Did the White House lie to the American people about Libya attack?

This is a rush transcript from "Hannity," September 18, 2012. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: One week after anti-American protests initially broke out in Cairo and Libya, a new round of unrest is erupting in the streets of the Middle East, Asia and Africa.

Now the latest outbreak comes as reports continue to emerge that the Obama administration may have ignored warning signs ahead of last Tuesday's Benghazi attack.

Now according to Reuters, the U.S. intelligence cable warned of possible violence the day before the assault occurred. Now this blatantly contradicts the White House's version of events.

Joining me now with reaction is the author of the brand new e-book, "Spring Fever, The Illusion of Islamic Democracy," contributor for P.J. Media, National Review Online, Andy McCarthy.

All right, were we lied to? The Libyan president says we were. We have another high ranking Libyan official says, in fact, we were. Did the administration go out and lie to the American people?

ANDREW MCCARTHY, FORMER FEDERAL PROSECUTOR: There's no question I don't think that we were lied to, we were absolutely lied to. Look, they should have known, even without the intelligence streams we are hearing about, Libya sent more Jihadists per capita than any country in the world to Iraq to make war on American soldiers.

Benghazi was the capital of the Jihad in Libya. So we know what we are dealing with. The only difference between now and back then was they have now got the arsenals that at least Qaddafi had under lock and key when we were dealing with Qaddafi.

HANNITY: I love how they say this was spontaneous so people spontaneously pulled out of their back pocket rocket propelled grenades and stormed the embassy. So it doesn't make sense the Libyan president said.

And then we have apparently there was a three-day warning and it was the anniversary of 9/11. Don't you beef up security at embassies on 9/11?

MCCARTHY: Well, we should be doing that everywhere, but particularly in a place like Benghazi where they hate America. I know they tried to turn the rebels into this fabulous group of allies during the Libyan war, but the fact is they want to talk about this cockamamie movie instead of what actually happened.

HANNITY: Did you see it?

MCCARTHY: No.

HANNITY: It was the worst -- if a film student in college presented it as a work that they created, they would receive an F. It was the worst thing you have ever seen.

MCCARTHY: It's total -- it's idiocy. It was three months ago. Nobody saw it. It's totally obscure and non-descript, but they would rather talk about the movie for two reasons.

Number one, Obama's policy in Libya, which has empowered Jihadists, is the reason it happened in Libya and they don't want to deal with that. Secondly, it's been their priority since 2009, since the administration just started, to try to bring Islamic Sharia blasphemy standards into American law.

HANNITY: Now this is key because Morsi is a guy that headed up the Muslim Brotherhood. Muslim Brotherhood, Sharia is our way. The Koran is our law. Dying in --

MCCARTHY: -- the way of Allah is the highest hope.

HANNITY: The highest hope, OK. He referred to the Israelis as vampires. Now he's the president and we are giving $2 billion to Cairo, to Egypt. My question is why? And now I understand it's been put off now because of Republicans, but shouldn't that be stopped? And why does Morsi get to meet with the president but not Benjamin Netanyahu?

MCCARTHY: It's unbelievable. First of all, not all of it has been stopped. The first billion and a half they are getting. The question is whether they will get the next billion. The Muslim Brotherhood is a committed irreconcilable enemy of the United States.

You were good enough to mention the book that came out today. The last book I wrote was called "The Grand Jihad." That was taken out of an internal Muslim Brotherhood memorandum where the Brotherhood in the United States tells their headquarters in Egypt that our mission in the west is to eliminate and destroy western civilization from within.

HANNITY: But the official line of the White House is this was not against America, 9/11, American embassies, American flags burned, Al Qaeda flags put up, death to America chanted. This isn't against America?

MCCARTHY: No, because otherwise President Obama has to explain why has he been empowering America's enemies, which he has done from the first day that he got into office.

HANNITY: All right, Andy, good e-book and a good follow-up by the way to "The Grand Jihad."

MCCARTHY: Thank you, Sean.

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