Updated

This is a RUSH transcript from "The O'Reilly Factor," July 13, 2010. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: In the "Personal Story" segment tonight: Ms. Laura Ingraham has a new book out called "The Obama Diaries," where she mocks the president.

LAURA INGRAHAM, FOX NEWS CONTRIBUTOR: Oh, please.

O'REILLY: Come on. But before we get to that, today in the lower house of the French parliament, they voted 335 to 1 -- 335 to 1 -- to ban Muslim women from wearing veils in that country. And polls say 82 percent of the French population support the ban. But here in America, according to a Pew survey, 65 percent say Muslim women should be allowed to wear veils. So it seems the USA's a lot more tolerant than France. C'est la vie.

With us now, the aforementioned Laura Ingraham. All right now, what do you think? Are you moving to France because of this? Are you moving over there?

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INGRAHAM: Well, Bill, first I asked your producers. They said I absolutely could not wear a full burka.

O'REILLY: I gave the OK. No, I gave the OK.

INGRAHAM: I saw you in the hall. I wanted to wear the full burka with the netting, you know, the Taliban, the scary burka. Here's what I think. I think American Muslims for the most part…

O'REILLY: Right.

INGRAHAM: …not all, but for the most part have done a much better job of assimilating in American society.

O'REILLY: No doubt.

INGRAHAM: So Americans don't have that same, you know, oh my God, we're on the edge. We're on the edge here.

O'REILLY: Right.

INGRAHAM: But I think in Europe, it's very different. And part of the fault of that is the Europeans. And part of the fault of that is not making sure that people, you know, embrace European culture in bringing them into the fold. What I think we should see in that video, you see it right now, this is not a religious statement, Bill. This is a statement of subjugation. When you see as I've seen…

O'REILLY: For the Western eye, it is.

INGRAHAM: No, no. It is a symbol of subjugation. When I spent time in Africa…

O'REILLY: Wait, wait, let me challenge you on that.

INGRAHAM: No…

O'REILLY: Because there was a case a few years ago, and you might remember it, where there was an American woman who married a Saudi. And they took her over there. And we could have gotten her out of there with the American embassy. And she said, no, I don't want to go over there. I believe in this.

INGRAHAM: Well, good. She can stay there. That's fine with me.

O'REILLY: Right. And she did. Most Muslim women who wear this outfit, wear the veils and the burkas, they believe that this is the way it should be.

INGRAHAM: Well, I don't think we know that.

O'REILLY: Now Western women…

INGRAHAM: Are we really trusting the polling of Muslim women, who are dominated by men?

O'REILLY: Well…

INGRAHAM: Who many of them are misogynist…

O'REILLY: …I've been to those countries and cultures enough…

INGRAHAM: …and treat them like chattel. Bill, when I was in South Africa…

O'REILLY: They're brainwashed.

INGRAHAM: …a couple years ago, I was -- I'll never forget this. I was going up to the Table rock in Cape Town. I'm on this tram going up, and the tram was filled with mostly Muslim men. And they were all Western dressed in shorts and sandals, you know, checking out the women on the trams. I'm sorry. And behind them were women who you could only see the slit of their eyes, who were, you know, huddled in the back, and looked, I'm sorry, looked very uncomfortable.

O'REILLY: OK.

INGRAHAM: I don't like that. America is not about that.

O'REILLY: You believe that most Muslim women want out? They don't like this?

INGRAHAM: I didn't say -- I don't think we know, but I do know what America is. America is relationships, personal relationships. You can cover your head, but I want to see your face.

O'REILLY: Right.

INGRAHAM: Nuns cover their, you know, their heads. That's fine. We want to see your face.

O'REILLY: So you would have been a part of the 65 percent that say yes to veils?

INGRAHAM: Got to see the face. Got to see the face.

O'REILLY: So you were in the minority on this?

INGRAHAM: I'm happy to be in that minority. It's a national security issue.

O'REILLY: So you'd ban American Muslim women?

INGRAHAM: I think it's a national security issue when people go into public places. We have cameras everywhere; we have to be able to see.

O'REILLY: So you are for the French? You're rooting for the French?

INGRAHAM: I am in this instance totally French. May I speak French with you?

O'REILLY: Go ahead. Croissant.

INGRAHAM: No, I don't, sorry.

O'REILLY: No?

INGRAHAM: Don't do it.

O'REILLY: Croissant?

INGRAHAM: I'm Spanish and Russian. That's my thing.

O'REILLY: All right. All right, Ingraham is on the other side of this, ladies and gentlemen.

All right, now your book, Laura's kind of sent me an advanced copy, because I'm actually in the book a number of places, but you are mocking the president and vice president of the United States. How could you?

INGRAHAM: Bill, here's what I think has happened over the last 19 months or so. We are seeing America slowly but surely dismantled. Our free market system's under attack.

O'REILLY: So you're in the Glenn Beck zone?

INGRAHAM: Our faith is under attack. I think what's happening is that Americans across the board…

O'REILLY: Right.

INGRAHAM: …maybe they're not fully in the spin zone or No Spin Zone. But they're seeing, wait a second, the fiction is that stimulus was going to create jobs. The fiction was that somehow health care reform was going to decrease our health care premiums. It was going to be better for patients. None of that's going to happen.

O'REILLY: OK. Look, you're right because the polls today, CBS has a new poll, ABC has a new poll.

INGRAHAM: It's a devastation.

O'REILLY: Right.

INGRAHAM: I think you're the only person who's giving them the benefit of the doubt.

O'REILLY: I'm not giving them anything. I'm just reporting fairly.

INGRAHAM: Oh, you have a soft spot for Obama.

O'REILLY: That's bull. That's total bull.

INGRAHAM: You do.

O'REILLY: No, it's not.

INGRAHAM: I mean, you did in your "Talking Points."

O'REILLY: If you can give me an example where I've treated them unfairly to the positive sense.

INGRAHAM: Michelle Obama first time in politics. You just said that in the "Talking Points Memo." First time in politics.

O'REILLY: Didn't say first time.

INGRAHAM: No, you said it was her first real foray into politics.

O'REILLY: She's talked politics. This is one of the first times she's ever talked since…

INGRAHAM: The whole garden is politics.

O'REILLY: The whole garden?

INGRAHAM: The garden is all about health care reform.

O'REILLY: The garden?

INGRAHAM: It's about giving her a platform.

O'REILLY: Growing strawberries. It's political.

INGRAHAM: Do you know Michelle in the "Diaries"?

O'REILLY: Are you insane or what?

INGRAHAM: Her mother? Do you know her mother in the "Diaries," Bill, and I know you think this is fiction. Her mother…

O'REILLY: Yes.

INGRAHAM: …saw the National Park Service planting fully grown seedlings…

O'REILLY: Yes.

INGRAHAM: …into that garden.

O'REILLY: So this…

INGRAHAM: And then the kids come along and they pull out yams the size of basketballs.

O'REILLY: Right, and this is political? The garden is political to you?

INGRAHAM: The garden gives her a fitness health platform.

O'REILLY: Right. And that's political.

INGRAHAM: And then let's her talk about health care reform. Is this the No Spin Zone? Am I going to go back to that Kool-Aid cup right now, Bill?

O'REILLY: All right.

INGRAHAM: Yes or no? I mean, you and Michelle.

O'REILLY: I mean…

INGRAHAM: What is -- it's just…

O'REILLY: I'm trying to follow this. I'm trying to follow it.

INGRAHAM: Bill, Bill?

O'REILLY: Because the garden's political because somehow it gets back to health care.

INGRAHAM: Bill, it's the razzle dazzle. It's the focus on the first lady as mom and chief and gardener in chief…

O'REILLY: Yes.

INGRAHAM: …because nobody ever has had a garden. Nobody in the White House has had a garden.

O'REILLY: So you object to the garden?

INGRAHAM: Abigail Adams. It's just -- it's the razzle dazzle.

O'REILLY: All right.

INGRAHAM: It's what we need to get through. And "The Obama Diaries" are a way to decode…

O'REILLY: But I just want to explain to the audience what they're buying here, because I think the book's going to be very successful. You made this up. It's satire.

INGRAHAM: No, Bill, first of all, what's fiction here? What's fact and fiction in Obama land? Is the stimulus bill fact and fiction? We've been trying to get Gibbs, trying to get Major Garrett to confirm these diaries. They won't confirm them.

O'REILLY: Can I just inject one thing? Are you really Glenn Beck? Are you under there, Beck? Are you under a Laura Ingraham?

INGRAHAM: Fact or fiction? Stimulus bill's going to create jobs? OK.

O'REILLY: Fiction.

INGRAHAM: Fiction.

O'REILLY: Fiction, fiction.

INGRAHAM: They are masters of fiction. I'm just laying it out.

O'REILLY: So you are emulating.

INGRAHAM: You're going to have to decide for yourself.

O'REILLY: Ms. Laura Ingraham is emulating the Obama administration by writing fiction based on their fiction.

INGRAHAM: You know he called you a pinhead?

O'REILLY: Who did?

INGRAHAM: Obama.

O'REILLY: Oh my. In your book? It's outrageous.

INGRAHAM: He says you're sneaky. You try to trap people in the No Spin Zone. He likes going with Brian Williams on those burger runs. That's the spin zone.

O'REILLY: OK.

INGRAHAM: He likes being there.

O'REILLY: All right, the book is "The Obama Diaries," everyone. And all you people who have gardens out there, you better knock it off.

INGRAHAM: Oh, please. You're in love with these people. You're in love with them.

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