He is talking about the latest ad, in which they say that Kerry opposes military pay raises.
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They simply can't stop lying.
That point should be hit again and again and again. And not simply -- or even primarily -- on the narrow point of dishonesty but on the broader issue of disrespect for the people they're communicating with.
'Disrespect' doesn't quite convey the intended message. But it comes close. It may be closer to 'contempt' though I think the attitude is somehow breezier than that. They don't think any rules apply to them.
They want to say up is down. And they're sure they can get away with it because they think the people who are listening are either chumps or that their trust can be exploited endlessly.
http://www.talkingpointsmemo.com/I think this idea of their contempt for the audience, the voter -- the chump -- is central to the whole thing. I don't know if this can ever be made a campaign issue, but there must be some way to bring it out into the open.