This is a rush transcript from "The O'Reilly Factor," January 21, 2009. This copy may not be in its final form and may be updated.
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BILL O'REILLY, HOST: Now for the top story tonight: lots of political stuff going on today. Hillary Clinton, the new secretary of State — Dick Morris will be thrilled about that — and Barack Obama's first full day on the job. Here is Dick Morris, author of "Fleeced," purveyor of DickMorris.com.
All right. Let's start with Barack Obama first. Any thoughts about his first full day?
DICK MORRIS, FOX NEWS POLITICAL ANALYST: Well, about his first 100 days, what I think is going to happen, I have an odd assignment for you, Paul.
MORRIS: It's not the British you have to worry about. It's a horse, a Trojan Horse. Obama's stimulus package is really a Trojan Horse, where he's bringing it up to the gates of our Congress, he's going to get it passed.
MORRIS: And he's going to say the purpose of it is to stimulate the economy.
MORRIS: The fact is what it really is, if at best, is methadone. It eases us off of our debt addiction. But inside that Trojan Horse are a whole variety of measures that will make us like France. Not quite Sweden yet, but France. Eliminate the majority of Americans from the tax rolls so that most Americans don't pay taxes and therefore don't care how high they go. Give the majority of Americans a welfare check under the guise of a refundable tax credit so that we become a fully welfare-oriented society. To use the preferred stock that the government got in all of the major banks to squeeze out the common stock by hogging all the dividends and basically forcing the nationalization of banks and, therefore, our economy.
O'REILLY: So you think Barack Obama wants the government to control the banking system in the country?
O'REILLY: Did George Bush want that? Because remember it was the Bush administration that first came up with all of this bailout money.
MORRIS: George Bush didn't know what he was doing.
O'REILLY: Do you really believe that?
MORRIS: Oh, absolutely.
O'REILLY: He had no clue about the economy?
MORRIS: Well, he had some clue about the economy, but he didn't know what his stimulus package, his TARP package would lead to. Originally when he proposed it, he…
O'REILLY: I don't want to get into that. So he didn't know the unintended consequences of it. But you say Barack Obama does know?
MORRIS: And they're not unintended, they're intended.
O'REILLY: So for him, for Obama, this huge federal infusion of funds is not just to stabilize the economy, it's to change the economy from a private sector driven to a government driven. That's what you're saying?
MORRIS: Couldn't have said it better, Paul.
MORRIS: Exactly what I believe.
O'REILLY: Now, I'm going to have to see demonstrations of that. It's a good theory.
MORRIS: You're going to see them. What's going to happen, first, is Obama will say things like oh, let's limit bonuses and compensation, which is fine. Then…
O'REILLY: If the government is paying for bailout, then I'm with that.
MORRIS: Yeah, sure. But then he'll start saying things like make loans to the economy, make this loan. And then he'll appoint some guy like Blagojevich in charge of the program and we'll see how bad things can get.
O'REILLY: All right. It's a provocative thesis and we will certainly, as Paul Revere, I will watch. And if it happens, I'll be at the old North Church with the lie.
Now let's run down, real quick. Hillary Clinton, you don't like. How bad do you hate her, by the way? On a scale of 1 to 10, you hate here what, 9, 9.5?
MORRIS: I don't hate her. She will be a pretty good secretary of State.
O'REILLY: All right. That's why…
MORRIS: And it's about time she got a real job.
O'REILLY: I knew it. I knew he's going to get the little thing in there.
MORRIS: But she's going to have a hard time disciplining Bill…
MORRIS: ...who will embarrass her day after day.
O'REILLY: Paul Revere will watch that also. All right. So Hillary Clinton, secretary of State, you don't have any problem with it?
O'REILLY: OK. Geithner. Geithner is the big money guru.
MORRIS: I have a huge problem with Geithner.
O'REILLY: He didn't pay his taxes.
MORRIS: To have the head of the IRS collect compensation earmarked for paying his taxes from the IMF and then keep it and not pay it in taxes…
O'REILLY: He says it was a mistake.
MORRIS: And then pay two years, but not four years, because the statute of limitations had run on the two years.
O'REILLY: So do you think he's a crook?
MORRIS: No, not necessarily.
O'REILLY: Why? Here's my question to you.
MORRIS: I think he consciously…
O'REILLY: Listen to me. Why would a guy at that level nickel and dime like that? I mean, it's little stuff. It's not like huge — it's not like Marc Rich. Why would he risk everything, nickel and — he says it was a mistake. He takes credit for the mistake, but he didn't do it in purpose.
MORRIS: Yeah, he inadvertently deducted his kids'…
O'REILLY: You're not believing him.
MORRIS: Bill, he inadvertently deducted his kids' sleep-away camp on his income taxes, claiming it was a business expense.
O'REILLY: All right. So you don't trust…
MORRIS: He made a mistake?
O'REILLY: ...you don't trust him?
MORRIS: No. How could you trust him?
O'REILLY: OK. What if he's a genius and helps with the economy, does it — no?
MORRIS: God bless him, but he shouldn't be running the IRS.
O'REILLY: So — but he's going to get in. You know he is.
MORRIS: Of course.
O'REILLY: Because it's a one-party system now.
MORRIS: Sure, anybody's going to get confirmed.
O'REILLY: All right. Now Holder was delayed. Holder — I have more problem with Holder than I have with Geithner because…
MORRIS: Yeah. Holder is affirmatively dangerous to this country's security. Holder is sending a message to everybody that if you are aggressive in interrogating anyone to protect our national security, you, not the terrorist, could be held…
O'REILLY: But he's going to get in, right?
O'REILLY: They'll all get in.
MORRIS: They'll all get in.
O'REILLY: All right.
MORRIS: They won the election, you know.
O'REILLY: Trojan Horse, Hillary, Geithner, Holder. I've got to watch them all, right?
MORRIS: You do and…
O'REILLY: All right, and I will.
MORRIS: But it's a horse you've got to look for.
O'REILLY: OK. And you'll help me.
MORRIS: Not a British soldier.
O'REILLY: Dick Morris, everybody.
MORRIS: Thank you.
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