Rush Limbaugh of all people often refers to Bill O'Reilly as "Ted Baxter", the pompous and empty-headed anchorman on The Mary Tyler Moore Show. I don't think he's that smart, if this video is any indication. O'Reilly stands for the neo-conservative party line towards Paul, made necessary by the fact that they can't come close to answering him or engaging in a battle of ideas or intellect-- Ron Paul is insane and can't win, so let's make fun of him.
There is no good answer to Paul's proposition that we have no business being in Iraq, Afghanistan, Pakistan, and Libya. Because either it is unjustified in and of itself (which I believe), or else (even if you could make the case for it in terms of national security) we simply cannot afford to do so. Stated simply, the country is bankrupt, and domestic and foreign spending needs to be slashed.
O'Reilly is so ignorant here that all he can manage to do is the bemused mocking thing.