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ISIS declares new Islamist caliphate

This is a RUSH transcript from "The O'Reilly Factor," June 30, 2014. This copy may not be in its final form and may be updated.

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O'REILLY: "Unresolved Problems" segment tonight, terrorists on the march into Middle East. Again, as with the border, the Obama administration was informed months ago that a terror army could invade Iraq and cause grave damage.

Nothing was done. And, now, the ISIS terrorist group controls a third of Iraq and is not stopping there.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ISIS MEMBER: This is not the first border we will break. We shall break all the borders also.

Look how much money America spends to fight Islam and ends up just being in our pocket.

(END VIDEO CLIP)

O'REILLY: Joining us now, Mark Hannah, Democratic Strategist. So what would you do about this ISIS army.

MARK HANNAH, DEMOCRATIC STRATEGIST: I think we don't want to take their bait, Bill. I think ISIS is trying to draw America in to what is essentially a civil war that's been going on in that region not just for the past five years --

(BEGIN VIDEO CLIP)

-- between the Sunni and the Shia but for the past 1500 years.

O'REILLY: OK. So, my -- and correct me if I'm wrong, the answer to my question from you is I wouldn't do anything to the ISIS army.

HANNAH: Look, I think there are no good options right now --

O'REILLY: OK, again, the answer is I wouldn't -- if Mark Hannah would not do anything, you'd just let the situation unfold.

HANNAH: I think cooler heads will prevail. I think if we exert a little bit of patience, Bill --

(END VIDEO CLIP)

O'REILLY: Cooler heads from the ISIS army?

HANNAH: What do you suggest. We have no allies in that region.

O'REILLY: I suggest that you use air power to diminish their power.

HANNAH: You're talking about ISIS?

O'REILLY: Correct.

HANNAH: So, we would be supporting al-Maliki and the Shia --

O'REILLY: Which was supporting the United States.

HANNAH: -- which are alive but we're advancing Iran's national interests more than we're advancing the United States' national interest if we do just that.

O'REILLY: Given the choice between the Hannah program which is "do nothing," all right, and the O'Reilly program which is "to diminish the terrorists," --

HANNAH: Right.

O'REILLY: -- "kill as many as possible," --

HANNAH: Right.

O'REILLY: because when they do establish this country, that's in Syria and Iraq, they tell us, it's not a secret, that they're going to go into Jordan, to Israel, to other countries, and eventually stage attacks in Western Europe and the United States, just as what happened in Afghanistan before 9/11.

HANNAH: Right.

O'REILLY: So, the O'Reilly program seeks to diminish that threat. The Hannah program seeks to accept the threat. Or am I wrong.

HANNAH: The Hannah program acknowledges that the threat isn't going to go away if we drop a couple of bombs on a couple of bad guys who say bad things about the United States.

O'REILLY: So, you don't think using American air power --

HANNAH: Right.

O'REILLY: -- against these people in the desert, all right.

HANNAH: Right.

O'REILLY: And I mean targeted. Don't bomb Mosul, don't bomb city.

HANNAH: How do you get those targets. You have to have troops on the ground, you have to have Intelligence coming from the ground.

O'REILLY: And we do have a lot of people in the Kurd region, we have people in Syria, and we have drones all over the place.

HANNAH: And do you propose putting boots on the ground to gather intelligence to inform --

O'REILLY: Well, President Obama just sent 200 more today, which is now more than 500.

HANNAH: Right.

O'REILLY: I'd have to see the Intel on that, where they go. No, I do not want to re-enter American ground troops in Iraq.

But people -- and I'm being -- with all due respect --

HANNAH: Yes.

O'REILLY: -- people who say, "Take no action," OK, are now going to allow ISIS to gain more and more power.

HANNAH: Right.

O'REILLY: And then, when they do strike, --

HANNAH: Uh-hmm.

O'REILLY: -- and when they do cause more trouble, you guys are going to go, "Well, you know," -- and that's not me.

HANNAH: But I'll be really clear. If there is a moment in time where America's national security interests are imperiled, absolutely, the United States will do most anything --

O'REILLY: Well, that moment is now.

HANNAH: Absolutely not. Look, if we had actionable intelligence that said there are people in ISIS, --

O'REILLY: Mark, you don't --

HANNAH: Let me just finish, Bill. Let me just --

O'REILLY: -- you don't know what the actionable intelligence is.

HANNAH: They don't target Americans. They're targeting their Shia cousins for going back generations. They're not attacking Americans right now.

O'REILLY: They say they will and they have in the past. So, why would you doubt that.

HANNAH: And they say they're going to take over Iran. And they're getting -- and, right now, Syria and Iran are mobilizing their military.

O'REILLY: Let me get this clear.

HANNAH: Yes.

O'REILLY: So, Mark Hannah does not see a threat to the United States now from the ISIS army.

HANNAH: ISIS is more threatening to the United States than al Qaeda. I'll give you that. They're more extremist, too extremist to get kicked out.

O'REILLY: al Qaeda did a lot of damage here.

HANNAH: Yes. But, right now, they're in the middle of a civil war that's happening.

Even Rand Paul who's no dove -- well, he's a little bit of a dove for a conservative, has come out in the "Wall Street Journal" and said we should only go in --

O'REILLY: And we asked the senator --

HANNAH: -- if we have an exit strategy, if we have a plan for victory, and if American public opinion supports it.

O'REILLY: Well, here's the deal, --

We don't have any of those things, Bill.

O'REILLY: You are correct. Senator Paul probably wouldn't do anything. He'd buy into the Hannah program, all right.

We asked Senator Paul up on the program and discuss this. So far, he has declined. We hope he will re-think it. Mr. Hannah, thanks a lot.

HANNAH: Thanks, Bill.

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