• With: Sarah Palin

    This is a rush transcript from "On the Record," July 26, 2013. This copy may not be in its final form and may be updated.

    GRETA VAN SUSTEREN, FOX NEWS HOST: Did you hear the word "phony"? Both President Obama and his press secretary using the same word, phony, to describe very real problems. Coincidence or cooked up together?

    Former Alaska governor Sarah Palin joins us. Good evening, Governor.

    SARAH PALIN, FOX NEWS CONTRIBUTOR/FORMER ALASKA GOVERNOR: Hi, Greta. You know, you have to ask yourself which one does he consider being a phony scandal. I think that this is a trophusin (ph). It's not a coincidence that he and his spokesperson, that they're all using this term, phony scandal.

    It's like Jonah Goldberg asked this morning, which one does he consider phony? Would it be Benghazi, where 200-plus years of honorable military ethos was thrown out the window when we left our own behind to be slaughtered by radical Muslims? And you know, does he consider it a phony scandal when we understand now that our government spies on us and then government lies to us? Which one does he consider specifically as a phony scandal?

    VAN SUSTEREN: You know what I don't understand? I mean, look, I understand saying something off the cuff and choosing a bad word, and it happens us to all of us and then we regret and we get pounded by someone for saying it or writing it or whatever. But this was actually -- the fact that it was the press secretary saying it on one day, when they're supposedly talking about an economic speech, when he was foreshadowing what the president's going to do, this big economic speech, and then the president does the same thing, and so it's obviously calculated. They got it together.

    But they must know that there are a lot of Americans who feel targeted by the IRS or you've got Brian Terry's mother or Sean Smith's mother, is why would they think that was OK or smart to do?

    PALIN: Yes, well, it -- again, I think -- it is all coordinated. These aren't coincidences. And the terms that they're using and the distractions and diversions that they're kind of shoving down our throats right now, and you know, that's pretty sad.

    Greta, the bottom line is something's up, and what Obama is doing right now is trying to run out the clock for some reason, and they're orchestrating chaos. But as they're running out the clock, it's like the stall play in a basketball game. They're hogging the ball, and it's unproductive and it's cowardly and nothing good is going to come from this.

    And what happens during a stall play is the crowd, they get up and leave. Even hard-core fans are saying, Oh, you know, this is cowardly and it's unproductive, I'm out of here. The only fans that aren't going to bail on this stall play that we're all observing is still the media, the mainstream media. They're going to stick with this because they're part of the problem, and it's going to be to the detriment of the profession of journalism, and it will be to the detriment of a free America as we know it!

    And we saw what happened back in 2008 -- I believe that's when it started -- when the media decided to just go along to get along with Obama, ingratiating themselves with him and vice versa. What we saw was these attempts to destroy the whistle-blowers, those who were telling the truth even in the campaign, those who were bringing up the name Jeremiah Wright and the racist church that he leads that Obama was a member of for over 20 years.

    Though I was during the campaign running for VP, I was banned from talking about Jeremiah Wright and Obama's friend, Bill Ayers, who is the character that he befriended and kicked off his political campaign in the guy's living room.

    Couldn't talk about that. Couldn't talk about Obama's lack of knowledge and job experience and the things that he said, like America had 57 states, things like that.

    In the campaign -- Greta, this is important for Americans to understand -- I was not allowed to talk about things like that because those elitists, those who are the brainiacs in the GOP machine running John McCain's campaign at the time, said that the media would eat us alive if we brought up these things.

    So what did that get us, though? What that got us, this kind of complacency and self-censoring of a campaign where we weren't allowed to tell the truth about who this candidate was, Barack Obama. What it got us was a list of these scandals. This is kind of the redneck version of one of those elitist tactics of Karl Rove, how he uses his whiteboard. This is the redneck version of a whiteboard. And on this list, the scandals that are destroying America, Greta!

    VAN SUSTEREN: You know what, though? I'll tell you what I think is somewhat different as time goes on is I think that, you know, the credibility of the media, and I include, you know, myself in the media, that we're hovering about around near where Congress is, which is not very impressive.

    And I think that the American people have discovered search engines and more and more have computers, and when they Google one, they see that the president said in early May, for instance, that this tax thing was -- this tax targeting by the IRS was a very serious matter, and then they see that Lois Lerner takes the 5th, and now they see the president's making fun by saying it's phony -- is the American people just aren't that stupid!

    You know, I don't think they're going to -- I think at some point, they're going to look at us in the media and think we're just a bunch of fools. We don't have any credibility anyway.

    PALIN: Well, no kidding!

    VAN SUSTEREN: And they're going to rely on...

    PALIN: No kidding!

    VAN SUSTEREN: They're going to rely on themselves, I would think, you know, because, you know, they're just not going to buy it. They -- you know, the check -- they fact check us.

    PALIN: Of course! Of course! That goes without saying! Americans are smarter than what the lamestream media is giving them credit for. They're doing their own homework and they're figuring out the hypocrisy and the lies coming from this government because as you just have listed some of the problems of this hypocrisy and the lies coming from the Obama administration, I think, So what? What's going to happen? What are the ramifications of this corrupt and overburdensome government of Obama's?

    Nothing is going to happen because the referee in all of this is supposed to be cornerstone of democracy, our media, and they won't do their job. They're lapdogs for Barack Obama. And very unfortunate, very, very dangerous, but the American people full of hope, full of knowledge, full of patriotism and good intent -- we are the ones doing the job that the media could, should be doing! For shame that the media's going to continue what they're doing!

    VAN SUSTEREN: Governor, thank you. And I'm giving you the last word on the media of which I'm part of. Governor, thank you very much for joining us.

    PALIN: Thank you.