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Is the Obama administration finished?

This is a RUSH transcript from "The O'Reilly Factor," June 11, 2014. This copy may not be in its final form and may be updated.

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O'REILLY: "Back of the Book" segment tonight. Is the Obama administration done as far as influence is concerned? Here is what Brit Hume thinks about the continuing controversies.

(BEGIN VIDEO CLIP)

BRIT HUME, FOX NEWS: It's not any one of these things in particular. It's the accumulation of them over time. And the sense that the administration can't manage things effectively. Can't run things effectively.

(END VIDEO CLIP)

O'REILLY: The question then becomes, are most Americans fed up with the president and the Democratic Party? I put that query to Charles Krauthammer yesterday.

(BEGIN VIDEOTAPE)

O'REILLY: So perception is reality in politics. The perception, of course now is that the president really can't administrate, I think that's a fair word. What say you?

CHARLES KRAUTHAMMER, SYNDICATED COLUMNIST: Look. If this were a parliamentary system like Britain, we would have a call for a vote of no confidence and the government would be out. We would have new elections.

We have a presidential system. Terms are fixed. It doesn't matter a whit what's going on with the popularity of the president. He may lose the Senate, but he is governing without the Congress. He has got his -- he has got his own Constitution that he is operating under. He now regulates the entire healthcare system. And the story that was missed among all the scandals that are supposedly undoing his presidency is the climate change regulations. This is all by regulation. Nothing in legislation. He doesn't need the Congress, which is going to revolutionize and put control of U.S. energy, which is the U.S. economy, in the Environmental Protection Agency. You want to run America? Don't run for the presidency. Get yourself appointed head of the E.P.A. It makes Stalin's five-year plans look like a picnic the way they are going to have control of the economy. He doesn't need Congress. He doesn't need popularity.

O'REILLY: I think you will agree with me that the nation is at a crossroads now. America is at a crossroads. If it elects another liberal Democratic president, i.e. Hillary Clinton, again, is the folks are basically saying, you know what, we want to be dependent, we want to have the government run everything. Energy, health care, whatever, that's what we the people want.

I believe that would be the message.

However, I do believe that perception now is that it is not working with President Obama. The folks are picking this up. Not the ideologues, not the Pelosis and the Reids or the radio talk show conservative guys. They are in their stone and they will stay there. The regular folks are saying it's not working. We tried it. It failed. We want something different. Do you think that will happen?

KRAUTHAMMER: I think that's true. I think Obama has set back the cause of liberalism by overreaching, overshooting and combining it with incompetence, in a way that I think has led to a crisis of confidence in liberalism and his brand of liberalism, which is exemplified, personified by Obamacare, and as we will see by this overregulation coming under the EPA for climate, which essentially is --

O'REILLY: I don't know if that will ever get traction because it's so far out, but I'll tell you, the Bergdahl thing has traction, and there will be more to come on this guy. He'll come back to the United States. We now know there was nothing physically wrong with him. No big health issues. All right? So then the Obama administration is caught in another deception. All right? Almost all the senators are furious with President Obama, even the Democrats. So it's now reaching critical mass, and I don't think the Obama administration can come back from this.

KRAUTHAMMER: Critical mass for what?

O'REILLY: For --

KRAUTHAMMER: They are not going to impeach him, and he doesn't need Congress because he's ruling.

O'REILLY: The Democratic Party --

(CROSSTALK)

KRAUTHAMMER; He's ruling like a banana republic by executive order.

O'REILLY: OK. Fine. His party will be damaged for decades.

(CROSSTALK)

O'REILLY: He's destroying the golden goose. All right?

KRAUTHAMMER: That's fine. I think that's probably true. I think he is undoing a lot of the goodwill that liberalism enjoyed when he came in. They are seeing it eight years in action. The worst recovery since the second world war. Incompetence in doing Obamacare and incompetence and venality in running the veterans affair. Abuse of the IRS. The list is incredibly long, and I think it will do lasting damage. I think the country is getting a demonstration of liberalism in action, and they don't like it. But all I'm saying is we got to live through the next two and a half years, and that could change the country.

O'REILLY: All right. But if the Senate goes to the GOP, then I think that his power declines drastically, even though he's got his pen and his phone. Last word?

KRAUTHAMMER: Look, he's rewritten the immigration laws unilaterally. He's rewritten the drug enforcement laws unilaterally. He's changed Obamacare 38 times, and nobody lifted a finger, he does all -- and now he's going to deal with climate change, energy, regulation, what has never been done before unilaterally. He doesn't need the Congress. That's the point I'm trying to make.

O'REILLY: Okay.

KRAUTHAMMER: This guy is on auto pilot and liberalism will suffer, however, so will the country.

(END VIDEOTAPE)

O'REILLY: Charles? As always.

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