SEAN HANNITY, HOST: Onboard the most talked about bus in the country this week, Fox News contributor, former Alaska Governor Sarah Palin took the U.S. by storm, visiting historic landmarks up and down the East Coast. Wherever she went, the cameras followed. And at the conclusion of her tour, she sat down with me to talk about her trip and her plans for 2012 and much more.
Let's take a look.
HANNITY: And Governor Palin joins us now. Governor, great to see you again. Thanks for being here.
SARAH PALIN, FOX NEWS CONTRIBUTOR: Thank you, Sean.
HANNITY: All right. I don't know if you have heard this. Because you have been very busy and we're going to ask you about your tour, but did you know that your bus tour may have been illegal? And let me play the comments of Martin Bashir.
(BEGIN VIDEO CLIP)
MARTIN BASHIR, MSNBC ANCHOR: It sounds like a wonderful commitment to American values and American history. But it is nothing of the kind. In fact, the whole thing could be in breach of the federal law. Because the United States flag code establishes important rules for the use and display of the stars and stripes, the flag of the United States. Understanding of respect and etiquette, it is made clear that the flag of the United States should never be used for any advertising purpose, whatsoever. Yet, that's precisely what Sarah Palin is doing.
(END VIDEO CLIP)
HANNITY: I might be in jail. My first book had the American flag behind it. I had a bus, my Conservative Victory Tour, had the American flag. We may be going to jail, Governor. I have to get your reaction to it.
PALIN: What a goof, who does he work for? No, I know who he works for. As a matter of fact, whom he works for, they have a flag advertising for their cable news network. What a joke, he has no clue I guess what the laws are and what my freedom as an American is. And that's to get to showcase and the symbol of our freedom, our American flag, which I love.
HANNITY: All right. Let's talk a little bit about the tour, Governor. It has gotten a lot of media, a lot of press. Press is actually angry at you. And they've even made remarks and comments that, well, we feel like the paparazzi, we are not being treated well. Nobody forced them to go. Certainly, you told people you were going. But what was the original purpose of the bus tour?
PALIN: Well, first, maybe this is the first time I've ever disappointed or angered the press? It is not of course. But you know, the whole purpose of this tour is to showcase America's foundation, to talk about our Constitution. To hand-out Constitutions, copy of our Constitution as we go along looking at the historical sites on this East Coast that is so beautiful, so rich in history.
Sean, it is so important that we be in touch with our nation's history, with our past, so that we can learn from it. And so that we can move forward in he's very heady (ph) days in front of us, successfully. We can only do that by learning more about our past. So, we are highlighting what it is that built America, our strong foundation, in order to move forward.
HANNITY: One of the things that got a lot of play. And I missed you when you were in New York. But you did have an opportunity to meet with Donald Trump. And you went to Trump Tower, and then you went out for pizza with Donald Trump. What did you think of meeting Donald Trump for the first time?
PALIN: I met him before. And I've spoken with him a few times. And we have a nice relationship because I have respect for him being a nonpolitician. I'm not really enamored by politicians, I like people who are candid and I like folks who in Donald's case, and with that business acumen that others should be learning from. I respect some of the things that Donald Trump represents. So, you know, we have a good relationship. And it was fun to spend some time with him.
HANNITY: All right. He said on "Fox & Friends," that you would like to see him, would love to get me back in the race. Did you talk about him getting back in the race?
PALIN: I said, I would love for him to stay in there, shaking it up and being candid, as I say and holding this president accountable. And Donald Trump has proven that he could do that. You know, obviously, with the birth certificate. Obama felt pressure and finally, the media wasn't going to do it, Donald Trump pushed it, and the issue and Obama finally had to show his birth certificate. So, that, you know, that is just one example of what Donald Trump can accomplish.
HANNITY: I spent a lot of time, I spent about half hour with him on the radio the other day, it was right after your meeting. He had incredibly complementary things to say about you, you are incredibly bright, and smart, intelligent, iconoclastic. He really came out in a very strong forceful way defending you. And then we got into this whole issue that he would consider, if he doesn't like the Republican field, maybe consider running as an independent.
And I kind of walked him through this a little bit. I don't know if you remember the Reagan CPAC Speech when he said, you know, is it a third party we need or a revitalized second party? And Reagan said, it was one, a new revitalized second party with no pale pastels, but bold colors.
If he were to seek your council, your advice, over maybe, a piece of pizza and a Coke, what would you say to him if he said, he wanted to run, third-party?
PALIN: You know, what? A year ago, I would have said, please don't even consider third-party. We've got to shore up what is good, and strong and principled within the Republican Party. And we've got to run on a Republican ticket, stand strong on the planks and the strong platform that is the GOP.
Well, I think conditions have changed in this last year, where after the November midterm elections, we swept in a new crop of hard-core fiscal conservatives with a lot of common sense who have solutions that they want to see applied in order to get the economy back on the right track.
Well, too many in the GOP are still resistant and resisting that movement of this new crop of common sense conservatives. And if they are not careful in the GOP, there will be a third-party rise up, just like back in the day when the wigs finally went away and Republicans rose up. That is what the GOP should be fearing today, is the electorate will get fed up with business as usual in the GOP and a third-party will rise up.
Not that I want to see that. Because I still have belief, strongly, that the GOP planks are best for our country. But, they have just the machine that runs the GOP has got to be careful.
HANNITY: Wouldn't a third party -- if Donald Trump ran, wouldn't he split the anti-Obama vote? Those people that see that he's failed as president, his economic policies are a disaster, wouldn't he split that vote?
PALIN: That would be the fear of having that third party being engaged in this next go-round of election cycles, and that is the fear. But Sean, where the GOP though is still missing the boat is, look where we are today. We're on day 760 something of no budget in the federal government and that is the Democrats' fault.
And yet the public, for the most part is unaware of that, because the GOP doesn't have a concerted aggressive message against the Democrats being derelict in their duty to pass a budget.
Another point that the Republicans are missing right now that could be an opportunity to invite the third party in, and if they don't want to see a third party run, they'd better get their stuff together, is with Obamacare, they had promised, so many of them had promised, running on a platform of repealing Obamacare, and now some of them are kind of vacillating saying, well, maybe we can tweak it and not just repeal it and replace it. So, that's another point that they're missing there.
They're quite a few issues that the GOP had better get their stuff together on in order to make sure that Obama does not have another four years. Because, Sean, can you imagine where our country is going to be --
HANNITY: No. No.
PALIN: -- four years later with Obama? We will be bankrupt. We will have poked our allies when it comes to foreign policy, in the eyes so aggressively, that we're going to be left without any friends across the globe. We're going to be in a world of hurt, if things don't change quickly. So, we have got to be in a concerted effort making sure that Americans know, they have a choice. We don't have to just settle for big government, over reaching socialize programs and policies that Obama wants. We have a choice here.