BILL O'REILLY (host): Now I have to say, Hawaii is one of my favorite places in the world. It's beautiful.

JESSE WATTERS (Fox News producer): Yeah, it's beautiful.

O'REILLY: But when I'm there I'm under water. I'm not talking to pinheads. But the state is in enormous debt.

WATTERS: They are.

O'REILLY: Alright. They've got a lot of social problems. When you says it's the biggest homeless thing, it's because of the addiction.

WATTERS: Right.

O'REILLY: The addiction is rampant, all over the place, because they don't enforce the drug laws.

WATTERS: No.

O'REILLY: And, you know, I think the one person who said, Look, this is a place where people come to to escape. This is, you know, generally speaking. But you know what's shocking? 35 percent of the Hawaiian population is Asian, and Asian people are not liberal, you know, by nature. They're usually more industrious and hard-working.

WATTERS: But they did vote for President Obama --

O'REILLY: Big time.

WATTERS: -- and if you add the indigenous native Hawaiian population --

O'REILLY: About 20 percent.

WATTERS: -- to the Hispanic population, they outnumber whites by more than two to one.