This is a rush transcript from "Hannity," April 19, 2011. This copy may not be in its final form and may be updated.
SEAN HANNITY, HOST: The names Trump and Palin have been the two most talked about people in politics in recent weeks. The duo pulled no punches in separate Tea Party  speeches over the weekend, as they harshly criticized the President Barack Obama 's handling of both foreign and domestic issues alike.
And in a moment I will be joined live by Governor Sarah Palin . But first, earlier today, Donald Trump appeared on "Good Morning America" and once again, raised questions about President Obama's birth certificate.
Let's take a look.
(BEGIN VIDEO CLI FROM "GOOD MORNING AMERICA")
DONALD TRUMP, ENTREPRENEUR: There's a real question about the birth certificate. There's a real question about the -- his own citizenship.
GEORGE STEPHANOPOULOS, HOST: There is -- there is no question. He's got a certificate of live birth that is recognized by the State Department.
TRUMP: George, George, I know exactly what you're getting at.
STEPHANOPOULOS: The facts!
TRUMP: But for some reason -- no, they're not the facts. He doesn't have a birth certificate or he hasn't provided. He's given a certificate of live birth. It's a much different instrument.
STEPHANOPOULOS: A certificate of live birth meets the standard in the State Department for anyone's citizenship.
STEPHANOPOULOS: There were contemporaneous reports in two Hawaiian newspapers.
TRUMP: George, they have co-opted you.
STEPHANOPOULOS: Given the --- no, those are the facts sir.
TRUMP: George, they've co-opted you.
STEPHANOPOULOS: Who's they?
TRUMP: It's not- --obviously, Obama and his minions.
(END VIDEO CLIP)
HANNITY: Now, Mr. Trump also appeared on the "Today Show" this morning and had some kind words about my next guest. Let's take a look.
(BEGIN VIDEO CLIP FROM "TODAY")
TRUMP: I really respect her a lot. She's got a tremendous energy and a tremendous following. I think that she has been very unfairly treated.
(END VIDEO CLIP)
HANNITY: All right. So, could a Palin-Trump and alliance be forming? Here to answer that question and much more, Fox News contributor, former Alaska Governor Sarah Palin. Governor, out there in the warm weather, thanks for being with us.
SARAH PALIN, FORMER ALASKA GOVERNOR, FOX NEWS CONTRIBUTOR: Oh, thank you. And Happy Easter week, Sean.
HANNITY: And Happy Easter week to you.
Well, first of all, I think his characterization was 100 percent rate when he said he respects you a lot. You have tremendous energy, a great following and you've been unfairly treated. You guys are sort of, you've been going back and forth, you had some kind words to say about him and the legitimacy of this question that he's raising. What do you think about the issue in general?
PALIN: Well, first, I do have respect for Donald Trump and for his candidness. I think people are craving that today in the world of political speak that were coming out of the White House. And the confusing messages that come from so many of our politicos, we appreciate that Donald Trump is so candid.
Donald Trump is the one being really treated unfairly, I would say though in the press. When they are hammering him about the one issue that he has brought up and not been shy about, and that's the birth certificate. He's merely answering reporters' questions about his view on the birth certificate. And then reporters turn that around and saying, that's all he's got. He's always running on a birth certificate issue, when that's not the case. Donald Trump is running on the issue, bottom line, that President Obama is so far over his head. He has gotten us on the road to bankruptcy and insolvency and a less secure nation. And Trump and so many of us want to do something about that.
HANNITY: Yes. I watched the interview, and it was interesting to me because Donald Trump kept saying, I don't want to talk about this, I'm dealing with China, I'm dealing with trade imbalances, oil dependency issues and all of this. And you keep asking me about it. And it was interesting to watch Stephanopoulos interrupt him no fewer than seven times. And in all the time that Barack Obama ran for president, he was asked one question about Bill Ayers. Gave speeches with him, sat onboard with him, started a campaign in his house.
You've experienced this double standard. You think it is going to continue through 2012?
PALIN: Well, it certainly will continue if candidates allow it to continue. Candidates need to remember that they have control over the message. Especially thank God, in this day and age of the social media and fair and balanced reporters who are out there wanting to just inform the public. You can talk to them. And you don't have to give the time of day to those who are so obviously biased.
Yes, I was thinking back to on some of those interviews that Obama had given back when he was a candidate. The inconsistencies that he spewed back then, and reporters didn't follow up. Remember, he told Charlie Gibson back in '08 that he would increase capital gains taxes even if it didn't results in more revenue coming into the Feds, just in order to be more fair to taxpayers.
An issue like that, that is so relevant today as we see Obama and now starting to flirt with this idea of increasing taxes on everybody, should have been followed up back then as a candidate. Certainly now, he as our president, he needs to be asked these tough questions.
HANNITY: I watched your speech over the weekend. And then I re-read the transcript. And I thought this was one of the most hard-hitting speeches you gave, more than anything else, against the Republicans. And you went through their promise when they were running in 2010 was, hey, elect us, $100 billions we are going to cut. That got prorated to 61. The deal came out to 38, they said, 38.5 then it was 28.5. And then, you rightly pointed out in the end, we are told according to those that actually, you know, fact checked it, it was only $345 billion, not even a trillion -- I'm sorry $352 million, not a billion.
PALIN: Three fifty two, right.
HANNITY: Yes. So, the question is, and then you went on to say, that that's not courage, that's capitulation. And you said, we didn't elect you just to rearrange the deck chairs on a sinking titanic. Pretty strong words for a fellow Republicans.
PALIN: Right, and I say, with all due respect to those Republicans, who, they got elected with them that promise set they would rein in government growth on the over reach and the over borrowing and the over spending that President Obama has so embraced. We can't just -- we can't afford to have any of the GOP in there, or the Blue Dogs Democrats, the Reagan Democrats, be a part of Obama's very radical agenda which as I say is putting us on the road to bankruptcy. We are flat broke. It makes absolutely no sense to capitulate, and say OK, we'll throw in cowboy poetry and pretty monuments and more museums and maybe some road projects that we don't need.
Certainly some services provided by the Feds that maybe states could be providing. And so many things that are thrown into this budget. And yet, we feel that we need to what, strike a deal with the losing party? The party just lost in 2010.
And the problem right now Sean, seems to be that the GOP leadership seems to be a little bit hesitant to understand that, that there was a mandate in the 2010 election and that was we were going to send a new freshman class into Congress to start cleaning things up, shrinking government, and allowing the private sector to thrive.
HANNITY: See, I agree with you, I think this is a bad deal, and I think this is a broken promise and I think there was too great a fear that they would be blamed for a government shutdown. You even took it a step further, you said, we didn't elect you for this. We elected you to fight, and, you know,what, maybe you need to learn how to fight like the girl's hockey team in Wisconsin that won the championship.
So, it's pretty harsh words for you. What should they have done in your estimation that would have been the right thing that you would have supported?
PALIN: Well, first, they need to acknowledge that really even a $100 billion cut down to $61 billion down to $38 billion, down to really less than $1 billion, that is not even a cut. We need to remember that this year's budget is more than last year's budget. We are still at record smashing levels of spending other people's money in the federal government. So, nothing is being cut. We are taking back a little bit of what Obama is requesting in terms of government growth. But it still isn't a cut.
So, the GOP needs to first acknowledge that. And then be so committed, so committed to telling Obama, no, the 2010 election was a mandate. Tea Party Americans are the ones who led that mandate, where, no, things were not going to be done the same way as they have been done in the past. And, now, we enter a new ring, Sean, and in that new ring comes the fight for the debt ceiling. And there needs to be an understanding in the GOP leadership that we cannot provide another tool for the liberals to just incur more debt, and that's what raising the debt ceiling is going to allow, again.
HANNITY: All right. I'm hearing rumors that they are telling their private caucuses that they are lowering expectations. And inferring they're not going to fight, when we come back, Governor. I want to ask you what happens if they don't fight? What will be the reaction of the people that voted them into office?
We'll have much more with Governor Palin straight ahead.
HANNITY: As we continue on "Hannity," and we continue tonight with former Alaska Governor Fox News contributor Sarah Palin.
All right. So, I want to go back to these comments that the Republicans didn't show courage but they showed capitulation, that they need to fight. Governor, here's -- I know for a fact, there are sources I have that there's a real divide within the caucus. And most Republicans seem to be coming down on the side that they can't be too contentious, can't battle too hard. And there's a lot anger towards conservatives like myself, like you, Rush, like Levin, talk radio. That we are saying why didn't you guys fight here?
Here's my next question, next battle is going to be over the debt ceiling. And all indications I'm hearing is the leadership may not be ready to fight on this. And then even Tim Geithner said no, no, no. They've gotten the OK that there's not going to be a big battle over this. What do you think the fall-out reaction will be if in fact, they don't fight on that issue?
PALIN: Well, if they don't fight on that issue, and if they don't fight going into the 2012 elections, we need to remember that losing is not an option. Or our country will be owned by foreign countries and we will be obviously less secure. We cannot afford to lose. We cannot afford to incur more debt. Debt is the foundation of destruction. Look at what has happened over the years in Germany, and Poland and Greece and so many of these other countries. We just need to look at what has happened to these other countries. Learn their lessons and not repeat it. Increasing debt in America will just put us on that road that those other countries were already on.
No, we need to fight, we need to fight so hard going into 2012 to get somebody elected who has executive experience, who hasn't just been part of this herd mentality of trying to manage the public, the public doesn't need to be managed and control. We need freedom. The private sector needs freedom. So, we can't start giving in on things like these budget deals and increasing the debt ceiling, and certainly not in these elections coming up.
HANNITY: You said to the GOP establishment, you send a message. If you stand on your platform, if you stand on your pledge, we'll going to stand with you. You said, we'll fight with you, we'll have your back and together we all win because America wins.
HANNITY: You're talking about a very specific person. You've been kind of quiet on the issue of whether or not you are still thinking about contemplating a run for the presidency yourself. Where are you in your process?
PALIN: Well, I think it is still too early to declare candidacy. I think it is too early for anyone. Right now my concentration is on getting that message out to the GOP leadership and to the other side. Those who are reasonable and will listen that we cannot keep going down the path that we are on. I'm so encouraged though by the Tea Party Americans, let's go back to Trump. Look where he was last weekend? He was speaking at a Tea Party, that shows you that Tea Party Americans are influential, that they are big tent, and that they are independent. They want to hear from Trump. They want to hear from all who have common sense, pro-private sector, pro- business ideas. And the Tea Party movement is going to grow and strengthen and -- go ahead.
HANNITY: But not to belabor the point Governor, a lot of the other candidates have now formed exploratory committees in anticipation of a run. Exploratory committee, soon?
PALIN: You know, that isn't even on the radar that type of step yet. Because I do think that even that is early. And, you know, I've never really run for anything conventionally over the last couple of decades, be at the city council or (INAUDIBLE) or mayor, city manager, governor, anything like that. I've just jumped in there and done it when I've known that it is the right thing to do. So, it's going to be an unconventional run if I do chose to do that.
HANNITY: You also in fairness, you had very harsh, very strong words for President Obama, on a whole variety of issues. Not the least of which is that, he didn't fulfill most of the promises that he has made. You even said at one point, win the future, when you said, WTF is about right, which is pretty funny line. Then you went through how he's ignored the debt, ignored the deficit spending, rammed through Obama care, et cetera, et cetera. In that sense, who do you -- when you look at these candidates who jumps out at you as somebody, if you don't get in that you can wholeheartedly support and then you think can win this future that you are talking about.
PALIN: No one yet. I want to keep hearing their ideas. I want to know their experience, their executive experience. I want to know of their record in office and in the private sector to know that they have a foundation that can be built upon in that presidency.
But no, I did call President Obama out for his lies. Sean, he told us that he would cut the deficit in half. And yet he tripled it. He told us that he would be fiscally responsible. And yet he crammed down a nearly trillion dollar useless stimulus package that didn't stimulate anything except more debt. And as I said over the weekend, wonderful Tea Party Movement.
No. He has lied to the American public. And we are saying, enough is enough, and that's why we want to fight. That's why we want to encourage those with us that common sense, that love for country, that conscientious and very, very real and genuine concern for where we are headed for what we are doing to our children and our grandchildren's opportunities. We want to be unified and we want to go forward in a fight, if we must against the liberal left who just doesn't get it. Or if they get it, they are doing this on purpose, trying to destroy too many good things about our country.
HANNITY: I agree. I think it's time to fight is now. I hope people, Republicans, conservatives, Tea Party members, I know the Tea Parties there are on your side.
By the way, Governor, I got to give you credit here. You have the most interesting backgrounds. Last time, one time we had a plane taking off in your backyard. You got somebody playing behind you over there, and I will tell you, I think you have the best backgrounds of any guests we have. We appreciate you being with us.
PALIN: Hey, thank you so much. It is about 60 degrees warmer than it is in Wasilla where I am today, so this is heaven.
HANNITY: All right. Governor Palin. Thanks for being with us.
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