President Obama requesting another debt increase

This is a RUSH transcript from "The O'Reilly Factor," January 13, 2012. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: In the "Lou's the Boss" segment tonight, Washington poised to approve a $1.2 trillion increase of the debt ceiling, which would mean by the end of this year, the national debt might stand at more than $16 trillion, more than the entire gross national product.

Since taking office President Obama has increased the debt by 43 percent from 10.6 trillion to 15.2. Kind of astounding. Here to analyze FOX business anchor Lou Dobbs.

Look, I don't want to beat up on President Obama, because that's just partisan stuff, and we don't want to do that. But what I don't understand is, it doesn't seem to resonate with the American people that we are -- this is a catastrophe. It is a catastrophe to owe this kind of money.

And it doesn't seem to be any urgency in Washington to fix it. And the voters aren't running around demanding it be fixed. They're going to up it to 1.2. It's going to happen. Nobody is going to stand in his way.

LOU DOBBS, FOX BUSINESS ANCHOR: It's part of the deal from last summer, Bill, as you know.

O'REILLY: Right.

DOBBS: This is the third tranche, 400 -- it's amazing. Four hundred billion dollars. Then 900 billion this fall and now 1.2 trillion. We're headed toward $16.5 trillion. No one is...

O'REILLY: In debt.

DOBBS: In debt.

O'REILLY: But see, people say that's not real money. They don't believe it's real money. But we're paying -- we, the United States of America, $10 billion a day in interest.

DOBBS: That's right.

O'REILLY: In interest to the Chinese investors and everybody else that's lent us money.

DOBBS: And President Obama himself, Bill, in 2008 said, you know, this is like taking a bank of China credit card and continuing to run it up. Because that's who's giving us the money. Our children are going to pay for it. It's utter madness.

And this gets them, by the way, through the election so they won't have to have this discussion about debt again.

O'REILLY: Is there any excuse for President Obama allowing the debt to rise 43 percent? Because they'll say if we didn't do all the stimulus, the car companies would have collapsed, the banks would have collapsed. It would have been 1929 all over again. We had to do it. And that's why the debt went up so much. And you say?

DOBBS: And I say the war in Iraq has ended. There should be a peace dividend as a result. Those savings should really be applied to the national debt. We're talking upwards, over the course of the next five years, a trillion dollars that should be applied directly to that debt.

Neither party is talking about the peace dividend and what they're going to do with it.

And this administration should be talking seriously about constraining government, reducing the size of government and what we're spending.

O'REILLY: Well, we just had earlier that the president is going to consolidate, you know. And then I said it's the same as Bain Capital, and Leslie Marshall went crazy. But I think it is. All right. So am I -- am I being fallacious? Do you like that?

DOBBS: I do like that word.

O'REILLY: Most Americans this isn't at the top of their mind. They're not -- they just think it's Monopoly money and it really doesn't matter.

DOBBS: Yes. I think that most Americans expect their elites and those they elect to office to take care of these things. These are...

O'REILLY: But they're not.

DOBBS: They are not and haven't for 30 years.

O'REILLY: So it's -- some day we're going to wake up, and it's going to be a catastrophe. It's almost like an earthquake. You know it's going to happen on the San Andreas Fault. You just don't know when.

All right. Real quick, has President Obama created any jobs? Has he -- all the stimulus money and all that?

DOBBS: No. And I know it's popular for the president and Democrats to talk about creating jobs. They haven't. Not net jobs. In point of fact, 1.6 million jobs...

O'REILLY: Right.

DOBBS: ... have been lost since he took office. And...

O'REILLY: But that's Bush's fault, because he let the economy go over the cliff.

DOBBS: You know, the causal relationships, I'll let the...

O'REILLY: The bottom line is President Obama, really his administration has not created any jobs. Is it a wash?

DOBBS: Not net. No, it's not a wash.

O'REILLY: It's down?

DOBBS: One point six. And by the way, in addition to 1.6 million, I think it's worth pointing out, 800,000 manufacturing jobs have been lost during that same period. High paying middle class jobs.