One may fairly suspect that Carl Sagan took Donald Menzel's place within the Majestic organization. Sagan's public view on UFO's changed from open minded to definitely not aliens over that period. Also, the UFO mediated interference of the Minot AFB ICBM's would be known to him, so the quote above is in keeping with his task to misinform and mislead the public on this issue.
I think the quotes context is referring to prayer and religion and not sure how the late Dr. Sagan was tasked with misinforming the public as he was one of the greatest proponents of logic, reason, skepticism, and science as a way of thinking. The excerpt was written in his book Pale Blue Dot and had nothing to do with UFO's, or any pseudoscience and was about the Voyager spacecraft looking back at the Earth from the outer solar system and as follows.
"Look again at that dot. That's here. That's home. That's us. On it everyone you love, everyone you know, everyone you ever heard of, every human being who ever was, lived out their lives. The aggregate of our joy and suffering, thousands of confident religions, ideologies, and economic doctrines, every hunter and forager, every hero and coward, every creator and destroyer of civilization, every king and peasant, every young couple in love, every mother and father, hopeful child, inventor and explorer, every teacher of morals, every corrupt politician, every "superstar," every "supreme leader," every saint and sinner in the history of our species lived there-on a mote of dust suspended in a sunbeam.
The Earth is a very small stage in a vast cosmic arena. Think of the rivers of blood spilled by all those generals and emperors so that, in glory and triumph, they could become the momentary masters of a fraction of a dot. Think of the endless cruelties visited by the inhabitants of one corner of this pixel on the scarcely distinguishable inhabitants of some other corner, how frequent their misunderstandings, how eager they are to kill one another, how fervent their hatreds.
Our posturings, our imagined self-importance, the delusion that we have some privileged position in the Universe, are challenged by this point of pale light. Our planet is a lonely speck in the great enveloping cosmic dark. In our obscurity, in all this vastness, there is no hint that help will come from elsewhere to save us from ourselves."
Not Gods nor aliens.
The sun could burp out a coronal mass ejection at just the right time and magnitude and wipe all multi cellular eukaryotic life forms on Earth.
The sad part is the universe wouldn’t even notice.