Is Rumsfeld cracking up?

This article by Francis Harris in the U.K.'s News Telegraph is important in its own right, as it contains a revelation that the U.S. military command now admits the recent raid/massacre in Baghdad did involve a mosque, after all.  (Accounts still differ as to whether those killed were insurgents or unarmed worshipers.)

But I want to draw your attention to this passage and quote by Donald Rumsfeld, below the fold:

The new version of events appeared to contradict earlier US military accounts that suggested that Sadr's men had moved corpses to make it appear that the Americans had desecrated a religious site. But Mr Rumsfeld was unapologetic about the hesitant and belated account.

"The US government has not got to the point where we are as deft and clever and facile and quick as the enemy that is perfectly capable of lying, having it printed all over the world, and there's no penalty for having lied."

Doesn't he sound envious and frustrated that, despite his best efforts, he still can't lie as well as the enemy?  Can this be anything like a rational statement from a U.S. Secretary of Defense?  

It's not enough that these guys running the country are criminals and incompetents.  Now they are unhinged as well.  Heaven help us, and the world.