O'REILLY: President Obama. Somebody asked you to give him a grade. You gave him a four out of ten. So you think that he's not doing a good job?
PALIN: No, I think there are some questionable actions that he's taken recently that I believe weaken our country.
O'REILLY: Give me an example.
PALIN: Gitmo! What, we decide we're going to close Gitmo without a security plan? We're going to bring Mohammed over here, create this circus atmosphere here in New York, and try this terrorist in our court system that is reserved, under our Constitution, for American citizens to be able to have their rights exercised.

O'REILLY: Is Barack Obama a socialist?
PALIN: It scares me, the road that he has us on, not seeming to understand what it is that built up America's economic system, the free enterprise principles, the shrinkage of government, not the expansion, which is a step toward socialism.
O'REILLY: Do you think that he wants to change the country into an entitlement society?
PALIN: We're going to see, depending on his cap-and tax-bill and the health care bill, whatever that's going to cost us. If he decides that he can change course and move us back to more of the free market principles that built up this country, then my answer to you is going to be, no, he's not hell bent on changing the capitalist society that we are. But if he is stubborn about this, then my answer is going to be, yes, he's going to change our capitalistic society.
O'REILLY: Do you think he's smart?
PALIN: I think he's very smart.
O'REILLY: Do you think he's honest?
PALIN: I think that he has told us some things early on in his presidency that have not come to fruition. He was all about positive change, and I think a lot of Americans are believing that the change that he's ushering in isn't necessarily positive.
O'REILLY: He says a lot of Americans can't afford health insurance, the insurance companies are out of control, I gotta get them under control.
PALIN: Let's get the health care problems under control then. But let's use free market, results-oriented, patient-centered solutions to do that. And tort reform. He's not embracing any of those ideas.

O'REILLY: One of the amusing points of your book for me was that you wanted to get Reverend Wright up there and ram it right down Barack Obama's throat. Why?
PALIN: Well, I believe that it is not negative campaigning or off base to call someone out on their associations, and Reverend Wright was a close associate of Barack Obama's for twenty years.
O'REILLY: Do you believe Barack Obama when he said he didn't know Reverend Wright was that radical? Do you believe him?
PALIN: Over twenty years of being in the pew of Reverend Wright's church, surely you would think there would have been something spewed from the pulpit that didn't quite sound right for America. Maybe he just happened to miss those particular sermons, though.

O'REILLY: One more question about President Obama. You pointed out his lack of experience, but you don't have that much experience.
PALIN: If you're talking about executive experience, I would put my experience up against his any day of the week. I'd been elected to local office since 1992 and was a city manager, strong mayor, was the chief executive of the state, was an oil and gas regulator. There was some good experience there that could have been put to use in a vice presidential ticket. We have to remember, too, that I wasn't running for President.
O'REILLY: Let me be very bold and fresh again. Do you believe that you are smart enough, incisive enough, intellectual enough, to handle the most powerful job in the world?
PALIN: I believe that I am because I have common sense and the values that are reflective of so many other Americans. I believe that what Americans are seeking is not the elitism, the kind of a spinelessness that perhaps is made up for with some kind of elite Ivy League education and a fat resume that's based on anything but hard work and private sector, free enterprise principles. Americans could be seeking something like that in positive change in their leadership. I'm not saying that that has to be me.

O'REILLY: If Sarah Palin is called upon in 2012 to run for President, I'm going to going to say, look, Iran is this far away from getting a nuclear weapon. How are you going to stop them?
PALIN: Let's start considering the sanctions that we should have been applying already. Let's start looking at cutting off their imports of refined petroleum products.
O'REILLY: Does that mean a naval blockade?
PALIN: We need to at least be willing to do such a thing and discuss it with our allies. And we need to be working closely with France and Britain, our other allies whom we can count on.
O'REILLY: But they're already on board with economic sanctions. Do you know the country that isn't on board, that's causing all the trouble?
PALIN: Well, we have to question Russia's commitment to all this.
O'REILLY: Excellent! Russia is the problem. If Russia will not stop gas going in, the embargo means nothing. Putin's saying, look, I'm not helping you out unless you give me a sphere of influence in Eastern Europe, and Sarah Palin says what?
PALIN: Well, we need to send that message that we are the superpower of the world.
O'REILLY: How do you do it?
PALIN: By working closely with our other allies also so that Putin ...
O'REILLY: He doesn't care.
PALIN: He's gotta care because he's got relationships with these other countries also. We have to show support for each one of our allies. We cannot get into Israel, for instance, and say we're going to tell you whether the Jewish community can expand or not expand within your borders. Instead, what we need to do is tell Israel that we will go to bat for them.
O'REILLY: Well, what does that mean, though? Say Netanyahu calls you up and says, look, I'm bombing Iran, they're too close, I'm not going to let it happen, what do you say? You say go ahead, Netanyahu, go bomb them?
PALIN: Oh my gosh, any kind of war strike is the absolute last option. That's why we cannot let the world get to the place that you're talking about.

O'REILLY: Afghanistan. The US Ambassador says don't send in the 40-thousand troops, this is such a corrupt place. Obama doesn't really know what to do at this point. A lot of people think you cannot win in Afghanistan, you cannot impose democracy on that nation.
PALIN: It'll be tough, but Iraq was tough too, and when that surge strategy was finally implemented, we started to see the victorious steps taken in Iraq. Let's repeat that in Afghanistan. Granted, conditions are different in Afghanistan. But Obama asked for, back in March, a new strategy. He tasked McChrystal with coming up with one, and now all these months later Obama still hasn't been able to make up his mind in terms of our commitment to victory.
O'REILLY: Do you think it's possible for victory in Afghanistan?
PALIN: I do. It has to be. We have got to be victorious in Afghanistan, or the terrorist cells are going to grow. And what is Al Qaeda's goal? Growing those terror cells so they can come and destroy America. We have to send in the reinforcements. And I say this as a mom of an infantryman who could ultimately end up over there, which scares me personally. But of course I know that for the future of our world, we have got to get rid of the terrorists over there, and not allow those cells to grow.

O'REILLY: China. We can't do anything to China because they prop up our economy. Are you comfortable with China owning a trillion dollars worth of US currency?
PALIN: I'm not comfortable with US policy today that is allowing China to own so much of America essentially. What isn't right about this is that we're continuing to grow our debt, continuing to allow this situation that we're in, where we're beholden to China and to others. We can't look at China and be blaming them right now for the problems that we're causing ourselves by spending too much money and growing government.