Updated

This is a RUSH transcript from "The O'Reilly Factor," May 19, 2010. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: In the "Miller Time" segment tonight: Assistant Secretary of State Michael Posner told Foreign Policy magazine that his take on the Arizona illegal alien law where he seemed to imply the nation was discriminatory is being misinterpreted somehow. You may remember Posner saying this about bringing up the Arizona law while discussing human rights with the Chinese.

(BEGIN VIDEO CLIP)

MICHAEL POSNER, ASSISTANT SECRETARY OF STATE: We brought it up early and often. It was mentioned in the first session and as — as a troubling trend in our society and an indication that we have to deal with issues of discrimination, of potential discrimination.

(END VIDEO CLIP)

O'REILLY: Joining us now from Los Angeles, the sage of Southern California, Dennis Miller. You know, it was all a mistake. He was just misinterpreted, Miller. You know, come on. Don't pick on him.

Click here to watch Miller Time!

DENNIS MILLER, FOX NEWS CONTRIBUTOR: You know, there are methamphetamine addicts with a dreidel who don't spin that hard. And when was the last time anybody around Barack Obama, by the way, was in context? These guys got to get an OnStar button and find out where context is, because they're always being taken out of context. I got what he said there. You've got a mid-level hack apparatchik apple polisher, and all of a sudden he's apologizing to China, who periodically are playing whack-a-mole in Tiananmen Square with students? He's apologizing? These aren't even necessary apologies. These are pre-emptive apologies. I thought they weren't for pre-emption. You know, early and often is their equivalent of shock and awe. And I'm getting sick of them apologizing for us. The groveling czar.

O'REILLY: Posner even admitted the Chinese didn't even bring it up. He brought it up. So it was like, OK, before we get to the concentration camps where you put people in there if they say anything bad about the government, before we get to you invading Tibet and executing anybody you want in there, and before we get to any illegal alien crossing from North Korea into China gets a bullet in the head, before we get into any of that, our Arizona law, which isn't even in effect yet, very discriminatory. Come on, Miller, you know that's diplomacy. You've got to do that.

MILLER: I think the Chinese thought that he was putting them on. I sort of got when he walked out of the room they said is he goofing on us? Is he testing us? Because that's the craziest thing I've ever heard.

O'REILLY: That's right. We're not so bad.

MILLER: Can I tell you something, Bill? It took me 16 months to figure out this administration. But I'm going to put it on the line. I gave them a wide berth, as you have. But I'm at the point right now I'm willing to say on national television I think on his bad days, President Obama and his administration are ashamed of this country. I think on his best days, he's embarrassed by it. Do I think he's capable of being proud of this country? I do. But only when he gets it looking exactly — exactly — as he thinks it should look. And I don't like that precedent. Not for the country in general.

O'REILLY: Here on my side it's running down to me. I mean, when a guy like Posner, when you look at his background — we did this yesterday - - he's as far left as he can get. I mean, this — he could go camping with Hugo Chavez, and they'd both have a great time around a camp fire. I mean, that's how far left this guy is. What is he doing there? Now, we're going to have P.J. Crowley from the State Department on "The Factor" on Friday, and he'll tell us.

OK. Reverend Wright is back in the news. A letter that he wrote was obtained by the Associated Press, which means they probably broke into Wright's house and took it from his library. And it says — the letter says that Wright believes the president threw him under a bus and hates him and fear — is fear and loathing and doesn't like him at all. And you say?

MILLER: You know, Reverend Wright's thing, "Wait a second, Posner has my man's power of attorney, and I can't get a return phone call?" I mean, he can't believe that he's been kicked out. But I think he — guys like he and Ayers have to realize that Barack Obama is the space shuttle and they're fuel pods. And he needed to get out of orbit in Chicago. They got him out of orbit, and they can officially consider themselves jettisoned.

But you know something? When I see the reverend getting angry about this, I think wait a second. You can't misinterpret the fact that he married — he married him, baptized his kids. He called you a spiritual mentor, and he sat in your church for 20 years. You didn't take that to mean that you actually mattered to him, did you? He couldn't be there to help you out. He was too busy helping Arlen Specter get re-elected.

O'REILLY: Yes, but to be fair. I mean, how can you justify Reverend Wright justifying this stuff he said? You can't. Not as president of the United States. You could as a community activist.

MILLER: How could you justify — how could you justify Posner apologizing to China for him?

O'REILLY: You can't.

MILLER: You know — you know what's happening here? I have Jewish friends who are walking back their Barack Obama vote to me. And I bet you in New York a lot of those — the guys who contribute to Barack Obama are walking their vote back. And that's why the rev is never going to get a return phone call, because he's the one who thinks Jews have horns, and they're never going to get in bed with him again, because they've already alienated the Jewish people who were behind them the last time through.

O'REILLY: All right. Finally, you saw the Barack Obama-Calderon press conference. We used a bit of it a few minutes ago. And you say?

MILLER: Well, really awkward moment at the press conference when Calderon accidentally knocked his podium over and the six illegals spilled out. But thank God Barack was there with the Wonka tickets to make them all immigration czars, cover the whole situation up.

O'REILLY: Anything else? Do you have any other observations on this?

MILLER: I just like it when he's here, because I like to hear American newscasters do the politically correct pronunciation. Calderon! All of a sudden, everybody's — all of a suddenly, everybody's Cervantes.

Listen, I got a fix for this whole thing. You go to Calderon and you say, "Listen, we're going to give you money to build a wall on the inside of your property to keep us out, because we're all dying to get down to Mexico." That's what we say ostensibly, and then we use the wall the other way.

O'REILLY: Put yourself in Calderon's shoes for a second. The guy's doing a good job against the cartels. I mean, he's trying. He's the only Mexican president in our lifetime who's ever tried to get that under control. So you've got to give him props for that. And he says to himself, "Look, if I don't get the billion dollars that the illegal aliens send home to Mom, Dad, the wife and kids, if I don't get that money, a billion, into the system here in Mexico, we're through. We're through." So you've got to understand it from Calderon's point of view. He's going to, you know, do everything he can to get as many illegal aliens from his country in here. And that's why — why don't they just be honest about it? Just be honest about it. Instead of the charade, you know.

MILLER: Well, Billy, I'll go with you as far as to say he's trying. Do I think he's doing a good job? No. Mexico right now makes the last 15 minutes of "Scarface" look like "Sound of Music." So, he's trying. Do I think he's doing a great job? No. Is he ever going to come clean with you? Yes. Do you want the president admitting that you've got to send people out of your country to get money to come back there or you're going under? I don't think that augers well for his second term. So I think Calderon is going to stay on the down low, like you just said.

O'REILLY: It's — you know, I — I respect the man, you know, because he's doing something that puts his life in danger and, you know, I just wish he could do it a little bit better, as you said. Miller, as always.