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Is President Obama's foreign policy helping the country?

This is a RUSH transcript from "The O'Reilly Factor," May 24, 2012. This copy may not be in its final form and may be updated.

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BILL O'REILLY: And in the "Impact Segment" tonight, is President Obama's foreign policy helping or hurting the country? Simple question, complicated issue.

Joining us from Washington, Fox News political analyst Charles Krauthammer.

So you -- you're -- you are not agreeing with me here. I mean, I think overall I give him President Obama a "B". First of all, let's get -- let's -- you heard the Pakistan thing. I think the President has got to come out publicly and say look, you've got to release this guy. You say?

CHARLES KRAUTHAMMER, FOX NEWS CONTRIBUTOR: I say the Pakistan thing exactly what you said makes my case. What's more important than the war on terror? You have just said we've demonstrated to the world that anybody on the globe who helps the United States on the war on terror we're going to abandon and they're going to be left out there hanging on the limb.

There are two reasons why this guy is in trouble. Number one, the fact as you pointed out the administration -- as Representative King pointed out talks about these operations why? Because it wants a political credit. It talks about it in a way that is unprecedented, unconscionable. And if it wasn't --

(CROSSTALK)

O'REILLY: A big mistake.

KRAUTHAMMER: -- if there wasn't a direct leak, it was all this stuff.

(CROSSTALK)

O'REILLY: They -- they would have gotten him anyway. But that was a big mistake. The ISI would have gotten this guy anyway but it was big mistake. And then go ahead.

KRAUTHAMMER: But yes but -- but they got it on our authority from the highest authorities.

Number two, another example we just had this double agent in Yemen who discovered the new high tech underpants explosive, right?

O'REILLY: Yes.

KRAUTHAMMER: It takes -- you know as I know that the hardest thing to do in espionage is to plant a double agent. And here we went and because the administration wanted to dance on this one, and spike it in the end zone. It blew the guy's cover he had to be withdrawn and we lost all the future information we would have gotten. That's an operation that could have yielded information for years.

(CROSSTALK)

O'REILLY: Ok. So basically you're saying then that President Obama is more interested in getting political currency from the things that he does well than really advancing the cause of -- of espionage and intelligence overseas, that he doesn't care about the long term. He just wants to be self-aggrandized?

KRAUTHAMMER: I'm not just saying it I just showed it.

O'REILLY: Ok. All right now, overall -- all right -- that aside, those mistakes aside, what is President Obama's biggest foreign policy blunder in your opinion?

KRAUTHAMMER: I would put that in the top three. The other two are -- in 2009 we were given a historic, an undeserved historic opportunity to our biggest adversary in the world in the region particularly in the Middle East, Iran was hanging by a thread. The regime was hanging by a thread. A popular revolution we had nothing to do with erupted -- here was an opportunity to change the entire strategic relationship in the Middle East. And what did Obama do? He did nothing. There wasn't --

(CROSSTALK)

O'REILLY: What should he have done?

KRAUTHAMMER: What -- what should he have done?

O'REILLY: Yes.

KRAUTHAMMER: First of all, he should have spoken out on behalf of the demonstrators.

(CROSSTALK)

O'REILLY: Ok so he should have come right out and said we support the people who are going up against the mullahs. We support that. What else?

KRAUTHAMMER: But he did worse than that he actually supported the mullahs for the reason that he wanted to keep the regime in office in power so he would have somebody to negotiate with on the nuclear program under the assumption that because he is who he is that he could sweet talk the Iranian and mullahs out of their nukes.

O'REILLY: But that doesn't make any sense, Charles. Why wouldn't he want a pro-western government if that's what took over and make it a lot easier to negotiate nuclear than with these crazy mullahs?

KRAUTHAMMER: That is exactly the question that history is going to ask him. How could there have been graffiti in the street by the Democratic demonstrators who are getting shot and tortured that said Obama which side are you on? That is a disgrace.

O'REILLY: But what else could he have done except rhetoric?

KRAUTHAMMER: Weaponry -- he could have done a lot of things. Rhetoric is one thing and not to support the legitimacy of the regime. Clandestine operations. Why do we have $50 billion in secret operations in the CIA if not for an opportunity like this? He was hands off. He did nothing and we lost one of the great opportunities in history.

O'REILLY: All right.

KRAUTHAMMER: And the other policy I would look at is Russia. The famous reset. This is where he gave Russia everything they wanted. A nuclear treaty that we didn't need and they wanted.

(CROSSTALK)

O'REILLY: And we didn't get anything back.

KRAUTHAMMER: They got accession to the World Trade Organization; they've hungered for that for years. And they got a complete cancellation of the missile defense system we had worked out under the Bush administration with the Poles and Czechs. So he cancels it without even telling the Czechs --

O'REILLY: Yes I know we didn't get anything back.

KRAUTHAMMER: -- and got nothing.

O'REILLY: You're giving him the drones, right?

KRAUTHAMMER: I'm giving him the drones. I give him a "D".

O'REILLY: All right, Charles, everybody. Thank you.

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