POWELL: I know. And the term -- you keep saying they were appealing to their base, they were speaking to their people. I think they have to speak to a larger group of people for the Republican Party to get back on the right track --

O'REILLY: And that's a valid point.

POWELL: I think the --

(CROSSTALK)

O'REILLY: But you understand the point I'm making though.

POWELL: I know the point you're making.

O'REILLY: You -- right so you're remarks were taken, then, and branded on the GOP, the Republican Party, they're a bunch of racists, they don't care about the minorities, blah, blah, blah. And you know that's not true.

POWELL: It was mostly -- I know that's not true. But I'm telling you there is this vein of intolerance within the party. When you say, you know, let's "self-deport" people, "47 percent," there are a lot of things the party has to look in the mirror at and say, is this who we want to be?

O'REILLY: I've got two more questions for you. Number one, you being who you are, a traditional guy, wounded in Vietnam, served his country, patriot guy, by supporting as actively as you did Barack Obama, you also put yourself in a category of intolerance on issues like entitlement culture, when you yourself were born in the south Bronx and you made it on your own. The entitlement culture now extends to 50 percent of the American homes, all right? Huge rise in it.

So you're putting yourself in that bracket by supporting the Democratic Party through Barack Obama, who, it seems, their values are different than yours, General.

POWELL: Yes, I was raised in the south Bronx, but I can assure it was Social Security that kept my parents in respectable comfort after they had retired and they paid into that. And so --

O'REILLY: But that's not means-tested. You're not -- that's not what I'm talking about.

POWELL: Oh, I would get -- I would have means-testing in a heartbeat. In fact, I should be means-tested. I think there are a lot of things we could with entitlement reform. I think there are lots of areas in our government where we can take a hard look: entitlement reform, other areas, and there are ways to cut the budget.

(CROSSTALK)

O'REILLY: Ok. But the president isn't doing that.

POWELL: Now remember one thing --

O'REILLY: He is --

(CROSSTALK)

POWELL: -- remember one thing --

O'REILLY: He is the spender.

POWELL: -- remember one thing, Bill, it is the Congress that passes appropriations bills that pays for the bills that we have incurred and creates the debt.

O'REILLY: All right yes, but you know Barack Obama is behind the big- spending juggernaut.

Now this is a rude question and I'm sorry to have to ask it. You ready? This is the scuttlebutt in Washington on the Republican side. They say -- it has been said to me by more than one, that you're angry with the Republicans because they made you look bad in the weapons of mass destruction deal during the Iraq war.

I don't believe that. I have to go on the record and say I don't believe that that is what's motivating you. I think you're genuinely a sincere guy, an American who sees it the way you see it. I disagree in some areas, I agree in others.

But this is around. That Cheney and these guys, you didn't like them, you had no use for Cheney. You had no use for this war. You did what they asked you to do. It turned out there were no weapons of mass destruction. And you held that.

You want to comment on it?

POWELL: That's a bunch of nonsense. I presented the information that we all had from the intelligence community. And when I went to the U.N., it was the assurance of the CIA that the information I had was correct.

Mr. Cheney used that same information. The President did. All of our commanders thought it was correct. And we all were saying so. The Congress voted on the basis of that information --

(CROSSTALK)

O'REILLY: Sure. Absolutely. And I did too.

POWELL: -- four months earlier.

O'REILLY: Right.

POWELL: Before I spoke. And so I made a choice based on the information I had. And I don't have to answer idiotic questions like that one about --

O'REILLY: All right.

POWELL: -- whether I'm mad at somebody.

O'REILLY: I appreciate it, General. That wasn't too bad, was it?

POWELL: I had a good time. Invite me back, Bill. Don't forget to send the --

O'REILLY: General listen, I salute you, man. You know me, I think you're a patriot. And I wanted you to come on this program. And I wanted you to speak your mind in front of this audience. I think it was an important interview. And we're very happy you did it.

Thank you very much.

POWELL: Thank you, Bill.