Watch the latest video at FoxNews.com
This is a RUSH transcript from "The O'Reilly Factor," August 22, 2013. This copy may not be in its final form and may be updated.
Watch "The O'Reilly Factor" weeknights at 8 p.m. and 11 p.m. ET!
O'REILLY: Back in the segment tonight, "Watters World." As we told you earlier, state of Colorado becoming one of the most permissive places in the USA. Last week in Telluride a mushroom festival was held. This is the celebration of the positive aspects of both regular and hallucinogenic mushrooms. When Jesse Watters heard about the festival, he demanded to go.
JESSE WATTERS, FOX NEWS CORRESPONDENT: What is this festival?
UNIDENTIFIED FEMALES: The mushroom festival.
UNIDENTIFIED MALE: Mycology, the study of mushrooms.
WATTERS: What kind of things would you use mushrooms for?
UNIDENTIFIED MALE: Oh ...
REBECCA FYTTE, MYCOLOGY ASSOCIATION: Mushrooms are what the Japanese call having the fifth taste, which is imami (ph).
UNIDENTIFIED FEMALE: Zooe-we-mama!
FYTTE: This is really the fat of the land here ...
WATTERS: That's like the Shaquille O'Neill of mushrooms.
UNIDENTIFIED MALE: Chocolician.
WATTERS: You guys don't do magic mushrooms, do you?
UNIDENTIFIED MALE: Used to go out into the woods, and do it more as a spiritual quest.
HOMER SIMPSON: Great spiritual quest, Wolfy!
UNIDENTIFIED MALE: You'll actually see like sounds potentially, like ...
WATTERS: You can see sounds?
UNIDENTIFIED MALE: Yeah, sometimes.
WATTERS: Can you hear smells?
UNIDENTIFIED MALE: I'm freaking out, man.
WATTERS: What is the craziest thing you've ever seen?
UNIDENTIFIED MALE: The screen savers on the computers where it swirls.
ANNOUNCER: I was watching the hill side news. Do not through the trees.
UNIDENTIFIED MALE: The dragons and all that, yeah.
WATTERS: Do you ever worry that mushrooms might have a long-lasting impact?
UNIDENTIFIED MALE: The chemicals in the mushrooms resemble a lot of THE chemicals produced in the human brain already.
UNIDENTIFIED MALE: How have you been?
WATTERS: But you got everything under control?
UNIDENTIFIED MALE: I keep seeing things jumping all over the place.
WATTERS: Does anything concern you at all?
UNIDENTIFIED MALE: Besides my (inaudible)? No, nothing.
WATTERS: What's the best thing about America?
UNIDENTIFIED MALE: You're free.
UNIDENTIFIED MALE: I live here.
WATTERS: What's the worst part about America?
UNIDENTIFIED MALE: I live here.
UNIDENTIFIED FEMALE: Something very strange about that man.
UNIDENTIFIED MALE: The worst about America? (EXPLETIVE DELETED)
WATTERS: Your governing philosophy is what?
UNIDENTIFIED MALE: I need to get some marijuana.
UNIDENTIFIED MALE: Smoke 'em if you got 'em.
WATTERS: Do you think, Justin, I grow my own food?
UNIDENTIFIED MALE: If you can.
WATTERS: What if I'm really busy.
UNIDENTIFIED MALE: Well, what will you be busy doing?
UNIDENTIFIED MALE: Stop working and grow your own food instead.
WATTERS: But then how would I make money?
UNIDENTIFIED MALE: No, this is more about food. It has nothing to do with money. You don't need money for food.
UNIDENTIFIED MALE: Just take it easy, man.
WATTERS: I was -- You seem a little angry.
UNIDENTIFIED MALE: Why wouldn't he be? Good god, there's people starving to death in the world all over the place. Everybody's like let's (INAUDIBLE). It's like sports.
WATTERS: You're not a football fan?
UNIDENTIFIED MALE: I don't need -- want to deal with you. You're professional negative figure.
WATTERS: Can you help me find what I'm looking for?
UNIDENTIFIED MALE: I don't really want to. At this point in your life, you made so many bad decisions that have led to where you work. You deserve what you have earned.
It's called damnation. Go away.
WATTERS: I love you.
UNIDENTIFIED MALE: No, you don't.
WATTERS: Bill O'Reilly? You ever watch the show?
UNIDENTIFIED FEMALE: Yes, I'm a fan. He's charming.
UNIDENTIFIED MALE: Bill O'Reilly's good, but you are the greatest.
UNIDENTIFIED MALE: Are you really Fox News?
WATTERS: This is legit.
UNIDENTIFIED MALE: Oh, for crying out loud.
WATTERS: What do we have here. Father Jonathan at shroom fest.
MORRIS: Exactly. In about an hour and a half, I'm going to be in a church, doing a wedding. I just stumbled across you. And hanging out at one of your favorite places, it looks like.
UNIDENTIFIED MALE: Is this a joke?
O'REILLY: So did you bust Father John at the mushroom festival? Is that where you're going?
WATTERS: (inaudible) these expansive views on religion, I think.
O'REILLY: He was there to do a wedding.
WATTERS: I think. That's what he said. I don't know.
O'REILLY: All right, we are buying it. We're believing you. This mushroom stuff, that's illegal to take hallucinogenics, right?
WATTERS: (inaudible) illegal, but there are therapeutic uses, they say.
O'REILLY: Who's they?
WATTERS: Some of the experts there and the scientists say if you take it, it can have a healing effect on the psyche, it can reduce stress. It can produce a harmonious atmosphere in your brain.
O'REILLY: Colorado has legalized pretty much everything. You look very good here, Watters, that's very good for your resume.
WATTERS: When in Rome, Bill. Come on, man.
O'REILLY: Sure. You and Father Morris.
So it's illegal, though, to take hallucinogenic mushrooms. Still in Colorado, they're legalizing everything these days.
WATTERS: It is still illegal, and this was a legitimate festival.
O'REILLY: Were there any Telluride police making sure that people didn't?
WATTERS: I didn't see any police officer the entire time.
O'REILLY: Not one?
WATTERS: Thank God, and I was not really looking for them.
O'REILLY: But there were people taking these hallucinogenics.
WATTERS: The guy who was kneeling down who said he doesn't worry about anything except his ex-wives, that guy had just eaten an eighth of mushrooms.
O'REILLY: Did somebody try to give you that stuff?
WATTERS: They tried and I refused.
O'REILLY: Are you sure? Because we saw you dancing.
WATTERS: That was the altitude, OK? That was altitude.
O'REILLY: All right. So bottom line on this, this happens every year in Telluride?
WATTERS: Every year.
O'REILLY: These people go there. They take these -- it's not like a cream of mushroom soup, is it?
WATTERS: No, there's some culinary artists there.
O'REILLY: That's the cover. That's the cover.
WATTERS: You think so?
O'REILLY: Yes, I do think so.
WATTERS: There's a lot of scientific purposes there. (inaudible) they fight oil spills with these shrooms, Bill. You got to look around.
O'REILLY: All right, Jesse Watters, everybody. He's buying everything they're giving.
Content and Programming Copyright 2012 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2012 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.