• This is a rush transcript from "On the Record," May 31, 2011. This copy may not be in its final form and may be updated.

    GRETA VAN SUSTEREN, FOX NEWS HOST: Here's Governor Palin on her "One Nation" bus tour.


    VAN SUSTEREN: So Governor, we're on the bus. Whose idea was this bus?

    SARAH PALIN, FOX NEWS CONTRIBUTOR/FORMER ALASKA GOVERNOR: You know, Todd had this idea. He was reading on an airplane some months ago an article by Thomas Sowell, and in this article, Thomas Sowell was talking about our economy and how to get it back on the right track and how much of the solution has to do with the foundation of America.

    And Todd -- he texted me when he landed at the airport and said, You know, we need to remind America about our charters of liberty, about our Constitution, about our Declaration of Independence and how America was built on this idea of individual power within us, and then collectively, how we all work together to create this great union. We need to remind America how important it is to protect all that's good about America as written out in our Constitution and our Declaration of Independence. Go around the country and start talking about it.

    VAN SUSTEREN: All right, you...

    PALIN: Right on!

    VAN SUSTEREN: You've obviously driven the media nuts. I don't know if you've noticed that. But I mean, everybody's talking about it. Everyone's trying to find out where you're going, what are you doing. What do you say about that because it's -- it -- everybody's been talking about it.

    PALIN: Well, you know, I know that many in the mainstream media are looking for kind of a conventional -- a campaign-type tour. And I've said from the beginning this isn't a campaign tour, except to campaign on our Constitution, our charters of liberty. And they want kind of a conventional idea of, We want a schedule. We want to follow you. We want you to bring us along with you.

    I'm, like, (A) I don't think I owe anything to the mainstream media. I think that it would be a mistake for me to become some kind of conventional politician and doing things the way that it's always been done with the media in terms of relationship with them. Tell them to come on along and then we'll orchestrate this, we'll script this, and we'll basically write a story for you, media, about what we're doing every day.

    No, I want them to have to do a bit of work on a tour like this, and that would include not necessarily telling them beforehand where every stop is going to be. You know, if they -- we'll do a stop. We'll do a lot of OTRs, off the records. We'll meet a lot of great Americans. And then I'll write about that at the end of the day.

    And it's not about me. It's not a publicity-seeking tour. It's about highlighting the great things about America. And the media can figure out where we're going if they do their investigative or they are going to keep kind of , as you put it, going crazy trying to figure out what we're doing.

    VAN SUSTEREN: Are you having a little fun tweaking them, though? I mean, on your website, it doesn't say where you're going. I went to your website. We're all trying to figure out -- even -- I mean, we're colleagues, both Fox News Channel. But I went to the website because I don't know the schedule. Are you having sort of fun teasing us a bit?

    PALIN: It's always been unintentional, my tweaking of the media. I just am who I am. And I've always said that I'm not, you know, the conventional status quo politician. On something like this, I'm going to be out there talking about the good things about America.

    Greta, we have very, very heady days in front of our country. We're going bankrupt. We have national security issues that I believe are not being addressed adequately. And in order to know where we have to head as a country, we have to know where it is that we came from, what our foundation is. And that's what we're going to be talking about in these days ahead on this tour, highlighting the good things about America, reminding Americans why we need to restore what's good about America so that we can address these tremendous challenges in front of us.

    The last thing I worry about, really, is the mainstream media and how they are going to perceive me, my family, my friends as we go along the way this summer.

    VAN SUSTEREN: I went on your Facebook page in preparation for this, and you had a posting on the G-8, the fact that the G-8 has pledged money to Egypt and the United States I think is in it for $2 billion. You oppose it. Why?

    PALIN: I oppose it -- A, we don't have the $2 billion! Where are we going to get it? We're going to go borrow it perhaps from China? We'll borrow money from foreign countries to give to foreign countries. That's bad enough.

    What's really bad, though, is not knowing what's coming in Egypt. Their elections are coming up. Who's poised to take control of the Egyptian government? It's the Muslim Brotherhood! And if that were to happen, there's even more questions as to why would our U.S. dollars go to support a government that perhaps will not be friendly to the American government. We need to make sure that...

    VAN SUSTEREN: That's the whole -- I think the point...

    PALIN: What, that we're going to buy their good will?

    VAN SUSTEREN: Well, I -- look, I'm not suggesting I have the answer for any of this stuff, and I don't think anybody does. But I think the fact that we want to sort of help them have a democratic process -- I think that's the thinking. That will somehow, you know, help us rather than hurt us.

    PALIN: Then we would be able to buy their good will with $2 billion of borrowed dollars coming from the U.S.? I don't think so. I'd like to reverse that and say, Prove to us, Egyptian government, that you are going to allow the freedom, the democratic principles in your country to allow the individual power of the Egyptian people, and you will be working with America. We can support you. Prove that you are going to do this first, instead of, Hey, here's 2 billion bucks that we had to borrow. We'll give this to you, and you know, we'll cross our fingers and hope it does some good. I'd like to see that reversed.

    We have to start doing things differently than the way we have been doing things in the last few years. Otherwise, as I say, we will be bankrupt. We will continue to have this foreign policy that essentially is snubbing our friends and rewarding those who have not always been good to America, coddling some enemies. We have to reverse that and do something differently.

    VAN SUSTEREN: I think -- I mean, foreign policy always, you know, is enormously complicated. And I mean, if you take the idea of sort of, you know, buying our friends -- Pakistan is a good example, is that the reason we give money to Pakistan, who's not particularly friendly us to at all times -- and of course, bin Laden was -- was there -- is that we fear that Iran will move in if we move out. We oftentimes have to do that in foreign policy. Do you -- do you disagree with that strategy?

    PALIN: I don't disagree with the idea of providing foreign policy if we know that the money will go to helping the people who live in a country. If there is corruption in the government and we're still providing borrowed money from the U.S., it doesn't make any sense to continue down that road. That's what I mean by having to rethink the way that we provide the foreign aid.

    Here, you use Pakistan as an example. That's a good example. You know, some people are saying, Well, what good did it do us to be providing over these years these billions to Pakistan? We're doing that, and yet some are quibbling over whether we should provide foreign aid to Israel, to our allies there, where we have faith that the money does go to help the democratic principles in a country allowing freedom. And that, of course, is one of the reasons we love Israel is the freedom that they allow their people.

    VAN SUSTEREN: But I guess that -- I mean, I go back to Pakistan, is that suppose that -- I mean -- I mean, when we give them $7 billion or whatever, we don't know where it goes. And yes, there is corruption in government. What's the alternative, just to say simply no and walk away?

    PALIN: We can't be satisfied with just not knowing where our billions of dollars would go...

    VAN SUSTEREN: How do we do that? How do we do that?

    PALIN: That's what Secretary Clinton is for. That is what our diplomats and our bureaucrats are for. They better be doing their job. We want to know where those dollars are going because we don't have the money to be providing foreign countries, not in this day and age when we're going broke, Greta!

    VAN SUSTEREN: The United States, the inner cities have unemployment rates of -- they're skyrocketing, 25 percent, especially in the young African-American teenaged, you know, 18 to 25 age group. What -- I mean, what should we be doing about that?

    PALIN: The private sector needs to be allowed to create jobs! The private sector is allowed to create jobs when our job creators are allowed to keep more of what they earn, what they produce, so that they can reinvest in their own businesses and expand, grow and thrive.

    VAN SUSTEREN: What private sector wants to go into a community that's, you know, wrought with crime and has got horrible unemployment and not a lot of money to buy goods and services? How do you inspire that -- that problem? Because, you know, we talk often about jobs in the middle class. But you know, the lower class economically need help.

    PALIN: Well, this is a vicious cycle. When -- man was created to work, and without a good job, we see societal ills that are caused, like subpar education and security threats and abuse and these societal ills that then government spends so much money on after the fact trying to cure. Instead, if there is an incentive for businesses to be in inner cities, in suburban America, in all these places where people need jobs -- and it's not just inner city, of course, that needs the jobs. It's the suburban areas, too.

    If there is incentives to be there, incentives for business, number one -- lower taxes so that the job creators can -- can keep more and prioritize according to their own needs to be able to expand. That applies to inner city. That applies to suburban and rural areas, too -- incentive to allow job creators to grow, to thrive, to prosper, creating these private sector jobs so that we can stop this entitlement mentality, too, of not just inner city but so many in America who are believing that, Well, you know, government's going to provide for me, so if I can't find a job today, I'm going to be able to or have to rely on government. We need change that vicious cycle, too, because we're going on a couple of generations here with -- in some parts, believing that government will provide for all.

    VAN SUSTEREN: You raise entitlements. A lot of -- a lot of objection over the Ryan budget. And I -- and I use the entitlement work very cautiously because a lot of people don't consider Social Security entitlement. They say, Look, we paid into it. It's not entitlement. You know, it's -- you know, it's really sort of an investment or a savings program.

    What do you -- what do you make of the Ryan budget program with Social Security and also the fuss within the Republican Party about it?