Updated

This is a RUSH transcript from "The O'Reilly Factor," July 22, 2016. This copy may not be in its final form and may be updated.
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Joining us now on the phone with reaction to all of this, the host of the show, Bill O'Reilly. Hi, Bill.

BILL O'REILLY, FOX NEWS HOST, "THE FACTOR" (on the phone): Hey, Bret, thanks for sitting in for me tonight.

BAIER: So, your thoughts on Munich and what it means in the big picture?

O'REILLY: Well, terrorism is contagion and now we are starting to see it break out like the bubonic plague all over Europe. And it isn't anything that you can say that is organized per se. So, it's not being directed by Raqqa ISIS leaders. But there is a strain that goes through this. And here it is. The gunmen that are murdering innocent people, including children, are losers. They are just people who have nothing to live for. They are nihilists so they don't believe in anything. So they don't believe that taking human life has any consequence. That's the thread that goes through. It doesn't matter whether they are armed, loaners, or people organized in an ISIS capacity.

That's the one thing they have all in common. They are all losers. They don't believe in anything. They don't think there are any consequences to their actions other than in their own lives being own lives being lost and they don't value their own life that's why they don't value anybody else's life. So, that's the contagion. Now, there is really nothing you can do about it on a case-by-case basis. Certainly the West and not just the United States but Europe as well, their failure to confront evil in the form of ISIS has lightened this feud. And now we are paying the price to that retreat.

BAIER: Europe in particular, Bill, has a major problem on its hands with the threat from all of these refugees from Syria flowing in Germany, there are protests in the streets about what they are doing with these people coming in. And that worry, I guess, translates all over the world.

O'REILLY: Sure, and it's not just the risk of Islamists coming in on a refugee basis. But it's also the backlash from the far right, the Neo Nazi groups. Not just in Germany but all over Europe. Who now say, you know what? We are going to go out and kill some people that we don't like. So, you have a civil war brewing. Not everybody is violent in that civil war but believe me, there is a civil war. In Sweden the most benign country. They just enacted legislation that would force refugees to pay their own way. The Norway, five years ago to the day. Five years ago this day, a terrorist killed 77 people in Norway.

So, Europe is on the verge of anarchy, social anarchy and it's all because millions of refugees have fled the Middle East, ISIS, al Qaeda all of that and streamed into the open border society of Europe, disrupting life in every single way. And then you bring it back to the United States, this is why Donald Trump has been so successful in his message of, we are not going to allow open borders here. We are not going to allow people in here from terror regions and that has resonated and that's why he has the nomination.

BAIER: You know, Bill, I'm sitting here in Philadelphia as the Democrats get ready to start their convention next week on Monday. Hillary Clinton will try to sell and unify her party that is frankly pretty fractured with the Bernie Sanders folks. Even though he has endorsed her. There is a lot of angst in the party and then this news story about the DNC emails, Wikileaks putting out these thousands of emails about internal negotiations and deliberations about Sanders. Meantime, this story, the Munich story, the other attacks, terrorism as you just mentioned is playing heavily in this race.

O'REILLY: Well, you have Hillary Clinton who I believe is going to name Tim Kaine, senator from Virginia as her running mate. The reason she is doing this is because she needs Virginia. It's a vital state. And Cain and Governor Terry McAuliffe a close Clinton ally will deliver Virginia. Virginia will go Democrat this time around. So, it's a tactical move on Hillary Clinton's part. Cain is a centrist. He is actually a Catholic who does not believe in abortion personally. But he does what a lot of these politicians do. He won't legislate against it.

But he is not anywhere near Bernie Sanders and that far left group. And Cain has some foreign policy experience. He has administrative experience as the Governor of Virginia. But outside Virginia, along with Mike Pence in Indiana (INAUDIBLE). Which goes back to my theory that you have heard over and over. Probably sick of hearing it. That it doesn't matter who the VP is. It doesn't matter who endorses them.

Nothing matters other than Trump against Hillary. So well defined that people are just going to have to go to the polls. They don't like either of them and made the choice. But it doesn't matter who is endorsing what or -- nothing matters. It's mano a mano Trump versus Clinton.

BAIER: Yes. And that official announcement supposed to come out on Twitter any second. Obviously when we get the official word we will bring it to you here. That debate potentially between Tim Kaine and Mike Pence could be a real --

O'REILLY: Yes. That is going to be like the World Wrestling Association. I know everybody is going to have their helmet on for that Pence vs. Kaine. I mean, the debate between Hillary and Trump will be the highest rated debate of all time by far. But Pence versus Kaine, a-yay-yay-yay-yay. They are good men, most of them but they are not exciting guys.

BAIER: Last thing, just to wrap up if you would your thoughts of last night and the RNC and the week it was?

O'REILLY: Well, number one it's embarrassing that any major political announcement is going over Twitter. That shows the decline of the nation right there. I thought Trump did a nice job in his speech. He needs to mobilize people who don't usually vote. He needs to get people ripped up. There is a surface of evil in this country that I haven't seen in my lifetime. There is evil in America. There is evil. We see it play out overseas but now it's here. And Trump is tapping in to that like I'm the guy. I'm the avenger, I'm going to knock it out. Whether he can or not who knows. But he has a very good chance of winning this election and everybody should know it.

BAIER: Bill, as always, thanks for having me host your show.

O'REILLY: All right, Bret, thanks again.

BAIER: We will see you. Have a good one.

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