This is a rush transcript from "Hannity," October 3, 2013. This copy may not be in its final form and may be updated.
SEAN HANNITY, HOST: Now, for years, President Obama has been preaching, we need civility in politics, but he may want to have a little chat with these democratic cohorts. Watch this.
PRESIDENT BARACK OBAMA: Only a more civil and honest public discourse can help us face up to the challenges of our nation.
SEN. HARRY REID, D-NV.: It's embarrassing that these people who are elected to represent the country are representing the Tea Party, the anarchists of the country.
OBAMA: I hope that we will continue to engage each other with the spirit of civility and seriousness that has brought us this far.
JAY CARNEY, PRESS WHITE HOUSE SECRETARY: They are attempting to extort the American people in many ways, and the economy in order to get their partisan objectives.
DAN PFEIFFER, OBAMA SENIOR ADVISER: What we are not for is negotiating with people with a bomb strapped in their chest.
OBAMA: I do believe there is hope for civility, I do believe there is hope for progress.
REP. NANCY PELOSI, D-CALIF.: This is playing with the fire. Legislative arsonists at work.
REID: Doesn't take a genius to figure out that the proof is watching the House Republicans, because they have lost their minds.
OBAMA: I still believe we can replace acrimony with civility and gridlock with progress.
HANNITY: Wow. Well, you weren't hearing there, folks. Those are Democrats, you know, liken GOP members to suicide bombers, bombs strap on them, anarchists. Let's see, arsonists, extortionists, blackmail, terrorist, you name it, they got it all. Anyway, launching a Jihad.
Joining us now to respond to the pretty disgusting rhetoric is Utah Senator Mike Lee.
You know, first the obvious. What a phony hypocrite the president is. He goes, "We want them to think better of us." Remember, he said that at the memorial for Gabby Giffords -- not the memorial but for the memorial for the other people after the Tucson shooting?
SEN. MIKE LEE, R-UTAH: Yes, he did. And, you know, civility is a great thing. We need more of it in government. Apparently civility to them means, just agree with us. Just do whatever it is that we demand. And by the way, if you don't we'll call you an anarchist, an arsonist, and a terrorist and every other kind of bad "ist" there is in the book.
This isn't civil. This is the opposite of civility. And frankly, the president and the other people responsible for the statements should be ashamed to themselves. Especially because they are so utterly inconsistent with the manner in which they are behaving.
HANNITY: Yes. All right.
Let me go to Harry Reid yesterday. And what -- I like what the House is doing, the House has actually funded the national parks, D.C. and America's veterans and our V.A. and the NIH and our National Guard. They are passing all these bills to keep the government running. Now, the President says, he'll veto them. He won't negotiate with the Republicans. Neither will Harry Reid take these bills up. And Harry Reid is asked the question about one kid with cancer. Watch this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED WOMAN: But if you can help one child who has cancer why wouldn't you do it?
REID: Listen --
UNIDENTIFIED MAN: Why one against the other?
REID: Why would we want to do that? I have 1,100 people at Nellis Air Force base that are sitting home. They have a few problems of their own. This is -- to have someone of your intelligence suggest such a thing is irresponsible.
UNIDENTIFIED WOMAN: I'm just asking as question.
(END VIDEO CLIP)
HANNITY: Why would I want to help one kid with cancer? Wow. Your reaction.
LEE: Sean, he's shocked, first of all, that someone from CNN would go off script and actually challenge him. This is not something that he's used to.
But this exposes what the Democrats are doing here, Sean. And what the Democrats are doing here is they are saying to us, unless you are willing to fund everything we won't allow you to fund everything. Unless you are willing to fund ObamaCare, we won't let you fund benefits for veterans.
You know, that's pretty twisted, that's wrong. The American people demand better. They are tired of this kind of collusive spending in which members of Congress are just willing to hit the reset button once a year, keep all government spending, all 3.7 trillion of it intact and not question anything. That's what we've got to fight, that's what we've got to stop. That's what this is about.
And this presents us with a painful but legitimate opportunity to re-examine the way we spend money in Washington.
HANNITY: What do you think -- how does the president explain this that he won't even negotiate? It's his way or the highway.
You know, look, I have often said this president's arrogant. But that's the height of arrogance, isn't it? Isn't that the way things work in Washington?
LEE: Yes. It's the height of arrogance and hypocrisy, the fact that he says that we are unreasonable. And meanwhile, it's only Republicans that have actually acted several times now to keep the government running. It's only governments that have acted first to prevent and now undo a government shutdown. We have acted again and again and again with some very bold, noble leadership from Speaker Boehner and from Majority Leader Cantor and others in the House of Representatives who have acted time and again to fund government. And yet Harry Reid and the Democrats in the Senate, they'll have nothing of it. Because again, they're telling us, unless you vote to fund everything including ObamaCare, they won't let us fund anything, even at current levels.
HANNITY: My way or the highway.
Now, it's very interesting, because the president is now taking this position where he won't negotiate which is kind of laughable because they're shutting down the government. I'm convinced, Senator, that he wants to bring these two issues together of the CR and the debt ceiling which is going to create a crisis. And the president was talking down the markets -- which I have never seen the president do before -- in an interview with CNBC.
Let's go back to the president in 2006, remind people what he said. First he said that, "The fact that we are here today to debate raising America's debt limit is a sign of leadership failure, it's a sign the U.S. government cannot pay its own bills. Over the past five years our federal debt has increased by $3.5 trillion to $8.6 trillion. That's trillion with a T. The rising debt is a hidden domestic enemy."
And then he said this during the campaign. Watch this. OK. Hang on a second. He said, this is when he called the Republicans unpatriotic and irresponsible for increasing the debt to $9 trillion. Now we are voting on a debt limit that's going to hit $16.5 or $17 trillion. Senator?