Rumsfeld, author of the new book "Rumsfeld's Rules," told John Bachman on Newsmax TV's "America's Forum" that the United States is not spending enough money on the military.
"The greatest security threat [to America] is the fact that the United States is behaving in a way that is sending a signal of future weakness," he said. "In the Eisenhower, Kennedy, Johnson administrations, we were spending 10 percent of gross domestic product on defense. Today, we're spending less than 4 percent and the entitlements have ballooned."
"There's no way we can keep on spending trillions of dollars we don't have. So that vacuum we're creating is going to be filled, and it'll be filled by countries that don't have our values and clearly are adverse to our interests."
Rumsfeld, who was secretary of defense from 1975 to 1977 under President Gerald Ford, and from 2001 to 2006 under President George W. Bush, said Iran's ayatollahs are determined to build a nuclear weapon, which will set off a dangerous Middle East arms race.
"You very likely are going to end up seeing other countries in the region develop nuclear weapons," Rumsfeld said. "And there are other countries that are perfectly capable of it, and there are countries around the world that are willing to assist them with nuclear programs. And that is not a good thing for the world."
Rumsfeld warned that Saudi Arabia and Egypt would soon want to arm themselves with nuclear bombs.
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