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Part 1: The definition of "Rule of Law". Glenn Greenwald speaks about America's two-tiered justice system and why he wrote his latest book, "Liberty and Justice for Some". (Available on Amazon.com: http://amzn.to/tAANlP) Recorded at Claremont-McKenna College on 4 November 2011.

In 1937, on the eve of a major policy mistake, U.S. economic conditions were surprisingly similar to those in the nation today. Consider, for example, the following summary of economic conditions: (1) Signs indicate that the recession is finally over. (2) Short-term interest rates have been close to zero for years but are now expected to rise. (3) Some are concerned about excessive inflation. (4) Inflation concerns are partly driven by a large expansion in the monetary base in recent years and by banks' massive holding of excess reserves. (5) Furthermore, some are worried that the recent rally in commodity prices threatens to ignite an inflation spiral.     While this summary arguably describes current trends, it is taken from an account of conditions in 1937 that appears in "The Mistake of 1937: A General Equilibrium Analysis," an article I coauthored with Benjamin Pugsley. What we call "the Mistake of 1937" was, in broad terms, a decision by the Fed and the administration to implement a series of contractionary policies that choked off the recovery of 1933-37 and brought on the recession of 1937-38, one of the worst on record. What is particularly noteworthy is that the inflation fears that triggered the Mistake of 1937 were largely driven by a rally in commodity prices. These circumstances invite direct comparison with our own time, when a substantial recent rise in commodity prices (which now seems to be abating somewhat) stoked inflation fears and led some commentators to call for an increase in the federal funds rate.     The question for the contemporary reader is this: If we could transport a modern-day economist back to 1937, would he or she have made the same mistake? My suggested answer-admittedly somewhat hopeful-is no. I base this view on the fact that most economists today distinguish between the temporary movements in the consumer price index that stem from volatility in commodity prices and the movements that reflect fundamental inf

It is not democracy that keeps western nations at war, but armies and the interests now massed behind them. The greatest speech about modern defence was made in 1961 by the US president Eisenhower. He was no leftwinger, but a former general and conservative Republican. Looking back over his time in office, his farewell message to America was a simple warning against the "disastrous rise of misplaced power" of a military-industrial complex with "unwarranted influence on government". A burgeoning defence establishment, backed by large corporate interests, would one day employ so many people as to corrupt the political system. (His original draft even referred to a "military-industrial-congressional complex".) This lobby, said Eisenhower, could become so huge as to "endanger our liberties and democratic processes".

Glenn Greenwald studied law and spent ten years as a litigator in federal and state courts across the country. Now he's a big two-fisted progressive blogger and columnist for Salon.com. And he's out with a blistering critique of what has happened to American law. We've stopped applying it to everyone, says Greenwald. We've carved out an exemption for Americans in the halls of power. We've created what Greenwald calls a "lawless elite" that is running roughshod over our economy and national policy. Over American law. This hour On Point: Glenn Greenwald, and liberty and justice for some.