• With: Charles Krauthammer

    This is a RUSH transcript from "The O'Reilly Factor," February 12, 2013. This copy may not be in its final form and may be updated.

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    O'REILLY: The State of the Union in less than an half hour away. And I just got this bullets in here apparently some of the authorities watching The Factor tonight. Nobody has emerged according to the Associated Press. Nobody has emerged from that burning cabin. All right, so that means the guy is dead, right? That's what we would assume.

    All right, now, today, former Vice President Dick Cheney took a major shot at President Obama.


    DICK CHENEY, 46TH VICE PRESIDENT, UNITED STATES OF AMERICA: If you look at what the President's motives are for picking Chuck Hagel, I think he wants a republican to go be the foil, if you will, for what he wants to do to the Defense Department, which is, I think, do serious, serious damage to our military capabilities.


    O'REILLY: Wow. Joining us now from Washington, Charles Krauthammer. So, in the context of the State of the Union where the President is going to announce how many troops he's going to withdraw this year from Afghanistan, it's going to be a substantial number.

    Cheney is basically -- and you know, the former Vice President knows very well it's the State of the Union day, he's basically saying, he's trying to hurt the military, trying to degrade it. And you say.

    CHARLES KRAUTHAMMER, FOX NEWS CONTRIBUTOR: Look, it's always very difficult to know the motives of any actor. And I have slightly different view, and that is, what is Obama at course, a community organizer.

    He's a man who believes in leveling between the classes. He's a man who wants to go against inequality, --

    -- to reduce inequality and to bring what the left -- he's a man of the left, will call social justice. What's the biggest model of that in the world? Western Europe.

    He's a European social democrat. Sweden, France, Britain. Those are examples. And they are the entitlement state. What's his major achievement in the first term? ObamaCare and nationalizing healthcare the way they have it in Europe.

    And until Obama, we didn't have it here. And how do you get the money to subsidize an entitlement state? In two ways, and Europeans have shown us, --

    -- raised taxes, which we are going to hear in the State of the Union. Obama is very intent on raising the taxes relentlessly.

    And reducing defense spending. After the Second World War, the European countries slashed defense spending to the point where the French can't even airlift troops into Mali, a few hundred miles away.

    And that's how they were able to fund the entitlement state. Obama, I do not think, wants to destroy the military. But his main objectives, the reason he is president and what he wants to achieve and to leave as a legacy --

    -- is to create a more, as he would say, socially-just entitlement state like Europe. And that's why he doesn't really care about the cuts in the Pentagon because that's where you get the money.

    And he wants to raise taxes because that's the other source of getting the money. So, that's how I understand what he wants to do with the Pentagon.

    O'REILLY: All right. Now, let me ask you some ridiculous questions, OK. And you're used to that from me, right.

    KRAUTHAMMER: That's why I'm here, to straighten you out.

    O'REILLY: OK. Number one, why didn't he just say that, what you just said. Why doesn't President Obama just say it. Because he'd have to run for office again, why doesn't he just say it.

    KRAUTHAMMER: Look, I don't think that saying, "I'm a European social democrat" is an appealing argument.

    O'REILLY: Right. He doesn't have to say it quite that way but he could say, "I want to spend less on the Pentagon and more on social justice." Why doesn't he just say that.

    KRAUTHAMMER: He has already said that in the Inaugural Address. He said, "We have to nation-build at home." What does that mean.

    It is clear as a bell. We don't want to spend our money in wars. We want to spend our money at home. We don't want to spend it on cruisers. We want to spend it on entitlements.

    O'REILLY: Just say it. Just say it. He won't say it.

    KRAUTHAMMER: He says it in every which way. He's been saying it ever since he was inaugurated in 2009.

    O'REILLY: He doesn't say the words. You read the words that way. But I'll bet you, if he were here, he would deny it all day long.

    "Oh, I don't want to do that. I'm not going to do that. I'm just going to modernize. I'm just going to do this. I'm going to do this."

    He's never going to say, "I'm going to take the money from the military and give it to people because, I think, that's the social, just way to go about it." He's never going to say that.

    KRAUTHAMMER: He is a politician who understands that if you're going to win the argument, crush the republicans, get this done in Congress, you have to speak the language of the people.

    So what does he say? He doesn't say, "I'm a Swede."


    He says, "What I want to do is to have a very lean military. We don't want these wars abroad. We don't want to be the hedge among the dominant power. What we want is to be very wise --"

    O'REILLY: But he doesn't say that. He doesn't say, "We don't want to be the dominant power," Charles. He never said that.

    KRAUTHAMMER: He goes around the world apologizing --

    O'REILLY: I know what he does. He just doesn't say it. All right, I got it. Now, --

    KRAUTHAMMER: But you're --