This is a rush transcript from "Hannity," February 7, 2011. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: Now meanwhile, despite the temporary calm, the disorder already seems to have accomplished at least one visible development. The Muslim Brotherhood has acquired a more serious seat at the table. So does this mean a Muslim state is now inevitable? Have America's enemies already won?

Joining me now with reaction former ambassador to the U.N., Fox News contributor, John Bolton and former National Security adviser, senior Pentagon official and host of "Defcon3" on Foxnews.com, KT McFarland.

Let me play one more cut of this because this is pretty profound what these guys went through because it wasn't just them. It was CBS reporters, Anderson Cooper, ABC reporters and they got beaten severely. They were in the hospital for days, Greg and Olaf.


GREG PALKOT, FOX NEWS CORRESPONDENT: The whole time you are getting pummeled with open hands, with fists, with sticks, with we are told rocks.

According to the doctors, I've got lacerations of the scalp, five of them, pretty deep. One came pretty close to an artery and that's what caused a lot of the blood. I was bleeding all over.

OLAF WIIG, FOX NEWS PRODUCER: Two good-sized lacerations on the back of my head. A smaller one at the front and stab wound in the back of my leg. My back is -- looks like a piece of modern art, I'm just completely black and blue.


HANNITY: Reaction?

KT MCFARLAND, FOX NEWS CONTRIBUTOR: This, I think is the beginning of what we are going to see. This whole part of the world is a tinderbox that could be sparked and set a flame and burned throughout the region.

And so what you're seeing especially if you've seen this against reporters, Western reporters. The thing that I find interesting was they may be going after Western reporters, but they are not burning the American flag in the streets. Now, once they start burning the American flag then I get really worried.

HANNITY: Here's what bothers me the most outside of the brutality of all of this and what is happening here is we read in the Washington Post that the White House is reexamining its relationship with the Muslim Brotherhood.

The Mubarak regime is now inviting them to the table. They've been outlawed for a long time. We know they are a terrorist organization and what they want, Ambassador. Does the president not understand that he should have spoken out against them? While he was so quick to throw Mubarak down the stairs?

JOHN BOLTON, FORMER U.N. AMBASSADOR: Well, I don't think the president knows what his policy is from day-to-day. He's had so many in the past two weeks it's hard to know where to begin. And I think he's compounded that erratic behavior by the constant -- constant public communication about it.

There are times when statesmen have to work behind the scenes with a minimum of public comment. Now that he's talking all the time, every new event requires another comment and that just weakens American influence.

HANNITY: I am shocked even some conservatives don't recognize -- you know, we saw what happened in 1979. Granted, we don't have an Ayatollah waiting in France to come out of exile, but even some conservatives seem, no don't you get it, Hannity this isn't going to be an Islamic caliphate, this is the people's uprising. What part of the Muslim Brotherhood -- their desire for Sharia law and Islamic caliphate don't they understand? Because I think the odds on favorite here, they come into power now.

BOLTON: Well, I hope the outcome is the military is able to restore stability then you can talk about what reforms might be possible. But this question of the Muslim Brotherhood is not hypothetical. We can see in Hamas and the Gaza Strip what will happen. Hamas is a subsidiary of the Muslim Brotherhood.

HANNITY: Voted into power.

BOLTON: Exactly.

MCFARLAND: One man, one vote, one time. The way I think about it is a three act play. Act number one is getting rid of the autocratic dictator, where we are. Act number two is people trying to form a new government often ineffectively. Act three is the well-organized, ruthless, disciplined Muslim Brotherhood could come in and sweep everything away.

That's why it is important in this supposedly transition period that all the other instruments of state get built up because right now the elections today the Muslim Brotherhood wins. They are the only organized opposition.

HANNITY: I agree with you. Do you agree with that?

BOLTON: Well, I don't think we know what the Muslim Brotherhood's popularity really is. It's been repressed for so long. People aren't going to wander around the streets of Cairo saying I'm for it. Once you take that off. Once you legitimate the Brotherhood, which in effect the Mubarak government has already done, it is very hard to put that back in the bottle.

HANNITY: Let me ask a worst case scenario. Let's say we got Jordan, obviously now has their problems, they are in play. Egypt, Tunisia, Algeria, Lebanon, we got Syria. Then we look at this little country Israel and the desire of radical Islamists to take Israel and wipe it off the map. What is the worst-case scenario? If Israel gets surrounded like that, if they're going to feel cornered, weapons are going to start flying.

MCFARLAND: Yes, and in 1973 where I was in the White House at that time, Israel, all the Arab countries united against Israel, fought against it. Went to their borders attacked Israel. Israel took the first blow so they wouldn't be accused of anybody by starting this war.

HANNITY: And kicked the living daylights out --

MCFARLAND: But when the Israelis needed to be resupplied, the United States attempted to resupply. All of the European countries said you cannot stop here and refuel on your way to Israel. What would happen if in an environment where the Arab world producing countries saying we done want anybody resupply Israel, then you see a situation where Israel could slowly choke to death.

HANNITY: You are saying we could see a modern day holocaust. Does this have the potential on a worst-case scenario to involve into a world war?

BOLTON: I think it certainly it could. When you combine with Iran's continued pursuit of nuclear weapons and the likelihood if they get nuclear weapons that Egypt, Saudi Arabia and Turkey will get nuclear weapons as well. You could see a very volatile situation even under the best of circumstances.

HANNITY: Obviously, the president yesterday by not having the courage to condemn the Muslim Brotherhood doesn't get it and that's part of the problem. He's in way over his head. Guys, good to see you. Thank you.

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