"Many of us can expect to pay $3 a gallon for gasoline this summer, thanks to some speculators who are bidding up the price of oil and to the oil companies who love that kind of speculation so they can raise prices accordingly. Remember, the oil companies don't have to raise prices. They can make huge profits without reacting to the speculators, but why do that when a few speculators provide them with an excuse to charge as much as they can this kind of going to the penitentiary. Now that's the truth and if you don't believe me, hey, that's up to you. The awful thing about the gas gouge is that it could have been avoided. Next year the country of Brazil, population 188 million, will be energy self-sufficient. That is they will not import a drop of oil. Why? Because the Brazilian government in the 1970's mandated that Brazilian cars would run on ethanol, which is made from sugar. Who is the biggest sugar producer in the world? Brazil. Now if Brazil can make its cars run on sugar, the U.S.A. can. We have even better technology than Brazil but we do not have the will of Brazil. That's because the Federal government sold us out to big business. The oil companies, the car companies, they don't like ethanol. They like expensive oil. Sugar-based fuel would get us away from OPEC, help the environment, help the economy and make your life better. But we don't have it because big oil and big labor said no and the politicians went along. So every time we have to fill up with $3-a-gallon gasoline, we should think about Brazil. We should have pictures of Rio on our car windshields. We should have sugar cubes on our dashboards because we could be self-sufficient in fuel as well."

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Guest: Congressman Peter King

Top Republicans have now removed any mention of a felony for illegally entering the U.S.A. The question is, is the GOP folding? Congressman Peter King is deeply involved in trying to get new immigration legislation passed. The Factor asked, "I understand in your bill that you passed in the House, that the Democrats supported the felony provision. If you came here illegally, it was a felony. But now they turn around and say, big, bad republicans. What's the deal?" King responded, "This is a totally phony issue created by the Democrats and facilitated by Catholic bishops and the liberal media. What happened here was, the original bill as drafted by the Judiciary Committee, said it would be a felony to enter the country and a felony to stay in the country illegally. Republicans on the House floor introduced an amendment to make it a misdemeanor because it's actually a lot harder to deport someone and bring action against them under a felony than it is a misdemeanor. You have to convene a grand jury. You have to pay legal fees. So there's no sense at all in making it a felony. 191 Democrats, that's over 90 percent of the Democrats voted to keep it a felony. Over 160 Republicans, about 70 percent of the Republicans, voted to make it a misdemeanor. So it was the Democrats who voted to keep it a felony. It was Republicans who voted to make it a misdemeanor and now the Democrats, ever since have been saying that this bill is no good because it makes every illegal immigrant a felon." The Factor questioned the politics behind the debate, "Why did the Democrats vote to keep it a felony when they knew that that was on the record and it would come back?" King said, "They rolled the dice that the liberal media would pay along for the last three or four months because if you read the newspapers, it's the Republican bill that makes this a felony. No one in the media, no one among the Catholic bishops points out it was the Democrats, the great liberal Democrats who say this is a great human rights issue. It's a civil rights issue that they were playing games with people's lives by voting to keep this a felony rather than a misdemeanor. I think it' was disgraceful what they did and even more disgraceful is the way the mainstream media and do-gooder groups such as the Catholic bishops have gone along with that." The Factor added, "I have not heard the Catholic bishops demonize the Republican Party to be fair. I have heard them say, 'We're not going to obey a law that makes it a felony to illegal aliens.'"

Guest: Fox News military analyst Lt. Gen. Thomas McInerney

As we told you last night it would be insane for the Bush administration not to be looking at military options when it comes to Iran. As you know, that country is defying the world and trying to get nuclear weapons. But some in the American press are all upset by the possibility that military action might happen against Iran. The Factor asked Fox news military analyst Lieutenant General Thomas McInerney, "What kind of a country would not even consider options, at the planning stage, against an adversary like Iran? That would be totally irresponsible." The general responded, "We expect our military to be making plans for a military option. There will be no diplomacy without a very strong capable military option." The Factor wanted to know if perceived failures in Iraq were complicating any action against Iran, "The argument is that the U.S.A. screwed up Iraq conflict so bad and we are in so deep, that you shouldn't even be considering any other military action." The general said, "First of all, we didn't. It was a brilliant campaign done in 21 days? I can lay out a campaign today that will take Iran down very quickly. We'll do it a different way. But the fact is we have lots of capability. We are not pinned down in Iraq, despite what people think. We are not pinned down there." The Factor wanted to know about the planned campaign against Iran and inquired, "Lay out the military campaign as it might come down, if all other options are exhausted." The general said, "It's a powerful air campaign that we will hit within 36 to 48 hours, over 1,500 aim points. And those are primarily nuclear sites for the development. We'll hit this integrated air defense system. We'll take its air force out, its navy out. We'll take his command and control out ? And then simultaneously, we will have a covert campaign in which we'll help the Iranian people retake their country. Now they have a mixture of people there, Bill, that only 51 percent are Persian. You've got about 24 percent Azerbaijanians, about 10 percent Kurds. That's 85 percent. It is ripe for political discontent and ripe to let the people have their country back. The mullahs are not beloved in that country and so with a skillful air campaign to neutralize their command and control and their ability to respond and then putting the effort, as we did in Afghanistan and very similar to what Khomeini did against the shah, let the people have their country back." The Factor wanted to know if this strategy included boots on the ground for American troops, "So it would be all air, no infantry and maybe special forces trying to help." The general answered, "Correct."

Guest: Bill Cunningham, WLW-AM

By a vote of 32-1, the Ohio state senate has passed a version of Jessica's law that mandates prison terms of 25 years to life for the rape of a child under the age of 13. Now, the house is expected to take the bill up in a couple weeks. Obviously, we hope it passes, but most Ohio newspapers disagree with us. The "Akron Beacon Journal," the "Cleveland Plain Dealer" and the "Columbus Dispatch" all oppose Jessica's law and indeed, those newspapers and others were largely sympathetic to Judge John Connor who sentenced a child rapist who confessed to probation. The Factor asked Cincinnati radio talk show host Bill Cunningham, "Ohio is a red state, a traditional value state. But the media looks like they are leftwing loons. What's going on?" Cunningham responded, "The editorial sections of the major newspapers are left winged loons. I've lived in Cincinnati my whole life, went to law school in Toledo. I have on the Columbus and Cleveland politicians. And when you talk about sexually abused children from Sri Lanka or anywhere, the prosecutors do not like strict sentencing because it takes away options. The defense bar doesn't like these kinds of Jessica laws because it hurts business down the road. The judges don't like it because it takes away their authority and the liberals who run these big city newspapers in Ohio believe it or not, are just like "The New York Times" or "the Atlanta Journal-Constitution. They went to the same schools." But The Factor wanted to know why the papers are ideologically opposed to what their readers believe and challenged, "But the politicians in the senate, 32-1. That's pretty overwhelming and we believe that the house will probably pass the bill and the governor will sign it. But I don't understand -- I understand 'Cleveland Plain Dealer.' All right, now that city obviously heavily minority, urban situation. But I don't understand Dayton. I don't understand Columbus. 'Toledo Blade' was the only newspaper that openly spoke out against Connor. Here's a guy who not only has given out insane sentences over his career but is a felon himself." Cunningham responded, "A couple of lawmakers who told me off the record that the Democrats were going to oppose the impeachment of Connor because they had a list of Republican judges who had done similar things. My point would be, well then impeach them all." He added, "[The Factor] is perceived as kind of the circus, the ring master who brought this up. If you had not brought this up, I don't think we'd have Jessica's Law about to be passed into law at this point."

Guest: Beth Twitty, mother of victim

Dutch TV has broadcast a program that reenacted the disappearance of Natalee Holloway even though the case is still a mystery. The show took all kinds of liberties in demonstrating what they believe might have happened. The whole thing is kind of bizarre. For example, a non-white actor portrayed Juran van Der Sloot, who is white. The Factor asked Natalee's mother, Beth Twitty, "What do you think about this? Is it exploitation? Does it help you at all? The Arubian government put out a press release saying they got tips." Twitty responded, "I was a little concerned going into this, but when I see some of the things that's have come out, I think there have been some good things that have come out ... they are allowing citizens to call into different tip lines and some of may not feel comfortable calling to the Aruban police." The Factor wanted to know if the program was accurate and how Twitty reacted to the images, "How did you feel about the portrayal of your daughter? Did any of that affect you emotionally, or could you detach yourself from it? Twitty reacted, " I really did detach myself from that aspect of it. I think what hit me the hardest when I watched the entire show was the first time -- that's the first time I have seen footage of Deepak Kalpoe's car leaving Carlos 'N' Charlie's. I did not know that existed. And when I see the car, that clips of that going by, I know that it's my daughter in the car with those three suspects, that was thinking she was being taken back to the Holiday Inn hotel. And that was just the most devastating part for me to see." The Factor asked about other new details in the movie, "There was also a part in the film where another woman was sexually assaulted, I guess, nine days before Natalee disappeared. But you knew about that already. This was the first time The Factor heard about it. Twitty said, "I have spoken with the young lady several times. And I knew about this man that they were looking for as early as the middle of the summer. The FBI had even given me some information that they were looking for this suspect. Not that they felt that the case was connected to Natalee's." The Factor wanted to know if the government was still on the case, and asked, "The FBI, are they in contact with you on a regular basis?" Twitty responded, "We really haven't been on a regular basis for some time now. I think the last update I had was when the Aruban officials were coming to the U.S. to re-interview some of the students." The Factor also asked Twitty about her new foundation and she said, "It's SafeTravelsFoundation.org ...it's [under] construction right now. What we are trying to do is just provide some in-depth safety information to persons traveling abroad."

Guest: Attorney Lauren Lake

Last week, Bill Cosby told audiences in New Orleans, "It's painful, but we can't cleanse ourselves unless we look at the wound. Ladies and gentlemen, you had the highest murder race unto each other. You were dealing drugs to each other. You were impregnating our 13-, 12-, 11-year-old children to each other. What are you going to allow into your buildings? I'm asking you on the gravestones of those who died facing racism." The Factor asked criminal defense attorney, Lauren Lake if Cosby was scolding the city. She said, "I saw it the same way. Tough love. And it's hard to take. Sometimes the truth hurts. And we have to know that as African-Americans. What he's saying is that we had certain issues and problems in our community before this disaster happened. And when we rebuild and retake our rightful place in that community, let's make sure that those same things, we're not going to allow them to be brought back in our community. And I agree with that. But The Factor wanted to know, "What's the lesson here for America?" Lake responded, "The lesson is, is that racial oppression is still very much alive and well in this country and if we want to pretend like it is not happening, we are fooling ourselves. I am just taken aback at all of the instances I see, where it is oozing from this country's poorest, from the failure to restore the levees to the rebuilding process, through everything that's going on. We've got a brown face on this tragedy, and we see further and further disenfranchisement of these people, even now with the voting situation. This is absolutely ridiculous." The Factor pressed further, "Do you believe, as some have asserted, that the response to the hurricane's damage was limited in New Orleans, because it was primarily an African-American city?" Lake responded, "What I'm saying is, is that the institutions in this country are geared to where a response towards a problem is based upon who the problem resides with. When we had the hurricane, I don't like the fact that blacks were put in that Superdome, that medical aid and food, it took forever to get supplies there. And why? I do believe it's because there were a whole bunch of people of color in that Superdome." The Factor challenged this point, "You've got a black mayor. You've got a Democrat governor, both of whom, in my opinion, were not up to the job. They couldn't do the job. It was beyond their capability. And I don't see anybody saying, 'Well, they're black, so we're not going to hurry. Ah, they are black, so we're not going to give them the aid they should get.'"Lake responded, "Isn't that the way that institutional racism works? It's not overt. It's not, 'I hate black people.' ... It's covert. It's sneaky. It's hard to detect." The Factor responded, "If you want to convince people that it's institutional racism, you're going to have to do what you do in the courtroom. You're going to have to build a specific case. Because I'm not buying it just because you say it."

Guest: Kirk Cameron

At its height the sitcom "Growing Pains" was one of the America's most watched programs. That was back in the late '80s. And one of the stars, Kirk Cameron, was a teen idol, a hugely successful performer. He was also at the time an atheist. But now all of that changed. The Factor asked Cameron, "Americans watching now remember you and that big hit show. And when did you get a conversion?" Cameron responded, "It was about when I was about 17, 18 years old. You know, I think that when you're 17 years old, and you're on a hit TV show, you're known throughout the world and you're making lots and lots of money, it really is a recipe for disaster. And fortunately for me, at that time, I got thinking about the fact that I was part of the ultimate statistic. Ten out of 10 people die. And I thought, as an atheist, if I find out that there's a God, all of my money and fame is not going to help me one bit. I heard the message of the gospel of Jesus Christ. I submitted myself to it wholeheartedly. And then God changed my heart, gave me new desires and sent me in a new direction. And I really can't take a whole lot of credit for any of that. I'm just extremely grateful." The Factor asked, "How can you be an atheist when you're a kid and did anybody help you convert?" Cameron responded, "I think because I didn't grow up in a religious home, it wasn't what I was taught, that there was a God. There's always a question in the back of my mind. But I have to say that not too far under the surface of an atheist is really the convenience of not believing in a God because ultimately, if there's no accountability there, then you have free reign to live any way that you want to, and that's really a lot of fun. But thinking about your own mortality, even at 17 years old, can really sober you up and make you think seriously about eternity, about the design of the universe and how we got here and where we're doing." Ansering the second part of the question, Cameron said, "I had somebody who took me to church, where I heard the gospel. They answered a lot of intellectual questions that I had problems with. But ultimately, it was a personal step of faith: God, if you're there, show me. I want to know the truth. I don't want to be duped by a fairy tale religion. But if you did what you did on the cross for me, then make me the man you want me to be. I'm in." The Factor wanted to know if his conversion hurt his career in Hollywood and Cameron responded, "The truth is, I have a wife. I've been married 15 years. I've got six kids. I've got a career that I'm passionate about, a show I love. And I'm talking to Bill O'Reilly in front of 4 million people, not because I was caught with a gun in my hand but because of my faith. So I think it was a great decision."

We got a huge inflow of mail about the interview with New York City Councilman Charles Barron, who is in favor of open immigration to literally change the complexion of the country.

Theresa Huggins, Knoxville, TN: "I am the granddaughter of one of those Italian immigrants Charles Barron was talking about. I heard stories of incredible prejudice against my grandfather. Yet unlike Mr. Barron, he didn't carry it with him all of his life."

Trace Gordon, Canyon, TX: "I suggest Mr. Barron read a history book and learn that early immigrants to America had no welfare system, faced horrific poverty and often violent prejudice. That doesn't happen in today's America."

Mitch Tyree, Newport News, VA: "Bill, thanks for getting to the bottom of the immigration mess. There are many hidden agendas, and changing the racial makeup of the USA is one of them."

DonnaLee Pedersen, Loxahatchee, FL: "O'Reilly, we need to get The Factor piped into our schools. Then the boredom will end and students will actually think about this world."