With summer upon us, it's clear that the USA has big problems and the Obama administration seems to be unable to solve them. But it's important to remember that not everybody sees the situation the same way.

For example, when the new IRS commissioner testified last week, I couldn't get over his smirk. I -- he's driving me crazy.

John Koskinen basically told a congressional committee that even though the IRS lost the emails, so what? Koskinen is a big time Democrat donating about $100,000 to that party over the years. I'm sure it was tax deductible.

He is clearly, clearly not upset that his agency has not been forthcoming about targeting conservative Tea Party groups. Reading his body language and listening to his words, again, it's clear the commissioner could not care less.

But why? If the IRS is targeting any group in America, that's a scandal, is it not? An abuse of power.

Let's be honest. Some people despise the Tea Party and don't mind if the government treats it unfairly.

Then, there are others who say nothing improper at all.

(BEGIN VIDEO CLIP)

O'REILLY: You are say nothing corruption, none?

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: No. There were some -- there was some boneheaded decisions out of a local office.

O'REILLY: Boneheaded decisions but no mass corruption?

OBAMA: Not even mass corruption. Not even a smidgen of corruption.

(END VIDEO CLIP)

O'REILLY: All right. That's famous now. I made the president famous that interview.

So, if you combine people who believe President Obama, not a smidgen, with those who don't care, if the IRS targets conservative groups, you have a substantial crew. And part of that crew is the national media who barely covered the story.

Tonight, there is a hearing underway on Capitol Hill, Mr. Koskinen is again getting grilled. We have a report, a live one later on.

Now on to the border. Finally, the liberal media has been forced to cover the situation as thousands of unattended children continue to pour into the USA.

While the consensus is the children are victims, what to do about the problem is contentious. Many on the right want to deport the kids. Many on the left believe America should accept them.

(BEGIN VIDEO CLIP)

POWERS: You say we can't take care of all the entire world's poor.

O'REILLY: Correct.

POWERS: No one is asking us to take care of the entire world's poor. This is 50,000 to 70,000 children. We actually can take care of them.

O'REILLY: More and more coming every day, all right? This isn't like --

POWERS: Fine, make it 100,000. Are you seriously saying we cannot help take care of those children?

O'REILLY: How about a million? You have 12 million in here now.

(CROSSTALK)

O'REILLY: Where do you cut it off, Powers? Where you do stop it?

POWERS: We are talking about the children. This segment is about the children.

O'REILLY: Where do you stop it, Kirsten?

POWERS: I would say every child that comes into this country we should take care of.

(END VIDEO CLIP)

O'REILLY: And Ms. Powers is not alone in her thinking. There's an open border movement in this country that has some influence in liberal circles.

Truth is the Obama administration has not a clue about what to do on the southern border.

Last weekend, it announced it will speed up deportations, but that's not the answer. The answer is securing the southern border once and for all, and to do that you have to militarize it, by putting the National Guard down there.

"Talking Points" have been saying that for nearly 20 years. But there is no way on this earth President Obama is ever going to do that. So, the problem simply cannot be solved while he remains in office.

And finally, the Iraq disaster -- and it truly is. Forty-five hundred Americans dead, trying to deliver freedom to the Iraqi people, 4,500. Now, a terrorist army coming from Syria has overrun the Iraqi military.

Again, why did the Obama administration not see this coming? And even worse, why did the president not engage earlier?

(BEGIN VIDEO CLIP)

BOB WOODWARD, WASHINGTON POST REPORTER: There were people in the military strongly advocating let's keep 10,000 troops there as an insurance policy, and we know, we all live on insurance policies. And this is the case where they didn't do it. Would it have solved the problem and made that much of a difference? We don't know. But the experts, the generals were saying -- I mean, they were almost on their knees, keep some troops here and we left zero.

(END VIDEO CLIP)

O'REILLY: No question we are now paying the price for leaving zero American military behind in Iraq.

But according to a new CBS poll, most Americans don't care. When asked if the USA have a responsibility to do something about the violence in Iraq, 42 percent say yes, 50 percent no. When asked if the violence in Iraq will cause the threat of terrorism against the USA to increase, 44 percent yes, 50 percent believe the threat will stay the same. No heightened threat.

For his part, President Obama doesn't seem particularly concerned.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: ISIS is a group that is so extreme, it has been disavowed by al Qaeda as being too violent.

OBAMA: Right.

UNIDENTIFIED FEMALE: How urgent of a threat to the American people is ISIS?

OBAMA: I think it's fair to say that their extreme ideology poses a medium and long-term threat, but I think it's important for us to recognize that ISIS is just one of a number of organizations that we have to stay focused on. Al Qaeda in Yemen is still very active and we are staying focused on that.

(END VIDEO CLIP)

O'REILLY: I guess staying focused means watching the slaughter.

President Obama was asked by the Iraqis to bomb the terrorist army months ago. The president refused. With most Americans apathetic about Iraq and the left generally opposed to the any military action, it's easy for the president not to do anything.

And here's something very interesting. The left wing press is now calling the invasion of Iraq by terrorists, a militant Sunni problem.

Now, stay with me here. Look at this magazine cover. "The Economist", a prestigious journal, it clearly says the ISIS army invading Iraq is a terrorist concern. The article that follows inside says, quote: "One day, if they have their way, ISIS suicide bombers will also target Europe and America. Hundreds of ISIS fighters may have European passports already. In eastern Syria, the group has built training camps. That is worryingly reminiscent of Osama bin Laden's set up in Afghanistan."

Well, "The Economists" nailed it. They understand what's going on. But the liberal media here in the USA wants no part of that. "The Economist" is printed in Britain.

They, the liberal media here do not want to portray the Iraqi story as a terrorist action, because that might turn public opinion in favor of doing something there. So the media reports said it's a Sunni-Shia deal, knowing Americans don't care about the Sunni-Shia.

Once again, the media attempts to obscure the truth, hoping to provide President Obama with some cover. With Mr. Obama saying focus by not being proactive, American power is receding. We'll talk with Charles Krauthammer about that later.

USA is seen by many evil folks all around the world as all talk, little action. So, the heavy odds are, that heavy odds are, we are in for it. Terrorism is rising all over the world. As the bad guys know the Western powers, including the USA, are reluctant to move against them.

Nobody is calling for battalions of American troops to be deployed in Iraq. That would be foolish. But when you can strike dangerous terrorists, armies, from the air, you do so, especially when asked by a government, that you installed, at great cost and American blood and treasure.

Simply amazing that President Obama continues this evening to sit it out. And that's "The Memo."

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