O’REILLY: While all the polls show President Obama’s job approval rating falling -- Gallup now has it at 42 percent – lowest in that poll ever. The Republican Party has its own problems. Here’s Sarah Palin on Mitt Romney:
PALIN: I have respect for Mitt Romney, but I do not have respect for what he has done through this debt increase debate. He did this (sticking finger in the air). He waited until it was a done deal that we would increase the debt ceiling, and more money would be spent -- more money borrowed and then spent on bigger government. And then he came out and he made a statement, that, oh, he didn’t like the deal after all.
O’REILLY: With us now, possible Republican contender, Rudy Giuliani. So, there’s no doubt there’s a split in the Republican Party between I would say – I’m not going to say conservative and moderates. I think that’s too simple. It’s the new wave, Tea Party people – the fundamentalist, conservative Republicans. And the more moderate Republicans like Mitt Romney and perhaps yourself.
GIULIANI: Right. Right.
O’REILLY: Now, how much is that going to hurt the party, because you’re going up against an Obama machine who’s going to have a billion dollars to run?
GIULIANI: It’ll hurt if it continues. I mean, the reality is – I’m going back to 2007 when I ran – at this point, we had all devastated each other, and it was much more bitter – I mean the Republican primary was, than it has been so far. So, if there’s a certain amount of debate, about how far to go, has fast to go there -- how much to compromise. That’s ok. But if it becomes a real, real battle, then we hand the presidency over to Obama. And if we nominate somebody too far out that can’t occupy the middle and win the independents, then we’re going to lose. The election, as you know, as you point out often, these elections are won by who gets the independents.
O’REILLY: Yeah, the independent vote. But the hardcore Republican right is very angry, and they are the ones that you hear. Those are the activist people who are on, as I pointed out, talk radio and cable TV. When you hear the Tea Party, when you see the Tea Party – and the Tea Party, by the way, you can’t generalize about it. It’s not really a monolithic – There is a lot of different – There’s extremist Tea Party people. There is moderate Tea Party people. Is the Tea Party a good thing?
GIULIANI: Yes. The Tea Party, overall, so far has been an excellent thing. If it wasn’t for the Tea Party, we would have had no reduction in spending. If Obama had had his way, he would have added to the debt ceiling. He would have added to spending. He probably would be doing another stimulus program right now.
O’REILLY: Yet some in the Tea Party would never vote for you because of your social positions – gay marriage and things like that.
GIULIANI: Correct. Right. Right.
O’REILLY: They say that you’re just not a conservative guy, and they don’t want you.
GIULIANI: But I think I’m objective enough to realize, even if you don’t vote for me, you may have a lot of good ideas for the country. I think they have some very good ideas for the country. It depends on how far do you go with it. And the reality is, you saw a split in the Tea Party. Half the Tea Party, of new congressmen, voted for the deal. Half of them voted against it.
O’REILLY: That’s what I’m trying to say. It’s not a monolith deal here. Alright, now, as far as you’re concerned, you’ve been running up to New Hampshire a few times, so you haven’t counted out running. You’re still thinking about it.
GIULIANI: Right. Right.
O’REILLY: But it’s really, you know, almost an impossible climb for you because of the money aspect of it.
GIULIANI: No. It’s an impossible climb, maybe, because of what you said earlier – about where the position of the party is – how does the party look at somebody who has views that are more socially moderate. I think my views on the economy are as conservative as anyone’s.
O’REILLY: Would you have voted for that debt deal?
GIULIANI: I would have voted for it, but I would have voted for it reluctantly. I would have been much more in favor of a massive cut in spending, which I did as mayor. I cut spending by 3, 4, 5 percent. We could have done a one percent cut in real spending over the next five or six years without any problem at all.
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