Indeed he did state the US army is full of lazy idiots. Yes I did paraphrase the joke, that was refered to earlier in the paragraph you qouted.
No he didn't

Ok english teaching time. If you are not smart, you are unintelligent also known as being an idiot. If you don't work hard, you are called lazy. He is stating wether he meant to or not (but since the speech was written out infront of him...) that the US armed forces are neither smart, nor do the work hard.

Yes he said he didn't mean it, and later the portion of the speech was shown. But when he spoke he didn't mention bush, he didn't mention the presidency he only mentioned the US armed forces.
Is English not your first language then ?
Tex try any language you like , any translation whatsoever , and show that the speech delivered does not mention the presidency or does mention the US armed forces .
Since your post leaves only two possible options
ayou havn't read or heard the speech
byou , like the president mentioned in the speech , have moved from the State of Texas and are in the state of denial .

Oh , add option c ...both of the above .

Oh, and I don't see in that snippet any mention of the US armed forces.
Well thats where it gets tricky Keba and hence the confusion .
If you get the whole speech instead of just the snippet , it is really amazing , as it doesn't contain any mention of it either .