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Krauthammer: Embassy statement was a 'complete embarrassment'

This is a RUSH transcript from "The O'Reilly Factor," September 12, 2012. This copy may not be in its final form and may be updated.

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O'REILLY: "Unresolved Problems" segment tonight, the situation in the Middle East, going downhill fast. In addition to the murders of Americans last night, Israel is now saying, as we mentioned, that President Obama is insulting their government over the Iran situation.

Apparently, Prime Minister Netanyahu, again, we mentioned this with Dick Morris, wanted to meet with President Obama when he comes to New York City next week. But the President says, he can't take that meeting.

Joining us from Washington, Fox News Political Analyst, Charles Krauthammer. So, let's advance the story. I know, you talked with Bret Baier and the guys about it at 6:00 o'clock.

Going forward here, you have four Americans dead -- or in Libya. I don't know, we can't hold anybody accountable because the Libyan government is not even functioning very much.

But in Israel, you can hold them accountable. So, what do we do going forward in both of those places.

CHARLES KRAUTHAMMER, FOX NEWS POLITICAL ANALYST: You mean in Egypt, we can hold them accountable --

O'REILLY: In Egypt. I'm sorry, in Egypt. We can hold that government accountable.

KRAUTHAMMER: Look, I think, number one, you've got to start with a little clarity. I think that was -- I think you're wrong. That was a complete embarrassment, that statement issued by the Embassy. There is no excuse for the United States.

(BEGIN VIDEO CLIP)

This is our representative in Egypt of the administration, of this country, essentially apologizing for some crackpot you and I and nobody ever heard of.

We do not, in this country, go around and police free speech, have a department of propaganda where we go out and police bad speech and detect anything that might offend anybody.

(END VIDEO CLIP)

O'REILLY: All right but that's theoretical --

KRAUTHAMMER: So, either they say nothing --

O'REILLY: Charles, Charles, Charles, Charles. If you're there and you're trying to tamp down potential violence -- I don't know if being conciliatory, I get your theoretical point. I agree with it.

KRAUTHAMMER: Well, how did that tamping down work out.

O'REILLY: It didn't work out. It didn't work out at all.

KRAUTHAMMER: That's the point.

O'REILLY: Absolutely, it failed.

KRAUTHAMMER: It's not only humiliating, it's ineffective. Either you say nothing or you have the President -- if we had any warning here and, apparently, we did, you have the President pick up the phone.

He calls Morsi. He says, "Hey, there's a mob on the way to the Embassy. You make sure it's not touched. Otherwise...," and then you give a string of things that we're going to do including cutting off --

O'REILLY: So, you threaten the Egyptian government before the fact, before anything happens.

KRAUTHAMMER: You tell the government, "We have information and you have information." That there is a mob on the way to the U.S. Embassy. "You make sure that nothing happens. If not, we're going to do X, Y and Z."

O'REILLY: You know, I would have done that. I think, that's a good point that nobody has raised this evening. I think that President Obama, we don't know whether he did or didn't, probably should have said, "You better not let this happen." I mean, "You better protect our guys over there."

KRAUTHAMMER: Because he wasn't spontaneous. Everybody knows that.

O'REILLY: No, absolutely. And, as you said, they had advanced that it was coming. And the Egyptians didn't do anything. Now, do you punish the Egyptians to the fullest extent of the law. What do you do.

KRAUTHAMMER: No. I think what you got to do with the Egyptians, you have to say to Morsi, "This can't happen again. If it does, there are going to be severe consequences. We're going to cut you off entirely."

And you lay down markers. I mean, one of the things that we are complaining about is that there's all this stuff coming out of the Middle East, demonizing the United States.

Some of it comes from Morsi and the Muslim brotherhood itself. Here's a mob complaining about what a crackpot has done in the U.S.

Morsi is a truther. He has spoken publicly about 9/11 being an inside job. This kind of stuff from an ally cannot continue.

O'REILLY: All right. Now, I'm not going to run the "Washington Post" thing with you tonight. We're going to save it for next week. It's very interesting.

And, you know, the guy thinks that Fox News hates Obama or whatever. We'll run that next week because this is a very interesting discussion tonight.

KRAUTHAMMER: I didn't exactly back down on that one, did I.

O'REILLY: No, you were good. That's why I want to run it and show everybody what happened but I'll do it next week.

Now, finally, isn't it -- I'm just amazed -- and I'm not bragging and I don't want to -- I had this discussion with President Obama on Super Bowl Sunday 2011 about the Muslim brotherhood.

Even me, I saw this flag. I saw this coming. And you heard what he said. He really -- you know, it was like, "Well, you know, we...," -- I don't know. I mean, it's kind of eerie to me.

KRAUTHAMMER: I agree with you that if even you could see it coming, that's quite a condemnation of Obama.

O'REILLY: That's right.

KRAUTHAMMER: Look, the idea here -- and it's something Romney ought to do. Instead of a jab here and a jab there, he needs to make a speech in which he says, "Look, all of this is a result of the weakness, the apologies, all of this trying of reaching out on the part of naive president with no experience, an arrogant amateur who thought he knows how to do this.

As a result, the United States is not loved. And it's not respected. And that's why we're seeing what we're seeing.

O'REILLY: All right. And you think -- yes, that would be something, a very dramatic speech if the Governor did that. Charles Krauthammer, everyone.

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