This recalibration of our policy stance Will help maintain the strength of the Economy and the labor market and will Continue to enable further progress on Inflation as we begin the process of Moving toward a more neutral stance Happy Friday and welcome back to real Estate mindset now as a result of the Labor market meltdown and collapse Jerome Powell and the Federal Reserve Have decided to aggressively start the Rate cutting campaign lowering the Federal funds rate 50 basis points now Over the last 3 days all that's done is Increase consumer interest rates leaving A lot of consumers scratching their head Trying to figure out what exactly is Going on and today obviously I have our Community wizard seasoned building Developer quantitative financing and Statistical probability expert Mitch Beckler here to help explain and help us Figure out what's going on with the Recent layoffs in the labor market the Federal Reserves aggressive rate cutting Actions and then we're also going to Talk about how the municipalities are Imploding right now and as a result of Those layoffs and toxic bonds those Municipalities are going to fall right Out from underneath our feet so Definitely pay attention and we're going To end this video talking about and Asking Mitch what's equity stripping and
Before I begin Mitch happy Friday Brother how are you Hi pretty good I mean it's been a as Usual an interesting couple of days but We've got some information and the goal Here obviously is to help Mom and Pop Which is everybody connect the dots and That's really what we're in every one of These videos we're trying to do there's More and more evidence coming through by The hour but we're working very Diligently to again expand everything We've said not to drive everybody crazy But to provide Clarity yes and I'm really looking Forward to getting to the bond under the Hood review today but let's start by Looking at the layoffs that are Happening starting with IBM and this is As of Wednesday September 18th IBM Quietly asking thousands of jobs IBM has Been laying off substantial number of Employees this week and is trying to Keep it quiet unlike traditional layoffs This one is done in secret not very cool They have about 288,000 employees and just to remind you Guys last year the CEO said about 7,800 Jobs will be lost to AI in addition to that Wells Fargo is Also announcing another round of layoffs Starting in October a lot of these Companies are starting additional Layoffs you'll see starting in November
Now this article was as of September 20th that's today's date I want to Highlight here is in July Wells Fargo CEO said in an earnings call that the Headcount has continued to decline for 16 consecutive quarters and the total Amount of job Cuts have been 11,000 290 in addition to Wells Fargo GM also Announces temporary layoffs of hundreds At Kansas plant General Motors said Thursday it will lay off hundreds of Employees at Fairfax assembly plant as It ends production on the Chevrolet Malibu sedan this is set to play take Place again you guys November 18th for 680 employees now I want you to think About this this may not sound like a lot But this drastically impacts communities Because a failed project like this Remember a lot of people are planning on That project succeeding listen to this As previously announced in May GM is Investing approximately $39 million in The Fairfax assembly plant to add Production to the new Chevrolet bolt EV However to facilitate the installation And new tooling employees will be placed On temporary layoffs until production Resumes hopefully in mid 2025 this came out yesterday September 19th Cisco huge layoff round slams Bay Area offices more than 800 more workers Cut and you guys this is going to go Into the mass layoffs that they're
Reporting when the San Jose Tech Giant First shared news of the cuts alongside Its $1.3 billion doll yearly profit the Company said it it will be slashing 7% Of its huge Workforce per the September 13th Warren WN filings which are are Generally required in the event of mass Layoffs wner Brothers music announces Restructuring of Atlanta music group Including layoffs and you guys Unfortunately That's all folks you guys Get it and again this is from September 19th Mitch obviously the layoffs are Accelerating obviously these companies Are trying to hide those layoffs but in Your Opinion is the labor market is job loss Along with wage and income increases is That the most important set of data to Watch why or why Not no it is those two issues are hooked At the hip they're correlated Mathematically speaking they're directly Correlated if wages go up the cost of Business operations and the expense Side Of The Ledger go up and in order to Offset to maintain the profit level the Employ M must go down there's got to be Something that's got to give otherwise The share values would absolutely Disintegrate so they start laying people Off in order to help produce a higher or Secure a higher stock value with that Said on the external element that would
Be mom and possibility to buy whatever It is that they need to buy so with Regard to Warner Music um if people are Buying less downloads then they that's Clear it's a straight path through People spend less money the number of Employees will drop same thing that you Were seeing with demand loads AT Trucking I.E UPS or Amazon people buy Less employment goes Down well you know the Federal Reserve Is saying that yeah we're going to pay Attention to the labor market not Inflation where this whole time I've Been telling people hey look at the wage Growth versus the price growth that's Probably what we should pay attention to But let me ask you another follow-up Question on the labor market in your Adult Career your professional career Have you seen a labor market as toxic as The current labor market Mitch no Because people started believing in this Nonsense well we're just going to take Employees I.E a dishwasher and Chicago To $25 an hour and the net result of That is 4,000 restaurants in California Closing in the last 11 months and that Is going to keep happening I understand That Red Lobster may have come out of Bankruptcy uh Yesterday somebody stepped up to buy the Assets and obviously it's at a Discounted price can they still make it
Go yet to be determined but the bottom Line is these are all Ramifications of inflation Hyperinflation you've got Food either hyperinflated or inflated Just depending on your definition but Food is rampant in terms of its Inflation the inflation of the wages is A direct result of the inflation that Has been caused at the real estate level So people have to be able to afford a Roof over their head therefore the wages Go up you've got a circular argument the Problem is this isn't a bubble this is All artificial this is artificially Induced and therefore at some point It'll Crash right Mitch let's move on to the Fed's aggressive actions as far as the Rate Cuts so before I go into an article From Zero Hedge that came out this Morning let me take a quick trip around The market as it's ended and closed Friday starting with the 10ar as I've Been explaining to Consumers Realtors Professionals literally anyone that Listens mortgage rates are not directly Impacted by the federal funds rate yes It does manipulate mortgage rates but if You want to track it you got to watch The tenure so the last three days again Three days preceding the rate cut Mortgage rates have gone up now as far As what the market Mitch thinks that the
Fed's going to do next they don't know It's a 50-50 split either the fed's Going to cut a quarter basis point you See that here or 50 basis point rate cut I guess if we really want to know what's Going on we should not look at SEI fed Watch we should just follow Nick T at The Wall Street Journal since apparently He's the one that's being leaked all This information now what's interesting Is this is Futures but the stock market Did end up look at the Dow at 42,000 lot of money in the market still Look at the vix Mitch the vix is still Down 16.56% $46 gold is on a tear right now Now the reverse repo Market still shows That there is inflation in the market it Went up and has gone sideways and up Sitting at $339 billion when it comes to The recent actions of the feds let's use This article from zero heds to kind of Help guide us now this came out Friday September 20th apparently at 4:44 a.m. This guy Tyler Duram or I think that's You Mitch but this guy Tyler Duram which Is from the fight club by the way Brad Pit is an abute Beast I love this guy Let's read a couple bullet points here Are the highlights of the report which Equates that Powell said the worst parts Of 1984 if there was a strong case for a 50 Basis point rate cut Powell did not make
It at the press conference he repeatedly Stressed that the US economy was strong But we should see the strong move as a Commitment to keep the economy strong And just for the viewers they cut rates Because of bad economies to stimulate Them they don't cut rates in good Economies they raise them that's Equivalent to a doctor saying we'll give You some extra strong medication and the Patient is saying is my condition that Bad and the doctor says no you're Healthy but we're committed to keep you Healthy do youall see the point there This goes on in the end it looks like Powell felt the level of policy rate was On sync with the progress of inflation And the rise of the unemployment rate After all he used the word recalibration Several times this was also evident in The fomc projections now showing a 100 Basis point reduction compared to the Prem meting level of the target range Rather than the 25 basis point in the June projections although Powell denied That the FED has fallen behind the curve Because the reactionary this is exactly What recalibration means however the Latter obscures the former and Powell Did not want to admit that they should Have cut 25 basis points in July so this Article saying he is too late it got Really funny when he said that the fomc Had been patient in waiting and this
Allowed them to make a strong move yes If you get behind the curve you have to Make a big leap forward to catch up some Closing statements here in this article I think are very interesting the Recalibration argument is clashing with The message this large Cuts sense when Asked during the Q&A what his message to The US consumer is Powell said that the US economy is in a good place despite The record almost record-breaking Deficit spending again I'm saying that Guys I'm not trying to beat these people Up it's just I really hope as the viewer You guys are understanding that they're Lying to us but this goes on Powell said That the US economy is in a good place And our decision is to keep it there Really a 50 basis point cut as a message That the economy is strong so if they Cut it 75 basis points does that mean The economy is booming this sounds like Something out of George or Wells 1984 Wars peace freedom of slavery and Ignorance is strength it's actually a Really good article I suggest anyone That has Zero Hedge you read the rest of Article is extremely accurate and very Entertaining but I have a question for You Mitch does the Federal Reserve and Jerome Powell lie intentionally lie to The public why or why Not the answer is yes but I want to take A step back
So the Federal Reserve is on the federal Level here we have a local level Everybody does you have a taxing Jurisdiction you have a local level Before we started this video I literally Got off the phone with an official at The State of Texas in the bond Department and by the time we were done The call I was very thrilled that he Took the call and we had a very nice Conversation he realized what I was Doing and why I was doing it and he Agreed He also agreed that in our particular Jurisdiction there's about $95 billion Outstanding that more than likely can't Be paid off even though there's Guarantees from what's called tea as the First line of guarantees on the bonds Well Powell is lying for the exact same Reason what these governments are doing Both at the local level and at the Federal level what this really comes Down to many many years ago when Lei Koka was asking for money from the Government for Chrysler well we're losing money on Every car but we're going to make it up On Volume in fact we've looked at the Charts from this particular division of The State of Texas with regard to the Bonds and that is what the theory is Well Texas has so many people moving
In yes we're losing money yes we can't Cover off the bonds but because so many People are moving in in the future um Will make it up on volume there's simply No truth in that well that's exactly What the Federal Reserve is doing not Having anything to do with what's Happening at Mom and Pops level but What's having to do as a protection and A back stop against the banks that in Fact should be filing bankruptcy so both On the federal level and the local level Again connecting the dots this is Exactly what's going on this is a giant Lie it is a fraud it is a scam and now As of my conversation a half hour ago uh Yeah there's people in the government They're beginning to wake up and say uh Oh yeah Mitch yeah so obviously Jerome Powell is lying and I'll argue that the Federal Reserve chairman is part of his Job is to lie but can you try to Articulate what is the Federal Reserve Really saying Mitch if they're lying to Us what are they saying beneath the Surface they have to keep the scheme Going there's only two choices you Either keep the scheme going or you file Bankruptcy on Lord knows how many banks But my guess is probably 60% of them When all said and done because a federal Deserve doesn't have the money US Treasury doesn't have the money to back Stop these Banks the FDIC doesn't have
The money to back stop 3% of the banks From crashing so at the tail end of the Day in order to protect the banks they Have to keep the scheme going it's not Even a question of what are we going to Do with the Money the US uh Federal deficit right Now today Allegedly is around one and a half Trillion that money doesn't even exist There so the idea see this is why I keep Saying you have two sets of books right The Federal Reserve parabolic debt and At the local level parabolic debt you Can superimpose these two charts on top Of each other it's the exact same BS They can't be paid back why can't they Be paid back if you stopped it right now Today froze it in its tracks that debt Is still outstanding and that interest Compound cumulatively is still Outstanding in call it seven years rule Of 72 just depending on the interest Rate that debt if you froze it today in Place would literally double in seven Years which means that the amortization Schedule is inverted because they're Continuing to spend money they're not Paying it down where is that money and That's what we showed the other day Where is that 18 trillion going to come From nobody has the answer to that and By the way that was part of the Conversation that I had a half hour ago
I was on the phone for over an hour on That call and it was a great call great Conversation very straightforward but Couldn't answer it and and they also Couldn't answer me well why doesn't the School districts release the actual Bonds I can't get I said I can't get It yeah Mitch let's go under the hood Now and the thing is is a lot of people Don't still don't understand how the Bonds work how the debt works but Mitch Is talking about debt and I want you Guys to think of bonds as debt and I Want you guys to understand a couple you Know important figures that Mitch and I Have been continuously talking about Number one the state comp troller the State comp troller is kind of like the Accountant the tax collector or the Auditor of the tax revenue now the Central Appraisal District is part of The tax collecting process that's Designed to value your house and to Collect money now in explaining to you Guys overvaluation fraud another thing That we've been trying to highlight is The overwhelming amount of bonds or debt That your city is in and again if you Don't think that this affects you I want You guys to do me a favor seriously do This right now look up if you're in a Dwelling if you have a roof over your Head then this impacts you because each And every person with the roof over your
Head someone is telling you how much That's worth and it's not the market you Guys it's the tax collector and so fast Forward to where we're at today with This whole video series what you guys Should know is yes there is an Overvaluation fraud going it is around The nation but I also want you guys to Take the initiative to search on what's Going on in your local markets and Here's why when we look at just Denton Independent School District guys Denton Independent School District what we find Out is is the debt the bonds are Parabolic and not only is it parabolic Look at this BS that it's going to go Down look at this it's it's skyrocketing Upward and then all of a sudden it's Just going to go down look at what They're selling the public this is the Land of Fraud and of imagination I don't Live in the land of imagination I only Live in the land of fraud so they need To take the Imagination off this chart in addition To that as I've said I typed in my own ISD so I typed in Houston ISD bonds and This is what I found you guys Houston ISD board unanimously votes for $4.4 Billion do in school debt that's paid by The tax Payers which is us that 4.4 billion is Paid by me and my kids don't even go to Harris County school and it's still paid
By me this is absolutely insane because This is the largest ever and this is Only impacting the ISD this is insane You guys again the largest school bond In Texas history at 4.4 billion just a couple bullet points Here Houston ISD local debt Rose 2.9 Billion in the fiscal year of 2023 alone So that 4.4 is going to go on top of That 2.9 and what Mitch is going to Explain here is they have lost track the Bond review board that he's telling you Guys that he spoke to doesn't even know And that's his sole job you guys their Sole job is to track bonds and they Don't know the existing bond debt this Is insane let me keep reading this for The 2023 and 2024 school year the Texas Education Agency reported that Houston ISD student enrollment totaled 184,000 And they're going on when we divide into The bond debt that means that each child That's enrolled has a debt of $15,557.71 Next Year Mitch are those numbers Accurate how much Bond debt are we in no The numbers aren't accurate and it's not The brb's responsibility they're they're A small group of people so they only Track what it is or told to track which Is on an annual basis a set amount of The bonds that are coming through the System the problem is nobody can answer The exact question I've been hammering On I want the last 10 years of bonds
Cumulatively and the compounding and Show me what has been paid off and they Even admitted I'm not the only one to Ask for this but nobody's been able to Get their hands on it because when you Look at the balance sheet and the Financial statements of these school Districts the bonds aren't even Footnoted there's no documentation we Looked at the qips we looked at the Financials nothing is footnoted that Says what has been paid off can you put That chart back from the BRB I I want to Explain everybody what they're looking At what we're looking at here look very Closely go from the bottom left to the Mid screen that chart is parabolic and As I've said under the rule of 72 that Debt will double every seven years if You froze that debt in place today what You're seeing at the top midsection of That screen will literally Double now the brb's response was well But the taxpayers will pay it so first We had the first line of defense is the T EA that Travis referred to a few Minutes ago on that document that's your First line of guaranteed defense but the Implicit guarantee is that of the Taxpayers well we already know that 37% Of the households can't afford the roof Over their headend or they're going to Go bankrupt now extrapolate that midline That black line extrapolate that forward
In seven years from now this chart Literally in terms of going parabolic is Going now going straight up it doubles From what it is right now that's called Cumulative compounding when you go right Of that line that is complete nonsense That would be the theory of well there's So many people moving into Texas will be Able to pay it down and that comes full Circle to the comment I made a minute Ago well we're losing every money we're Losing money on every unit but we'll Make it up on volume there's simply no Truth in this we are at the Tipping Point this is not sustainable and that Parabolic nature that you see in that Chart is the exact same parabolic nature Of what you see at the Federal Reserve You've got two levels of systemic fraud All pushing on the implicit guarantee of Whatever those taxpayers are so on the Federal side allegedly there's around 144 million taxpayers responsible for $1,139 th000 worth of debt when I did That on the video a few videos back is That including State debt Mitch no That's the point it's not no this is the Local that one 139,000 is just on the federal side That's just Federal so that's not Including what we see on the screen Unbelievable right two levels of Systemic fraud all depending on the Implicit guarantee of the
Taxpayers which Cann let me ask what you Know so you you talked today to the Texas BRB data center you know that Safeguard in place to help consumers and They couldn't even tell you like hey in This dent in ISD this is the total Amount of Bond debt over the last 10 Years you would think a child would know That information it's simple why do you Think they don't have that Mitch why do They not have the total amount of debt However they were created I I don't Blame them and I had a really good Conversation with them but however they Were created that wasn't their mandate I Mean it's a small office it's got 10 People in it but nonetheless they agreed And confirmed what it is that we doing Confirmed what it is that I've been Saying which is yeah this is out of Control and they said that I'm not the Only guy to complain that I can't get Access to information at the school District level and it's any school LD DD It doesn't matter can't find it can't Get it double checked on the qips I Can't even find debt in the last three Years on LISD Lewisville Independent School District wow that where the qips Even say that the bonds have been Retired it's so the only conclusion is They're not they're rolling up and They're rolling out and that's what You're seeing in this chart here and by
The way I double checked on the interest From the BR B and that says that the Interest rates at a 6% coupon could Support 95 billion of bonds in debt and Count and they confirmed that same 95 Billion was was the right number but This chart says what 3.5 billion yeah And yet it's 95 how could they possibly Show it going down when they don't even Have the right balances I mean what type Of kindergarten preschooler made this Chart look like this Mitch it's the Mandate from what they've got they know That there's 995 billion give or take Out there based on the interest the Interest cost is on in their numbers the Problem is it yes the interest cost is There but they're only reporting on a 2023 basis roughly that's let's call it 10 billion for 20123 when all said and Done the point of the matter is they're Completely inverted like the interest Cost is so heavy it clearly indicates 95 Billion worth of bonds but again Understand something it doesn't matter What the reporting the point is and what Does matter is the rule of 72 if you Froze what you're seeing in front of you Right now today this chart doubles in Size immediately in seven years from now That's the math it's going up so it's Parabolic now now it's going to be Parabolic raise rais to the power of two And there in lies the problem you're at
The Tipping Point this isn't Sustainable and Mitch I want to kind of End this out here I want you to explain And and Mitch did a good write up he's Mitch is also writer as well as Brilliant with math also a good guy so I Want him to read a writeup uh that he Made kind of summarizing everything That's happened and what he refers to as Something called Equity uh stripping but I want to recap what we just said we've Already showed you guys the just the Government debt the federal government Debt when we count unfunded liabilities Remember that's like Social Security and Medicare that's at 1.1 million dollar Per taxpayer you guys I have two Taxpayers in my household and that's not Even counting where I live when we count Where I live in the state we can't even Count that because they don't the the Municipalities Themselves don't know how much death They're in that is mindblowing and so Mitch um can you explain to the viewers Exactly what Equity stripping is I'm Going to do the best I can under the Theory that again we're trying to Connect the dots for everybody and this Is deep so here we Go on the federal level as I've said the Debt is parabolic it's a fact on the Local level the debt is parabolic that's A fact at Mama and Pops level your
Equity is parabolic and not Coincidentally directly correlated Parabolic down so what they've done is They stripped your Equity out of your House out of your apartment wherever You're living whatever rent you're Paying they've stripped that out and Inverted it onto the debt side and then They levered it 20 to1 give or take and That's Equity stripping they took your Money put it in their pocket so that They should have a job and then they Levered it up trying to cover it up when You try to cover it up every seven years It doubles the reality is they need that Income which comes back to Travis's Question why is the Fed lying well the FED is lying to create the pond scheme Going that's the reality so connecting The dots which was what we're trying to Do here the end result is the equity Stripping your Equity has been stripped Remember what I said if a equals b and b Equals c then a equals c well if your Money's been stripped where the hell did It go well it turned into debt and then It got lever 20 To1 that's how all these dots are Connected and the problem is when it's Lever 20 to1 as we proved even on the Credit card Theory you got a $2,000 Credit card well the government has Levered you 500 times 560 times whatever That chart was above your credit card
See it's directly correlated they start With the base but the problem is they Ramped it up and the debt load is now so Great that it cannot be paid back today Never mind the rule of 72 in seven years From now therefore we are at the Tipping Point and that's what everybody's got Understand and they can play hide the Potato while they want but the school Districts are Broke this is over it's just a question Of what is going to cause this to Collapse well the job losses are Certainly going to accelerate that Because if those same homeowners and Renters are losing their job then what's Going to happen is the delinquency rate Of those taxes and those tax levies and Mills and leans it's going to go Shooting up and then what hopefully Won't happen but will probably happen is The school districts are going to keep Trying to tax us into bankruptcy and Mitch I just want to end here brother You know what can people do to hedge Them uh hedge themselves and protect Themselves from what's coming what can People even do about this Mitch okay so Under that theory at about three o'clock This morning I sat down and wrote that Document called Equity stripping of Mom And Pop I wanted everybody to take a Step back and although the first video That I did wasn't my camera in the right
Position I didn't have a light I didn't Know what the hell I was doing because I've never been on social media the Reality is that that very first video Laid out the groundwork the video we did About four back where it says that you Owe 1, 139,000 in federal tax receipts based on The debt that they've created there's Some charts in there that tie this Together quite nicely so between that Video and the recent video at the Million 139 I think everybody should Just take a step back go and look at Those videos again and then there's also Another Link in that document to to Multiple videos but those two are kind Of crucial to help new Mom and Pops Understand what is happening and why it Is imperative that they get the Knowledge from travis' free course to Help them articulate their own position In front of their appraisal review board Once you understand that you can do that And then even if you don't win the point Is you did it you got the knowledge you Know what's happening you can join Forces with other people in your Subdivision that say yeah we're not Going to put up with this we will file Lawsuits against the ARB members joint And sub the liable we will file a Lawsuit against the chief appraiser um We we'll sue whoever we've got to sue in
Order to put a stop to this um to that Point another group earlier this morning Reach out to me out of Fort Worth and That is exactly what they're doing they Were the first people to get their hands On that equ Equity stripping document And it's only two pages or one and a Half pages but it's good it walks Somebody through it's not super detailed Shows them the the couple links but That's a great place to start moving Forward and that's all part of trying to Connect the dots for Everybody well said sir and so to Reiterate what he said step number one Take a step back marinate a little bit Let this cook a little bit and fully Understand what we're saying I made an Entire playlist for the work that Mitch And I have done together that's called Home value fraud we have a whole Playlist right there and don't forget as Well guys in the description there are Multiple links step one step two is There contact information for Mitch so If you guys have any Intel or you want To reach out to us reach out to us Supply us with info Mitch from the Bottom of my heart sir thank you for Helping us and help helping us to be Aware number one but also helping us to Do something about it and helping us to Grow our community together I just Wanted to say sir thank you for that and
Happy Friday and to the viewers you guys Are out there investing in real estate You're Bonkers but regardless no matter What happens next Mitch and I hope you Win and this document will be below the Video
