• With: Charles Krauthammer

    Normally, you give it to a competent company --

    O'REILLY: Outside company insurance who knows how to do this.

    KRAUTHAMMER: But the second is this, they delayed writing the regulations until after election day last year in order that they would not present targets for Republican attacks.

    O'REILLY: Right.

    KRAUTHAMMER: So, for purely partisan reasons --

    O'REILLY: For political reasons.

    KRAUTHAMMER: -- and they've been writing the regulations and the codes in the spring, absolutely impossible to do. This is a political disaster.

    O'REILLY: OK. You've been writing columns for 27 years, all right. And your book, "Things That Matter" are compilation of the columns.

    (BEGIN VIDEO CLIP)

    And I have to say that reading Charles Krauthammer's books, it keeps me thinking -- and that's painful for me, so it's, you know, kind of a bittersweet. Because you don't -- you're not a --

    KRAUTHAMMER: Because you are a simple man.

    O'REILLY: I am. And then you're way too complicated sometimes because you're a psychiatrist. I mean, you're a whole bunch of stuff.

    What's the headline. Where do you want to take people. You know, they're going to read a whole bunch of things that you've said about a lot of different topics. What do you want them to take away from the book.

    KRAUTHAMMER: Well, I think one of the major arguments I make in all kinds of different ways is the superiority of limited government over the leviathan state that liberals have been pushing and expanding, in the sense, out of nostalgia, for their achievements in the 20th century.

    You know, Social Security, great achievement. Medicare, great achievement. But they haven't recognized that with the change of demographics and the change of the technology in medicine, this is completely unaffordable and we have to reform.

    Liberals are essentially reactionary liberals. That's what they stand for. They won't allow a single dot or tittle of a change in anything.

    And that is catastrophic. And the other thing I find interesting is that, exactly in the point in history where Europe is showing how this entitlement state is a disaster, --

    O'REILLY: Yes, we see it.

    KRAUTHAMMER: -- we elect the first social Democratic president, Obama. A man who sees Europe as the model, as the most just society. The man who says openly, he wants to redistribute income, and a level between the classes, exactly as Europe had done.

    So, we elect the one man who believes -- I think he's the most left of the presidents, obviously since FDR, probably in American history, exactly at a point when the left experiment of the entitlement state is in collapse. It's ironic and it's disastrous.

    O'REILLY: And the Americans bought it. And Americans bought it. That leads me to my last question.

    I told Letterman last week that I fear for this country because there's poor leadership. There's nobody that I see that's uniting the country. Do you see the same thing.

    KRAUTHAMMER: Well, I do. And I think, I mean, as I write in the book, there are all these issues on which we had some consensus during the Cold War, when having an enemy helps to cement, particularly among conservatives, --

    O'REILLY: Right.

    KRAUTHAMMER: -- it held a whole movement together. You take it away, and now, all the fishers are showing. And in the absence of a towering figure like a Reagan, there's nothing to hold us together.

    O'REILLY: Not right now. I mean, somebody might emerge. But, right now, it's scattered all over the place.

    The book is "Things That Matter." Krauthammer, we appreciate it, Charles. Nice to see you. Good luck with the book. It's going to be a big hit.

    KRAUTHAMMER: Thank you very much.

    O'REILLY: I predict. And you know my predictions are always correct.

    KRAUTHAMMER: I think I'll climb to number two after a certain author --

    O'REILLY: Well, God is going to have something to do with that.

    KRAUTHAMMER: -- who will remain unnamed.

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