Updated

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

SEAN HANNITY, HOST: We've all heard the story about how presidential candidate Mitt Romney, he admitted that many years ago, his family dog, Seamus, made a vacation trip from Boston to Canada, in a kennel on the roof of the family car. In an effort to distract voters from the real issues of Obama's failed policies, team Obama is instead hitting Mitt Romney on what else, but the treatment of his dog.

It all began with a tweet from David Axelrod, saying, quote, "How loving owners transport their dogs," and then he posted this picture of President Obama and his family dog Bo, riding side by side in a car. But then it all backfired when The Daily Caller reminded us of a passage from Barack Obama's book, where he actually admitted to eating dog meat in Indonesia as a child.

Our future president wrote, quote, "Away from the dinner table, I was introduced to dog meat. It's tough. Snake meat. Tougher. And roasted grasshopper. Crunchy."

The group PETA -- People for the Ethical Treatment of Animals -- has now released a statement on the situation, and Twitter is on fire, @SeanHannity is my address if you want to join us.

And joining me now with reaction to this dogfight, no pun intended, Fox News contributor Chris Hahn, Tea Party Express member, Amy Kremer.

We first met -- when was it -- in April 15th, 2009 in Atlanta. How many people did we have there? You have there, not me.

AMY KREMER, TEA PARTY EXPRESS: About 5,000 plus.

HANNITY: Yes.

KREMER: No, we all had him there. It was 5,000 plus.

HANNITY: That was the first sign, where I said, wow, the country --

KREMER: We realized we weren't alone.

HANNITY: Exactly. Yes, that was -- and you were -- you have been an active organizing member. All right. So what do you think of all of this? It seems like the Sandra Fluke thing. They think they're going to have a war on women. Backfires. You know, then he asked to defend Bill Maher, and now this case.

KREMER: Right. It's a distraction of the real issues of this economy is out of control. The gas prices and our debt and deficit, $16 trillion in debt. And we have gone in this presidential election cycle from talking about children's toys, dogs. I mean, you've got clown parties out in Las Vegas, now this prostitute thing in, you know, Colombia.

HANNITY: Secret Service.

KREMER: It's a -- it's a -- you know, it's ridiculous. Let's get focused on the issues and that's the economy.

HANNITY: Yes.

CHRIS HAHN, DEMOCRATIC STRATEGIST: Surely you're not going to compare the actions of a 6-year-old to the actions of an adult, when it comes to their pets. But yes, they're distractions.

HANNITY: Wait. I can --

(CROSSTALK)

HANNITY: But I can bring up another issue. Now President Obama in something that was not really publicized last November actually signed a bill that allowed the killing of horses for consumption, butchering of horses.

HAHN: He allowed for the consumption of horse meat--

HANNITY: So wait a minute.

HAHN: -- when horses were already going to be slaughtered.

HANNITY: OK. Hang on a second.

(CROSSTALK)

HAHN: Horses to be slaughtered.

HANNITY: Wait a minute. Well, but t was prevented prior to that so he allowed the slaughter, the butchering of horses for consumption. And so the question is, if the Democrats want to make the issue about the treatment of animals, then certainly that comes into play. But you've got to admit it kind of backfires, if you're going to go after Mitt Romney for how he transports his dog and you ate a dog, that's not that exactly --

HAHN: Well, he ate dog when he was 6, Sean. When your dad put something on your plate when you're 6, and you didn't eat it, you didn't get any ice cream, am I correct? That's what I tell my daughter.

(CROSSTALK)

HAHN: You don't eat that grilled cheese sandwich, no ice cream, Sean.

KREMER: This is the thing. Why are they talking about dogs anyway? Why aren't we talking about the gas?

HANNITY: That's the point.

KREMER: The prices of gas.

HAHN: Well, I --

KREMER: Wait, no --

HAHN: I'll make you guys a deal on gas prices. Can I make you a deal?

KREMER: Well, let me say something. Four times over the past four years, President Obama has said something about the price of oil and speculators.

HAHN: Yes.

KREMER: A year ago, April 21st in 2011, he appointed a task force.

HANNITY: We showed this last night.

KREMER: And they haven't reported to the public. And now they're out there talking about this again.

HAHN: I'll make you both a deal.

KREMER: This is ridiculous.

HAHN: Sean, I'll make -- I'll put this deal on the table for you right now. I will blame President Obama for the gas prices in this country today if in October when they come down, you both give him credit for them coming down. I'll look right into that camera and I'll say it's his fault.

HANNITY: OK. Wait a minute.

HAHN: Because we both know it's not.

HANNITY: Do you --

KREMER: No, but you --

(CROSSTALK)

HAHN: You want that deal? Let's take it.

HANNITY: No, no, no. That tells me, because you're very close to Chuck Schumer. This is interesting. That tells me that maybe, did he make a private deal with the Saudis?

HAHN: No, there's no private deal.

(CROSSTALK)

HANNITY: Increased production?

HAHN: It's called -- this is what happens in the oil market, when you switch (INAUDIBLE) from winter to summer, prices spike. When you speculate a war on Iran and Iran doesn't happen --

HANNITY: Hang on a second.

HAHN: Prices fall.

HANNITY: Prices have more than doubled since he's president. And we have $5 trillion in debt. You're right. These are serious, significant issues. There seems to be -- this is an uncanny, you know, series of distractions about superfluous, meaningless issues. But they've successful. Axelrod was successful in getting everyone to talk about the dog until dog meat came out.

HAHN: But you don't want to --

KREMER: Well, and the thing -- no, the thing is, you know, he blames it first on the Strait of Hormuz, and that, you know, it's going to be shut down and now the speculators. In the real --

HAHN: But this is what happens in the market.

KREMER: Wait a second. No, wait a second.

HAHN: I'm sorry, that's what happens.

KREMER: But, Chris, there's a bigger issue here. Why don't we look at our overall energy policy. I mean the Department of Energy was created to get us off of foreign oil back in the '70s. Now we have plenty of natural resources here. Governor Palin talks about it all the time, natural gas, shale, coal --

HANNITY: We -- we're out of time.

HAHN: We're bringing a marginal decline in the world price of --

HANNITY: You're wrong.

HAHN: No, I'm right.

(CROSSTALK)

HAHN: The largest utilities in the country.

HANNITY: Excuse me.

HAHN: OK, I understand --

HANNITY: When George Bush opened up oil drilling in July of '08, it came down, by the time president Obama came in office, it was $1.80 a gallon. Now it's $4 a gallon.

HAHN: So if we're going to give him --

HANNITY: Thank you.

HAHN: If we're going to give Bush credit for anything that's going on now --

HANNITY: I suspect you know something going on behind the scenes.

HAHN: No, I know --

HANNITY: I don't trust you.

HAHN: You know what, I know the market. Take my deal.

HANNITY: I don't trust you.

HAHN: If it's his fault, you say --

HANNITY: I don't trust you or Chuck Schumer.

HAHN: You trust me and you like me, and Chuck. Let's all say it.

(LAUGHTER)

HANNITY: You can believe whatever you want.

HAHN: I have inside information. Come on. It's a big worldwide market.

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