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O'REILLY: Continuing now with our lead story: the U.S.A. losing the fight against ISIS -- at least in my opinion. Joining us now from Cedar Rapids, Iowa -- Republican presidential contender Carly Fiorina. First of all, do you believe that? Do you believe we are losing to these savages, Miss Fiorina?
CARLY FIORINA (R), PRESIDENTIAL CANDIDATE: I do. I agree with every single word of your "Talking Points Memo". We are losing. We don't need to be losing. We shouldn't be losing. President Fiorina won't be losing. But we're losing today -- this president is not leading.
O'REILLY: All right. What would you do differently and how would you turn defeat into victory?
FIORINA: First, at home, we have to give our investigators access to every piece of information they need to track down would-be terrorists and to investigate terrible terrorist attacks like San Bernardino.
Second, we need to be --
O'REILLY: So a new Patriot Act then?
FIORINA: -- clear eyed --
O'REILLY: You'd want a new Patriot Act?
FIORINA: Well, for example, Tom Cotton -- well, the Patriot Act is 14 years old and technology has moved on; generations actually in 14 years -- having come from the technology industry. But for example, today, both Tom Cotton and Mike McCaul proposed very common sense rules that would give FBI investigators access to more than two years of information. Those should be passed.
We need to ask private sector companies.
O'REILLY: Got it, what else?
FIORINA: -- and ask private sector companies to help us with this new encrypted technology. We also need, not to make the problem any worse which is we must be clear-eyed and realistic about what we face as you pointed out in your "Talking Points Memo". This clearly was a terrorist attack almost from the minute it happened. And yet, Hillary Clinton and Barack Obama started talking about gun control.
Barack Obama went to Paris talking about climate change. He's delusional. Climate change is not our most pressing national security threat. Abroad -- ISIS, we must deny them territory, pain power and legitimacy.
O'REILLY: Let me ask you a series of very specific questions. Ok.
O'REILLY: Raqqa, Syria -- there they are, command and control, that's where all these crazy people go if they want to join up. Raqqa, Syria. Small town in the middle of the desert. What do you do there?
FIORINA: Well, as you suggest in your talking points, we need to take control of that command center. We need a far more effective bombing campaign, which means we have to change the rules of engagement. We need to equip our allies with what they have been asking us for, for years now - - years.
Jordan -- it's not just the Kurds who have been asking us for arms -- way too little too late from this president -- the Jordanians have been asking us for bombs and material for at least a year and a half. We haven't provided it. I will.
The Egyptians have asked us to share intelligence. The Jordanians, the Kuwaitis, the Egyptians, the Saudis, the Bahrainians, the Emirates, the Kurds -- by the way, I have been in this region. I've traveled there for a long time, I know the leaders of many of these countries. They have asked us for support.
We need to provide leadership, support and resolve because while we can defeat this enemy we need their help, actually. Sunni Arabs need to be part of this force.
O'REILLY: Would you mobilize NATO to rule 5 to attack ISIS and thereby get your ground force and go in? Would you do that?
FIORINA: I would not necessarily yet. I'm not ruling it out.
O'REILLY: Ok, not yet.
FIORINA: But I think that the Sunni/Arab allies are a very important part of this. Why? Because the caliphate that ISIS controls, that territory, I believe, must be retaken by mostly Sunni Arabs. And we have.
O'REILLY: Ok. But it's not easy to get those people --
FIORINA: -- no it is not.
O'REILLY: Equip them and train them and all that. And on that note - -
FIORINA: Yes but --
O'REILLY: Wait, wait Miss Fiorina --
FIORINA: Bill, ok.
O'REILLY: It's doable but not easy. On that note --
FIORINA: It's not easy but by the way it's worse when we are helping Iran, their arch enemy and because we have helped Iran, they don't trust us right now.
O'REILLY: Now, tonight in South Carolina, Donald Trump said this about all Muslims. Roll it.
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DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Donald J. Trump is calling for a total and complete shutdown of Muslims entering the United States until our country's representatives can figure out what the hell is going on.
You have no choice. We have no choice.
(END VIDEO CLIP)
O'REILLY: So what do you think about that?
FIORINA: That overreaction is as dangerous as Barack Obama's underreaction.
O'REILLY: Explain that.
FIORINA: Well, let's see, Mr. Trump also said that if we have Muslim- American citizens traveling back from vacation, that he will not let them come back into the country. So let's see, we're now going to violate the constitutional rights of citizens because of Donald Trump? I don't think so. I do not think that helps us defeat ISIS here at home or deny them territory abroad.
O'REILLY: All right. Because this is going to be, you know, what Mr. Trump is doing mobilizing anti-Muslim sentiment around him.
FIORINA: That's right. He is mobilizing anti-Muslim sentiment. He is preying on the fears of the American people. It is called rabble rousing.
O'REILLY: All right. Miss Fiorina, thanks very much. We appreciate you coming on this evening.
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