would negotiate with the iranian regime and charm them out of their nuclear weapons plans. that didn't worm out. that's where we are in the arab spring movement. the second thing we are today and this is the greatest threat to american security is iran's nuclear weapons program. iran is try to do two things. they want nuclear weapons -- they want to be a nuclear weapons state. they are working fast and furiously toward possession of nuclear weapons. and at the same time they want to expand to the entire region. they want to be the most power until country in the persian gulf region in the middle east at large. why? that is the choke point of world's oil. 40% of the exported oil goes past the iranian border. if iran controls the persian gulf region iran controls the world's oil and if iran controls the world's oil iran controls

the world's economy. that is the second greatest threat facing america today and that is one that is present and you know they don't see there is any impediment to what they are about to do. the third thing to think about is israel. in the last four years we have walked step-by-step by step away from israel. some people say that's a good thing. we were too pro israeli and anti-arab in the past. but what it does is it convinces israel they are on their own. if they feel that america doesn't have their back, particularly this administration, they're going to feel compelled to deal with the second threat i just talked about which is iran's nuclear weapons program. israel has said time and time again the israeli leadership, both political parties, the elites in israel have said they ran as a nuclear weapons state

is an extenial threat. and if the united states is not helping them stop iran they will and in short order feel it's necessary to take things in their own hands and attack iran's nuclear weapons sites. the next thing faces the united states today is the reset with russia. that hasn't worked out. president obama came in saying we're going to reset relations with russia because they've been so bad. and the russian leadership said where do you want to reset things back to, the 1990s in the russians were pleased with the way things were going in the bush era because they felt they were reclaiming their superpower status and their place in the world. so when they misfired by saying this is a reset of our relations with the russians the russians looked askance with that and for

the last four years, vladimir putin has increasingly felt that he's got president obama right where he wants him. he's put him in a box and now to the point where the meeting they had two weeks ago, vladimir putin lectured obama the entire time. now obama thought that a reset with russia would improve relations in stopping iran's nuclear program but in controlling and helping usher in a new era that the middle east. and that is the greatest failure of the obama administration. and the final thing that we face today that's the elephant in the room. and that is the indebtedness we have to china. every dollar the government spends 40 cents is borrowed and half of that is to china. and hillary clinton said you

don't pick a fight with your banker. it puts the united states in a position where we don't want to be. it puts us in a position that we cannot challenge what the chinese are doing. the chinese have a cybercommand dedicated to stealing military secrets from the united states. they hacked into lockheed martin. i'm sure if you represent major companies you have been hack today. what the chinese have done with that is they are able to steal with the click of a mouse something that cost us years and hundreds of billions of dollars to develop. estimates are that the chinese have stolen and had access to 1 to $2 trillion of our critical infrastructure and intellectual property and military develop. lockheed can spend years and billions to develop a new stealth bomber. the chinese click the mouse and before you know it, they've got

exactly -- they look exactly like the model they rolled out by the chinese rolled it out in advance of ours and more cheaply but it looks like ours. we are not in a position to challenge a lot of that. because you don't pick a fight with your banker. now where are we four years from now. let's assume no change in leadership and we continue on with the trajectory that we have. i think you can assume four years from now, iran is a nuclear weapons state. why do we care in we care because if iran gets nuclear weapons the other countries in the region announced they too will get nuclear weapons. the saudis have said they will get nuclear weapons and university arab emirates say they are interested in nuclear power. they say they're interested in nuclear energy. if you are an oil company you don't need nuclear energy.

the turks, turkey will not stand by and watch a nuclear iran, a nuclear saudi arabia and not develop nuclear weapons of its own. so within the next four years, and i'm not talking about four years that a few crazy far-right-wing, you know, people who are hysterical are saying that's going to be a nuclear weapons region. that is the secretary of defense who said they are within a year of nuclear weapons. so we are talking about four years from now you will definitely face a nuclear iran and a nuclear arms race in the single most unstable dangerous part of the world for which the world looks for its energy. and i think the second thing you will see foureers from now if there is no change in policy is an issue of how secure is the future of israel? if israel feels that the united states is not going to help them stop iran, israel is probably going to feel compelled to

attack iran's nuclear sites by itself. it has in the past in 1981 when iraq was developing a nuclear enrichment plant, israel attacked that. three years ago when syria was developing a nuclear enrichment plant, israel attacked that. it's a safe assumption that the israelis are considering an attack against iran's nuclear sites. israel can start a war with iran but we would be brought into that war. israel can't finish that war. where would we be four years from now we may have a nuclear region. and we may see an arab israeli conflict and in puck weapons are there the more likelihood the nuclear weapons being used in an area where everybody has nuclear weapons. and that means the next war -- there is always another war in the middle east for thousands of

year. the next could be a nuclear war or one in which nuclear weapons are used. the third thing i think you'll see in 2016 if we don't have a change in direction is the united states' relationship with china will be a different one. they are a status quo power. they are sitting back playing by the rules, building their economy, lending us the money and building up their military to the point where at some point in the not too distant future they can claim to be the world's greatest economy and all the rules change. if china -- if we are talking about and have seen the decision -- governor brewer spoke about it. we are now putting the social welfare spending on steroids. the amount of money we are already borrowing is 40 cents of every dollar. we can't -- there is not enough rich people to tax them all to

make up the difference especially as the baby boomers continue to retire in greater numbers. the united states will have to borrow more and more money. and where is that coming from? the loan shark lending the money which is china. four years from now, the united states i think will have creed our economic sovereignty to china unless we figure out how to turn that around. that is today and a scary four years from now. and so you'd conclude this is just dreadful. the world's about to end, right? i actually am a pessimist. i've been trained as a nuclear expert at m.i.t. i'm looking to see what could go wrong in the world. i have in the last two years become an optimist. i'm not talking about the optimist who thinks everything's going to be great and don't worry about it there are two competing theories of world history. one says that all nations have

their moment have their moment in the sun and collapse. the other theory says that the united states is exempt from this and that we are different and special, that we are, you know we're americans and it's a different system. i have come around to conclude that that second theory is the right one. now why? i spent my life studying why nations to go to war and some thrive and some fall by the wayside and i have come up with a couple of things and america stacks up pretty well in that formula. first nations go to war because they don't like their neighbors. we've got good neighbors to. the south we have a friend. to the south we have trouble but not necessarily a military invasion and to the east and west we have a moat. so we don't have a lot of problems like in europe. the second thing we have going

for us is that we've solved a lot of the tribal, ethnic and religious problems that tear nations apart. in the middle east it's torn apart by tribal and ethnic and religious problems. in libya 17 tribes are fighting with each other. afghanistan is all tribal and ethnic. we in the united states we are not perfect but we have come a long way to solving the tribal, ethnic, racial problems. we're ahead of it. the next thing is good governance. we kind of throw it away. but glen beck is trying to educate us again. we were given a great government. a lot of countries when they were founded they had leaders who were corrupt and incompetent. we have a nation of governance where the laws are respected by all and we have a succession plan. look at what is happening in the middle east today. a lot of what you are seeing is

people going to the streets because there's no succession plan. when mubarack tried to hand over the government to his son is when the egyptian people said no. the same thing happen nod tunisia and morocco. they go to war and civil war when people don't agree on who will be the next leader. we go to the ballot box and not barricades. the next thing we have going for us is demographics. it's like goldilocks and the three bears. you don't want to have too much or too little. you want to have it just right. we have a good demographic situation. right now china is a demographic time bomb. they have limited themselves to one child per family and that means they will have a lot of old people retiring on the backs of one child and because of their preference for male children there are some parts of china where there are 140 males

to 100 female births. no one knows what that scientific experiment is going to be. but it's not going to be good. the united states has some demographic population growth but not much. part of the problem in the middle east is that 75% of the most of the countries in the middle east have a population under the age of 30 and they don't have jobs. that's a revolution in the making. russia has the opposite problem and so does japan. they are not reproducing at rate to sustain economic development. the united states have a good demographic ratio going forward. the next thing we have a lot of countries don't have is women. ambassador ware have been out there on the forefront of women's movements. but in a lot of countries women are educated but not allowed in the work force. in the middle east, women are not educated.

but women who are educated and join the work force it's a 30, 40% increase in gnp. we have that solved. the only problem that we have, i think is our debt and deficit problems. we can't summon the political will to pay off our debt or to balance our budget. and for that the good lord and divine providence have thrown us a lifesaver. if you look at why do countries go to war? we fight every energy. world war i was in part germany trying to get ahold of the coal fields in central europe. and world war ii was the japanese trying to get access to oil. and the gulf wars have been over oil. we have found in the united states the engineers can look under the oceans and the surface

of the earth for energy. and when we have looked we have found we have an abundant supply. we have more oil than saudi arabia. we have more natural gas than russian that. with you have enough energy to be the energy superpower for the next 5 hundred years. at the end of the day what does that do? that's an energy renaissance that will revitalize emergency industry to pay off the debt, balance the budget and bring jobs back to the united states as american manufacturing becomes competitive again. so i have great confidence in the future. but the only thing that stands between us and the future like me and lunch is that we have to have the, you know, national will to do it. we have to have the national will to develop our energy resources. we have to have the national will to say leading from behind

is not going to be good enough. we have to have the national will to say we are different. the american system of government is different, american people are different and america's future is different. how do we do that? i would challenge every one of the young people in here to say this is your moment. i was part of the reagan revolution. when i went to washington it was a bunch of old people in charge but there were a lot of kids who were the revolution. whatever happens in november or in the next november or in the next november this is an opportunity for the young people of america to get involved. this only happens once a generation. we have to relearn those lessons every generation that reagan taught us. we have to relearn the dedication to entrepreneurial spirit and get away from entitlement and whining and feeling sorry for ourselves. any young people in the room get

involved politically, get involved in a campaign, run for office yourself, go volunteer. [ applause ] and for anybody in the room like me. allen and i have five children. if you are graduating from college today you are facing 50% unemployment. kick the kid off the couch and get a job and if he can't get a job, get involved politically. that's how we get to the future we all ant. with that, i'm standing here. you now get to ask me the tough questions. i think we have time for a couple of questions. >> absolutely we do. thank you k.t. mcfarland. how about it. >> thank you. thank you. thank you. [ applause ] >> not bad for starting out as a

college student and moonlighting as henry kissinger's typist in the situation room. the rest is history. >> john can say that because he was the guy across the street in the executive office building writing speeches for president nixon. we don't look old enough to have been there together. but we were in the nixon administration together. >> and we were both blond. if i had gone brunette, i might have succeeded as well. secrets you learn only at the western conservative summit. there are microphones in some of the aisles. you need to come to those. it's hard to see you against the lights. we need you on mic because we have the honor that c-span is covering all day of summit saturday and it will be on the air nationally soon. >> and by the way you know who i

and john are and we don't know you. so introduce yourselves. >> my name is joe ignat. do you think the financial crisis in europe will serve as a cautionary tale for us? >> i think it depends. i think what happened is when sarkozy was thrown out of france and the elections in germany when you had that summit in chicago, the g-20 summit and looked at each other and said what did austerity did. and what france elected is a socialist take the rubber band off the wall let big spender. i think the lesson that president obama has learned -- i'm not saying the american people but president obama learned is that whatever you do, don't start cutting back, start spending more. i think in fact it may have had an opposite reaction in washington. i think the american people look

at that and are horrified. i do think, though, sort of my take on europe and the spending and where it goes from here, germany just learned how to win world war i and they are not doing with the tanks or battleships or bullets but with bonds and bailouts, because either everyone plays by germany's new rules or they don't and they go bankrupt. the lesson should be the lesson of the united states and china. >> let's go to our right. i see ross kaminsky. you better tell people where

they can hear you. >> i'm on 850 koa on sundays at 11:00 unless i'm preempted by sports. i have to run over and do the show tomorrow and try to get back here. >> lick to dick morris and not to ross tomorrow please. >> i second that. can you tell us from a strategic point of view why is our relationship with israel important? and maybe a second part to my question. do you think american domestic politics play an important role in what israel would decide to do with iran? >> yeah, for sure to both of those. i think israel and the united states have a relationship that if the united states abandons israel as some in europe certainly did after the 1973 war, you know i think that tears at the soul of america.

there is one group of people who have gone to the desert and turned it green it's israel. we owe them a relationship where we stand by them. not where we stand by them at the expense of all else but the survival of the state of israel -- [ indiscernible ] [ applause ] now what happens if israel is looking at the clock -- i think netanyahu wakes up and there is one clock that says how much time does israel have before iran develops nuclear weapons. the second clock is how much time does israel have to stop iran, israel/united states to stop iran either with an attack, either with sanctions that we just instituted or with cyberattacks. the third clock is the american election because just think of what are the swing states likely to be in the election? florida. and if the israelis feel that

president obama is going to be a re-elected president i think there is a question in the minds of the israeli leadership whether obama would support them in a second term. if there is an arab israeli war, israel needs the united states. if they have thought ahead and concluded that a re-elected obama is not in israel's best interest then their political calculation has to be to launch a preemptive attack before the election number candidate for president will walk away from israel before the election. the second thing though, i think timing. timing wise is the state of israel has to conclude that time is not on their side with the growth of the militantsy, than we say of the arab world after the arab spring.

>> k.t. mcfarland and her husband are our guests the remainder of the summit this afternoon and tomorrow. are you with us? >> john, fox news cannot live without their resident brunette. i have to go back to work tonight. >> he will be around a little while. and we're going to go to the last question now to help us keep on schedule. and there would be an opportunity to chat informally with k.t. and allen a little bit as we move ahead with our break for lunch as she has reminded us several times. >> do you think islam and radical islam is destroying europe? >> you're going to hear a lot about that later today by people who feel that it is. i think it depends. one thing that has happened in europe as they started out by

welcoming the israelic contribution to their character, shall we say. and germany and french and british have said it they said multiculturism, we tried it. it doesn't work. in the united states when people come to the united states they become us. i'm an italian descent, whether you are jewish-american or hispanic-american you become americans and maybe the first generation is whatever the home mother country was but by the second generation the kids are in the mall and have the earphones in and are normal american kids. we integrate them into our society. europe has failed to do that and i think that then presents a very different threat. i think what you'll see politically as the europeans go to the polls is that a voting block they cannot ignore and the worry is that as europe faces

economic crisis, the margins of victory are ever, ever closer in any election that they cannot ignore that voting block. and if that voting block is radicalized then i think it becomes a serious and major problem for europe. >> as in t.t. mcfarland as in ambassador ware as in many of the women in public service or private life in colorado today and across the country, conservative women, women who love freedom, women who know what's at stake. in k.t. and all of them and all of you lives the indomitable -- [ indiscernible ].

friends the summit rolls on and let me just cover a few important announcements and we will allow the hotel staff to get us set up for our founder's luncheon with the honorable william j. bennett. please be aware that there are many book signings going on just about everyone who speaks has got book signings that will occur immediately after they speak out in the exhibit area to your right as you leave the exit dors. it's a tricky thing because the program moves relentlessly. but some of you may want to play hooky and get that book purchased and signed by the speaker. please be aware that those are ongoing. i also want to notify those with the blue ribbon on your badge who were with us probably last evening for a blue ribbon event

upstairs. there is another such event as we break in a couple of minutes ahead of lunch. finally, let me call to the stage two special guests. i told you we keep augmenting and enriching the program even ever it's gone to print. i would like to have join me up here for just a moment two friends you will enjoy knowing. state senator curtis olafson of north dakota and our friend martin dzuris of michigan. gentlemen, will you come up here and flank me here please? senator olafson contacted me just the other day and told me he hopes a project of his called the national debt relief amendment could be highlighted at western conservative summit. just a couple of days prove to that i made friends over the phone and realize wed must

include this man as well in the summit. martin dzuris of michigan, the southwest corner of michigan where my mother's family is from where i was born. and i want by way of just a little interview here to have each of you know what is special about these gentlemen so you can take advantage of knowing them informally as the summit and session goes on for another 26 hours. senator olafson i was impressed by the brevity of the national debt relief amendment. i think you said 18 words. give us those, please. >> the national debt relief amendment is a state initiated nonpartisan effort invoking the rights of state legislatures to propose and ratify amendments to the constitution using article 5. the 18 words are