Is it time to buy REITS? lol!
- Inflated Appraisals and Taxes: Property appraisals are inflated, pushing home values above their true market appreciation. This leads to homeowners being charged higher property taxes.
- The School Bond Cycle: School districts issue bonds to borrow against these inflated property values. The system functions like a Ponzi scheme, where new bonds are issued not to pay off old debt but simply to cover the interest.
- Constitutional Concerns: The argument is that property taxes are unconstitutional because they tax unrealized gains on a property’s value.
- Systemic Risk: This practice has created a significant systemic risk, evidenced by an estimated $5.1 trillion in unpayable school bond debt nationwide.
- Real-World Examples: This is seen in small towns with multi-billion-dollar bonds and in households burdened with debt nearly equal to their home’s value.
- Predicted Outcomes: The system will eventually lead to either a controlled demolition (replacing property taxes with a sales tax) or an uncontrolled collapse marked by widespread defaults, a banking crisis, and dollar debasement.
