radio talk show host rush limbaugh tells us that might be the case. rush, thank you for joining us. today in your third hour on your radio show you talked about the news of governor palin on a bus tour. do you think is the beginning of a campaign for the white house? >> before i answer the question. can i address something. i'm mostly appearing on your show on the phone. i told some people they said why don't they want you on camera. i said it is not them, it is me. i'm lookingo good these days that people would not hear what i say and would be so blinded by my appearance. so i choose to be on the phone to be her. i think this bus trip certainly designed to get people speculating she in. and it is clear greta, the thing about sarah palin to me, she has now learned to relish and profit from all of the attention, be it negative or positive. she certainly knows negative attention. she has suffered slings and arrows. she's got the media anal exam unlike any other republican candidate. i've never met her. i don't know it appears to me her skin is very thick. i think she now has come to grips with the fact that is part and parcel of the process. one of the things she enjoys is rubbing back in their face. she knows they are trying to intimidate her into silence. not running perhaps. being quiet or shutting up. here comes the bus tour. i think she mastering the things she is going to have to master if she decides to run. >> greta: you had the gallup poll, you talked about that today. it says she is two points behind governor romney. she hasn't even indicated she jump going in the race. does that show a particular strength? how is the republican party going to embrace her? >> well, it is interesting. that poll, that result shocked me. the way the gallup people wrote it up, they say since governor daniels out. since trump is out, he was never in. and since huckabee is not running. this has opened it up to launch her to number two. only two points behind romney, i think that was startling. greta, you have asked the question of the day. you've asked the question of the campaign. the republican party is really royal right now inside the beltway intelligensia power base is not oriented toward conservatism. conservative republicans make themmer in . inside the beltway ruling class the elites more oriented toward candidates they can attach the word serious to. another way of saying somebody that is boring that doesn't ruffle ers that exudes an air of -- feathers that kpao you'ds an air of sophistication. she doesn't examine you'd that. you have followed her. -- you know the effect she has on establishment republicans. they are just as frightened in their own ways the democrats are of palin. one thing i think that is inescapable, particularly with when looking at the democrats. in the immediate. democrats will always tell us who they are afraid of. by virtue of who they spend time trying to destroy. when mitch daniels was flirting with possibly getting in. "washington post," "new york times", all quoting democrats and republicans, yeah this is who obama really fears. the white house really, really fears mitch daniels. really, would they tell us that if they thought that? they are trying to goad into the race. ruth marcus the "washington post," pleas mitch run so we have a serious campaign that makes obama better. convoluted thinking, weird thinking. bottom line is she scares them. she also scares the republican establishment. so do some other potential candidates. >> greta: how about santorum, bachman, gingrich? >> santorum and bachmann are great examples. bachmann especially. anybody who is tea party oriented is going to send some chills down the spines of both the republican and democrat establishment. there's something about the tea party that frightens them. i think there's a direct connection with the american people that the tea party represents. go back even reagan greta, was not that embraced by the republican establishment, particularly during the campaigns of '76 and '80 after he was elected they kind of had no choice. it is always a battle for conservatives to overcome. >> greta: to what extent do you think the political journalists and pundits are so far removed from the tea party that they don't understand them and don't realize their impact? >> i think they do understand. i think they are far removed by choice. i think they don't want to be in touch with middle class, hardworking people who -- the kind of people who make the country work. we really are class division politics in this country. there are people who are elites and who aren't. elites are always going to be afraid of people who aren't. there are far fewer elites than nonelites. it is just -- it is a rip more than anything else. you have a tea party candidate who is victorious, running for the presidency. you have a possibility of upsetting the entire d.c. power and social structure that exists. they are outsiders them are considered outsiders. they are not considered genuine political professionals, by definition, tea party people aren't. they are people in many cases that have never been involved in politics. they started going to town hall meetings a couple of sum more hers ago and have come to life because they don't -- they don't like the way the country is going. they don't see their wishes defended or represented in washington so they are taking maries in their own hands coming up with their own candidates. that's what propelled the republican party to victory in 2010. the republicans did nothing to win that election except not be democrats. >> greta: today you talked about the gop having a message problem. does that play into this? >> yeah. but that was a conversation about ryan and health care, medicare reform and this kind of thing. i think the overall republican message problem is simply a fear they have. i think the liberal aspects of the democrat party, the social political structures run washington. people never get out of high school. you all want to be in the big click. you always want to be approved. you have to be approved by the people who run the big clique if you want to get in the big clique. republicans brought into the notion over the years that moderates, are the key to victory. 20% who are undecided. let's get those people. we know 40% democrat, 40% republican, that 20%. the great, great moderate, the open-minded people supposedly nonideological many everybody who is a professional political consultant targets those people. one of the results established is you cannot be argumentative. you can't appear partisan. and you can't appear extreme. you can't appear mean spirited. you have to be reasonable, calm and you can be critical of your opponent. republicans have bought this. all it is, a very clever trick by the left to get republicans to shut up. and not be passionate about themselves, defending what they believe in advancing their causes. it keeps them always on defense. the message problem stems from republicans more often than not, allowing any issue to be set by democrats and reacting always on defense. that's what that discussion was about. i think that is always going to be a problem for the republicans, until there is a nominee who is conservative, who is proud conservative. who is passionate conservative. who believes it. who doesn't need a note card. and doesn't need a prompter. and wait to talk to people about it. can't wait to get people to follow him or her in whatever quest they have. you see that in netanyahu. benjamin netanyahu is one of the greatest lessons the republican party has. netanyahu is lighting the way. showing the republican party the way back in terms of national presidential politics. donald trump, i said from the get-go that the real value of trump and the reason why there was so much interest and excitement about trump is because he was taking it to the opposition. he was taking it to obama. not just on the birth certificate. he was taking it to him on the future of the country. mr. president, you are destroying job creation. you are destroying the opportunities that our kids and grandkids should have for prosperity in the future. you have to throw all of this moderate, don't offend anybody kind of speech out the window. these are desperate times if you really believe the future of the country is founded, hangs in the balance, a lot of people do and voters do, you are not going to reach them by being milquetoast. >> greta: didn't president obama -- didn't he reach out to those moderates? he was the calm the professor type isn't that how he got that 20%? >> yeah that's 2008. this is a different time now. he's got a record to defend, which he can't. he has a totally indefensible record. i think obama is easily beatable with what the democrats and the media are trying to establish is that he's unbeatable. that he's so powerful. that he's so authentic. he's got such a wonderful way of communicating, that this is not the time to try to beat him. the democrats are going to say, look this was much worse than we thought. this economy, much, much worse, with when we got here, we had our policies put in place. normally, they would have worked well by now. they are just starting to have an affect. 2 1/2 years thrblgs is going to be a much longer process than even we thought. -- it is going to be a big mistake to change horses in mid stream that's their campaign. just now really taking hold, it would be a total mistake to turn this country over to the republicans who want to go back to the failed policies so you can hear the same old cliches. that's what the campaign is going to be. the truth is the democrats have an indefensible record. they will not propose and defend a budget that outlines what their ideals and opinions and views are for the future. there has never been a greater time than now for the republican party to genuinely contrast itself against the democrat party and the american left and show the american people a genuinely different direction for this country that takes us in a direction and genuine real, prosperity on the part of people who work and make this country work. it is such a golden opportunity. there is no reason to be frightened of obama. there is no reason to be afraid of the democrats. there's no reason to allow them to make us timid and to shut up and only try for 20% of the electorate. which is a bogus premise any way. i think if it is palin for example or if it is santorum, herman cain, rick perry, you watch how these genuine conservatives are going to campaign for every vote. they are not going to try to get the messages with this message. not going to try to get women with this message. not going to subdivide in different groups, they are going for american. here's our message we love the country here's how we make it better. here's how we save the country from current policies. doesn't matter what kind of an american you are. if you are with us you want a better country, we are the way to go. that's the message. >> greta: if you were president obama who would be the republican you would not want to run and why? >> if i were obama i would not want to run against palin. contrary to what everybody says. when they tell us that's what they hope for, it is opposite. i wouldn't want to run chris christie. i wouldn't want to run against santorum. i wouldn't want to run rick per rip the truth of the matter is in the white house, if you could get hold of their internal reelect polls, i will bet you they are bad. i think what they believe is, they've got to do everything they can to make sure whoever the republican nominee is not a conservative. they think they can beat a moderate. they know they can beat a liberal republicans. they know they can beat a republican who is afraid to be a republican. but they are mostly afraid of a genuine, full-throated passionate, articulate conservative. >> greta: much more of our interview coming. he is talking about president obama. what he says the president is doing now that is working against him. remember the back and forth between rush and speaker gingrich? that's next. >> breaking news out of wisconsin about governor walker's collective barginning law. we've been watching this fight play out since january. something big happened today. karl rove goes on the record. >> if you thought it couldn't get worse, well it just did. shocking new pictures surfacing in the arnold schwarzenegger sex scandal. we'll show you in a few minutes. spend a little more time and a little less money. don't miss the go outdoors event and sale at bass pro shops. with huge savings including@ amazing daily specials. and this weekend stop@ by for games, crafts and a family photo,ú all for free. and all we need to do is change the way we're thinking about them. a couple decades ago, we didn't even realize just how much natural gas was trapped irocks thounds of feet below us. technology has made it possible to safely unlock this cleanly burning natural gas. this deposits can provide us with fuel for a hundred years, providing energy security and economic growth all across this country. it just takes somebody having thidea, and that's where the discovery comes from. [ male announcer ] in 2011, at is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your weless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible. >> greta: here's more of our interview with rush limbaugh. the president is overseas. i think in the past, correct me if i'm wrong, the authorities have again overseas has been a bit of an apologist. how is he doing now? >> well, tough question for me. because i don't like thinking [ unintelligible ] out- ed. didn't know what year it is when he signs the guest book. -- wandering aimlessly answers in joint press conferences. he's got a problem because everything cameron is doing in the u.k. is working. obama can't in any way shape, manner or form agree with, he has a problem. he has to wander and meander and not give credit to cameron, whose policies are starting to have -- europe is doing a 180 going in the opposite direction that obama is trying to take america. they've had their experience with well intentioned, big socialism, it doesn't work. you always run out of somebody else's money. it isn't possible. obama hasn't learned it yet. i think the more he goes overseas and speaks, the more obvious it is that he's -- he doesn't have [ unintelligible ] he doesn't have all that much experience. and his life skills are not enough to state. it is obvious, here's a guy that spent 153 days in the u.s. senate. prior to that, a lot of time in chicago organizing the community, rebel rousing and so forth. a few years in the illinois state house and it shows. >> greta: in s of -- do you give him credit for doing anything in terms of his administration. anything that you think he's done particularly well? >> well, i always get this question. can't you say one nice thing? i think we are really serious time. the country faces a serious cross roads. greta, you are talking earlier about messaging the republican party. let me tell you, there are many in the republican party establishment who do not see it at all the way i've described it. they don't think all -- [ unintelligible ] there's that division in the republican party in and of itself. a lot of people would not agree with me how dire the consequences are. i don't think the country can stan four who are years of this. four years of this stuff being implemented, it could be really difficult to get the country back if there's four more years of obamaism inculcateed throughout society. look, i'm sure there are some positive things, i wouldn't change my mind about supporting him or his policy. >> greta: has speaker gingrich recovered from making that statement about the right wing social engineering? >> oh yeah. look at this imf guy. one day he's the fait accompli, next president of france. five minutes later he's in the same situation as elliot spitzer, client number 9. that's how fast things can change in politics. any poll right now is worthless. the election is not for a teen, 19 months, whatever it is. -- for 18, 19 months, whatever it is. polls on who would win now don't mean anything there. is way too much that can happen. particularly things that are unpredictable. it would be sillly to say newt can't recover from that. time will tell. -- >> greta: do you agree with rush that the white house is afraid of sarah palin? go to gretawire.com. >> who is rush limbaugh's dream candidate for 2012? he will tell you. >> remember the wisconsin 14? they hit the avoid voting on governor walker's collective barginning law. tonight a judge issues a bomb shell ruling. who is on top now the governor or the unions? karl rove on the record next. >> did you hear about the huge arizona news? the state claiming victory in its fight illegal immigration. someone in the white house is giving the thumbs up on this one. who is it? governor brewer is here in minutes. 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i understand the nuance of what you just said. to have governor walker lose this round, and lose the rate in upstate new york the other day. a seat that had been republican a democratic seat. does that not take a little wind out of sails of the republicans? >> i think the new york 26 election does. i don't think this does. this had been anticipated. in a way the democrats were looking forward to the opportunity of a long court case that would occupy time between now and june 6th. lots of with it -- lots of witnesses. the judge surprised everybody by indicating she want going to have a trial. in a way that removed the opportunity for theater on the part of the democrats. the supreme court was going to settle this. they were going to hear it on june 6th. this in wisconsin was not much of a surprise. >> greta: today, paul ryan got a shout out from former vice president cheney. he said i worship the ground paul ryan walks on. i hope paul ryan does not run for president it would ruin a good man who has a lot of work to do. what do you think about that quotation and shout out? >> i'm a huge fan of paul ryan. he could either be budget chairman or candidate for some other office. he feels keenly in the next year and a half or two the most important thing he can do for the country is be a good budget chairman. he has laid out a plan that would save these great social safety nets that our country has medicare, medicaid and social at security. the president of the united states has punted on this. it is shocking to me. greta, unite be aware of this, but the president of the united states has a statutory obligation, if certain conditions finish the medicare law, the dedicated revenues and outlays, get catty woman us >> greta: get what? what does that mean? >> you forced know do the cal thing if the difference between the outlays and dedicated revenues is more than 45% of the total outlays of medicare congress passed a law that's for the next seven years then the president of the united states is obligated to present to congress a plan to put the program back on good financial setting. this happened in 2008. president bush laid out a plan which he gave congress to shore up the finances of medicare. president obama has faced this trigger in 2009, 2010, 2011 and ignored it. he has failed to meet the statutory requirement under the law of providing congress a plan to put the finances the situation inside medicare back together. the president is treating this as if these are not problems. his own actuaries the trustees of medicare came out based on the actuaries' report two weeks ago and said medicare going broke in 2024. ryan has presented a plan that will save medicare and make it a program that can sustain itself over the long haul. president obama is ignoring his own actuaries who say it is going bankrupt, belly-up in 2024. >> greta: it is enormously complicated and complex. the fact that the democratic party won that seat in new york and i was seen as a statement about the ryan budget shows how complicated it is. politically, it is difficult. >> hey, it is complicated. but i think rush limbaugh hit it.e' -67d district in 2000. the only reason the democrats won this, the only reason they had a serious candidate in the race was, there was a rich third party candidate who had run previously three times as a democrat, who ran as a tea partier in this election and spent three million dollars of his own money trashing the republican. without that the democrats would not have a chance. most states do not have easy ballot laws like new york. there are not a lot of rich li%k!1 democrats willing to call themselves tea partiers and run as populist conservatives. democrats misread this. why is it their candidate got 1% more than obama got when he lost the district last time around? >> greta: i can't answer that one. let me ask you about governor palin's bus tour. is this the beginning of a race? >> i think it is the emergence of a potential race. i don't think she thinks the rules apply to her. she doesn't need to have the traditional trappings of a presidential campaign. no finance committee. she can raise the money. she doesn't need to go shake a lot of hands -- >> greta: is she right to think that? >> here's the thing. she gets to decide what the rules are to govern her campaign and go accordingly. politics is changing. some people have done things that have been outside the norm of custom and have won. she is not going -- my sense is, her people don't think she needs to have county chairman and o and go around and line-up people. it is just gonna happen. the organization is going to emerge. i think this bus tour is part of this. she is going up the east coast. not to iowa, new hampshire, south carolina, the early primary states. she is going to make a public presence on the east coast with a bus tour over the memorial day weekend. i think this is an interesting way to run for president. i think she is going to run. >> greta: do you think she is seeing how many people clamor to these bus stops? >> absolutely. there's one of the problems. there's a difference between crowds and what you need to run a campaign. some of the biggest campaign crowds that you have ever seen in modern american politics occurred in the 1972 election, crowds for george mcgovern going down in a huge defeat. you can't equate size of crowds with your acceptance by a broader populous. she has her own way of doing things. it going to be interesting to watch. she has kept hervis ability by sending out 140 character messages on twitter. or filing statements on facebook. she has been up there in wasilla, alaska, she has not been in inside the bombway in washington, d.c. or the early -- inside the beltway in washington, d.c. or the early states. >> greta: it is not going to be dull. karl, thank you. >> thank you. >> greta: here is what is coming up on the o'reilly factor. >> an msnbc guy got suspended for calling laura ingraham a vile name. she will be here to respond. glenn beck has a new tv network coming up >> greta: and the guy apologized. i think he apologized well. >> is president obama going to take homeland security directory napolitano to the woodshed? 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>> it is clear that the supreme court ruled today that states do play a critical role in illegal immigration. i think it is a signal that is going to be very helpful going forward in regards to our senate bill 1070 that is hopefully going to end up in the and we win that also. >> greta: what the supreme court said today it seemed a decision was made along ideological lines. it said that essentially that the federal law determines immigration, illegal immigration. but the arizona law fits squarely within it. that you are not inconsistent with the federal law is that how you understand it? >> absolutely that's the way our lawyers here in arizona explained it to me. we feel very pleased with that ruling. we believe wholeheartedly that now we can absolutely take down the help wanted signs for i will real aliens in arizona and move forward that's one more step fighting fight we are fighting here. >> greta: the other interesting thing. this wasn't the united states that brought the case but the chamber of commerce. they were trying to protect business from having to comply with the laws that arizona was passing on businesses that checked whether people were illegal or not. the other fascinating issue is that the secretary of homeland security, used to be governor of your state. she signed this bill. >> that is correct. she did sign the bill. we're grateful that she signed the bill. and we are gonna continue to be grateful that she signed the bill. i don't know -- i don't understand her motivation for it. other than maybe she felt it wasn't going to pass muster. today arizona won. they thank janet napolitano for that. certainly, when i back to d.c. to the supreme court, i was -- her name was changed from the defendant to my name. i showed up. heard the dialogue. the testimony. and the presentation. and we did a fantastic job. and i beef it will keep that up. and this is just another step in the momentum that arizona has leading the country in. >> greta: do you think she taking a bow at that time law she signed was upheld by the supreme court? she in an awkward situation. the next realm is the federal government challenging you on sb-1070. it seems awkward, although there are differences between the two cases. >> absolutely, there are differences. i can't get into her head to know what she is thinking or that. but we are grateful she signed the bill. we are grateful we won tonight. the momentum is going in arizona's direction. we are gonna keep plowing ahead. we are not going to give up. >> greta: what is the status on your border more security or not? >> no we do not. we are in a quandary. we don't know if we have a national guard coming or if we have national guard going. something has got to be resolved between us and the federal government. when president obama was in el paso, he somewhat indicated that he was keeping the national guard there. as they were taking them out. it is my understanding they are still removing the national guard from our border. >> greta: i was with governor perry this weekend. he seemed a little nose out of joint because the president didn't receive him. they didn't talk when he was in texas. the president -- they didn't meet on the border together. how about you, i assume you wanted him to stop in arizona? >> i've invited him on numerous occasions. i would like him to come to the border. i find it unbelievable that he talks to everybody, everybody but the governors. governor perry and myself, we have huge issues. we have huge problems. and he doesn't communicate with us. it is a lack of communication. and it is unfair and it is wrong. >> greta: of course nanette napolitano hasn't been -- janet napolitano hadn't been back home or has she >> i have no idea. >> greta: we'll see was. sb-1070. governor thank you for joining us. >> thank you greta. >> greta: maria shriver getting slapped in the face, again. wait until you hear the new information about arnold's affair. it is getting worse. >> a big surprise from former secretary of state dr. kissinger. we were in cahoots with his staff for this one. wait until you see what we did >> greta: here's the best of the rest. if you can believe in. governor schwarzenegger's extramarital affairs getting more humiliating for maria shriver. maria at family were very close with the mistress mildred baena. pictures at the christening of. you can sima rhea smiling along side her husband at the 1998 baptism. maria had no idea that the child was her husband's. this new batch of photos shows arnold spending quality time with the child. you can see arnold playing golf and horsing around with the young boy. >> another victory. this time it is happening right here in the united states not pakistan. last night we reported about a trademark dispute between the navy and disney company. today disney says it is dropping its plan to trademark the name of the elite team that killed bin laden. disney was hoping to sell merchandise and develop a tv show. the company surrendered after the navy moved to protect the naming rights. maybe disney saw the results of the greta poll last night. >> happy birthday day -- to form are secretary of state henry kissinger. look at how we teamed up with his staff for a big surprise. i have a secret for you, because i know it is your birthday tomorrow. so we brought you a birthday cake. >> aren't you sweet. ♪ happy birthday to you ♪ >> greta: my present to you is i didn't sing. i saved you. >> you know this young lady had been with me for 36 years. and it is her birthday too. >> greta: happy birthday to you too. >> thank you. >> greta: it is tough being 30, isn't it? that was some the fun we had today with dr. kissinger. he told us about his new book on china. dr. kissinger has been to china more than 50 times. you will see the entire interview next week, right here on the record. the best of the rest. >> coming up, last call. one more quick round before we turn down the lights who is rush limbaugh's dream candidate for 2012? that's next. 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[ male announcer ] in 2011, at is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your weless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands ojobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for oucountry's energy security and our economy. >> greta: 11:00 is almost here, last call. earlier we tacked to rush limbaugh about his dream candidate. who is your dream candidate to get into the race? not necessarily someone you would endorse or support who is your dream candidate to get into the race? >> i would love for rick perry or anybody like him that was fired up. the more conservatives in this race the more full-throated, unapologetic, pedal to the metal conservatives in this case, the -- in this race, the greater the opportunity one of them will be elected. >> greta: we have a special show planned tomorrow night. america's gas crisis why is the price so high? who is raking in the dough? we investigate tomorrow night. we'll tell you what you can do to fight back. on the record hits the road to investigate gas prices tomorrow night, 10 p.m. eastern. see you next time. go to gretawire.com and vote in our new poll. and wish happy birthday to dr. kissinger. go to that poll, let us know what you think. don't forget, tomorrow night's special. two jobs, go to vote on that poll andi