Cheney spoke to PBS television as the first of up to 300 US military advisers began their mission in Baghdad yesterday to help the Iraqi army, and the Pentagon said the American troops were not taking on a combat role.
The primary task of the advisers was to evaluate the state of Iraqi forces and not to turn the tide against militants from the Islamic State of Iraq and the Levant (ISIL), which have swept across western and northern Iraq, the Pentagon's press secretary said.
"This administration is taking exactly the opposite direction from which we ought to be headed," Cheney stressed.
He believes Obama never meant to leave troops in Iraq - and that his decision to withdraw led to the current instability.
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"The president did not want to have, I don't believe, any stay-behind force in Iraq. I don't think it was consistent with the campaign he'd run when he campaigned against our forces in Iraq and promised to bring them all out during the course of the campaign," Cheney said.
Asked what mistakes were made, Cheney said: "It was not a flawless war, but I've never seen one that was."
Cheney also recalled how Intelligence about Saddam's WMDs seemed so clear at the time saying that then CIA chief "George (Tenet) said, 'It's a slam dunk, Mr. President, slam dunk.'"
Asked if ISIL's inroads were an intelligence failure of the United States, Cheney said: "I don't automatically assume our guys missed it. I just don't know.