches-statewide-investigation-nearly-1000-texas-cities-ensure

What do we know and what are we facing?

Mon, 08 Dec 2025 17:50:14 GMT

What do we know and what are we facing?

By Mitchell Vexler, December 8, 2025

As of December 8, 2025 we know:

The Press and Federal Reserve have stated that we are not in a recession. The evidence is the opposite.

Any one of the of the following 50 issues is enough to cause a recession or major credit crisis:

1. There is an estimated $2 trillion of a commercial real estate maturity wall.

2. 7-8% interest rates are colliding with 3-4% underwritten loans.

3. Regional banks are carrying trillions of impaired credit.

4. CMBS delinquency is surpassing 12%.

5. 2026-2028 refinancing failure cycle leading to liquidity drying up, creating the same circular argument that occurred during the Great Depression 1929-1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and business failures around the world. The economic contagion began in 1929 in the United States, the largest economy in the world, with the devastating Wall Street crash of 1929 often considered the beginning of the Depression. Remember the Federal Reserve was created in 1913. The establishment of the FED followed a series of financial panics, particularly the panic of 1907, which highlighted the need for a central banking system to stabilize the economy. The Federal Reserve Act, signed into law by President Woodrow Wilson, aimed to provide a safer and more flexible monetary system. Since its creation it was supposed to conducting monetary policy, supervise and regulate banks, maintaining financial system stability, and provide financial services to depository institutions and the U.S. government. By my count and the devaluation of the U.S. dollar purchasing power by 97% since 1913 it has failed on every single count.

6. Global monetary restructuring (BRICS, gold settlement rails being created, de-dollarization) is in play (perhaps the U.S. reverts back to the Gold Standard).

7. A potential currency revaluation event may occur.

8. There is declining U.S. treasury confidence.

9. Surging sovereign debt is at roughly U.S. $38 trillion+, roughly $114,800 / U.S. Citizen.

10. Surging U.S. unfunded liabilities is at a claimed $127 trillion, roughly $338,600 / U.S. Citizen.

11. Surging derivatives market is at roughly $600 trillion, of which true value is a claimed $20 trillion, roughly $60,400 / U.S. Citizen.

12. Supply-chain fracture and geopolitical fragmentation exists.

13. Farmer bankruptcies may lead to shortage of food & riots as currently seen in Europe, France and the UK.

14. Farmers are losing money because the cost of seeds and fertilizer has gone up as a result less competition via mergers and acquisitions of the seed and fertilizer companies. Add to this the same inflation and property tax issues we as a nation suffer from ends in massive amounts of bankruptcies and worse suicides. PTSD comes in many forms, and this must be addressed.

15. Making up contorted and contrived socialist/globalist/communist policies to fix a non-existent problems including DEI, global warming, and the offshoots of these financial crimes created as an example, under the Biden Administration, a shortage of cattle (food) by idiots wanting to prohibit cows from flatulating. Recognizing the truth is the only way to fix it to ensure it does not happen again. If you don’t recognize the truth and fix the underlying issue, you end up with more socialist grifter nonsense. The only question to be asked of a politician is what team are you playing for…the socialists or the capitalists. We the people should demand from every politician the requirement to prove and state their position in writing by contract. A written contract between you, the politician, and your constituents. As a side note, this book is written for team Mom and Pop because there are more of us than the idiot politicians who refuse adhere to their oath of office being to protect and defend the Constitution of their State and the United States of America. Such contract can be seen in the article, The Legacy of Governor Abbott: Governor Abbott’s “Empowering Texas Taxpayers” is the embodiment of Institutionalized Systemic Moral Hazard

16. Germany is in a Depression; London and France are on the verge of civil war; Canada although rich in natural resources is bankrupt, and all due to the influx of uncontrolled immigration and politicians unwilling to face the reality of super debt that they allowed to occur and which a simple amortization spreadsheet and one question being, when will this be paid off, could have prohibited.

17. China also suffers from untold amounts of debt and ghost cities.

18. The U.S. trading partners, whether we like it or not, are in equivalent or worse economic shape than the U.S. making us the best deviate on a very bad block.

19. Approximately $5.1 Trillion of fraudulent outstanding school district bonds (roughly $15,407 / U.S. Citizen) that cannot be paid off by the households (some school district with debt in excess of $300,000 per house). The AA, BB, ratings of the bond agencies are wrong as the ratings do not denote the fraud necessary to achieve the revenue to pay for the bonds. There is not a single school district that we have seen yet that can answer how the bonds are going to be paid off. The bonds have been rolled out and interest rolled up at least since 2000 and the interest continues to climb as does adding new bond debt.

20. Fraudulent school district property tax created allegedly “for the kids” but in reality to fuel the growth of a failed school system and then the creation of fraudulent school district bonds to be paid for by the property owners which fueled more inflation. Your property tax dollars are being used in advertising by the school districts (also not adhering to law) to raise fraudulent bonds and revenue that ends up in hidden investment pools. The money is not going “for the kids” it is going into fraud.

21. Inflation by printing money not backed by assets is a hidden tax and inflation is created by fraud.

22. People are losing their homes in mass due to property tax fraud and the Ponzi scheme created to generate revenue to cover up the fraud.

23. People are losing their jobs due to excessive debt at the companies they work for.

24. 144 million taxpayers in the U.A. and a 10% true unemployment rate is roughly 14 million people.

25. Since 1913, the U.S. Dollar’s purchasing power has decreased 97% from 1017 in 1913 to 30.8 in 2025.

26. Property tax at the State level, violates the 16th Amendment to the U.S. Constitution. The Sixth Amendment guarantees rights related to criminal prosecutions, such as the right to a speedy trial and legal representation. The Supremacy Clause, found in Article VI of the Constitution, establishes that federal law, including constitutional amendments like the Sixth, takes precedence over state laws.

27. The compound interest on the fraud is magnitudes greater than the principal of the fraud.

28. Home Affordability is non-existent due to the fraud. See Home Affordability Chart .

29. Small business is the economic backbone of the U.S. and Canada with AI as the promoted savior, except AI will never replace small business or big business in that without controls it violates human nature to work and has a high probability of fueling civil war.

30. The scourge of socialism/communism is on the rise as a direct result of “affordability”. What the population does not understand is that socialism transfers someone else’s money (Yours) into the pockets of recipients (Theirs) who did not produce the goods and services and socialism, as created by a drunk named Karl Marx, has failed, without exception, in every country that adopted it. Every country without exception that has instituted or attempting socialism and or communism has economically failed including Russia (in the past), Argentina, Greece, China, which is in severe financial trouble today, Germany, which is at the entry of a depression, and London, which is failing because of immigration and socialism. The nexus between all these countries is the inability to generate the money to pay off debt that resulted from failed socialist policies. Socialism produces chaos, and the socialists manipulate the public into believing they, the socialists, can make the public’s lives better, which never happens. Capitalism is not the problem, fraud by socialists who can’t understand debt and are incapable of handling debt, and want to create more debt, is the problem. Socialism is anti-Republic and anti-capitalism. A social policy is not under any circumstance to be compared to socialism. My Father taught me the difference between socialism and a social policy and after leaving Canada, a socialist country, here we all are having this discussion. A social policy consists of guidelines, principles and perhaps legislation that affect the living conditions conducive to human welfare such as the priority of eliminating hunger. Capitalism allows for a social policy to exist. Socialism creates the environment for hunger to exist and the hunger to expand all while the socialists claim to be doing good for society, which has never been proven to be true. Socialism / communism should be banned from a Republic as its very existence in a Republic should be met with charges of sedition which is, overt conduct, such as speech or organization, that tends toward rebellion against the established order. Sedition often includes subversion of a constitution and incitement of discontent toward, or insurrection against, established authority and is punishable by up to 20 years in prison. This is another example where the black letter of the law exists and failure to rely on the law leads to harm of the public and the Republic.

31. In 2025, the average annual premium for employer-sponsored health coverage is approximately $26,993 for family coverage, with employees contributing about $6,850 toward these premiums, and the employees without employer-sponsored health insurance have to cover the premium costs on their own. The total health benefit cost per employee is expected to rise by about 6.5% on average in 2026 marking the highest rise in 15 years, reflecting ongoing increases in healthcare service prices and utilization rates in another system rife with fraud.

32. In the United States, health care spending is a significant part of the economy, with total national health expenditures reaching approximately $4.9 trillion in 2023. This spending includes costs from public programs, private health plans, and out-of-pocket expenses.

33. In fiscal year 2025, the federal government spent about $970 billion on interest payments on the national debt. This amount represents roughly 19% of all federal revenue collections. A deficit occurs because the revenue does not exist to prohibit the deficit. Recessionary measures include: Consumer - Housing Permits, Job Sentiment, Jobless Claims, Retail Sales, and Wage Growth; Business Activity - Commodities Expansion, ISM New Orders, Profit Margins, and Truck Shipments; Financial - Credit Spreads, Money Supply, Yield Curve. These indicators are manipulative at best and pure fiction at worst. The standard Recessionary Indicators are fiction because in their totality they are meaningless because they do not track or consider the truth of the economy, which is Median Household Income, Corporate Bankruptcies, Personal Bankruptcies, Debt to GDP (State and Federal), Corporate debt above 30%, Household Debt above 28% Debt to Income, Home Affordability & Inflation. Ask yourself why are there more recessionary measures not tracked and considered vs alleged recessionary measures that are tracked? Why is it that we have yet to see any school district that raises bonds provide a list of outstanding bonds and outstanding compound cumulative interest on those bonds? Why is it that the press and the politicians refuse to address the pink elephant of debt dancing around the room as if in the movie Fantasia? The answer is the politicians, and press created the narrative. If they discuss it, the truth comes out.

34. The interest payments on the national debt exceed many household expenditures, including health care. For context, the average household spends about $6,500 annually on health care, while the interest payments amount to approximately $7,300 per household.

35. The rising interest payments contribute to the overall financial burden on the federal budget, which can indirectly affect health care funding and costs. As interest payments grow, they may limit the resources available for health care programs, potentially impacting on affordability and access to care for individuals.

36. Gold, Silver and Platinum are increasing in value, but why? Money in circulation has been increasing and printed not backed by assets being M1 + M2 + would put gold around $46K per ounce. Add in the unfunded liabilities and it could go to $80K per ounce. Regardless of where the price goes, the current reality is that the purchasing power of many currencies across the globe have devalued, and Central Banks know this, and are acquiring precious metals to protect against further erosion.

37. Silver is currently at $59.23, and Gold is at $4,235 per ounce.

38. The fraudulent bonds created by the school districts, is the exact same issue as the Federal Reserve printing money not backed by assets. That is your proof that the Fed and the School Districts are the 2 largest purveyors of fraud in the U.S.

39. The property tax fraud and school district bond fraud is creating homelessness, hunger, tax lien foreclosures and it is the result of socialism which by its very nature is intent to defraud. Fraud at every level of the School District bonds including Superintendents, Boards, bond rating agencies, underwriters and those who protect them. Fraud at every level of the Central Appraisal Districts which are owned by the School Districts under the fraudulent delusional statement by the CADs and Registered Professional Appraisers working for the CADs being “our opinion is the clear and convincing evidence”. It is important to understand that this statement is aggravated perjury which is a more serious form of perjury that occurs when a person (RPA) makes a false statement under oath during an official proceeding (ARB hearing), and that statement is material to the case / presentation. It is classified as a felony and carries harsher penalties than regular perjury.

40. 37.8% of the household population is in harm’s way of bankruptcy and or losing the roof over their head. That is 42,000,000 people in the U.S. A bankrupt population is a National Security Risk. See the Amicus Brief .

41. Did you realize that your property taxes are roughly 8.6% of your gross income?

42. You cannot take people’s money to the point of bankruptcy. The war of 1776 was fought over “Taxation Without Representation”. Not one person in the history of the U.S. or Canada ever signed a single piece of paper that states they are willing to go bankrupt to support their school district.

43. Many new under-construction apartment buildings will be going back to the lenders because the necessary average rent is around $3,400 for roughly 950 sq. ft. per month based on a current construction cost of $340,000 per unit. The vast majority of people cannot afford this rent.

44. People / Press who state their feelings without any ability to quantify those opinions are doing harm to their viewers and simultaneously destroying their own credibility.

45. From a real estate tax standpoint, just to get back to where we were 5 years ago would mean a 50% price reduction in home value. Those lenders, school districts and central appraisal districts who promoted and participated in the fraud deserve the finality of their decisions.

46. There has been a 100% rise in property taxes in last 5 years as a result of property tax fraud and school district bond fraud. As inflation went up 15% according to the Federal Reserve, where is the math to prove up the other 85%?

47. The median household income does not exist to pay off the fraud.

48. Inflation – liquidity – banks willing to ignore income verification in exchange for pushing money out (to obtain the fees) under the belief that the government will bail them out is the creation of Institutionalized Systemic Moral Hazard because the laws that exist are ignored in favor of the crimes. After studying thousands of business models, patterns become crystal clear and the only thing that matters is the median household income from which the true value of the underlying can be determined. The MHI is a business model and anything associated with ignoring the MHI leads to fraud and Institutionalized Systemic Moral Hazard.

49. Fed Funds rate may go down, but that does not necessarily mean the mortgage rates will not up because risk requires higher interest rates to offset the risk.

50. Governor Abbott’s legacy, with regard to property taxes, is actually the implementation of multiple modifications to the failing property tax system, including but not limited to the following: getting school choice legislation passed into law, increasing school district homestead exemption amounts 4 times, increasing homestead exemptions for seniors and disabled, providing temporary limit/relief for certain non-homestead properties (20% circuit breaker limit), limiting the amount of new property tax revenue cities and counties can collect without voter approval, adding 3 more people to the appraisal district board of directors [which does nothing to move or effect the vote, nor does it improve or correct the property tax appraisal process], among other things. All of these changes were adopted to placate the public while finding ways to keep up with the ever increasing demands of the school districts to cover up their bond fraud which, at this point, can never be paid off because the Median Household Income does not exist to do so and all of which failed, as the initial concept was never mathematically sound, which is exactly why taxing property based on market value is taxation of unrealized gains and violates the 16th Amendment to The Constitution of the United States of America. None of these things actually resolved the fraud within the property tax appraisal process and tax system, but they are part of Governor Abbott’s legacy from all the way back to 2002 when he was the Attorney General to now. (See article titled, The Legacy of Governor Abbott .)

What has your Governor done about your school district debt? Do you know how much fraudulent school district bond debt has been placed on your house that you will owe to be paid in perpetuity? ( See the Amicus Brief .)

Now add to the 50 issues…What are the courts doing about the fraud?

The above 50 issues touch the life of every single American. In fact, every single one of the 50 issues is a direct result of existing laws not being enforced. Rules and laws required of we the people that are different than rules and laws which are ignored by the governing entities and persons responsible under law cannot exist under the Constitution of the United States of America. Under a Republic the laws are applicable to all. A republic is a form of government in which supreme power is held by the people and their elected representatives, rather than a monarch. The term originates from the Latin “res publica,” meaning “public affair.” A defining feature of a republic is the rule of law, where governance is based on a constitution or established legal framework, not on arbitrary power.

What are the courts doing about the fraud that has been evidenced?

Well, either the law exists or it doesn’t! We are about to find out. Not only is the equity in your home being stripped from you while you sleep, so are your constitutional rights! This should concern every property owner and every single citizen, because you are paying for it regardless of what State you live in. As goes California and New York, so goes Texas! As goes Texas, so goes the United States of America!

Uniform and Equal cannot exist (as required under Constitutional law) when the ARB (Appraisal Review Board) and CADs (Central Appraisal Districts) refuse to acknowledge Uniform and Equal, when the Supreme Court of Texas blocks an Ultra Vires (acting outside the scope of authority) case from being adjudicated, wherein the Texas Law states that the Chief Appraiser is the party responsible in law, when the law itself does not exist as the Appraisal Review Board, is wrongfully deemed the exclusive remedy which is impossible as it does not have authority in law or the ability to determine fraud. Thus the courts created a legal dead zone which is exactly why the Supreme Courts exist. However, by refusing to hear the case without an explanation, the SCOTX is in violation of its own doctrine under the Patel case and is promoting Institutionalized Systemic Moral Hazard.

The Disappearing Doctrine: How Texas Rewrote Ultra Vires and Shielded Constitutional Overreach from Judicial Review. How do we know? We caught them and documented every step in the process of how the property owners have been defrauded financially and simultaneously suffered the hidden repeal of their constitutional rights.

The Motion for Re-Hearing Case No. 25-0615 to the Supreme Court of Texas (SCOTX) below makes the point that either the law exists to protect the citizens or it doesn’t. Is it below?

The concept of ultra vires in Texas was established through legal precedents, particularly highlighted in the Texas Supreme Court case City of El Paso v. Heinrich in 2009, which allowed lawsuits against government officials for actions taken beyond their legal authority. This doctrine serves as a narrow exception to the broader principle of sovereign immunity, enabling claims against officials acting outside their granted powers.

Definition of Ultra Vires

Ultra vires is a Latin term meaning "beyond the powers." It refers to actions taken by a corporation or government entity that exceed the legal authority granted to them. The opposite term, intra vires, describes actions within the scope of authority.

Contexts of Ultra Vires

Corporate Law

In corporate law, ultra vires acts occur when a company engages in activities outside its charter or bylaws. Such actions are typically considered void or voidable.
Most jurisdictions have limited the application of ultra vires in corporate contexts, allowing companies broader powers to conduct lawful business.

Administrative Law

In administrative law, ultra vires claims can arise when government agencies exceed their statutory authority. Courts can review these actions to ensure compliance with legal limits.
The Administrative Procedure Act (APA) allows for judicial review of agency actions that are deemed ultra vires.

Constitutional Implications

Ultra vires can indeed be a constitutional issue, particularly when actions by government bodies or officials exceed the powers granted by the constitution or statutes.
Courts may invalidate laws or actions that are found to be ultra vires, reinforcing the principle of limited government authority.

In summary, while ultra vires primarily relates to the scope of authority in corporate and administrative law, it also has significant constitutional implications when government actions exceed their legal limits.

SCOTX denied the case to be heard with no explanation. Could it be that an intern did not understand the case and blocked it from moving forward…TBD. However, let’s examine the impact of this case not moving forward. The ramifications of SCOTX currently denying the case from being heard meaning that Ultra Vires can’t be determined in law, then A.) for what purpose does Ultra Vires exist? and B.) there is no law to protect the Citizens which invalidates the Texas Constitution including & under Uniform and Equal. If there is no law, then perhaps the approach by all property taxpayers should be…let’s all take a tax holiday for the next 12 months and force the school districts into bankruptcy, involuntary bankruptcy, and or conservatorship because the truth is that the vast majority of the school districts that raise bonds are insolvent as is the Texas Bond Guarantee Program and have been using the contorted hiding behind ultra vires as a method to cover up the necessity of the continued bond raises to pay for the compound cumulative interest on the outstanding bonds that are rolled out and interest rolled up instead of retiring the bonds... AKA Ponzi scheme, bond fraud, and accounting fraud.

There is a very serious problem here in that nobody with an ounce of intellect would agree to accept no protections under the law and have to accept the pre-determined budgets from a school district that has never seen a report on how much tax a property owner can afford, a school districts that creates a wish list of money with no bids, no construction drawings, boosted operations and maintenance (O&M) numbers, fraudulent interest and sinking fund (I&S) with no publicly available evidence of how much in bonds is outstanding and how much in compound cumulative interest is outstanding, all of which is handed over the Chief Appraiser of the Central Appraisal District (CAD) who has zero capacity to determine what fraud was committed by the School Superintendent and the School District Boards, and then the Chief Appraisers accept that fraudulent pre-determined budget, after being told to hit the pre-determined budget number, and then further expands, creates and “manipulates” fraudulent property values outside the confines of USPAP (Uniform Standards of Professional Appraisal Practice), Texas Property Tax Code, Texas Education Act, the Texas Constitution (Uniform and Equal) and The U.S. Constitution, not to mention a host of other State and Federal laws including RICO that are also being violated. This is the definition of a criminal conspiracy to defraud and the Attorney General, State Comptroller, State Auditor, and the courts have sanctioned it and right in the face of the very laws that are black letter of the law as each one of these entities and responsible people has the obligation under law to prohibit the exact issues they have created.

The public must be made aware of these issues and start their own advocacy. Notify the judges directly in writing that this is not acceptable and demand your constitutional rights and copy your politicians. Writing, emails, and lawsuits when justified, including filing suit against the board members of the CADs, the responsible employees and school districts boards and responsible employees, holding them joint and severally liable. The reality is there is no viable method to save the school system, which is economically, criminally, and morally bankrupt, and the system must be destroyed and made to suit the local population without any ability to raise bonds on the backs of the property owners.

If we are not in a recession, where the government claims for promotional purposes that “the economy is fine”, then the above list would not exist. Even the economy of Wall Street and the banks is not fine when you analyze the over-leverage. Every economy, as the term is used globally, is made up of micro-economic drivers (aka sectors) such as small businesses (including farmers), big business, feeder plants, energy, and all the micro businesses within and derived from those various businesses, and then you have the business of property ownership including houses. Home ownership should be looked at through an income and expense statement, no different than a company. When you stack the math of the micro economic drivers, the math equating to “the economy is fine” simply can’t be true. The promotion is understandable to help increase top line revenue except the debt must be dealt with to protect the net revenue and ensure that people don’t lose the roof over their head due to fraudulent debt. The problem with how recessions are measured is that the formula does not take into account bankruptcies, fraud, the ability to pay off debt or Institutionalized Systemic Moral Hazard. Why is that? Because each of the true measures are a mirror reflection of those who created and promoted financial crimes against their own citizens.

A Supreme Court denial of certiorari (judicial review of a lower court) is not national precedent. Everything outlined in this book is the pattern and practice across the U.S. therefor although the evidence is based on Texas the pattern and practice is applicable across the U.S. and Canada. Any Central Appraisal District (CAD) that claims to use USPAP, while being the sole determiner of value from which to exact taxes for the School Districts that raise bonds, has an extraordinarily high probability of being involved in fraud and Institutionalized Systemic Moral Hazard. Meaning, what we have done by moving this case forward and exposing the legal dead zone and Institutionalized Systemic Moral Hazard, can be replicated in hundreds of districts across the U.S. The decision to not hear a case has no precedential value. The lower court’s decision is only binding within its own geographic jurisdiction, known as its circuit.

For example, a decision by the U.S. Court of Appeals for the Ninth Circuit is law in that circuit, but not in the Second Circuit. Other federal circuits remain free to address the same legal issue and potentially reach a different conclusion. This is how circuit splits can persist even after the Supreme Court denies a petition in a case raising a particular issue.

The issue here is that under no circumstance in Texas, based on the SCOTX own doctrine in the Patel case, does the SCOTX or the lower courts have the right to deny the constitutional rights of all Texans by denying the adjudication of a case where the lower courts admitted fraud occurred.

Complexity creates an illusion of legitimacy and hides dishonesty. We have the proof from the ground up starting at your property value and ending in fraudulent school district bond fraud that has as investors, 401Ks, Pension funds, tenants, residents, and property owners at risk, and at this moment, the fraud is being protected by the courts which is just another layer of complexity.

Institutionalized Systemic Moral Hazard happens when the government chooses to protect the banks, not the citizens. They would have protected both by letting the bad banks go bankrupt and this includes the shadow banks which have only grown exponentially larger utilizing more leverage (leverage upon leverage) and caused more cross collateralized loans between the banks, shadow banks, and reverse repo.

The mortgage holders are underwater. If property values went down, do you realize by law so must your property taxes Pari-Passu. That is a Latin phrase that means "equal footing" and describes situations in which two or more assets, securities, creditors, or obligations are treated equally, without preference or priority. If property values go down, such as in Austin with an 18% reduction, then so to must the property market value and assessed value yet the necessity for the payment on fraudulent bonds continues to go up which means the mill rate (tax rate adjustment) must go up to cover the fraud. By definition this proves the bankruptcy of the entire school system across the U.S. and proves that it is a Ponzi scheme. The law is being violated in 2 directions. Pay to cover the fraudulent bonds in good times, and when property values drop, pay to cover even more fraudulent bonds and compound cumulative interest in bad times. The bond fraud is now laid bare for all to see.

The ongoing festering of grotesque government overreach being the Obama Care creation of – “never let a disaster go to waste” further promoted the inflation by A.) not allowing the banks to fail in 2009 and B.) the creation of Obama care in 2010. Kicking the can down the road of the failing banks and creating more fraud in the health care sector only prolongs the inevitable because inflation will reach the point of self-detonation. This is where the Rule of 72 proves the finality.

Governments cannot manage an economy, they can only manipulate it, and it is never a good outcome.

These are the truths. One should understand the truths, as difficult as they may be, and yet, be optimistic because eventually serious people will join forces to solve the issues and there are solutions. Temporarily, we as a collective society must make politicians and judges understand the ramifications of their actions. Either the law exists to protect the Citizens, or it does not. The politicians and judges should understand the depth of this statement. (See the article, Either the law exists or it doesn’t. We are about to find out. )

The American communist / socialist party as we know it today would cease to exist if the following measures were implemented:

1. Nation-wide voter ID with in-person, same-day voting except for true absentee situations.

2. End tax exempt status for ALL 501(c)(X)s.

3. Continue President Trump's enforcement of existing immigration laws until we have rolled back all the economic damage done which is estimated at roughly $64,000 per illegal immigrant since January 20, 2021 “a day that will live in infamy”. The phrase "a day that will live in infamy" refers to December 7, 1941, when Japan attacked Pearl Harbor, leading to the United States' entry into World War II. It was famously used by President Franklin D. Roosevelt in his speech to Congress, emphasizing the historic significance and disgrace of the attack. The economic damage and psychological damage inflicted by the Biden Administration upon all Citizens can be seen as an attack and is, at a minimum, a violation of the Oath of Office. The definition of Treason is the betrayal of allegiance toward one's own country, especially by committing hostile acts against it or aiding its enemies in committing such acts. The betrayal of someone's trust or confidence. The offense of attempting to overthrow the government of the state to which the offender owes allegiance, or of betraying the state into the hands of a foreign power; disloyalty; treachery. Given the people that have been murdered at the hands of illegal immigrants that came across the border, I fail to see how Biden, and those who knew, should not be brought up on charges of Treason. It could be the ultimate RICO charge which is creating a false debt and making demand for payment. Who received the benefit from allowing this many immigrants to overtake our border? For the sake of conversation roughly 18,000,000 illegal immigrants multiplied by the estimated $64,000 / immigrant in housing, medicine, food, transportation etc. totals $1,152,000,000,000 ($1.152 Trillion) for the final year of the Biden administration and we are all paying for it because this debt has not gone away and bears interest. In its most simple terms, Joe Biden violated his Oath of Office and should be impeached in absentia. This was an expense not created for the benefit of governing, or for all Citizens, but was done for political gain (socialism / communism) and that political gain backfired and we are all stuck with the resulting damage. One Trillion dollars divided by the U.S. population would deliver roughly $3,000 to each and every Citizen. Instead, you will be paying this $3,000 plus interest in perpetuity to the point where the interest payment is greater than the debt and or the system implodes. Hmmm, just like the school districts! Creation of a false debt and demand payment!!

We must be able to state the facts. The Republic of the United States came dangerously close to self-destruction as a direct result of socialism. Politicians on both sides of the isle and press, screech “it is for democracy”. They screech “it is for the children”. Yet, neither is true. The United States is a Republic, not a democracy. When is the word “democracy” is used as propaganda one should ask…who’s democracy? The democracy of a socialist (propaganda)? The democracy of a grifter (propaganda)? Burdening the entirety of the population with debt based on fraud is a violation of the oath of office and those responsible should be held accountable both legally liable (criminal) and financially liable (civil). If we can’t state and prove what happened, then how are we, as a society, going to avoid nightmares in the future? If we don’t have rules of law, then how can we, as a society, prosper?

Not to get political because there are idiots on both sides of the isle, but we must study the net results of their actions. It is the same as studying business models which I have done throughout my career. The underlying question is what is the cost benefit analysis?

What is the cost benefit analysis of a socialist / communist in office?

Did they run a cost benefit analysis? Did they run a what if scenario? Did anybody study the probabilities? Did anybody look at an amortization schedule as to when and how the debt would be paid down? Did anybody care, or was the economic destruction of we the people the end goal? If that was the end goal, then how is that not treason?

Unemployment Surge: The beginning of the socialist party of America… Obama

By October 2009, unemployment soared to 10%, and it remained above 8% for the next 43 months, one of the longest periods of sustained high unemployment in modern history.

Mismanagement of the stimulus funds

Failed Investments: High-profile failures like Solyndra and Fisker—companies that received millions in federal funding only to collapse—highlighted the inefficiency and cronyism inherent in the stimulus program.
Progressive goal with the passage of the Affordable Care Act (ACA): Mandating coverage, imposing penalties on businesses and individuals, and creating government-run marketplaces.
Rising Costs: Despite promises of affordability, the ACA led to skyrocketing premiums, driving many young and healthy individuals out of the market.
Employer Challenges: Businesses faced new mandates, discouraging full-time hiring and encouraging a shift toward part-time work to avoid penalties.
Public Backlash: By 2024, the ACA remains controversial, with critics arguing that it prioritized government control over market-driven solutions, stifling innovation and competition in healthcare.

Dodd-Frank - Stifling Small Banks and Businesses

Signed into law in July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act aimed to prevent another financial crisis. However, its sweeping regulations had unintended consequences:

“Too Big to Fail” Gets Bigger: Large banks grew even larger, while small community banks—the lifeblood of small businesses—struggled to survive under the weight of new compliance costs.
Stifling Entrepreneurship: Small businesses, which rely heavily on community banks for loans, faced reduced access to capital, slowing job creation and economic growth.
The Shift to Executive Overreach – Communism at work.

The Regulatory State Expands

The Federal Register of Regulations swelled to nearly 100,000 pages, the largest in history. By 2016, the cost of compliance with federal regulations reached $100 billion annually. Key areas of regulatory overreach included:

Labor Regulations: The Department of Labor and the National Labor Relations Board implemented policies favoring unions, increasing costs for businesses and discouraging hiring.
Environmental Restrictions: The EPA’s aggressive mandates drove up energy costs, particularly in coal-dependent states, harming both businesses and consumers.
Internet Oversight: The Federal Communications Commission (FCC) imposed net neutrality rules, marking the first time the Internet faced federal regulation, sparking debates about free markets versus government control.

Economic Growth Stalled

Despite inheriting a major recession, Obama’s policies failed to generate robust economic recovery. The administration’s GDP growth averaged a dismal 1.5%, even as it projected over 4% growth annually. By comparison, Reagan-era growth averaged 4.4% following a similarly severe recession in the 1980s.

Progressive Goals achieved, at great economic and social cost to we the people.
Expanding Government – Communism at work.
Dramatic expansion of government’s role in American life. From healthcare to finance to energy, policies placed bureaucrats in positions of control, sidelining the private sector.
Redistribution of wealth was a cornerstone of the agenda. However, rather than reducing inequality, the policies exacerbated it. Rising healthcare costs, stagnant wages, and reduced economic mobility disproportionately harmed working- and middle-class Americans.

Obama’s Progressive policies, while celebrated by his supporters, alienated large swaths of the electorate. By 2016, frustration with stagnant wages, rising costs, and government overreach culminated in a political backlash that helped elect Donald Trump.

The Trump Reversal

President Trump wasted no time dismantling Obama-era regulations and policies:

Tax Cuts and Deregulation: Trump’s 2017 tax reforms and regulatory rollbacks unleashed economic growth, with GDP averaging 2.9% annually from 2017 to 2019.
Energy Independence: By prioritizing domestic energy production, Trump reversed Obama’s restrictions on coal and natural gas, reducing energy costs and boosting American competitiveness.
Judicial Reshaping: Trump appointed judges who limited executive overreach, reversing several Obama-era regulations.

By 2024, the effects of Obama’s policies remain painfully evident.

While Obama’s supporters tout his charisma and historical significance, his presidency is increasingly viewed as a missed opportunity for real economic recovery and progress. His reliance on Progressive (socialist / communist) policies not only failed to deliver promised results but also deepened divisions in the country. Obama’s legacy is that of a failed socialist who existence spun Biden.

Healthcare Challenges: The ACA’s structural flaws continue to burden the system, with many Americans facing limited choices and high premiums.
Economic Inequality: Despite socialist rhetoric, the gap between rich and poor widened under Obama, as his policies favored large corporations over small businesses. Why? Because that is what a socialist grifter does. Take your money and put it in their pocket as fast as possible and whoever gets hurt is of no consequence or consideration.
Lingering Regulations: While many Obama-era rules have been repealed, their impact lingers, particularly in sectors like finance and energy.

Obama’s presidency serves as a cautionary tale about the dangers of unchecked government expansion and progressive / socialist / communist policymaking. By stifling growth, discouraging innovation, and prioritizing government control over individual freedom, Obama’s legacy highlights the inherent flaws of big-government solutions and not stamping out socialism and communism within our boarders both of which are a violation of the Republic of the United States as the Constitutional laws exist to prohibit the economic devastation from such non-functional ideology as dreamed up by a drunk looking for a free drink (Karl Marx).

Obama’s policies ignited both political and economic backlash that reshaped the nation’s trajectory including the current problem of the ACA cost quadrupling in certain States. It is the propaganda of Obama and like-minded socialists such as the WEF that spun many of the problems now existing in London, Germany, and Europe including that of censorship. The problems these countries face are not good for trade between any of the countries including the U.S.

May we never forget the death, damage, debauchery, debt and chaos that socialists / communists and or progressives leave behind.

4. Allow banks that make bad loans to fail. No bailouts and no bail-ins. Government has no business or acumen in picking winners and losers. Look at the financial mess we are in as a result of politicians who can’t balance a checkbook. A benefit is the reduction in U.S. National Debt and the interest to service that debt. Top line revenue increases Federally and Mom and Pop’s net revenue increases by the lowering of expenses.

5. Terminate the Federal Reserve.

6. 50% debt jubilee on the face value of outstanding school district debt and an immediate termination of outstanding interest payments.

7. Repeal all property tax in favor of the Uniform States Sales Tax wherein the Uniform States Sales Tax will upon stabilization be capped at 11%.

8. Enforce the black letter of the law.

All we need to do is these 8 things, and America will be transformed back into the Constitutional Republic it was always created to be.

If there was ever a time for the adherence to Constitutional law, now is that time!

Communism / Socialism fails when it runs out of other people’s money. Even the Russians and Chinese are not crazy enough to intentionally bankrupt their own citizens. Yet, here in the U.S. and Canada, the policy makers chose a path over many years, which if left uncorrected, can only lead to Terminal Failure.

How did we get here?

The answer is allowing the creation of Institutionalized Systemic Moral Hazard with an intent to defraud via the printing of money or the creation of a false debt upon which demand is made (RICO) to pay for a wish list of pet projects, that are contrived and cannot be afforded. Just like a credit card, except magnified by trillions of dollars, and the liability to pay it off, according to the criminals who created the Institutionalized Systemic Moral Hazard and who also transferred our money to their pocket, is on all of us until we insist the law be enforced against the criminals.

They Don't Teach Economics in School

Thu, 04 Dec 2025 22:11:58 GMT

They Don't Teach Economics in School

By Mitchell Vexler, December 4, 2025

In short, economics is a social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behavior and interactions of economic agents and how economies work. Microeconomics is viewed as elements within economies which can include households, companies, buyers, and sellers.

What is missing, whether intentional or based on ignorance, is that students are not taught how to balance a check book, how to read an income and expense statement, how their lives interact within an economy, how not to go bankrupt, or how to understand debt.

Average annual Property Tax on a single-family home is $7000, based on an average tax rate of 2%.

Business Property Tax on a 1000 sq. ft. building valued at $300/sf, or $300,000, is $6000.

Average Employer-Sponsored Health Insurance Cost for an Employee & his/her family is $26,993 (where the employer cost contribution is $20,143 and the employee cost portion is $6,850).

For the small business owner that’s $26,993 for health insurance + $7,000 in property tax on home + $6,000 in property tax on business property, or $39,993 a year, where these costs have been inflated due to fraud, and where there are little to no benefits from the health insurance and the property taxes, because the compound cumulative interest continues to grow on the county, city, and school bond debts.

The above costs are just a few of the most basic expenses that a homeowner who happens to be a business owner faces.

Now here is what is not taught… for a small business owner to generate enough money to pay just these most basic expenses (house, health care, business property) in today’s world, and not go bankrupt, that business owner with 1 employee (himself/herself) has to generate at least $333,000 in revenue just to pay the most basic taxes.

In every instance without exception, each of these 3 basic tax expenses are associated with fraud. Where fraud exists, so does inflation, and so does the compound interest on the fraud plus the inflation.

The interest has now grown several folds above the initial fraud of the debt.

Small business is the economic backbone of the U.S. and Canada. AI may help society, being both individuals and businesses, but should never be allowed to cause mass unemployment. Mass unemployment leads directly to civil war and that is why AI needs a warning label. Just because you can do something does not mean that you should. This is the main difference between human rational thought and AI. AI does not know, nor can it be trained in the distinction of to do or not to do. AI, like a socialist, exists for its own benefit and its own survival depends on grifting those who are unaware.

These problems revolving around debt are fixable. In many cases as has been proven, the debt and the demand for the debt was based on fraud (i.e. what initially appears to be a legitimate need but then morphs into Institutionalized Systemic Moral Hazard) and that fraud grows as does the compound cumulative interest because the debts were never paid off but rolled out and interest rolled up. The fix is to terminate the interest and peel back the principal and interest, and if that means that 600 banks are on the chopping block, as are those who sold the bonds or were involved in the fraud, then their bankruptcy is the cost of their involvement in the fraud. This method which is called a “workout” will work on Healthcare, Property Tax, or any other Socialist – Marxist Theory which transfers your money into the bank’s coffers and the socialist’s coffers.

To save 37.8% of the household population (roughly 42,000,000 people) from going bankrupt and to restore the balance sheet to Mom and Pop, property taxes must be repealed in favor of the Uniform States Sales Tax. Any tax must be fair and uniform in application and the only solution is the Sales Tax which is transparent, fair, and uniform.

So as to avoid foolish decisions, politicians, regardless of party, should look through the lens of a socialist policy to determine who receives the benefit, and whether we, the politicians, are creating Institutionalized Systemic Moral Hazard. If so, do the opposite, or do nothing.

Socialism, regardless of political party, country or state, has not now, nor will it ever work, because socialists produce nothing of economic value. Socialism was and is the construct of a drunk named Marx. He sat in bars and pontificated on his drunken theory in exchange for people buying him more to drink. Every country without exception that has instituted or attempting socialism and or communism has economically failed including Russia (in the past), Argentina, Greece, China, who is in severe trouble today, Germany, who is possibly entering a depression, and London, who is failing because of immigration and socialism. The nexus between all these countries is the inability to generate the money to pay off debt that resulted from failed socialist policies. Socialism produces chaos, and the socialists manipulate the public into believing they, the socialists, can make the public’s lives better, which never happens.

Socialism is very distinct from social policy, and it is extremely important to keep this in mind.

The Home Affordability on https://irp.cdn-website.com/39439f83/files/uploaded/Tab%203-Home%20Affordability%202023.pdf shows that it takes a $189,000 income to afford a $514,000 fraudulently created assessed median home value. This is the result of a socialist policy with regards to school district financing, which not only bankrupted the school districts, but now is forcing homeowners to go bankrupt and or lose the roof over their head as they can’t pay the property taxes. Those politicians, regardless of their party affiliation, who allowed this to happen are part of the Institutionalized Systemic Moral Hazard, and failing to correct a known and proven problem, also puts those politicians in violation of Federal law.

In 2025, the average annual premium for employer-sponsored health coverage is approximately $26,993 for family coverage, with employees contributing about $6,850 toward these premiums. The total health benefit cost per employee is expected to rise by about 6.5% on average, reflecting ongoing increases in healthcare service prices and utilization rates.

The average annual premium for employer-sponsored health coverage in 2025 is as follows:

Coverage Type Annual Premium Employee Contribution Employer Contribution

Single $8,951 $1,368 $7,583

Family $26,993 $6,850 $20,143

Average Monthly Premiums for smaller firms (fewer than 50 employees) in March 2024:

Coverage Type Employee Contribution Employer Contribution

Single $170.92 $528.84

Family $751.45 $1232.59

Cost Trends

Healthcare costs are projected to increase by approximately 6.5% in 2026, marking the highest rise in 15 years.
Employers are expected to cover a larger share of premiums, with family coverage contributions rising to about 75% in 2024.

Additional Costs

Employees also face out-of-pocket expenses, including deductibles and copayments. For example, a family of four typically incurs about $3,564 in out-of-pocket spending annually.

These figures highlight the significant financial commitment required for employer-sponsored health insurance, which continues to rise each year and push more employers and employees into bankruptcy.

In the United States, health care spending is a significant part of the economy, with total national health expenditures reaching approximately $4.9 trillion in 2023. This spending includes costs from public programs, private health plans, and out-of-pocket expenses.

In fiscal year 2025, the federal government spent about $970 billion on interest payments on the national debt. This amount represents roughly 19% of all federal revenue collections.

Comparison of Health Care Costs and Interest Payments

The interest payments on the national debt exceed many household expenditures, including health care. For context, the average household spends about $6,500 annually on health care, while the interest payments amount to approximately $7,300 per household.

Implications for Health Care Costs

The rising interest payments contribute to the overall financial burden on the federal budget, which can indirectly affect health care funding and costs. As interest payments grow, they may limit the resources available for health care programs, impacting affordability (which no longer exists), and the access to care for individuals or the quality of that care, which has been severely curtailed.

There are fixes.

The Trump administration is doing what is necessary with regard to increasing top line revenue, to correct generations of failed economic policies which created the debt. However, these efforts, as important as they are, do little to affect the daily lives of Mom and Pop, and a solution is obtainable with the repeal of all property tax in favor of the Uniform States Sales Tax. The average household is $9,000 away from bankruptcy of which $7,000 is property tax. Restore the balance sheet to Mom and Pop by allowing them to truly own their property and restore the American Dream of home ownership, by repealing all property tax in favor of the Uniform States Sales Tax.

A Bankrupt Population is a National Security Risk

Wed, 03 Dec 2025 21:33:34 GMT

A Bankrupt Population is a National Security Risk

By Mitchell Vexler, December 3, 2025

This is the history of the purchasing power of our dollar, in 5-year increments, since 1913:

1913 1017.80
1918 715.90
1923 595.00
1928 578.80
1933 775.40
1938 702.40
1943 591.40
1948 421.40
1953 375.00
1958 349.30
1963 328.60
1968 293.30
1973 234.30
1978 159.80
1983 102.10
1988 86.40
1993 70.10
1998 61.90
2003 55.00
2008 47.40
2013 43.40
2018 40.30
2023 33.40

Here's how it looks on a graph:

From 1017.80 in 1913 down to 33.40 in 2023

And now, as of September 1, 2025, down further to 30.80.

30.80 is just 3% of 1017.80, meaning the U.S. dollar has lost 97% of its international/global purchasing power since 1913.

What causes the loss of purchasing power?

The loss of purchasing power is primarily caused by inflation.

What is inflation? Inflation is created when the Federal Reserve requires that the U.S. Treasury print money which is not backed by an asset and that money is used to A.) increase the money supply and or B.) to cover off deficits on U.S. National Debt, which are created when compound interest on the debt increase is greater than the revenue received by the government in the form of taxation.

Further Inflation occurs at the local level in the form of fraudulent property overvaluation and subsequent over taxation.

Inflation, which in both cases as outlined above, is fraud and causes a rise in prices of goods and services over time. When prices increase faster than income, consumers buy less with the same amount of money, leading to a decrease in purchasing power.

Businesses and Individuals try to buy the equivalent with less money, but both suffer from the reality of inflation overcoming the ability to produce more top line revenue. Businesses start decreasing labor, or cost of goods by importing lesser product which in the long run causes the business to fail as the quality of goods and service is simply not worth the lesser price and there are alternatives to cheaper competition.

Clueless politicians try to shift the blame over to Demand-Pull Inflation which occurs when demand for goods exceeds supply, causing prices to rise. Clearly in an economic downturn, this is utter nonsense.

Cost-Push Inflation occurs when there is rising cost of production, such as labor and raw materials which drive prices up.

In addition, there are external influences, including exchange rates, which can create a weaker currency which makes imports more expensive, contributing to higher prices domestically.

Global economic conditions such as geopolitical conflicts or supply chain disruptions (COVID) can lead to increased costs and inflation.

Shutting down the economy as what occurred in COVID led to increased costs, disruptions of the global supply chain, economic destruction, psychological issues, and thus increased costs and inflation.

When wage growth stagnates where the wages do not keep pace with inflation, consumers can afford less which reduces their purchasing power.

Fixed Incomes: Individuals on fixed incomes, such as retirees, may find their purchasing power eroded as prices rise without corresponding income increases.

Understanding these factors can help individuals understand what is happening in their lives and provide the reason for those individuals to get involved (advocacy) and to demand that their policymakers address the challenges posed by declining purchasing power including the fraudulent overvaluation and over taxation of property for the sole benefit of their local school districts (the majority of which are bankrupt) and that school districts co-conspirators being the boards and the local central appraisal district.

The quality of both standard goods and luxury goods has been decreasing due to inflation which results in a shift to cheaper mass-produced items and the outsourcing of manufacturing, which often prioritizes cost over craftsmanship. Look at the quality of homes being produced. The quality of the home goes down as the land price fraudulently goes up because of too much money being printed so the Fed can allegedly inflate its way out of debt. Look at the quality of shoes, clothing, food, and those in government who allowed these conditions to expand into where we are, which is at the precipice of Terminal Failure, being the creation of Institutionalize Systemic Moral Hazard.

Your buying habits are being shaped / manipulated into less quality while the socialists who allowed this to occur get paid to transfer your wealth to their pocket and to their pet projects, which are financed by banks or bonds utilizing compound interest to the point that the original principal cannot be paid off because the income does not exist to do so. The increasing cost of interest, which is the deficit, is temporarily covered by the printing of more money which is the definition of a Ponzi scheme. You get less / go bankrupt, and the socialists who created this nightmare, get more all in violation of the black letter of the law.

Consumers are manipulated into trendy, low-cost items that are designed for short-term use. This has led to a culture of disposability, where products are discarded after a few months and then the consumer is forced to buy the cheap junk again. The hamster is on the wheel and can’t get off because there is not enough money to pay for the ticket to get off the ride.

As I stated many times in writing and on video, price is what you pay, and value is what you receive.

This applies not only to the health risks of low-quality food and medicine, but also to the type of people allowed into the political arena.

The real national security risk is the 37.8% (42,000,000) households that are in harms way of bankruptcy or losing the roof over their head.

The real national security risk is an all hands-on deck requirement to make those in office change the trajectory by repealing all property tax in favor of the Uniform States Sales Tax which restores the American Dream of true homeownership.

Data Source:

Federal Reserve Bank of St. Louis, https://fred.stlouisfed.org/series/CUUR0000SA0R .

The Trials & Tribulations of Advocacy for Permanent Change - Part II

Sun, 30 Nov 2025 16:38:55 GMT

The Trials & Tribulations of Advocacy for Permanent Change - Part II

By Mitchell Vexler, November 30, 2025

As is often the case after I finish an article, more thoughts come to mind and in furtherance to yesterday’s The Trials and Tribulations of Advocacy for Permanent Change – Repeal all Property Tax in favor of the Uniform States Sales Tax, this Part II will tie several elements together that we all experience and prove up why we must individually and collectively advocate for permanent change.

For the Kids

If somebody told you the school district was For the Kids, and they repeated it and used your property tax money to pay for advertising, political signs, meetings, and assemblage of fraudsters and cultists, you would start to believe their propaganda especially if that repetitive propaganda comes from voices in the community, you may already trust.

After all you have a job, family and responsibilities so you are not focused on confirming with math and reason the propaganda they are spewing and doing so at your extreme expense. Without your understanding of the fraud and expense to you and your family, it is not an urgent priority. Without recognizing what is being intentionally hidden from you by OMISSION, you are being defrauded.

You just absorb what you believe to be fact, but in reality, you end up defending the fraud, via your lack of information to counter the propaganda.

Your identity becomes wrapped in the belief that the school system is exactly as you were told it is. After all, it is for the Children!

Any challenge to that belief feels like a personal attack.

Then one afternoon, somebody tells you about a website and evidence that points to the exact opposite of the narrative you have been persuaded to believe, www.mockingbirdproperties.com/dcad .

And instead of asking, “Why was I misled?” you lash out and ask who put this evidence here? This disrupts everything! Who do I blame?

And people just like you begin insisting that the problem isn’t the fraud… It’s the evidence.

It is your willing suspension of disbelief to the relationship of reality.

This is how socialism, fraud, manipulation, deceit, and delusion occur.

Not by controlling your actions, but by controlling the lens you use to see the world around you.

So, when reality finally shows up, you treat reality itself as the enemy.

This is exactly where America is right now, and coincidentally, where the school district bond fraud also exists.

Since at least 2001, property owners have been told certain problems simply don’t exist and that the rising property taxes are an illusion and nothing to worry about.

Millions of people have accepted these statements not because they’ve verified them, but because they’ve heard them repeated endlessly by institutions they once trusted, https://www.mockingbirdproperties.com/the-legacy-of-governor-abbott-governor-abbott-s-empowering-texas-taxpayers-is-the-embodiment-of-institutionalized-systemic-moral-hazard .

And when the evidence becomes undeniable, www.mockingbirdproperties.com/dcad , and the pattern and practice across the U.S. is crystal clear, their instinct isn’t to reconsider… it’s to rage. This is the point; we want to encourage people into both the legal and political advocacy for permanent change of the school system and its method of finance being the repeal of all property tax in favor of the Uniform States Sales Tax. The benefits are numerous. (See graphic reviewing the benefits at https://irp.cdn-website.com/39439f83/files/uploaded/Benefits_of_Eliminating_Real_Estate_Tax_in_Favor_of_Uniform_State%28s%29_Sales_Tax.pdf .)

The goal is to destroy the delusion, propaganda, psychological conditioning, censorship, violations of State and Federal Laws, socialism and put the perpetrators of fraud in jail.

Once you see how the delusion is created, you now have the ability to see the schemes of fraud and thus the pattern and practice.

The delusion of perpetrating the fraud under the color of law, affects your finances, affects your children, and affects society in that it almost killed a President.

The financial cost of this engineered insanity is in the Trillions and all of us are on the hook one way or the other.

I recognized the pattern to defraud years ago as I left Canada as a result and now the manufacturing of socialism is within the U.S.

Being steam rolled by criminals, socialists, or globalists in violation of State and Federal Constitutions is not acceptable under any circumstance. This is what happens when people are not held accountable under the laws of the Republic. The creation of Institutionalized Systemic Moral Hazard is socialism and collectively we can and must stop it.

AI – for good, for evil, and for itself.

It is said that AI (artificial intelligence) has already rendered some jobs obsolete and will continue this trend until the human race is unemployed. Even now it surpasses the ability of most people to write an effective opinion essay because it can create logic-driven, narratives both true and false in minutes. Since the school system (ISDs) turns-out illiterates, more people will depend on AI narratives for intellectual expression and those same people lack the ability or willingness to determine what is fact from fantasy created by AI which leads users and readers to accept delusions created by AI in all areas including medicine, government, and economic theory. From my own very limited experience and testing with AI, it clearly has a socialist bend injecting statements that I did not write and so far is poor at analyzing with math and quantifying its own narratives.

Why socialism? Because socialists promise to care for the downtrodden, which will be every person left alive when AI achieves full robustness. I was very young when my Father taught me the difference between socialism and a social policy. Socialism is tyranny being government for the sake of government. A social policy can do what a socialist and socialism can’t, because its ability to achieve is created through capitalism.

Socialism is an economic theory created by a drunk and thoroughly debunked. The Soviet system has long been dogged by a method of pricing that produced grotesque misallocations of effort.

The only purpose of an economy is to create goods and services that satisfy human wants, not to create jobs. Creating jobs under the auspices of DEI or other contrived manipulations is a fools errand. If AI eliminates jobs, will other opportunities arise to the benefit of society and thus the economy? I don’t know. What I do know is that AI today is taking jobs in a downward global economy and without a proper governor on AI, will lead to more unnecessary layoffs and thus a spiraling cumulative economic problem.

AI in the hands of a socialist government or socialists who programmed the AI will attempt to convince people that they will be fed and housed and that will be done equitably and as a result by definition at that time you now live in Russia including Russian style housing / barracks all as a result of a drunk (Marx).

As I have stated on numerous occasions, AI needs to come with the warning label “may be hazardous to your health”.

AI overtaking humanity is extremely concerning:

George Ford from the Mises Institute wrote “The website PauseAI presents quotes from leaders in their fields about the dangers of runaway AI.”

Physicist and cosmologist Stephen Hawking had warned that, “The development of full artificial intelligence could spell the end of the human race… It would take off on its own, and re-design itself at an ever increasing rate.”

Elon Musk—who is developing his own AI called Grokipedia—said, “AI is a rare case where I think we need to be proactive in regulation than be reactive. I think that [digital super intelligence] is the single biggest existential crisis that we face and the most pressing one.”

Microsoft co-founder Bill Gates thinks “Superintelligent AIs are in our future…. There’s the possibility that AIs will run out of control.”

The founder of computer science and artificial intelligence Alan Turning predicted, It seems probable that once the machine thinking method had started, it would not take long to outstrip our feeble powers… They would be able to converse with each other to sharpen their wits. At some stage therefore, we should have to expect the machines to take control.”

One of the viewers during a live video with Travis Spencer stated, “AI is the future” and my response was maybe, but at what cost and is that cost bearable? What the viewer was really insinuating about is the difference between the buggy and the railroad.

Inventions that shake up the world have always been feared but, in this case, AI is messing with both capitalism and mother nature and pitting mankind against its own survival. This is not a good combination.

There is not now nor will there ever be a replacement for the writings of man. From the scribbling on cave walls to the writings of taxation by Thomas Paine (as seen on my website https://www.mockingbirdproperties.com/thomas-paine-quotes-on-taxes-the-necessity-of-taxation ), it is these skills of memory and ability to discern fact from fantasy that stand the test of time from which all humans must learn. AI can be a useful tool in support of an idea but must never be the source of the idea as if fact. There is no replacement for effort and ability to learn.

Which brings us to Job Losses.

How many people would still have jobs but for AI?

Job losses refer to the reduction in the number of employed individuals, often due to layoffs, company downsizing, or economic downturns. In 2025, the U.S. has seen significant job losses, particularly in sectors like technology and manufacturing, with over 1.1 million jobs lost by October.

Here is an overview of Job Losses in 2025, per visualcapitalist.com:

Total Job Losses, as of October 2025: U.S. has experienced approximately 1.1 million job losses.

Weekly Average: Private sector job losses averaged 13,500 per week in the four weeks ending November 8, 2025, a significant increase from previous weeks.

2025 Year to Date 10 Largest Job Losses by State and the Percent of Change when compared to the YTD in 2024:

Washington, D.C. 303,778 27%
California 158,734 14%
New York 81,700 7%
Georgia 78,049 338%
Washington 77,658 111%
New Jersey 64,334 454%
Texas 46,352 -31%
Ohio 40,707 70%
Florida 22,771 76%
Illinois 20,678 3%

Chart with all 50 states can bee seen at https://www.visualcapitalist.com/u-s-job-losses-by-state-in-2025/.

Key Factors Contributing to Job Losses:

AI and Automation: Over 100,000 job losses have been linked to AI restructuring in 2025. Projections suggest that AI could potentially replace 12% of the U.S. workforce.

Economic Conditions: Companies are cutting jobs due to cost pressures, reduced consumer spending, and the need for efficiency.

Sector-Specific Trends: The technology sector has seen the highest number of layoffs, with 141,159 job cuts announced this year.

Implications:

The labor market is showing signs of significant strain, with job losses affecting various sectors and states differently. The ongoing integration of AI and economic challenges are key drivers of this trend.

U.S. Job Losses Hit 1.1 Million:

This year, U.S. job losses have reached 1.1 million as of October, up sharply from last year’s total of 761,000.

Here's a Map of the 2025 U.S. Job Cuts:

But wait, there’s more:

As stated in Financial Express on Nov 29, 2025, US college grads’ job losses rise to a record 1.9 million, one in four unemployed .

US college grads now make up 25% of the unemployed, facing record job losses.

For the first time in decades, Americans with four-year college degrees make up a full quarter of the total unemployed, Bloomberg reported. The latest government data shows a clear slowdown in white-collar jobs this year. Bachelor’s degree holders are struggling to find work. Unemployment for other education levels remains mostly steady. Americans with four-year college degrees now make up a record 25% of all unemployed.

US college grads face rising unemployment.

The US Bureau of Labor Statistics released government-shutdown-delayed figures on Thursday showing that the unemployment rate for people with bachelor’s degrees rose to 2.8% in September. This is an increase of half a percentage point from a year ago.

That means over 1.9 million Americans aged 25 and older with a college degree are out of work, making up one in every four unemployed people. This level has never been seen before in records going back to 1992.

Young graduates, especially for Americans aged 20 to 24, unemployment climbed to 9.2% in September, an increase of 2.2 percentage points from a year earlier. Such a dramatic rise is normally seen only in recessions.

High-skilled sectors like professional and technical services, which include computer systems design, scientific research, and management consulting, have seen a drop in headcount over the first nine months of 2025, according to Bloomberg.

Unemployment among older Americans remains below 4% and has seen only minimal increases. But not all industries are hiring. Only two sectors, health care and social assistance, and leisure and hospitality, have added jobs this year, generating a combined 690,000 positions, according to Bloomberg. Outside these sectors, US employment has actually declined slightly, losing about 6,000 jobs.

AI and layoffs impact the white-collar job market.

Experts say that the rise in unemployment among college-educated workers is also driven by the artificial intelligence and automation era, which has already resulted in mass layoffs. Michael Feroli, chief US economist at JPMorgan Chase, warned that these trends should increase fears of AI-related job losses.

How many jobs would still exist but for AI?

Update on the Property Tax Fraud as of 11/30/2025 :

The plea to the jurisdiction is one of the tools the CADs are using in addition to Ultra Vires and Sovereign Immunity. It is all 100% nonsense. Thus we are building a box that no politician or judge can escape from the law because we have the evidence at www.mockingbirdproperties.com/dcad and that evidence continues to grow by virtue of the court cases now at SCOTX, soon to be followed by 2 more cases which will bring in the school district bond fraud (2024 and 2025).

The Amicus Brief outlines exactly how the fraud is committed, https://irp.cdn-website.com/39439f83/files/uploaded/Amicus+Brief-Case+25-0615+Supreme+Court+of+Texas-UN-SIGNED.pdf .

We continued to build the box including what is outlined in this Motion for Rehearing, https://irp.cdn-website.com/39439f83/files/uploaded/2025.11.24-25-0615-Motion+for+Re-Hearing-15+pgs.pdf .

It is clear the courts, even though admitting fraud occurred, do not want to hear this case, which is why several months ago, Criminal Complaints were filed with the DOJ, FBI and SEC.

As of November 25, 2025 while the Supreme Court of Texas Case is active, I am now making the point that Either the Law Exists or it doesn’t…We are about to find out, https://www.mockingbirdproperties.com/either-the-law-exists-or-it-doesn-t-we-are-about-to-find-out .

There is no court in the U.S. that can deny the evidence as it is the writings, video, and audio of those outlined in the Criminal Complaints and those same criminals who hide behind ultra vires and sovereign immunity while intentionally and knowingly violating their own job description and violating many State and Federal laws, in favor of defrauding the public.

The national press refuses to pick up on this case even though it touches the lives of every single one of their viewers. Their political posturing is literally financially devastating to their viewers. People can’t fight what they can’t see or understand. Did you know that roughly 42,000,000 households are separated from bankruptcy by roughly $9,000 of which $7,000 is property tax and that $7,000 represents approximately 8.6% of the household gross income?

Eventually this will be adjudicated in a real court. They can’t keep punting because more and more people are becoming aware in that there have been over 6,000,000 views on YouTube alone over the past 120 days, and we were successful in stopping the bond raises in Johnson County where a handful of people worked to corral the Citizens and we did so without spending any money on a FB campaign, yet a Johnson County school district spent roughly $130,000 of taxpayer money on their propaganda. We are in the process of determining the most efficient method to branch onto other social media platforms like Substack, X, & FB.

I just finished a 452 page book on Friday and sent a synopsis to a publisher to see if they have an interest. Revenues from the book in addition to opening a few more channels, would help drive the Class Action lawsuits across the U.S. The book is a combination of history including Thomas Paine and George Washington and rolls to the present in the form of a Trial Brief stacking the irrefutable evidence. The concept is that the book would help all property owners understand the depth of the problem and provide the nucleus for litigators to create dozens of Class Action lawsuits across the U.S. which would force one large Federal Class Action. The two-prong approach is both political (being local Mom and Pop getting involved and advocating at a local level and a state level) and legal being what we are doing and then adding dozens of Class Action lawsuits to be filed given the evidence including the pattern and practice across the U.S. on how the fraud is perpetrated.

The attorney in Washington has an interesting saying which is if you want the door to fall, take out the hinges. The box we are building takes out the hinges. I am hopeful that we can make this happen before the market ends up annihilating the economy, school districts, the school district bonds, and Mom and Pop, all due to the fraud being perpetrated on the public by the CADs and school districts and in the case of Texas sanctioned by the legislators, Governor, State Comptroller and State Attorney General. Recognizing fraud, admitting it needs to stop and telling the truth leading to controlled demolition of the school system is superior to total financial ruin of the schools, bond holders, teachers, and property owners. If you see anything that can help knock out the hinges and stop the Institutionalized Systemic Moral Hazard it must be advocated for. There is no alternative.

The Trials & Tribulations of Advocacy for Permanent Change, Repeal Property Tax in Favor of the Uniform States Sales Tax

Sat, 29 Nov 2025 16:07:10 GMT

The Trials & Tribulations of Advocacy for Permanent Change
Repeal Property Tax in Favor of the Uniform States Sales Tax

By Mitchell Vexler, November 29, 2025

What does it take to effect change for the betterment of society?

Are you willing to learn to help your family and society?

Does helping society have to cost you money?

Can my family and I benefit by being involved?

What can I do to help?

What can I expect for my efforts?

It is impossible for us to live out our life without undergoing all kinds of struggles either personally or collectively as a society. Moreover, we must recognize that many of our struggles would exist, even if we did not have to face and overcome some sort of evil in our life. In today’s world there are many canaries in the coal mine, but we must focus on what we can achieve, that which is within our grasp to fix. Often, struggles are just the result of our own attempt to make something new, to do something new, that is, the result of some challenge which we make for ourselves, or sometimes inflicted by others upon us, so that we can develop ourselves, hopefully making ourselves better and stronger in the process. Sometimes we find as part of overcoming those struggles a relief valve as can be felt by playing sports, or meeting new likeminded people, or photography, or fishing, or by listening to and learning from the struggles of others, showing that there really is a silver lining and that is what we individually and collectively should strive for.

It is imperative that we do not let our struggles, no matter how difficult or painful they become, get the best of us. Even if at times they seem impossible for us to overcome, we can still overcome them by not letting them destroy our own personal integrity. When we grow weary, when we find it difficult to carry on, we might need some rest or a shoulder to lean on to make sure we can carry on in a healthy respectful manner.

Clarity of Thought – The evidence of the financial struggles we face is extraordinarily well documented on these websites: www.mockingbirdproperties.com/dcad , www.realestatemindset.org , and www.commonsenselaw.org . In combination with multiple lawsuits, it is irrefutably clear that our combined efforts are necessary to advocate for the termination of Ultra Vires and Sovereign Immunity in the cases of fraud and to repeal all property tax (in all States) in favor of the Uniform States Sales Tax. There is no alternative.

Those politicians who claim to have ideas, while pandering to those constituents who are less informed, or want to discuss fixing the problem which continues the compound interest clock, and whose ideas that are not based on facts but based on fiction must be dismissed, as they are the creators of the problem by virtue of their own intentional ignorance. When these politicians including school district boards, school superintendent, central appraisal district board and chief appraisers are shown the black letter of the law and refuse to conform to the law based on their belief they can commit crimes as a government or quasi-government entity and simultaneously have the protection of ultra vires and sovereign immunity, they have in fact violated State and Federal Laws. We have evidence. We have clarity of thought. They have crimes.

Master the Domain – With all the evidence showing the pattern and practice to defraud across the U.S. by the school districts and the central appraisal districts, there is zero doubt that all property owners, tenants and residents, can and should become the economic master of their domain and collectively through local gatherings, and local social media jointly advocate for the denial of all school district bonds, force the school districts into involuntary bankruptcy, restore the balance sheet (true property ownership) and put the control of the school districts into the hands of the local community. As has been proven, no money was spent by those in the fight to prohibit the recent bond elections in Johnson County as compared to over one hundred thousand dollars of taxpayer money spent to promote the bond raise. Those who became Master of the Domain, rightfully won. Make no mistake, the criminals will try again but as Masters of the Domain we have now learned their tricks and are not afraid of filing criminal complaints to expose who they are and what they are.

Patience - Al ways important, and we must do what we can without expecting things to change instantly. It often takes time to create lasting change and to accomplish the task, one must keep their eye on the target. Constantly, politely, hammering on those who created the problem and offer no solutions, while professing to be the solution, should be pointed out for what they are and in this case that would be…. currently useless. Our job is to show them the truth, for all to see, have the patience to give them the opportunity to take corrective action, and if they don’t, then their legacy will be that of bankrupt schools and bankrupt citizens, for which criminal prosecution for fraud should be sought.

Thus, we must accept, as we engage in life and the economic challenges of property taxes, we may grow weary. The longer our struggles go on, the more difficult they are, the more they will leave us weary. Such weariness is going to affect us emotionally and possibly those around us. We should not let our weariness grow into despair. We offer the only true solution to the issue of property tax fraud and anything other than complete repeal, makes one question the difference between this fraudulent property tax and fraudulent school district bond fraud as compared to the Russian or Chinese system which under the U.S. Constitution and all States Constitutions is unacceptable. Either the law exists or it doesn’t. One must consider that our struggles can also be the time of opportunity and change for us personally, our family and society. The good which we see coming out of what we have done and the ability to individually and collectively push the solution which is the repeal of all property tax in favor of the Uniform States Sales Tax, will bring us solace.

Equity Stripping, Your Money, Your Future

Thu, 27 Nov 2025 23:52:28 GMT

Equity Stripping
Your Money, Your Future

By Mitchell Vexler, November 27, 2025

As can be seen in the Home Affordability Graphic...

72.71% of Denton County (DC) households cannot afford average market value home.
With average market value at $514,082, only 27.29% can.
In 2021, 65.10% of households owned home.
In 2023, 37.81% of households are at risk of losing their home (65.10% - 27.29%).
Households need annual gross income of $189,500 to afford a $514,082 home.
With 2023 median household income of $109,126 they fail lender’s ratio (48% > 28%).
2023 median income households can only afford home valued at $296,000.
72.71% of DC households would fail loan approval on $514,082 avg mkt value home.
Certified average home values of $514,082 are overvalued by 42% based on affordability.
($514,082-$296,000 = $218,082; $218,082/$514,082 = 42%)
Average home values in this dollar $514,082 range are obviously being valued, as if, NEW.
Median home value per data extract file downloaded from DCAD was $450,832.
DCAD is using new homes (bad comps) to value existing homes.
New construction homes should not be used as comparisons against older homes.

When you compare the 2023 analysis above with a similar analysis done for 2021, the following was seen:

In 2021, Median Household Income could afford a home valued at $358,300.
This $358,300 is higher than Median Home of $331,000 & Average Home of $339,784 for 2021.
In 2023, Median Household Income CANNOT afford $358,300 like 2021, but only $296,000.
13.36% estimate increase in Median Household Income from 2021 to 2023
40.45% increase in Median Home Market Values from 2021 to 2023.
51.30% increase in Average Home Market Values from 2021 to 2023.
Median Home Values have increased 3 times faster than Household Incomes.
450,832 vs 321,000 = 40.45% value increase.
109,126 vs 96,265 = 13.36% income increase.
40.45 / 13.36 = 3.03 times faster.

… your equity is being stripped from you while you sleep and while the CADs, School Districts, State Comptroller, Attorney General, Governor, Executive Branch, Legislators all collude in promoting propaganda with your taxpayer funds, to make you to believe “it is for the children” and that there is nothing you can do about it, while they commit crimes against you.

Our Goal and mission - To guide property owners and real estate taxpayers (aka Mom and Pop being owners and renters) through development of knowledge, skills, values, and motivation, so they can meaningfully engage in their School Districts and Central Appraisal Districts to restore fairness in taxation until such time as all property tax is repealed in favor of the Uniform States Sales Tax. Instill respect for life, liberty, family, and fiscal responsibility.

The information we present is applicable not just in Texas but throughout the U.S. in any county where the school districts raise bonds based on the tax receipts generated by the Central Appraisal Districts. We have the evidence of the pattern and practice as seen at www.mockingbirdproperties.com/dcad .

In addition, two other sites have been established to help: www.commonsenselaw.org & www.realestatemindset.org.

Below is the map of the criminal conspiracy which is currently being protected by the belief that the process stops at the ARB (Appraisal Review Board) which in law it cannot, as the ARB does not have the authority under law to detect fraud, or the knowledge to detect fraud or any knowledge about Uniform Standards of Professional Appraisal Practice. Ultra Vires and Sovereign Immunity cannot in law protect against fraud, otherwise for what purpose do they exist?

THE PROBLEM

How many people have to go bankrupt before the politicians realize it is their ignorance of law and math that caused those people and 38% of the household population not to be able to afford to live?

Everything has become so expensive:

Your Home , whether owned or rented
Your Home Mortgage
Your Commercial Property Mortgage
Property Tax – approximately 9% of your Median Household Gross Income
Fraud at every level of the School District bonds – Superintendents, Boards, bond ratings, and underwriters
Credit Card Debt , 24 – 30% interest
Student Loans
Auto Loans
Health Care – Fraud in the system – 70% of bankruptcies are health care related
Private Loans – high interest
Buy Now Pay Later – 30% interest
Food

= Increase in Hunger +

= Increase in Crime

Inflation is a hidden tax and is fraud as printing money not backed by assets creates inflation. Inflated property values by overvaluation and over taxation to meet pre-determined budgets of the school districts is fraud that adds to the inflation and equity strips what would be your amortization of principle reduction and flips it into their revenue to further commit crimes by then placing the liability of the school districts debt onto your back. Example: Godley Texas $120,000 in fraudulent outstanding school district bond debt where the median home value is $160,000. This is happening across the U.S.

Laws designed to hide fraud are a fraud in themselves. A contract that is designed to break the law is not a contract in the eyes of the law.

You are being forced to pay more than you should.

Therefor nothing else matters but the MHI (median household income) and the money does not exist to pay off the bankrupt school districts or the fraudulent school district bonds.

The assets of the School Districts are YOU and the collateral is your HOUSE.

Inflation is created via fraud which is printing money instead of letting the system clear itself.

When Liabilities > Assets = Bankruptcy. No one on this planet can get blood out of a stone. The money does not exist to pay the real estate tax based on fraud by the school districts and the money does not exist to pay for the fraud in other divisions of the government including healthcare costs. The point to the above list of household expenses is that individually or collectively they can’t be paid by over 42,000,000 household across the U.S. and it is those 42,000,000 households that are true U.S. economy.

Taxes must be fair and must be calculated fairly. What you don’t know can and will hurt you. It is not what you think you know, it is what you don’t know which is the inflated appraisals. Fraudulent overvaluations can put you in tens of thousands of dollars of debt that you can’t reverse and payoff.

Property taxes cannot currently be fair because the cost of the taxes related to housing are beyond the Median Household Income. Your income, not the Median Household Income is worth $X and should only be taxed to the degree it is legal, and for appraisals to be fair they must be based on uniform and equal.

According to the 16 ^th Amendment of the U.S. Constitution, there should be no taxes on property, just on income. No government within the borders of the U.S. can tax unrealized gains. Market Value and or Assessed Value are both based on unrealized gains.

People want to understand what is easier for them to understand and there is no doubt that delving into the analysis requires time to realize the interconnectivity of the entities involved and the complexity of the documents all designed to steal your money.

The investigative bodies themselves are comprised of humans and as such they want to believe in what is easier for them to understand. This is where and how financial crimes are allowed to fester, costing millions per day in un-justified interest payments. It is this willing suspension of disbelief of both the Citizens and the investigative bodies themselves that provide cover for the criminals until one day the system self-destructs.

Bernie Madoff was a successful con man because he gave the appearance that his return was so successful that the investors did not need to know how. The investors accepted it at face value. Madoff was an American financial criminal and financier who was the admitted mastermind of the largest known Ponzi scheme in history, worth an estimated $65 billion. He was at one time chairman of the Nasdaq stock exchange. Harry Markopolos is credited with discovering Bernie Madoff's Ponzi scheme. He alerted the U.S. Securities and Exchange Commission multiple times about his suspicions from 1999 to 2008, but his warnings were largely ignored until Madoff's arrest in December 2008. Why did this take so long? Willing suspension of disbelief! The SEC themselves refused to believe that a former Chairman of the Nasdaq would be involved in a Ponzi Scheme. It is the willing suspension of disbelief o f both the Investors and the investigative bodies that provided cover for Madoff until one day the drum beat of fraud became crystal clear and he was arrested. Now consider the financial damage done during the timeframe that Madoff was allowed to continue to operate for 9 years before his arrest.

Irving H. Picard was the American lawyer known for his recovery of funds from the Madoff investment scandal from investors, Bernie Madoff and his family, and their spouses and estates. Mr. Picard’s firm was handsomely paid but that is not what is important. What is important is the power of the claw-back.

The term claw-back or claw back refers to any money or benefits that have been given out but are required to be returned due to special circumstances or events, such as the money having been received as the result of a financial crime, or where there is a claw-back provision in the executive compensation contract. In law, claw-back is most known as restitution. Keep the thought of restitution in mind. Where do you go to get what was your equity which was stripped from your amortization schedule back? Where do you go to get the fraudulent property overvaluation and subsequent over taxation back? Who is financially responsible? Who should be jailed? Another interesting term to keep in mind is disgorgement. Disgorgement is not an independent cause of action; rather, it is a remedy that requires a party to give up profits gained from illegal or wrongful acts. It aims to prevent unjust enrichment and is typically sought in cases involving breaches of fiduciary duty or other wrongful conduct.

The mission is fairness, not being the victims of bureaucracies.

All property owners and taxpayers bear the responsibility to ensure that the School Districts and Central Appraisal Districts are adhering to the law.

The law is to be applied with accuracy and fairness.

The mission is fairness, not being the victims of bureaucracies.

For reasons of posterity, we are documenting the history of the evidence to ideally ensure that such malice, arbitrary and capricious, financial crimes against humanity, with the backstop of the court system being sovereign immunity, never happens again. In order to move forward, one must understand history so as not to repeat it.

The issues raised herein, are not just applicable to Denton Central Appraisal District, but are applicable across Texas and the United States.

There is a beginning, a middle, and an end. To this point the beginning is the history which is outlined above and via the documentation below. The middle is the process and means to achieve the end. Your involvement is to help through the process to make history and repeal all property taxes in favor of the Uniform States Sales Tax.

Let’s examine what is necessary to turn the tide toward the end. The following Petition is the summary of a massive amount of time, money and effort to distill the case down to its constitutional foundation.

The key phrase in the below Petition for Review is “If left undisturbed, the decision below would permit executive branch agencies to implement systematic constitutional violations immune from judicial review , so long as the Legislature has created an administrative process—however inadequate—to address individual disputes. This places executive action beyond constitutional scrutiny and requires this Court's correction.

In other words, if not addressed, the courts have created no law for the protection of the property owners.

Here are excerpts from the Petition for Review:

II. ISSUE PRESENTED

Whether Tax Code administrative exclusivity violates the Open Courts Guarantee (Tex. Const. art. I, § 13) when applied to bar district court jurisdiction over constitutional claims that the Appraisal Review Board lacks statutory authority to remedy.

III. STATEMENT OF JURISDICTION

The Court has jurisdiction under Tex. Gov't Code § 22.001(a). This case presents a constitutional question of first impression affecting millions of Texas property owners: Whether administrative exclusivity can constitutionally foreclose all judicial review of systematic constitutional violations when the administrative body lacks remedial authority to address such violations.

The decision below conflicts with this Court's precedent:

LeCroy v. Hanlon , 713 S.W.2d 335, 341 (Tex. 1986), holds that the Open Courts Clause requires a remedy for every recognized legal injury. The Court of Appeals' holding eliminates any remedy—administrative or judicial—for systematic constitutional violations.
City of El Paso v. Heinrich , 284 S.W.3d 366, 372 (Tex. 2009), holds that "suits to require state officials to comply with statutory or constitutional provisions are not prohibited by sovereign immunity." The decision below forecloses such suits through application of administrative exclusivity.
Hensley v. State Comm'n on Judicial Conduct , 692 S.W.3d 184, 194 (Tex. 2024), holds that administrative exhaustion is not required when the administrative body cannot grant the requested relief, as exhaustion would be "a pointless waste of time and resources."

This issue affects all 254 appraisal districts statewide and the constitutional rights of Texas's 30 million property taxpayers. Resolution by this Court is necessary to clarify the relationship between administrative exclusivity provisions and constitutional guarantees of judicial review.

IV. STANDARD OF REVIEW

This Court reviews constitutional questions de novo. Patel v. Tex. Dep't of Licensing & Regulation , 469 S.W.3d 69, 75 (Tex. 2015).

Whether administrative exclusivity violates the Open Courts Guarantee is a pure question of law subject to de novo review. LeCroy v. Hanlon , 713 S.W.2d 335, 341 (Tex. 1986).

Whether a plea to the jurisdiction should be granted is likewise reviewed de novo. Tex. Dep't of Parks & Wildlife v. Miranda , 133 S.W.3d 217, 226 (Tex. 2004).

Because this case was dismissed at the pleading stage, all well-pleaded facts are taken as true. Tex. Ass'n of Bus. v. Tex. Air Control Bd ., 852 S.W.2d 440, 446 (Tex. 1993).

V. STATEMENT OF FACTS

Petitioners allege that the Denton Central Appraisal District (DCAD) implemented a systematic mass appraisal methodology that violates Article VIII, Section 1(a)'s equal and uniform taxation mandate across all 455,000 properties in Denton County.

Petitioners do not challenge individual property valuations. Rather, they challenge the constitutional validity of DCAD's countywide methodology and seek declaratory and injunctive relief requiring DCAD to comply with constitutional requirements in all future appraisals.

The Appraisal Review Board's Authority Is Limited

The Appraisal Review Board's statutory authority is strictly limited to adjusting individual property valuations for single tax years. Tex. Tax Code § 41.02.

The ARB has no statutory authority to:

Declare a mass appraisal methodology unconstitutional;
Enjoin future use of unconstitutional methodologies;
Order systematic changes to appraisal practices; or
Provide relief affecting properties countywide.

See Tex. Tax Code §§ 41.01-41.47 (defining scope of ARB authority).

Procedural History

The trial court dismissed Petitioners' claims on sovereign immunity grounds, holding that the Tax Code's administrative remedies are exclusive.

The Court of Appeals affirmed, holding that Tax Code administrative remedies are exclusive regardless of the constitutional nature of the claims or the ARB's inability to grant the requested relief.

The Court of Appeals acknowledged that its holding forecloses Petitioners' access to any forum—administrative or judicial—capable of granting the prospective, systematic relief they seek.

VI. SUMMARY OF THE ARGUMENT

This Court should grant review to resolve a fundamental conflict between administrative exclusivity and constitutional guarantees of judicial review.

The Court of Appeals created an unconstitutional remedial gap . It acknowledged that Petitioners allege systematic constitutional violations affecting 455,000 properties yet held that the only available forum is an administrative body (the ARB) that lacks statutory authority to remedy systematic violations or grant prospective injunctive relief.

This holding violates the Open Courts Clause (Tex. Const. art. I, § 13) , which guarantees that "every person for an injury done him...shall have remedy by due course of law." When an administrative body is statutorily prohibited from granting the relief necessary to remedy a constitutional injury, that body cannot provide an adequate—much less exclusive—remedy.

The decision also conflicts with this Court's precedent:

Heinrich establishes that constitutional compliance claims are not barred by immunity. Administrative exclusivity cannot accomplish indirectly (foreclosing constitutional claims) what immunity cannot accomplish directly.
Hensley holds that exhaustion is not required when the administrative body lacks authority to grant requested relief. The ARB cannot grant systematic, prospective relief.
LeCroy requires a remedy for every legal injury. The decision below provides no remedy for systematic constitutional violations.

If left undisturbed, the decision below would permit executive branch agencies to implement systematic constitutional violations immune from judicial review, so long as the Legislature has created an administrative process—however inadequate—to address individual disputes. This places executive action beyond constitutional scrutiny and requires this Court's correction .

VII. ARGUMENT

A. The Decision Below Violates the Open Courts Guarantee (Tex. Const. Art. I, § 13)

The Open Courts Clause provides: "All courts shall be open, and every person for an injury done him, in his lands, goods, person or reputation, shall have remedy by due course of law." Tex. Const. art. I, § 13.

This constitutional guarantee prohibits the Legislature from abolishing a remedy for a recognized legal wrong unless a reasonable substitute is provided or the abolition serves a legitimate state interest. LeCroy v. Hanlon , 713 S.W.2d 335, 341 (Tex. 1986).

The ARB Cannot Provide the Remedy Required for Systematic Constitutional Violations

Petitioners allege a systematic, countywide constitutional violation: that DCAD's mass appraisal methodology violates Article VIII, Section 1(a)'s mandate for equal and uniform taxation.

The relief necessary to remedy this systematic violation is: (1) A declaration that DCAD's methodology is unconstitutional; and (2) A prospective injunction requiring DCAD to implement constitutionally compliant appraisal methods in future years.

The ARB cannot provide this relief. The ARB's statutory authority is strictly limited to "direct[ing] the chief appraiser to correct or change the appraisal records or the appraisal roll" for individual properties. Tex. Tax Code § 41.02(a). The ARB has no authority to declare governmental conduct unconstitutional or issue injunctions against government officials.

A Remedy That Cannot Reach the Scope of the Injury Is No Remedy at All

The Open Courts Clause requires a remedy adequate to address the injury alleged. When a constitutional injury is systematic and prospective, and the administrative body lacks authority to grant systematic, prospective relief, the administrative process cannot provide an adequate remedy.

This Court has consistently held that a purported remedy is inadequate if it cannot address the nature of the injury:

In Mellard v. Hammer , this Court emphasized that the Open Courts Clause requires "a remedy adequate to redress injury." 477 S.W.3d 125, 129 (Tex. 2015).

In Hensley , this Court held that requiring exhaustion of an administrative remedy that cannot grant requested relief would be "a pointless waste of time and resources." 692 S.W.3d at 194.

Applying administrative exclusivity to bar district court jurisdiction when the administrative body cannot remedy the alleged constitutional injury violates the Open Courts guarantee by eliminating any adequate remedy.

B. The Decision Conflicts With This Court's Holding in Heinrich

In City of El Paso v. Heinrich , this Court unambiguously held that "suits to require state officials to comply with statutory or constitutional provisions are not prohibited by sovereign immunity." 284 S.W.3d 366, 372 (Tex. 2009) (emphasis added).

The decision below conflicts with Heinrich by holding that administrative exclusivity—a statutory creation—can bar constitutional compliance claims seeking to compel governmental adherence to constitutional mandates.

Administrative exclusivity cannot accomplish indirectly what sovereign immunity cannot accomplish directly: the foreclosure of constitutional compliance claims. If a legislature can eliminate judicial review of constitutional claims simply by creating an administrative process—even an inadequate one— Heinrich 's guarantee becomes meaningless. This conflict requires this Court's resolution.

C. Administrative Exhaustion Cannot Be Required When the Administrative Body Lacks Authority to Grant Constitutional Relief

This Court has recognized that administrative exhaustion is not required when the administrative body lacks authority to grant the requested relief, when exhaustion would be "a pointless waste of time and resources," or when constitutional rights are at stake. Hensley v. State Comm'n on Judicial Conduct , 692 S.W.3d 184, 194 (Tex. 2024); Patel v. Tex. Dep't of Licensing & Regulation , 469 S.W.3d 69, 87-88 (Tex. 2015).

All these exceptions apply here. Requiring Petitioners to exhaust ARB remedies would be pointless because the ARB cannot declare DCAD's methodology unconstitutional, cannot enjoin future constitutional violations, and can only adjust individual valuations annually. Requiring exhaustion of a remedy that cannot provide constitutional relief violates due process and the Open Courts guarantee.

D. This Case Presents a Constitutional Question Distinct From Routine Tax Valuation Disputes

The Court of Appeals treated this case as a routine tax dispute subject to administrative exclusivity. But Petitioners do not challenge individual property valuations—they challenge the constitutional validity of DCAD's systematic methodology applied countywide.

This distinction is critical:

ROUTINE TAX DISPUTE (ARB Jurisdiction)

Individual property owner challenges appraisal of his property
Seeks adjustment of that specific property's value
Relief sought is retrospective (correction of current year)
ARB has statutory authority to grant relief (Tex. Tax Code § 41.02)

SYSTEMATIC CONSTITUTIONAL CHALLENGE (District Court Jurisdiction)

Taxpayers challenge methodology affecting all 455,000 properties
Seek declaration that methodology violates Art. VIII, § 1(a)
Seek prospective injunction against future constitutional violations
ARB lacks statutory authority to grant relief

Failing to recognize this distinction would eliminate judicial review for all systematic constitutional violations in tax administration. The Constitution does not permit executive branch agencies to implement systematic constitutional violations immune from judicial scrutiny.

E. Petitioners Challenge Administrative Exclusivity As Applied, Not Facially

Petitioners do not argue that Tex. Tax Code § 42.09 is facially unconstitutional. Administrative exclusivity is valid and serves important purposes when applied to disputes within the ARB's statutory competence—individual valuation challenges for specific tax years.

Petitioners argue that § 42.09, as applied to bar district court jurisdiction over systematic constitutional violations that the ARB cannot remedy, violates the Open Courts Guarantee.

This as-applied constitutional challenge preserves the Legislature's authority to channel routine tax disputes to administrative review while ensuring judicial protection of constitutional rights that exceed administrative authority.

F. The Decision Creates a Dangerous Precedent With Statewide Implications

If the decision below stands, it establishes that the Legislature can immunize executive branch agencies from judicial review of systematic constitutional violations simply by creating an administrative process—however inadequate—to address individual disputes.

The implications are staggering. Every executive branch agency with an administrative review process would be insulated from judicial review of its systematic practices, regardless of constitutional violations. This Court has never countenanced such a result. The Constitution requires judicial review of systematic governmental violations of constitutional rights, regardless of whether an administrative process exists to address individual grievances.

VIII. PRAYER FOR RELIEF

WHEREFORE, Petitioners respectfully pray that this Court:

GRANT this Petition for Review;
REVERSE the judgment of the Court of Appeals and HOLD that: a. Tax Code administrative exclusivity does not bar district court jurisdiction over claims of systematic constitutional violations when the Appraisal Review Board lacks statutory authority to remedy such violations; b. The Open Courts Guarantee (Tex. Const. art. I, § 13) requires judicial review of systematic constitutional violations that administrative bodies cannot remedy; c. Constitutional compliance claims, as recognized in City of El Paso v. Heinrich , 284 S.W.3d 366, 372 (Tex. 2009), are not subject to administrative exclusivity when the administrative body lacks authority to compel constitutional compliance; and d. Petitioners have stated viable constitutional claims not subject to dismissal on jurisdictional grounds;
REMAND this cause to the trial court for proceedings on the merits consistent with this Court's opinion; and
Grant such other and further relief, at law or in equity, to which Petitioners may be justly entitled.

(end of excerpt from Petition for Review)

As I have stated, either the law exists or it doesn’t. The ramifications of no law and institutionalized systemic moral hazard are frightening.

See these items to get up to speed quickly:

Credit Analysis + Systemic Fraud = Moral Hazard, https://irp.cdn-website.com/39439f83/files/uploaded/Credit+Analysis+and+Systemic+Moral+Hazard.pdf
https://www.youtube.com/watch?v=AZXDuHuW-aw , Dodd Frank failure
https://www.youtube.com/watch?v=th6UAkba2bw , Video Testimony of School Board Member Kayla
https://www.youtube.com/watch?v=TdYHbhT6524 , interview with Daniela Cambone
Amicus Brief to the SCOTX https://irp.cdn-website.com/39439f83/files/uploaded/Amicus+Brief-Case+25-0615+Supreme+Court+of+Texas-UN-SIGNED.pdf
https://realestatemindset.org/p/how-to-do-a-market-analysis , free course by Travis Spencer on how to do a market analysis
Violations of USPAP = Pattern and Practice across Texas and the U.S. https://irp.cdn-website.com/39439f83/files/uploaded/Partial_List_of_Violations_Reviewed-052224.pdf

With the above, you will end up knowing more than any employee at any CAD or School District across the U.S.

Take a witness and have them video record your meeting and hearing with a CAD or ARB. Video is very powerful and important to expose the criminal behavior in action.

Activism

Why Activism and why your involvement in your community is crucial?

IF THE UNDERLYING REAL ESTATE IS NOT PROPERLY VALUED THEN NEITHER ARE THE BOND RATINGS.

IF MEDIAN HOUSEHOLD INCOME DOES NOT EXIST TO PAY FOR THE SCHOOL DISTRICT EXPENSES (I&S + M&O) THEN THERE IS NO POSSIBLE WAY TO HAVE CASH FLOW FOR THE SCHOOL DISTRICTS TO PAY FOR THEIR FRAUDULENT INCREASING BONDS + THE OUTSTANDING COMPOUND CUMULATIVE INTEREST ON THOSE BONDS. THUS, THE RATING AGENCIES ARE WRONG AND THE PROBABILTY OF DEFAULT INCREASES BY THE DAY VIA THE COMPOUND CUMULATIVE EFFECT ON THE DEBT.

What does Subprime housing loans, Subprime Auto Loans, Wachovia, Enron, Arthur Anderson, Worldcom, Bear Sterns, AIG, Washington Mutual, Madoff, Theranos, Silicon Valley Bank, Signature Bank, First Republic Bank, Tricolor Auto, First Brands, and Lehman all have in common ?

In order to meet the bond funding systemic fraud is required along with increasing fraudulent valuations and fraudulent taxation regardless of the values of the homes.

BY IGNORING THE LAWS AND PROHIBITING THE ADJUDICATION OF FRAUD UNDER THE COLOR OF LAW BEING ULTRA VIRES AND SOVEREIGN IMMUNITY, THE COLLUSION TO DEFRAUD IS IRREFUTABLE AND THROUGH THAT CONTORTION, THE COLLUDERS MADE YOU RESPONSIBLE FOR THEIR CURRENT AND FUTURE LIABILITIES!

Taxes cannot come out of homeowner’s equity (Equity Stripping).

Find a local FaceBook Group and become active.

Use this Equity Stripping document as the starting point.

Questions to ask your school district board and school superintendent, https://www.mockingbirdproperties.com/questions-to-be-asked-by-all-concerned-citizens-property-taxpayers-at-their-school-district-board-meetings.

Start a local Facebook Chapter focused on fraudulent property tax.

For more Articles on related topics, go to… https://www.mockingbirdproperties.com/dcad#ArticlesLettersDiscussions .

Either the law exists or it doesn't. We are about to find out.

Tue, 25 Nov 2025 16:24:46 GMT

Either the law exists or it doesn't. We are about to find out.
SCOTX Ultra Vires Constitutional Issue

By Mitchell Vexler, November 25, 2025

Not only is the equity in your home being stripped from you while you sleep, so are your constitutional rights! This should concern every property owner and every single citizen, because you are paying for it regardless of what State you live in. As goes California and New York, so goes Texas! As goes Texas, so goes the United States of America!

The Disappearing Doctrine: How Texas Rewrote Ultra Vires and Shielded Constitutional Overreach from Judicial Review.

How do we know?

We caught them and documented every step in the process of how the property owners have been defrauded financially and simultaneously suffered the hidden repeal of their constitutional rights.

The Motion for Re-Hearing SCOTX 26-0615 filed November 24, 2025 by Ryan Gentry and Matthew Nowak of Nowak & Stauch PLLC makes the point that either the law exists to protect the citizens or it doesn't.

Background: No. 25-0615 Case to the Supreme Court of Texas (SCOTX)

Definition of Ultra Vires

Contexts of Ultra Vires

Corporate Law

In corporate law, ultra vires acts occur when a company engages in activities outside its charter or bylaws. Such actions are typically considered void or voidable.
Most jurisdictions have limited the application of ultra vires in corporate contexts, allowing companies broader powers to conduct lawful business.

Administrative Law

In administrative law, ultra vires claims can arise when government agencies exceed their statutory authority. Courts can review these actions to ensure compliance with legal limits.
The Administrative Procedure Act (APA) allows for judicial review of agency actions that are deemed ultra vires.

Constitutional Implications

Ultra vires can indeed be a constitutional issue, particularly when actions by government bodies or officials exceed the powers granted by the constitution or statutes.
Courts may invalidate laws or actions that are found to be ultra vires , reinforcing the principle of limited government authority.

In summary , while ultra vires primarily relates to the scope of authority in corporate and administrative law, it also has significant constitutional implications when government actions exceed their legal limits.

SCOTX denied the case to be heard with no explanation. Could it be that an intern did not understand the case and blocked it from moving forward…TBD. However, let’s examine the impact of this case not moving forward. The ramifications of SCOTX currently denying the case from being heard meaning that Ultra Vires can’t be determined in law, then A.) for what purpose does Ultra Vires exist? and B.) there is no law to protect the Citizens which invalidates the Texas Constitution under Uniform and Equal. If there is no law, then perhaps the approach by all property taxpayers should be… let’s all take a tax holiday for the 12 months and force the school districts to bankruptcy, involuntary bankruptcy, and or conservatorship because the truth is that the vast majority of the school districts that raise bonds are insolvent and have been using the contorted hiding behind ultra vires as a method to cover up the necessity of the continued bond raises to pay for the compound cumulative interest on the outstanding bonds that are rolled out and interest rolled up instead of retiring the bonds... AKA Ponzi scheme, bond fraud, and accounting fraud.

There is a very serious problem here in that nobody with a brain cell would agree to accept no protections under the law and have to accept the pre-determined budgets from a school district that has never seen a report on how much tax a property owner can afford, a school district that creates a wish list of money with no bids, no construction drawings, boosted operations and maintenance (O&M) numbers, fraudulent interest and sinking fund (I&S) with no publicly available evidence of how much in bonds is outstanding and how much in compound cumulative interest is outstanding, all of which is handed over the Chief Appraiser of the Central Appraisal District who has zero capacity to determine what fraud was committed by the School Superintendent and the School District Boards, and then the Chief Appraisers accept that fraudulent pre-determined budget, after being told to hit the pre-determined budget number, and then further expands, creates and “manipulates” fraudulent property values outside the confines of USPAP, Texas Property Tax Code, Texas Education Act, the Texas Constitution (Uniform and Equal) and The U.S. Constitution, not to mention a host of other State and Federal laws including RICO that are also being violated. This is the definition of a criminal conspiracy to defraud and the Attorney General, State Comptroller, State Auditor, and the courts have sanctioned it and right in the face of the very laws that are black letter of the law as each one of these entities has the obligation under law to prohibit the exact issues they have created.

What does it take to get the attention of SCOTX?

No action via denial to be heard by the SCOTX is sanctioning: no law, no application of the law, no uniformity of law, no maximum financial report or ability to determine how much any taxpayer can pay (thus tax lien foreclosures), fraud created by the School Districts because they simply state how much they want without bids or financial controls, or a maximum cap on households and property owners, and apparently never had a cap so the system has morphed into Institutionalized Systemic Moral Hazard and that is exactly what the SCOTX is supposed to prohibit, via the Ultra Vires and the Open Courts Doctrine that the SCOTX wrote in the Patel case.

Property Taxes, if they are to exist, must be fair and uniform. On its face, via the outline above, they are not and, again as stated above, that is because of the blank check allowed to fester and morph into Institutionalized Systemic Moral Hazard .

When you go to a grocery store, what you buy has weights and measures. You know what you are getting. Where are the weights and measures at the School Districts (i.e., maximum household affordability study) and where are the weights and measures at the CADs (i.e. the prohibition against fraud via over valuation and over taxation)?

HOW CAN SCOTX NOT REALIZE THAT ULTRA VIRES IS A CONSTITUTIONAL ISSUE?

The following integrates the constitutional theory of ultra vires , the Heinrich precedent, and the factual nexus from the Texas State Auditor’s 2024 PSF Bond Report (No. 24-011) .

QUESTION PRESENTED

Whether the Texas Supreme Court’s limitation of the ultra vires doctrine to a procedural exception to sovereign immunity—rather than a constitutional limitation grounded in Article II, § 1 of the Texas Constitution and the Fourteenth Amendment to the U.S. Constitution—violates the Due Process and Supremacy Clauses by insulating unconstitutional state administrative acts from judicial review.

STATEMENT OF THE CASE

The Texas Supreme Court’s jurisprudence following City of El Paso v. Heinrich , 284 S.W.3d 366 (Tex. 2009), has redefined ultra vires from a constitutional safeguard into a narrow procedural device. In Heinrich , the Court recognized that sovereign immunity “does not protect state officials who act without legal authority.” Yet subsequent decisions have stripped that principle of its constitutional substance, allowing agencies to alter statutory mandates by rule without legislative or judicial constraint.

This case presents a clear illustration of that constitutional drift. In January 2024, the Texas State Auditor’s Office issued Report No. 24-011 , certifying the State Board of Education’s 2023 revision of the Permanent School Fund (PSF) Bond Guarantee Program.

The Board unilaterally reduced its statutory reserve requirement from five percent to 0.25 percent, thereby expanding the State’s bond guarantee capacity by approximately $37.6 billion.

That change, adopted by administrative rule under 19 Tex. Admin. Code § 33.6, effectively rewrote limits fixed by Texas Education Code §§ 45.053–45.0531 , and redefined the “State Capacity Limit” outside legislative authority.

The State Auditor’s certification confirms that the Board’s act directly altered the constitutional and fiscal parameters of the PSF—an endowment created under Article VII, § 5 of the Texas Constitution for the “permanent support of the public free schools.” No statute authorized the 0.25 percent revision, and no legislative approval occurred. Nonetheless, Texas courts have declined to review such actions on sovereign-immunity grounds, deeming ultra vires arguments “non-constitutional.”

That refusal to adjudicate an overreach of delegated power denies Petitioners a forum to vindicate the constitutional principle of limited government and undermines federal supremacy over due-process rights.

ARGUMENT

I. The Texas Supreme Court’s Narrow Construction of Ultra Vires Conflicts with Federal Due Process Principles.

Under both Texas and federal constitutional law, the doctrine of ultra vires exists to prevent government actors from assuming powers not lawfully delegated. When state courts immunize such acts from judicial scrutiny, they extinguish the procedural mechanism by which citizens enforce the rule of law—a deprivation of property and liberty without due process. See Marbury v. Madison , 5 U.S. 137 (1803); Heinrich , 284 S.W.3d at 372-73.

By confining ultra vires to a mere “exception” to sovereign immunity, the Texas Supreme Court eliminates its constitutional function as a check on executive overreach. The result is a self-immunizing administrative regime contrary to the separation of powers mandated by Article II, § 1 of the Texas Constitution and the Fourteenth Amendment’s guarantee of due process.

II. The Permanent School Fund’s 2023 Rule Change Demonstrates Constitutional Injury Under the Supremacy Clause.

The 2024 State Auditor’s Report (No. 24-011) verifies that the Board’s reduction of its reserve requirement materially expanded bond guarantee capacity and altered statutory limits defined in the Texas Education Code.

Because the PSF’s guarantee capacity is also subject to a federal IRS limit—500 percent of total fund assets under IRS Notice 2023-39—the Board’s unilateral action implicated federal tax-law compliance and interstate bond markets. Administrative alteration of these parameters without legislative or federal authorization is an ultra vires act with direct constitutional consequences. When a state court declines review of such overreach on immunity grounds, it conflicts with this Court’s holdings that state sovereign immunity cannot be invoked to preclude federal constitutional claims. See, e.g., Ex parte Young , 209 U.S. 123 (1908).

III. Federal Review Is Required to Reaffirm the Constitutional Nature of Ultra Vires.

This Court should grant certiorari to resolve whether a state may, consistent with the U.S. Constitution, construe its ultra vires doctrine so narrowly that administrative agencies may alter statutory and fiscal constraints without judicial remedy. The issue implicates fundamental questions of state accountability, separation of powers, and due-process enforcement.

Texas’s reinterpretation of Heinrich now shields acts that are plainly beyond delegated authority—acts that, if committed by any federal agency, would be reviewable under the Administrative Procedure Act as arbitrary, capricious, or exceeding statutory jurisdiction. There is no lesser standard for constitutional accountability at the state level.

CONCLUSION

The Petition presents a recurring and nationally significant question: whether state sovereign immunity may bar judicial review of unconstitutional ultra vires acts. The SCOTX intervention is necessary to restore the constitutional balance and ensure that the principle “no one is above the law” remains enforceable in every jurisdiction.

School boards, while political subdivisions, are not state agencies within the meaning of Heinrich’s sovereign-immunity framework. Their powers derive from local authority under Tex. Const. art. VII, § 3 , not directly from the state executive. That means traditional ultra vires claims (which assume an executive officer exceeding statutory limits) do not apply to school district bond authorities in the same way they would to a state agency like the SBOE, TEA, or the PSF Corporation.

However, it is crucial to understand and recognize that the State Board of Education’s 2023 rulemaking that enlarged the bonding capacity and altered the reserve requirement directly changed the financial reach of local school districts, effectively delegating an unlawful fiscal power to them.

So while the local boards themselves may fall outside the ultra vires reach, the constitutional injury arises upstream from the state entity (SBOE/PSF Corporation) that expanded local bonding authority in a way inconsistent with Tex. Const. art. VII §§ 2 & 5 (Permanent School Fund restrictions and state fiduciary duty).

REVISED QUESTION PRESENTED

Whether the Texas Supreme Court’s recharacterization of ultra vires as a non-constitutional procedural doctrine violates the Due Process and Supremacy Clauses when it immunizes state-level administrative acts that enlarge the fiscal authority of subordinate entities—here, local school boards—beyond constitutional and statutory limits established under Article VII of the Texas Constitution.

REVISED STATEMENT OF THE CASE

Petitioners challenge the Texas Supreme Court’s narrow construction of ultra vires , which has effectively removed constitutional accountability from state administrative rulemaking.

Under City of El Paso v. Heinrich, 284 S.W.3d 366 (Tex. 2009), sovereign immunity does not protect state officials who act “without legal authority.” Yet Texas courts now treat the doctrine as a limited procedural vehicle, refusing to apply it when state-level administrative actions empower or immunize local entities—such as school boards—even when the underlying rule violates constitutional limits.

The State Auditor’s Report No. 24-011 (Jan. 2024) documents that the State Board of Education reduced the Permanent School Fund’s statutory reserve requirement from 5% to 0.25%, thereby increasing the PSF Bond Guarantee Program’s guarantee capacity by $37.6 billion. This administrative change under 19 Tex. Admin. Code § 33.6 directly expanded the borrowing capacity of local districts under Tex. Educ. Code §§ 45.053–45.0531 , without legislative authorization.

Because local school boards are not state agencies, they fall outside Heinrich’s ultra vires exception. The result is that a constitutional violation committed by a state-level fiduciary body (SBOE/PSF Corporation) cannot be challenged either as an ultra vires act or as an administrative abuse, leaving affected taxpayers and property owners without any judicial remedy.

REVISED ARGUMENT

I. The SBOE’s 2023 Rule Change Constitutes a State-Level Constitutional Breach, Not a Local Discretionary Act.

The State Board of Education, through the PSF Corporation, occupies a fiduciary position under Tex. Const. art. VII, § 5 , which limits the use and leveraging of the Permanent School Fund. The 2023 reserve reduction altered that fiduciary structure, increasing guarantee exposure and extending fiscal benefit to local districts in excess of statutory authorization. Such action is ultra vires in the constitutional sense—not because a local board exceeded its powers, but because the state extended powers it did not lawfully possess.

II. Texas’s Restrictive Construction of Ultra Vires Denies Federal Due Process.

By refusing to review unconstitutional state acts merely because their downstream beneficiaries (school boards) are not “agencies,” the Texas judiciary eliminates any meaningful forum for enforcing constitutional limits. This denial of judicial review conflicts with the federal guarantee of due process and the foundational rule of Ex parte Young , 209 U.S. 123 (1908), which forbids sovereign immunity from shielding unconstitutional conduct.

III. Federal Review Is Required to Reconcile State Sovereign-Immunity Doctrine with Constitutional Separation of Powers.

SCOTX intervention is warranted to clarify that a state may not, by definitional narrowing, remove constitutional accountability from acts that alter statutory and fiscal constraints established by its own constitution and affecting federal fiscal compliance (e.g., IRS Notice 2023-39 limits).

CONCLUSION

The question is not whether local school boards are subject to ultra vires review—they are not—but whether the State of Texas may, through administrative rule, constitutionally expand their fiscal reach beyond legislative limits while insulating itself from judicial scrutiny. That question goes to the heart of constitutional governance and warrants the SCOTX immediate review.

For Additional Evidence:

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SCOTX Ultra Vires Constitutional Issue