0 but in the broader sense, what's really taking place is that the lack of leadership is sending a signal around the world that the united states is in decline. it that we're withdrawing. that we as a country are not going to behave in a rational manner. we're managing our economy on a european model which is a failed model. and that signal goes out around the world. we're damaging our defense budget in ways that suggest to the rest of the world that the united states will not be a factor that we've been throughout my adult life time. it is a sad thing. you can lose a great deal pretty fast and it takes years and years and years to build back up the kind of confidence and the determent effect and the respect that the united states has had for so many years. >> you have a unique situation. you've been in congress, you've worked in the white house and you've been secretary of defense. what's the problem? what is going on? >> well, you know, a businessman, a governor, a leader, would sit down in the white house with the senior people, call him in, and come to a policy decision and develop an approach, a direction, a leadership position. and then you'd sit down as ronald reagan did and other presidents, gerald ford, and the constitution guides the marbles. they give some to the judiciary, some for the legislative branch and some to the executive. this is nothing new. it's always been thus. but a leader in the white house and the leader is in the house, you can't lead from the house or lead from the senate, you have to lead from the white house. and it takes a person who understands leadership and is willing to establish priorities and make a commitment and pursue it. and this president there is a limit, that it's not in-exhaustible, that the damage is already being done, the damage is the signal that's being september to the wornt toe united states is unwilling to behave in a responsible manner. and the leadership doesn't exist to do that. it's an indictment it seems to me of the president of the united states and the lack of leadership. >> let me ask you another question. it has to do with this whole overseas thing we mentioned. take the war in afghanistan. does this -- does this have any impact except for the money actually flowing to sort of finance the war, just the big picture, reputation of the united states, does that have any impact on the war on the ground? >> oh, sure. if people conclude that the president says to them we're going to leave and then the department of state and the white house fail to get a status of forces agreement, fail to get an arrangement with the afghan government, as to how we're going to do what it is we're going to do, the signal is to the other side, wait them out. wait them out. i think i personally was not a big enthusiast of the surge that president obama where he added so many additional forces into the country, but i think the absence of leadership, the failure of decide proceiplomacy taking place in that cup, we have behaved in my view terribly toward karzai and the karzai government. >> if you hold on one second, there is breaking news. let's go to shepherd smith. >> fox news has confirmed that president obama will nominate the fed vice chairman janet yellen to replace ben bernanke at the central bank. we are told this will happen tomorrow. janet yellen would become the first woman to lead the fed. she would take over of course at a pivotal time, but would likely continue steering fed policy in the same direction as ben bernanke. certainly her confirmation hearings could be quite an obstacle. bigger potential hurdle would be senate confirmation hearings. her positions have been much more toward free money, if you will, than ben bernanke's have been and certainly she is in this position because among other things larry summers dropped out of the race for this job when there was a lot of pressure on president obama to nominate a woman. so there we go. janet yellen to be nominated by the president tomorrow to replace ben bernanke as chairman of the central bank. >> thank you. and of course thank to you mr. secretary. nice to see you, sir. and straight ahead, breaking news involving an undercover cop allegedly involved in this motorcycle mob road rage attack. a live report next. also, guess who is calling? every night this week, we'll take a call from a famous surprise caller and i have absolutely no idea who it is. it's the staff that does this. you can start guessing using #greta and then find out wh