Sunday, July 11, 2010

NYers go for the border

WASHINGTON -- New Yorkers are among the most generous donors to a legal defense fund set up to fight President Obama's challenge to Arizona's crackdown on illegal immigrants.

Nearly 300 New Yorkers have ponied up $11,956 online to the fund that this week had raised almost $700,000, according to numbers compiled by the Arizona Governor's Office.

Donors from only five other states have given more to the effort than New Yorkers. And four of the five states that gave more are on the southern border.

"It's just the right thing to do," said Robert Meigs, of upstate Ontario, who donated $100.

He and his wife learned about the legal relief fund on Facebook, at www.keepazsafe.com, and chipped in online.

"The federal government isn't doing their job, and [Arizona] is just trying to enforce the laws," said Meigs, 66, who works as a sales assistant at Staples.

Steven Padin, a cop from Buffalo, donated $10 as a "symbolic" gesture.

"I feel very strongly about the security of this country," he said.

Like many of those giving to the fund, Padin is a strong proponent of legal immigration.

Ironically, he is Hispanic, with Puerto Rican roots.

But he simply cannot understand why the federal government does not secure the borders.

Every year, the 25-year veteran of the Buffalo Police Department travels to Mexico and other countries south of the border on a volunteer goodwill mission to teach police tactics.

On one of his trips, he got to know a man who wants to come to America legally.

"He was an honest person, hardworking. He wants to come here the honest route," Padin said.

But his application is stuck at the end of a very long line, while millions illegally pour over the border.

"A lot of them are just taking advantage of the extremely liberal hand some of the governments here have, such as New York," Padin said.

Arizona Gov. Jan Brewer set up the legal defense fund after signing into law her state's new immigration legislation.

That law would essentially direct state officers to begin enforcing the federal immigration laws by questioning those they stop about their status, a move that Arizonans say is a reaction to lax federal enforcement.

It wasn't until last week, when Obama's Justice Department launched a lawsuit against the Arizona law, that the money really began pouring in.

More than $300,000 flowed in during the 48-hour period after Obama's lawsuit was filed.

Overall, donations have come from more than 9,000 contributors, giving anywhere from $1 to $2,000.

Senate Democrats yet to lock down votes for financial regulations bill

As he shepherded a far-reaching and ever-expanding bill to remake financial regulations through the Senate during the past year, Sen. Christopher J. Dodd uttered the same warning again and again: Nothing's finished until everything is finished.

The Connecticut Democrat's wariness persisted as he tried to maintain the legislation's core elements despite harsh criticism from Republicans, aggressive lobbying from the financial industry, demands from lawmakers holding key swing votes, defections from Democrats and an all-night negotiation session.

It persists even as the finish line is in sight.

The House last week passed the 2,300-page bill, which among other things would create an independent consumer bureau within the Federal Reserve to protect borrowers from lending abuses, establish oversight of the vast derivatives market and enable the government to wind down large, failing firms.

The Senate could hold a final vote next week. But it won't be a cakewalk. Democrats need 60 votes to overcome the threat of a GOP filibuster, and getting that could prove difficult, at least in the short term.

For starters, the recent death of Sen. Robert C. Byrd (D-W.Va.) left Democrats minus a vote, and aides said party leaders are waiting on West Virginia Gov. Joe Manchin III, a Democrat, to fill the empty seat before moving forward. Even then, the math doesn't get any easier.

When the Senate passed an earlier version of the bill in May, four Republicans supported it: Sens. Olympia Snowe and Susan Collins of Maine, Charles Grassley of Iowa and Scott Brown of Massachusetts. Two Democrats -- Maria Cantwell of Washington and Russ Feingold of Wisconsin -- opposed it, saying it didn't go far enough.

Cantwell, pleased with changes made to provisions dealing with financial derivatives, has said she will vote for the amended bill. Collins has also voiced support.

Grassley and Brown have remained noncommittal. Both have expressed concerns about efforts to make the bill budget neutral by ending the Troubled Assets Relief Program early and applying estimated savings from the unused funds toward the cost of the bill, as well as by raising premiums paid by banks to the Federal Deposit Insurance Corp.

Democratic aides said they aren't counting on Grassley's vote but are hoping for Brown's, considering that Dodd made notable changes to the bill based on some of the freshman senator's concerns. In either case, Democrats are hoping the margin isn't as razor thin as the last time around.

"We usually need one or two more [than 60], because no one wants to be the 6oth vote," said Jim Manley, spokesman for Senate Majority Leader Harry M. Reid (D-Nev.). But, he added, "once we have the votes lined up, we won't hesitate to go to the floor" for a final vote.

Measures dealing with unemployment insurance and small-business jobs will compete for time on the Senate floor as lawmakers return from recess. But final passage of the financial bill would hand President Obama a second big legislative victory this year, behind the health-care overhaul. Democratic lawmakers, who had hoped to secure passage before the Fourth of July, will be pushing to finish as soon as possible.

Lebanon UN force urges co-operation with peacekeepers

The head of the UN peacekeeping force in southern Lebanon has appealed for calm, following recent incidents in which villagers attacked soldiers.

Locals were angered by what they saw as plans by the UN force to undermine the Hezbollah militant group in the event of a renewed conflict with Israel.

The area is a Hezbollah stronghold.

In an open letter to residents, Maj Gen Alberto Asarta Cuevas said the best way to deal with any concerns was through dialogue, not by beating peacekeepers.

In the latest of the clashes, villagers on Saturday disarmed a French patrol of UN peacekeepers in the village of Tuline and attacked them with sticks, rocks and eggs before the army intervened.

Residents have complained that Unifil has stepped up its patrols in southern Lebanon, which has been under the de facto control of Hezbollah since the withdrawal of Israeli forces in 2000.

Open letter A wounded villager next to a damaged Unifil vehicle in the southern Lebanese village of Tuline, 3 July There have been a series of clashes between residents and peacekeepers

"As you all know, some recent incidents have cast a shadow on the positive environment in which Unifil peacekeepers have been working, in close co-ordination with the Lebanese army, for your safety and security," Maj Gen Cuevas said in a rare open letter released on Thursday.

The UN commander said Unifil respected the privacy and property of the villagers in the south, and that problems should be resolved by discussion "not by obstructing the work of the peacekeepers or by beating them".

Tensions in southern Lebanon have increased after recent Israeli claims that weapons were flowing in to Hezbollah fighters.

Unifil should always carry out its role... in a way so as not to arouse mistrust and worry of citizens as was the case during the latest exercises

Naim Qassem Hezbollah leader

On Wednesday, the Israeli military published an aerial photograph purporting to show Hezbollah weapons caches in the southern Lebanese village of al-Khiam.

Following the recent clashes, Hezbollah - which fought a devastating 2006 war with Israel - urged the peacekeepers to stick to their mandate.

"Unifil should always carry out its role... in a way so as not to arouse mistrust and worry of citizens as was the case during the latest exercises," Hezbollah's number two, Naim Qassem, said in a newspaper interview.

The UN Security Council is due to meet later on Friday, at France's request, to discuss the confrontations and reaffirm the peacekeeping force's right to free movement.

The UN force was originally formed in 1978 after Israeli troops entered southern Lebanon and began a 22-year occupation.

Security Council Resolution 1701, that ended the 2006 war, expanded the mandate of Unifil and paved the way for the Lebanese army to deploy in the sensitive border area.

The Collapse Is Upon Us

Click this link ...... http://www.youtube.com/watch?v=IEpA__c6CwM

Obama’s Gitmo – Torturing the rule of law

y Chase Madar – orwellsdreams

President Obama may lack the nerve to stare down Liz Cheney or Bibi Netanyahu, but no one can deny that our commander in chief has the guts to take on a child soldier. Come August, a military commission in Guantánamo will try Omar Khadr, a Canadian national captured outside Kabul in 2002, when he was just 15 years old. This will be only the third Gitmo trial and the Obama administration’s first, and there won’t be anything kinder and gentler about it.

But give our government credit for breaking new ground: no nation has tried a child soldier for war crimes since World War II, and the decision to prosecute Khadr has drawn protests from UNICEF, headed by a former U.S. national security adviser, as well as every major human-rights group. The audacity doesn’t stop there: charges against Khadr include “murder in violation of the rules of war,” a newly minted war crime novel to the history of armed conflict. Battlefield deaths do not usually result in murder trials for prisoners of war. But according to the Department of Defense, Omar Khadr is no POW. He’s a non-uniformed, “unprivileged belligerent.” In the euphemistic lingo of Gitmo, Khadr is not even a prisoner, just a “detainee” who has been awaiting trial for the past eight years.

This kind of court action would have made great copy under Cheney and Bush, noisome proof of their barbarity. Now everyone except the Right’s usual panic-merchants is sick of Guantánamo and wishes it had closed, as Obama promised, by the end of 2009. But that deadline has passed, and Gitmo will surely be open next year too. Several reporters told me they had to beg their editors to be sent down to cover the Khadr story.

Anyone expecting to witness eye-popping tableaux of Rumsfeldian cruelty at Gitmo will be disappointed. It’s a military base like many others, except instead of the nearby base town with obligatory pawn shop, strip club, and Korean restaurant, you find an impermeable barrier sealing base dwellers and visitors inside. Overall, it’s not a bad deployment: soldiers can at least get a beer off duty, the snorkeling’s good, and the roads are free of IEDs. Given the paucity of lurid local color, scribblers who take the military flight—a leased Delta aircraft from Andrews Air Force Base—have been reduced to soliloquizing about Guantanamo’s McDonald’s and the banality of evil amid the French fries.

Gitmo’s population continues to trickle away, to a point. Over 600 prisoners have been let go, and of the 50 habeas petitions for release filed since the Boumediene decision in 2008, 36 have been granted. Were these really “the worst of the worst”? Hardly. Still, the Obama administration has announced that it will continue to hold some 45 detainees indefinitely without charges, one of George W. Bush’s most radical policies, now zealously defended by a smoother, smarter team of Democratic lawyers. This is exactly the kind of lawlessness that Harold Koh, a human-rights icon, used to condemn from his bully pulpit as dean of Yale Law. Now, as legal adviser to the Department of State, he’s tasked with justifying indefinite detention.

Of the roughly 180 remaining prisoners, Omar Khadr is the youngest. The 23-year-old is now in the midst of pretrial suppression hearings to determine whether his confession of throwing a grenade that killed a Special Forces medic is admissible as evidence. Few would deny that Khadr was tortured—one interrogator testified that he first laid eyes on the youth hooded and chained to the walls of his cell, standing with his shackled arms extended at head level. The only questions are how much torture, exactly what kind, for how long, and whether it contaminates the confession that Khadr later retracted. The first round of hearings afforded a clear vantage into the legal black hole that Guantanamo very much remains.

The Obama administration has striven to paper over the abyss with a layer of legality. There are new, improved rules for the military commissions, signed by the secretary of defense the night before the hearings began. Alas, they continue to fall short in core areas of juridical fairness. There is no right to a speedy trial, no pretrial investigation to weed out weak cases, and the defense’s requests for witnesses must go through the prosecution. There is no credit for pretrial detention—now nearly a decade for many prisoners—and no right of equal access to witnesses and evidence. Freshly invented war crimes like “material support for terrorism,” retroactively applied, violate the fundamental juridical principle of nulla poena sine lege, no crime without a prospective law.

The greatest flaw is structural: the interference of the “Convening Authority”—the politically appointed head of the commissions—into the prosecutions has been documented again and again. Brig. Gen. Thomas Hartmann, former legal adviser to the Convening Authority, was so blatant in his attempts to secure convictions that he was banned from any involvement in three separate trials for his “undue command influence.” One former chief prosecutor at Guantanamo has said that Hartmann pushed hard for the Khadr case because he thought it would be “sexy, the kind of case the public’s going to get energized about.” Such micromanaging did not endear Hartmann to his colleagues: former deputy prison camps commander at Guantánamo Brig. Gen. Gregory Zanetti testified in 2008 that Hartmann’s conduct was “abusive, bullying and unprofessional … pretty much across the board.”

One might expect that a legal system thus rigged would greatly appeal to its prosecutors. Until now, one would be wrong. Half a dozen prosecutors have quit the commissions in disgust, most with blistering criticisms on their way out. Col. Morris Davis, former chief prosecutor of the commissions until October 2007, said that constant political pressure made full, fair, and open trials impossible: “What we are doing at Guantánamo is neither military nor justice.”

No less scathing is Lt. Col. Darrel Vandeveld, formerly lead prosecutor in another commissions case against a child soldier—a case that collapsed midway through, with the government dropping all charges. “It would be foolish to expect anything to come out of Guantánamo except decades of failure. There will be no justice there, and Obama has proved to be an almost unmitigated disaster,” he told me. After resigning from the commissions as a matter of ethical principle, Vandeveld was punished with a mandatory psychiatric evaluation and gratuitous hearings into his fitness for remaining in the Army, even though he had only four months remaining in his term of service. Vandeveld, who has deployed to Iraq, Afghanistan, and Bosnia, doubts very much that any more prosecutors will resign after his highly visible reprimand.

The new head of the prosecution team, Capt. John Murphy, told me proudly that morale has never been higher on his team. Half of the four lawyers looked young enough to have started law school long after 2001, and it is hard to imagine young attorneys quitting the commissions without established careers to fall back on.

This may spell the end to a golden chapter in JAG history: throughout the sordid drama of Guantanamo, the few glimmers of governmental integrity have come from the JAG corps’ dissent. They even earned that ultimate ethical accolade, the disapproval of John Yoo, who scolded the military lawyers for adhering to the rule of law in defiance of the “unitary executive authority” as embodied by torture buffs such as himself.

For its part, Team Obama’s main innovation has been to ban troublesome journalists from the base, a move Bush never dared. On May 6, toward the end of this round of hearings, the Joint Task Force abruptly barred four of the most knowledgeable reporters from returning to Gitmo, accusing them of violating an order that the identity of Omar Khadr’s primary interrogator be kept secret. It doesn’t matter that “Interrogator Number One,” convicted in a 2005 court martial for prisoner abuse at Bagram prison, had already been interviewed by one of these journalists two years ago and that his identity is available in the public record.

One of the banned journalists, Carol Rosenberg of McClatchy, was hounded last summer by a risible and quickly dismissed sexual harassment complaint made by Navy press officer Jeffrey Gordon. Rosenberg is the acknowledged dean of Gitmo journalists. Getting rid of her would be a singularly effective way for the Department of Defense to gain some control over Gitmo’s public image.

And that image remains pretty terrible, even if Camp X-Ray, the open-air cages that held orange jumpsuited detainees for four months in 2002, is now growing weeds. Camp Delta, the detention complex, is rather prosaic. Camp 5, for the least compliant prisoners, is a direct modular copy of a block from the federal prison in Terre Haute, Indiana; Camps 4 and 6, for the most compliant, of Lawanee Prison in Adrian, Michigan. Some detainees are able to take courses in Arabic, English, and art. And so what?

A prison doesn’t have to be an unremitting nightmare to threaten the rule of law. As the ACLU’s Ben Wizner puts it, “At this point, Guantánamo isn’t a place anymore, it’s a principle.” A normal-looking prison that just happens to hold people indefinitely without charge is a more insidious threat to the integrity of the legal system than Camp X-Ray ever was. For this reason, the ACLU does not see transporting the system to Thomson Correctional Facility in Illinois as any kind of progress.

Guantanamo, wherever it is located, runs the grave risk of normalization, a process already well underway. Over a few nights during the Khadr hearings, I read in my air-conditioned tent a law-review article by Prof. Adrian Vermeule, an up-and-comer at Harvard Law School. He proposes that legal black holes—the term was coined by a British law lord expressly for Guantánamo—are not only tolerable but necessary. Any attempt to fill them in with law would be “hopelessly utopian,” “quixotic” even. “Our Schmittian Administrative Law,” published last year in the Harvard Law Review, draws heavily on the work of Nazi jurist Carl Schmitt, lifelong opponent of the rule of law and liberal democracy. A chronic figure of fascination among lefty academics for the cold eye he cast on liberalism’s sacred myths, Schmitt’s ideas had always been held at a prophylactic distance.

No longer. Schmitt’s ready-made conceptual lexicon for political emergencies, non-state combatants, and the need for strident executive authority has proven irresistible to ambitious intellectuals in the revolving door between the federal government and the finer law schools. These tweedy immoralists urge us to relax our square-john commitment to the rule of law and embrace strong executive action. Surely the moralizing banalities of rule-of-law theorists are inadequate for the unique challenges of the post-9/11 global order, they tell us.

But after the events of the past decade, one would be on safer ground drawing the opposite conclusion about the rule of law’s value. Our government responded to 9/11 with extraordinary measures contemptuous of ordinary legality, and nearly every one of them has been catastrophic. From the conquest of Iraq to waterboarding to warrantless wiretapping to the military commissions of Guantánamo, these policies have been exorbitantly costly in blood, treasure, and national prestige. Nor is setting up a shambolic court to try a child soldier who was tortured in custody likely to solve anything. Has any part of our frenzied rejection of legal restraints improved national security?

Vermeule is correct to note that these black holes are likely to dilate rather than contract as an imperialist foreign policy strains our legal system, not only with the panic and fervor of war but with juridical conundrums of extraterritoriality, non-state belligerents, and geographically far-fetched definitions of self-defense. Already a new Guantánamo for indefinite detainees has opened up in Bagram, which will be much less accessible to media, nonprofit observers, and defense counsel.

Meanwhile, the rule of law will continue to suffer rough treatment at the hands of our best and brightest. The concept has been debunked by many postmodern academics as so much high-minded bourgeois blather and, more dangerously, derided by the neoconservative Right as a folktale for chuckleheads. But people in countries where violent lawlessness is rife see the rule of law as something more than rhetorical window dressing. From Colombia to Egypt to Italy to Guantánamo’s neighboring Cuba, citizens who risk their lives against the depredations of organized crime or authoritarian states routinely invoke the rule of law to give meaning to their acts of resistance. Yes, the rule of law may be an ideal—but it is not only an ideal.

Repairing legal black holes in America may start by shutting down Guantánamo, wherever the detention complex ultimately winds up, and radically rethinking our post-9/11 security policies. Indefinite detention in some nondescript prison with a few art classes doesn’t make for splashy headlines, but it marks the beginning of the end of the rule of law.

Saturday, July 10, 2010

The Con of the Decade Part II

The con of the decade (Part II) involves sheltering the Power Elites' income while raising taxes on the debt-serfs to pay the interest owed the Power Elites.

The Con of the Decade (Part II) meshes neatly with the first Con of the Decade. Yesterday I described how the financial Plutocracy can transfer ownership of the Federal government's income stream via using the taxpayer's money to buy the debt that the taxpayers borrowed to bail out the Plutocracy.

In order for the con to work, however, the Power Elites and their politico toadies in Congress, the Treasury and the Fed must convince the peasantry that low tax rates on unearned income are not just "free market capitalism at its best" but that they are also "what the country needs to get moving again."

The first step of the con was successfully fobbed off on the peasantry in 2001: lower the taxes paid by the most productive peasants marginally while massively lowering the effective taxes paid by the financial Plutocracy.

One Year Later, No Sign of Improvement in America's Income Inequality Problem:

Income inequality has grown massively since 2000. According to Harvard Magazine, 66% of 2001-2007's income growth went to the top 1% of Americans, while the other 99% of the population got a measly 6% increase. How is this possible? One thing to consider is that in 2001, George W. Bush cut $1.3 trillion in taxes, and 32.6% of the cut went to the top 1%. Another factor is Bush's decision to increase the national debt from $5 trillion to $11 trillion. The combination of increased government spending and lower taxes helped the top 1% considerably.

The second part of the con is to mask much of the Power Elites' income streams behind tax shelters and other gaming-of-the-system so the advertised rate appears high to the peasantry but the effective rate paid on total income is much much lower.

The tax shelters are so numerous and so effective that it takes thousands of pages of tax codes and armies of toadies to pursue them all: family trusts, oil depletion allowances, tax-free bonds and of course special one-off tax breaks arranged by "captured" elected officials.

Step three is to convince the peasantry that $600 in unearned income (capital gains) should be taxed in the same way as $600 million. The entire key to the U.S. tax code is to tax earned income heavily but tax unearned income (the majority of the Plutocracy's income is of course unearned) not at all or very lightly.

In a system which rewarded productive work and provided disincentives to rampant speculation and fraud, the opposite would hold: unearned income would be taxed at much higher rates than earned income, which would be taxed lightly, especially at household incomes below $100,000.

If the goal were to encourage "investing" while reining in the sort of speculations which "earn" hedge fund managers $600 million each (no typo, that was the average of the top 10 hedgies' personal take of their funds gains), then all unearned income (interest, dividends, capital gains, rents from property, oil wells, etc.) up to $6,000 a year would be free--no tax. Unearned income between $6,000 and $60,000 would be taxed at 20%, roughly half the top rate for earned income. This would leave 95% of U.S. households properly encouraged to invest via low tax rates.

Above $60,000, then unearned income would be taxed the same as earned income, and above $1 million (the top 1/10 of 1% of households) then it would be taxed at 50%. Above $10 million, it would be taxed at 60%. Such a system would offer disincentives to the speculative hauls made by the top 1/10 of 1% while encouraging investing in the lower 99%.

Could such a system actually be passed into law and enforced by a captured, toady bureaucracy and Congress? Of course not. But it is still a worthy exercise to take apart the rationalizations being offered to justify rampant speculative looting, collusion, corruption and fraud.

The last step of the con is to raise taxes on the productive peasantry to provide the revenues needed to pay the Plutocracy its interest on Treasuries. If the "Bush tax cuts" are repealed, the actual effective rates paid on unearned income will remain half (20%) of the rates on earned income (wages, salaries, profits earned from small business, etc.) which are roughly 40% at higher income levels.

The financial Plutocracy will champion the need to rein in Federal debt, now that they have raised the debt via plundering the public coffers and extended ownership over that debt.

Now the con boils down to insuring the peasantry pay enough taxes to pay the interest on the Federal debt--interest which is sure to rise considerably. The 1% T-Bill rates were just part of the con to convince the peasantry that trillions of dollars could be borrowed "with no consequences." Those rates will steadily rise once the financial Power Elites own enough of the Treasury debt. Then the game plan will be to lock in handsome returns on long-term Treasuries, and command the toady politicos to support "austerity."

The austerity will not extend to the financial Elites, of course. That's the whole purpose of the con. "Some are more equal than others," indeed.

The Con of the Decade Part I

The con of the decade (Part I) involves the transfer of private debt to the public (the marks), who then pays interest forever to the con artists.

I've laid out the Con of the Decade (Part I) in outline form:

1. Enable trillions of dollars in mortgages guaranteed to default by packaging unlimited quantities of them into mortgage-backed securities (MBS), creating umlimited demand for fraudulently originated loans.

2. Sell these MBS as "safe" to credulous investors, institutions, town councils in Norway, etc., i.e. "the bezzle" on a global scale.

3. Make huge "side bets" against these doomed mortgages so when they default then the short-side bets generate billions in profits.

4. Leverage each $1 of actual capital into $100 of high-risk bets.

5. Hide the utterly fraudulent bets offshore and/or off-balance sheet (not that the regulators you had muzzled would have noticed anyway).

6. When the longside bets go bad, transfer hundreds of billions of dollars in Federal guarantees, bailouts and backstops into the private hands which made the risky bets, either via direct payments or via proxies like AIG. Enable these private Power Elites to borrow hundreds of billions more from the Treasury/Fed at zero interest.

7. Deposit these funds at the Federal Reserve, where they earn 3-4%. Reap billions in guaranteed income by borrowing Federal money for free and getting paid interest by the Fed.

8. As profits pile up, start buying boatloads of short-term U.S. Treasuries. Now the taxpayers who absorbed the trillions in private losses and who transferred trillions in subsidies, backstops, guarantees, bailouts and loans to private banks and corporations, are now paying interest on the Treasuries their own money purchased for the banks/corporations.

9. Slowly acquire trillions of dollars in Treasuries--not difficult to do as the Federal government is borrowing $1.5 trillion a year.

10. Stop buying Treasuries and dump a boatload onto the market, forcing interest rates to rise as supply of new T-Bills exceeds demand (at least temporarily). Repeat as necessary to double and then triple interest rates paid on Treasuries.

11. Buy hundreds of billions in long-term Treasuries at high rates of interest. As interest rates rise, interest payments dwarf all other Federal spending, forcing extreme cuts in all other government spending.

12. Enjoy the hundreds of billions of dollars in interest payments being paid by taxpayers on Treasuries that were purchased with their money but which are safely in private hands.

Since the Federal government could potentially inflate away these trillions in Treasuries, buy enough elected officials to force austerity so inflation remains tame. In essence, these private banks and corporations now own the revenue stream of the Federal government and its taxpayers. Neat con, and the marks will never understand how "saving our financial system" led to their servitude to the very interests they bailed out.

The circle is now complete: in "saving our financial system," the public borrowed trillions and transferred the money to private Power Elites, who then buy the public debt with the money swindled out of the taxpayer. Then the taxpayers transfer more wealth every year to the Power Elites/Plutocracy in the form of interest on the Treasury debt. The Power Elites will own the debt that was taken on to bail them out of bad private bets: this is the culmination of privatized gains, socialized risk.

In effect, it's a Third World/colonial scam on a gigantic scale: plunder the public treasury, then buy the debt which was borrowed and transferred to your pockets. You are buying the country with money you borrowed from its taxpayers. No despot could do better.