Host:
Hi, welcome back to the Della Cambona show with a blockbuster interview. Today we have Mitch Vexler back on. He’s been exposing what he calls a clear pattern of fraud in property tax appraisals and the trillions in school district bonds built on top of them. Today we’re digging into his latest report, Who Watches The Watcher? — the illusion of oversight, the compromised review boards, and how political fixes keep changing the subject while the real allegations stay uninvestigated. This also connects to the bigger market risk. In my recent conversation with Michael Pento, he warned about his models and the U.S. dollar. Mitch is going to challenge those models head-on. What happens when you force in the fraud data? The school bonds lose all credibility and the panic hits Treasuries. He argues a controlled demolition of those bonds is better than a greater depression. We’re going to dig in right now. Mitch Vexler, welcome back. It’s a big one.
Mitch Vexler:
Yes, it’s been very busy. We’re about to get filed more than likely within the next 10 days. The Supreme Court of the United States claim is fairly simple: Does any state Supreme Court have the authority to deny, via deprivation of rights under color of law, any citizen’s access to both state constitutional law and federal constitutional law? The obvious answer is no.
What we’re asking the Supreme Court of the United States to do is reverse and remand. There’s also a follow-up petition going to the Sherman Federal Court under U.S. Code 42 sections 1983, 1985, and 1986. It’s a civil claim going after the chief appraiser and the entire bench of the Supreme Court of Texas individually for deprivation of rights under color of law. We’re doing that civilly, but deprivation of rights under color of law, sections 241 and 242, is also a federal crime.
Host:
A big part of the puzzle that happened since the last time we spoke is that President Trump is aware of this. Walk us through what he knows.
Mitch Vexler:
When I did the Fraud Fighters presentation, I had no idea what to expect. I was simply told there were people there who had access. It turns out they had more than access — they had President Trump on speed dial, including Peter Thiel himself. I spent several hours with Peter Thiel in the back room, off the floor where it was quieter, speaking with him every 20 minutes or so. It was a crazy event, but he understood what was happening.
At that same meeting with Peter Thiel was David Kenny, a bar-licensed Supreme Court of the United States appellate attorney. He has a sister case in California about the bond fraud. His dollar amounts are much smaller than what I’ve discovered, but the pattern and practice to defraud is identical.
When you mentioned Michael Pento and he used the word “model,” that was right up my alley. Around 2:00 in the morning I got an idea: “Okay, you want a model? I’ll give you a model across the United States.” This pattern and practice is occurring everywhere, and it’s not by accident — it’s by intent.
Over the last year to year and a half I’ve been collecting audits from attorneys general across the United States who are auditing school districts and/or central appraisal districts. We’ve quantified the problems. We haven’t quantified them for every jurisdiction, but the pattern of practice is excruciatingly real and identical. We proved it in Volume One and Volume Two of the Pattern in Practice. Danielle is the only one who has the copies right now, but within about four or five hours those two documents will be posted to my website. There’s no way out. I didn’t invent this.
Attorneys general for different states had their own audits. I simply mapped it out. It took a couple of days, then I used AI to identify the common thread. One document is about 35 pages, the other about 39 pages — down from over 3,000 pages of audits. I went after the common thread: the laws that were broken. Even the attorneys general themselves don’t have this compiled this way. This documentation is going to be used in court.
Host:
These are bombshell documents. Have you heard back from the president’s office? Has there been feedback?
Mitch Vexler:
Not directly. There are meetings happening today. There was a meeting yesterday with various people. The goal is simple: I need Solicitor General Sauer’s signature on one piece of paper I’ve already prepared — the Motion for Expedited Hearing. With that one piece of paper, this case should be heard within 60 to 90 days at the Supreme Court of the United States.
This is a national security risk. This is not a property tax case. Imagine if another state did what the Texas Supreme Court did: deny a citizen access to the courts — deprivation of rights — not just one citizen, but 32 million Texans. That is what the Supreme Court of Texas did. They violated their oath of office. They violated the Constitution of the United States and the Constitution of the State of Texas. They prohibited adjudication of a known, proven, deemed-admitted fraud.
Host:
It is happening in other states.
Mitch Vexler:
Think of it this way. What happens if Oklahoma, or any state, does the same thing the Texas Supreme Court did? The Constitution of the United States vanishes. It’s deemed meaningless by rogue courts. Who would have thought the biggest rogue court at the moment is here in Texas?
Multiple people are now reaching out. I’ve reached out three times, left messages. They have the emails. I’m even sending it through their Supreme Court channel. They could look at it and say they’re busy. They’re not that busy. This may very well be the largest case Solicitor General Sauer has on his plate right now. It comes down to two paragraphs:
Does the Supreme Court of Texas have the right to deny any citizen or citizens their constitutional rights?
The answer is no. Reverse and remand. That’s what we need the Supreme Court of the United States to do. Very simple.
The balance of the case under 42 U.S.C. §§ 1983, 1985, and 1986 will be heard in the Sherman Federal Court. This isn’t going away. It’s getting bigger and compounding.
Back to Michael Pento’s point: Model this, everybody on Wall Street who thinks you’re so smart. How does your model look when you take into account $5.1 trillion? That number is light — admittedly extremely light — but it’s quantifiable. Take $5.1 trillion into your bond model numbers and figure out how it’s going to get paid for. It isn’t.
Models on bonds are based on credibility. Mathematically, the $5.1 trillion could in theory work at 13 cents on the dollar and be paid off over time if all expenses and interest were frozen today — which isn’t going to happen. But when this blows, what goes with it simultaneously within hours? U.S. government bonds — the 2s, 5s, 7s, 10s, 30s. They will drop in value within hours.
Markets are about price discovery. When an algorithm gets nervous and sees the words “credibility” and “bond” in the same sentence, you’re talking hours for virtual complete destruction. The algorithm builds speed based on volatility. Volatility will spike because the credibility is gone.
This problem could be resolved by repealing all property taxes in favor of a uniform state sales tax and immediately wiping out the bonds. You kill the $5.1 trillion. It’s like giving up the queen to save the king. The king is U.S. government bonds. You cannot let them get infected by the school district bonds.
Model that into everybody’s current bond portfolios and you start seeing the panic. When the algorithms pick up the panic, everything goes bad real fast and nobody can stop it.
Host:
That’s an excellent analogy. The obvious question is: of course they’d want to save the king, right? But do they see it as too much of a risk right now to sacrifice the queen?
Mitch Vexler:
At that presentation I knew there were federal officials in the room. I laid the case down simply and spent an hour in front of about 780 people. I said: if you can disprove anything I’ve said in this presentation or anything in the Second Amendment to the criminal complaint delivered to the FBI, DOJ, SEC, and IRS, I’m begging you — please. If anything is wrong, we’ll fix it. But I know you can’t. You also can’t disprove the 403 pages of the Second Amendment, the First Amendment, or the original criminal complaint. If you can’t disprove it, then it happened.
All of this is a matter of getting the case heard. Had the first court said, “Vexler, we’re going to hear this case,” we wouldn’t be having this discussion. What this case has done is lay bare the criminality of the courts themselves protecting known, proven, deemed-admitted fraud.
Hence the piece Who Watches the Watcher? Volume One covers how many audits occurred and the common thread. Volume Two maps the local level — not just state, but local taxation and local school district bond levels. No matter how you slice this, they knew these bonds were toxic. That word “toxic” appeared in the California Policy Center document in 2015. The State of Texas knew it was bad in 2015. They kicked the can down the road to the point where this is more than likely going to blow up in fairly short order.
Host:
If it does blow up, is that the “reset” so many other experts speak of?
Mitch Vexler:
When they say “reset,” let’s bifurcate it. On one hand you have currency — make no mistake, we are in a currency war. If we weren’t, we wouldn’t be doing these tariffs. That’s one column.
On the other column, the word “reset” pales in comparison to the reality. The reality is that $5.1 trillion is 80 times bigger than Enron. Enron shook the globe.
These school district bonds — or any bonds for that matter — are paid for within the Federal Reserve system itself. The Federal Reserve has a reverse repo that can take bonds at face value. I’ve already stated the school district bonds are worth in theory 13 cents on the dollar. In truth they’re a liability, because when this blows the lawsuits will run rampant. They are not an asset. Yet the Federal Reserve will accept them at face value. I believe the Federal Reserve is completely clueless about how the impact of these bonds will actually work.
Let’s use a simple school bus example. A bus bought 20 years ago had a five-year shelf life. They built bonds upon it. Over 20 years the debt load on that bus is up 4x the original cost. Every time they issued a new bond — say a seven-year bond — they never paid off the first one. They rolled it into a new bond, then another, then another. I don’t believe this can be undone. There’s no system that can go backwards because they don’t hold the CUSIPs that long.
The median household income doesn’t exist to pay this off under any circumstance. This is the abject definition of bankruptcy. When I say the bonds are worth somewhere between 13 and 30 cents on the dollar in theory, I’ll take the opposite side and tell you these things are a liability. There’s no asset here.
It’s worse because the Federal Reserve can use the reverse repo window to cover the banks at face value. Remember 2008 and the big to-do about rating agencies? These are the same rating agencies today claiming these bonds are worth AA or BB. These bonds are sub-junk. The simple reason: mom and pop don’t have the money to pay this off. This is compound cumulative interest on top of compound fraud. It’s a Ponzi scheme.
Host:
For the middle class, for the mom and pops — does everyone just go broke? What does life look like?
Mitch Vexler:
It’s not necessary. This can be fixed more than likely within 10 days. At the federal level, via executive order for example, repeal all property tax. Wipe it out. You have to replace it with something, so replace it with a uniform state sales tax. In Texas it might be 15% total; in Montana 9%. It’s only going up 3 or 4% from where you are today. But mom and pop get their properties back. Every institution gets their property back. When you pay that property off, it’s yours. You own it. That’s your retirement.
Right now what you have is equity stripping. The amortization that should go back into your pocket is being transferred into the pockets of the central appraisal districts and the school districts. They’re equity-stripping your mortgage. Not only do you not fully own the property because of the property taxes, but more money is coming out of your pocket.
We broke it down recently: if you had a $220,000 home five years ago, based on Federal Reserve rates it might reasonably be worth around $270,000. That isn’t what happened. Through the fraud they said your $220,000 home is now worth $440,000 — up 100% in five years. Property owners think they’re happy. Happy on what? They’re broke. The person who owned that $220,000 home just wrote a check over five years for the fraud component, not the real estate. The $400,000 or $600,000 number isn’t real. It’s a fraud. The rating agencies are dead wrong.
Host:
Speaking from a Canadian perspective — I know you’re Canadian and now live in Texas — if you take a city like Toronto, it’s amplified. You cannot buy a home today without $160,000 income and live comfortably. Canada has the same Uniform Standards of Professional Appraisal Practice. They just put a “C” in front of USPAP. Same document.
Mitch Vexler:
USPAP isn’t the problem. The problem is nobody ever read it. They’re not using it. They claim they do — go to any central appraisal district website and it says they adhere to USPAP. Mass appraisal standards require adherence to USPAP. It isn’t happening. This is fraud by intent. This is no accident. That’s what Volume One and Volume Two of the Pattern of Practice prove through the attorneys general audits themselves. I didn’t make this up.
Within 60 to 120 days there are going to be major political shifts. The Canadian people have had enough. The American citizens I’m speaking to — and I’m getting emails by the hour — have had enough. The money simply isn’t there.
If the Supreme Court of the United States allowed the Supreme Court of Texas to get away with deprivation of rights — and it’s not even up for debate that is what happened — what would be the net result if the American people no longer had the privileges under the Constitution? The answer is civil war. That was the founding of the United States. The War of Independence was fought over this exact issue: taxation without representation. Representation means the law.
Canada has the same problem. They don’t have the same constitutional structure, but they have an awful lot of very angry people and a lot of very poor politicians. Something bad is going to happen. The reason I’m doing this is because I saw it coming in 2016–2017. We started calculating the math in 2017. The goal then was to stop that something bad from happening.
You’re now seeing these problems play out live in London, Ireland, Germany. They have the exact same problem: the calculation of taxes stripping citizens’ money. It’s the property taxes that are the problem. And USPAP is global.
The truth is a very simple fix: get rid of the property tax in favor of a uniform state sales tax and wipe out the fraudsters. Look at what’s happening in Minnesota. The national press hasn’t figured out that the nexus of where that money comes from to create the fraud is mom and pop. Mom and pop are paying for the fraud to be committed against them. It’s the property taxes.
The only answer is repeal the property tax in favor of the uniform state sales tax. Get rid of the central appraisal districts. Get rid of the tax assessor-collectors. Get rid of all these boards that claim to know what they’re doing.
Host:
Those people want to hold on to their positions.
Mitch Vexler:
You can’t hold on to something that wasn’t yours to begin with. Or you end up in something 80 times worse than 2007 — or worse — because now it will infect U.S. government bonds due to one word: credibility.
If the U.S. government doesn’t stand up and say “enough — $5.1 trillion, bankrupt the school districts that participated in the fraud,” that is the credibility. Letting this fester and blow up means U.S. government bonds go with them. I don’t know what the trigger could be — it could be Japan; Japan is in a world of hurt on their bonds right now. No one knows the exact trigger or the exact damage. But what we do know is quantifiable: these school district bonds and the property taxes.
People sell these bonds under two words: “unlimited tax.” There’s no such thing. It’s a bald-faced lie. I defy anybody on this planet to show me an unlimited tax. The entire structure is 100% fraudulent.
At that presentation four weeks ago in Vegas I showed a chart called the Infection Rate Spreadsheet — the same infection-rate math used in COVID to determine how fast a disease rolls through a community. If you have three bad property comparisons, within 60 days you’re at about 12% corrupted data at the central appraisal district. On tape, Don Spencer, the chief appraiser of Denton Central Appraisal District, stated they took 60,000 properties outside of the database, manipulated them in Excel, and put them back. Take 60,000 plus the three and you’re at roughly 50% corrupt within 60 days. Take that out three years and you have a 100% corrupted database.
That one document proved there is not a single central appraisal district in the United States that can adhere to USPAP. It’s a mathematical impossibility. The fraud is up and down the chain, all the way into the Supreme Court of Texas itself.
The goal is to stop a disaster from happening. Recognize the disaster. This is fixable very quickly — probably within 10 days the switch can be flipped so the damage is minimized. Those who invested in these bonds are going to lose. Sue the people who sold you this garbage if you want. But even though it’s $5.1 trillion, we haven’t seen a portfolio that holds more than 2% of these school district bonds. The real mom-and-pop economic damage is minimal. But you cannot keep paying on something that’s bankrupt for the next 30 years while they keep ordering more bonds “for the children.” None of this money — the operations and maintenance or the interest and sinking fund — is going to any children. We’ve even found hidden investment pools. The teachers themselves are getting ripped off and have no clue those pools are there.
It’s up and down the chain. The two largest purveyors of fraud on the planet are the Federal Reserve and the school districts.
Host:
You started working on this in 2017. I’ve been with you on this journey for a little over a year now, and it’s pretty terrifying to see the trajectory. We have the bond risk and the fraud risk, but now you’re talking about the risk to the U.S. Constitution and the risk of civil war. This is a whole other ball game.
Mitch Vexler:
That’s why when Michael Pento mentioned the word “model,” I said fine — we’ll prove it, and we’ll prove that the people using these models don’t have access to this information. They don’t know I exist. They don’t know the website exists. Everybody should go look at the amount of evidence on the website.
You mentioned the word “reset.” Reset of what? The only thing that is truly secure is something in your hands. You’re right back to the metals. Even if the government said we’re going to back currency in motion (M1 and M2) at 40%, gold goes somewhere around $40,000 an ounce.
Could they do a basket — gold, silver, corn, oil? Absolutely. Would I like to see that? Sure, because it lends credibility. This whole thing really comes down to credibility. We have a U.S. Constitution that does not just guide the United States — we’re the backbone for the globe. If that Constitution is rendered meaningless, we have an extraordinarily serious problem.
This itty-bitty thing people perceived as a tax case has turned into something Solicitor General Sauer has nothing more important to do. This is the biggest case right here, right now. This is a national security risk.
We’re way past a tax case. They should have left this alone and said “we’ll let this go.” The first judge didn’t, and the other judges allowed it to happen all the way up the chain. There’s no defense because the law exists. Deprivation of rights under color of law is real — both civil and criminal. The math clearly exists. We’ve provided every stitch of it. The facts exist.
What we haven’t hit yet is a judge willing to take this on. We’re now at the point where we have to go to the Supreme Court of the United States to reverse and remand the Supreme Court of Texas before the bonds blow up and we end up in civil war.
Host:
Mitch Vexler — you can learn more at Mockingbird Properties. He’s fighting the good fight. God bless Mitch and all the work you’re doing.
To the people on Wall Street: you have power, you have reach. Study the website. Go look at Volume One and Volume Two of the Pattern in Practice. Tell me your models take this into account — I tell you they don’t. Reach the politicians you know, all the way to the top. Now is the time. This case needs to be heard at the Supreme Court of the United States.
Thank you, Mitch. We’ll bring you back soon and hopefully have some good news the next time we speak. Thank you all for watching.
Mitch mentioned metals, and of course we both believe you should be owning physical metals in times like this. Mitch, do you get bogged down by the price? Are you chasing the price of gold and silver every day?
Mitch Vexler:
No. There’s somebody you and I both know, and there’s a standing order a little bit below where we are now, but it’s big enough to fill a pickup.
Host:
That person is now heading the global division of ITM Trading. We’ve gone international, so we’re able to service Canadian clients, clients in Europe, wherever you are in the world. We’re trying to help people outside the U.S. take back some control by holding physical gold and silver. Reach out to my colleagues at ITM Trading. Mitch, we’ll see you soon.
Mitch Vexler:
Perfect. I appreciate it. Thank you very much.
Host:
Thank you all for watching. We’ll have more great content coming your way.
