The U.S. Debt & Modern Monetary Theory
Mitchell Vexler, December 11, 2024
I'd like to share the article "Who Owns the U.S. Debt?" found on visualcapitalist.com by Bruno Vendetti and expand on the topic to include a discussion on Modern Monetary Theory.
In the graphic that follows, Visual Capitalist's Bruno Venditti provides a breakdown of U.S. debt composition, categorized by domestic and foreign investors as well as intragovernmental holdings.
The data for this graphic was sourced from the U.S. Department of the Treasury by the Peter G. Peterson Foundation, as of year-end for 2023.
The U.S. national debt increases when the federal government spends more than it collects through taxes and other revenue streams. When government spending exceeds tax revenue, a budget deficit occurs. To cover the shortfall, the U.S. Treasury issues Treasury bills, notes, and bonds. The national debt is the cumulative total of the federal government’s budget deficits, adjusted for any surpluses.
U.S. gross debt increased from $34.4 trillion at the end of 2023 to $36.1 trillion as of December 2024, with some experts calling it unsustainable. Of the $34.4 trillion in gross debt in 2023, over
$27 trillion (79-80%) was public debt borrowed from domestic and foreign investors, while $7 trillion (20%) was intragovernmental debt, reflecting internal government transactions.
As this 2nd chart above shows, the Federal Reserve System was the largest single domestic holder of U.S. public debt, with holdings of $5.2 trillion. But note, there is over
$5.7 trillion held in U.S. Savings Bonds, making that group of owners/investors the the largest holder of public debt.
The debt held by the public represents the amount borrowed by the U.S. Treasury from external lenders via financial markets to fund government operations. It is considered a critical measure of debt because it directly impacts the government’s ability to manage economic crises and can influence economic stability. As of December 2023, debt held by the public equaled 97% of the U.S. GDP.
Elon Musk and former presidential candidate Vivek Ramaswamy will head the newly established Department of Government Efficiency (D.O.G.E.). The department aims to identify and eliminate wasteful spending, with Musk claiming it could cut $2 trillion in government “waste,” potentially reducing the national debt or curbing expenditures.
Let’s now discuss MMT – Modern Monetary Theory – I call it magic money theory.
MMT asserts that monetary sovereign countries such as the U.S., U.K., Japan, and Canada all of which spend, tax, and borrow in fiat currency that they fully control and print, are not operationally constrained by revenues when it comes to federal government spending.
I am going to show you exactly how MMT = Equity Stripping.
MMT is the opposite of how a government is supposed to interact with the economy, the nature of money, and use of taxes and budget deficits. The idiots believe, “don’t worry, we will print our way out of this”.
MMT = Printing = Inflation = Devaluation of Currency = Tax
If A = B and B = C then A = C
MMT = Tax
MMT is used in policy debates to argue for such legislation as universal healthcare, large government bodies such as the Federal Reserve, FEMA, Department of Homeland Security, and many other agencies all of which can be found at https://www.usa.gov/agency-index, and all of which add to significant budget deficits as they claim not to have enough money to fund them.
I went down through the list of government entities on Wikipedia and created a column that shows what entities could or should be eliminated based on the following:
- Extra Employees = Extra Leaks
- Does the governmental office effect Citizens’ lives on a daily basis?
- Under the Biden Administration, did the governmental office prove its uselessness?
- Can the amount of personnel be consolidated between the entities to achieve the same goal but in a quantifiable manner with a proper cost-benefit analysis?
- Can the layer upon layer of department heads and supervisors be trimmed so that there is truly One Head of the Department/Organization? Fewer layers or departments = more transparency. Redefine the responsibilities and hire the best people to achieve the goal.
- Removal of any duplicative service between the various departments and consolidate.
- No loans or moving of funds, such as inter-government loans between departments. Each department stands alone with full accounting.
- Why do separate internal government entities and government personnel exist within the government to enforce rules on government employees. Laws exist for people outside the government. Government employees should be held to account to the same rules of law, just as non-government employees are. This supposed internal policing is inefficient and ineffectual and has allowed “employment in perpetuity” Furthermore, a legal system within the government itself, outside the purview of the public, leads to abuse of power.
- Elimination of any DEI requirements and personnel promoting it from government.
Given the above considerations, the result would be 78% fewer entities and or government employees:
1406 Entities - Total Number of Entities
1102 Entities - 78% could be removed
304 Entities - 22% would remain
Although this study is not conclusive and there is, and should be, a cost-benefit analysis completed, it is one method to show what can be massively improved to help balance budgets.
It is reasonable to think that the Federal government can run on 50 to 70% less employees and do a much better job for its citizens by eliminating the complexity which was created to transfer and or “equity strip” the assets of Mom and Pop.
State(s) Property Tax Codes are criminally violated, not just 1 or 2 sections of code, on an epic level, including failure to comply with Uniform Standards of Professional Appraisal Practice which is required in the code of law. Property Taxes must be repealed in favor of the Uniform State(s) Sales Tax to save us all.
The only way to insist, and get, permanent change starts with knowledge of the issues. Goal is to inform ALL, including politicians, and obtain advocacy from all levels of government. Share this article, all the links to other articles & links to videos. Together we will make a permanent difference.
Every Citizen should be greatly bothered by any political party, official, or judge refusing to adhere to Constitutional law, as in the end, all citizens regardless of party affiliation end up paying for the fraud created. Socialism, a means to perpetrate/perpetuate fraud, should be codified illegal. Protect yourself.
There's a direct correlation to property tax fraud, silver scam, & printing of money via U.S. Treasury & 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...
Auditing serves as a critical function, providing credibility to financial information & enhancing accountability of governmental entities. If your school district & appraisal district are participating in a criminal conspiracy to defraud, you have a civic duty to expose them because it is your money they are stealing.
A Sampling of Recent Messages Attached to Petition Signatures
Recapping recent articles, videos, & events related to school & municipal bond debts, property taxes, and the financial stability of property owners and tax paying citizens… along with a reminder that YOU CAN MAKE A DIFFERENCE.
Conroe Texas' example of the pattern & practice of Institutionalized Systemic Moral Hazard that's playing out across the US: Public Private Partnerships, School Bond Fraud, Economic Development Commissions. The common nexus is fraudulent overvaluation & over taxation of property, annually increasing to cover up fraud.
Prepared to go bankrupt to support your school district that is failing in education & equity stripping your home & future via the outstanding fraudulent school bond debt? Let's repeal all property tax in favor of Uniform States Sales Tax, end the socialist nightmare, & feed those strangled by the socialists.
Please forgive bluntness of this letter. The Financial Stability Oversight Council Report December 2025 has a conclusionary fatal flaw especially regarding pgs 29 – 38 which has ramifications in other areas of Report: fraudulent property tax, school district accounting & bond fraud and related State & Federal crimes.
What's the connection between Bitcoin, Trading, Federal Reserve, the Texas investigation of over-taxation, socialism, the repeal of property tax, & Precious Metals... a Crisis of Confidence... loss of faith in ability to achieve goals or trust institutions, leading to feelings of doubt & uncertainty about the future.
Attorney General Ken Paxton Launches Statewide Investigation of Nearly 1,000 Texas Cities to Ensure Municipal Transparency and Stop Illegal Tax Increases. 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.
The Press & Federal Reserve have stated that we are not in a recession. The evidence is the opposite. Any one of the 50 issues presented here is enough to cause a recession or major credit crisis... Existing laws are not enforced... Measures need to be implemented... Stop Institutionalized Systemic Moral Hazard.
Basics of economics are not being taught. Health care costs have exploded. Individual, Local, State, & National debt is at all-time highs. Property taxes are stealing equity. Risk of bankruptcy or loss of home is increasing. Restore Mom & Pop’s balance sheet. Repeal property tax, in favor of Uniform States Sales Tax.
Inflation, loss of purchasing power, debt, and fraud… 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.
To expand on yesterday’s Trials & Tribulations of Advocacy for Permanent Change – Repeal Property Tax in favor of Uniform States Sales Tax, this Part II will tie several elements together that we all experience & prove up why we must individually & collectively advocate for permanent change.
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?
Your equity is being stripped while you sleep. CADs, School Districts, State Comptroller, Attorney General, Governor, Legislators all collude in promoting propaganda with taxpayer funds to make you to believe “it is for the children” & that there's nothing you can do about it, all while they commit crimes against you.
To repeat...Not only is the equity in your home being stripped while you sleep, so are your constitutional rights! This should concern every property owner & every citizen, because you're paying for it regardless of what State you live in. As goes California & New York, so goes Texas! As goes Texas, so goes the USA!
What makes confidence crash? Decreasing confidence is the warning sign. When markets crash, opportunities rise! Stock market is its own ecosystem/economy; it can go up, down, sideways. Just like people’s confidence, being irrational exuberance, depression, & it will be ok. Question is over what time frame?
If you really want to rescue the credibility of U.S. Dollar, including the governments at both State & Federal levels, then a coherent & consistent plan that the public understands & participates in, must be in place. It's said “planning eases instability, consistency defeats confusion and clarity squashes disorder."
The Governor Abbott's six element plan as released on November 9th 2025 is the continuation of the exact same pattern & practice of kicking the can down the road to the next person in charge. Let's quickly pull the plan apart, and then lay out what his "Contract with Texas" should be.
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 & every single citizen; you are paying for it regardless of what State you live. As goes California and New York, so goes Texas! As goes Texas, so goes the U.S.A.!
Comprehensive Review of Texas School Bonds. Outline from California Policy Center shows pattern & practice of defrauding voters in CA & Texas. Results in bankrupting school systems, equity stripping property owners, affecting all citizens. Many are suffering from cognitive dissonance, unwillingness to believe facts.
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.
Here is a list of questions to be asked by ALL concerned Citizens & Property Taxpayers at their local School District Board Meetings (motion to compel) wherein the School District raises bonds . (applicable across Texas and the U.S.)
Median household incomes cannot sustain the current levels of debt and high property taxes, including the associated school bond debts. Are you protected? Knowledge is key. It's time to get involved.
Effort to obtain OAG records by Mitch is reminiscent of Dr. Michael Burry's research for the 2008 financial crisis in several key ways. Both individuals employed a strategy of meticulous, data-driven analysis to expose a fundamental flaw in a complex financial system that was widely believed to be secure & stable.
Boomers bought homes for two or three times their annual income during an era when interest rates would fall for the next four decades - turning their mortgages via the amortization schedule into wealth-building machines as rates dropped from 15% to near-zero.
The Rule of Law is a principle stating that all individuals and institutions are subject to the same laws, ensuring equality and preventing arbitrary governance. It is fundamental to democracy, promoting justice, accountability, and the protection of rights.
While all property owners agree that property taxes are too high, owners become particularly incensed when property taxes are assessed unfairly due to improper market value appraisals. Owners don’t mind paying their fair share, but it is unacceptable to pay more than other owners pay for similar properties.
This is one more article in a series, that builds upon each other and allows my thought process to become more direct with the goal of helping distill the issues in byte size elements of understanding of both the macro and micro picture of debt and taxes mandated to support that debt.
It is through the writings of Thomas Paine to the Founding Fathers both individually and jointly, that form the basis from which the U.S. Constitution was derived and signed on March 4, 1789. Mr. Paine wrote Common Sense a book published in 1776. The writings of Mr. Paine form the basis of the U.S. Constitution.
Through the past several months of research, quite often a key word trips a thought process, which causes additional research and expansion of previous articles I wrote. This article falls under such expansion, with the goal to add clarity of why we are where we are and how not to fall prey to the narrative.
Through multiple articles including the Federal Reserve is a Failure & CPI The Big Lie, I made the case that most often, at the hands of government officials, the data is abused, made up, ill-timed (lag), ill-conceived, and simply wrong, and quite often wrong for political reasons.
Violating the black letter of law is an attack and offence to America’s founding principles which were created as a result of The American Revolution of 1776.
Are you prepared to go bankrupt to support your school district which is failing in education, equity stripping your money 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
Gross Negligence... Criminal Conspiracy to Defraud... Equity Stripping... Repeal Real Estate Tax in favor of Uniform States Sales Tax
In the summation on the analysis on over 100 pages of information and articles on the Federal Reserve, combined with the current state of the U.S. economy and its citizens financial well-being, I have compiled a list of over 50 reasons why the Federal Reserve should be shut down:
Property Tax is illegal when there are no longer any enforced laws protecting rights of real estate taxpaying Citizens, when equity is stripped by compound cumulative over-taxation, when CADs & taxing entities' budgets & debts determine values on which to tax, when property tax system has become irretrievably corrupt..
Following the last article that I wrote on Homestead and Circuit Breakers now comes more proof of fraud on a mass scale. I asked in one of the videos a very specific question to Mr. Don Spencer, the Chief Appraiser in the Denton County Central Appraisal District. Knowing, based on irrefutable evidence as found at www.mockingbirdproperties.com/dcad, that the real estate tax laws are being violated not just in Texas but in any County or Province that claims to use Uniform Standards of Professional Appraisal Practice, the question was, Mr. Spencer, what is to stop you from raising the real estate tax to infinity in 2025? The answer, by virtue of violating USPAP, is nothing. (See our violations reviewed pdf document.)
Circuit Breaker Limitation and Residence Homestead are examples of illegal regulations written by the Texas Legislature and exist both in temporary status with expiration dates and subject to amendment, to cover the fraud created by the Central Appraisal Districts on behalf of their owner the Taxing Entities.
My career was built on thought, as a result of thorough analysis with numbers at the forefront. Although it sounds tough, yet often stated by me, is that I don’t give a damn what someone has to say, but very much I care what can be proven. People / Media talk, yet the majority of the time, have nothing to say which in itself becomes divisive. Knowledge vs Ignorance. Repetition of ignorance is ignorance raised to the power two.
In reviewing the multitude of issues that we discovered or encountered with property tax appraisals and the protest/appeal value process in the Denton Central Appraisal District, one cannot help but stop and say, how is this sustainable? Can property owners in other appraisal districts across Texas, or across the U.S., survive this equity stripping attack?
Have you wondered why prices are so out of control? Governments never reduce consumer prices because they benefit from inflation, dissolving their political spending commitments in a constantly depreciated currency. Inflation is the perfect hidden tax. The government makes the currency less valuable by issuing more units of fiat money, partially dissolves its debt in real terms, collects more taxes, and presents itself as the solution to rising prices with subsidies in an increasingly worthless currency. That is why socialism and hyperinflation are one in the same. This is why elections matter. This is why math matters.
The depth of the property tax issues results in Equity Stripping. Property Value Fraud does not discriminate between party lines. Roughly 37% of the households (multifamily & single family) will go bankrupt and or lose their homes as a result of the fraudulent real estate tax scam being perpetrated on all of us.
Quantitative Easing leads to Quantitative Tightening , removal of liquidity in financial system. This is Inflation, loss of purchasing power. This is a form of Tax. Then QE=TAX at both Federal & local level. At local level, CADs created tax on inflation outside USPAP & Law by way of falsely increasing property values.
1) Bankrupt the CADs, force them out of existence and as we have seen in Missouri. Find the corruption, wherever it is, and expose it. Break those who would dare break your family, friends and you. 2) Eliminate property taxes, own the land under your investment. Replace with a quantifiable non-subjective sales tax.
Lawsuit Update May 2024... Let’s be clear. If the Commissioners Court of Denton County is running cover for Denton Central Appraisal District and it’s criminal activity, and if the Judge rules that DCAD has immunity and also rules that DCAD does not have to adhere to the law in the future, then the Judge and Commissioners Court (Judge Eads) have made the State of Texas violate the 1st, 5th, 14th, 16th and Article VI of the U.S. Constitution. It would also mean that the Judge would have chosen criminals over the Citizens of Denton County.
March 2024 Letter to Texas Real Estate Taxpayers & Governor Abbott... We need to discuss issues concerning Texas Central Appraisal Districts, and specifically, the Denton Central Appraisal District. Starting in 2016, we realized that DCAD was manufacturing values, to the point where lawsuits had to be filed annually. So we started documenting what has been done, how, by whom, the ramifications, and then tied what we learned to the Law and USPAP (Uniform Standards of Professional Appraisal Practice).