As President, I refuse to set goals that go beyond our responsibility, our means, or our interests. And I must weigh all of the challenges that our nation faces. I don't have the luxury of committing to just one. Indeed, I'm mindful of the words of President Eisenhower, who -- in discussing our national security -- said, "Each proposal must be weighed in the light of a broader consideration: the need to maintain balance in and among national programs."

Over the past several years, we have lost that balance. We've failed to appreciate the connection between our national security and our economy. In the wake of an economic crisis, too many of our neighbors and friends are out of work and struggle to pay the bills. Too many Americans are worried about the future facing our children. Meanwhile, competition within the global economy has grown more fierce. So we can't simply afford to ignore the price of these wars.

All told, by the time I took office the cost of the wars in Iraq and Afghanistan approached a trillion dollars. Going forward, I am committed to addressing these costs openly and honestly. Our new approach in Afghanistan is likely to cost us roughly $30 billion for the military this year, and I'll work closely with Congress to address these costs as we work to bring down our deficit.

But as we end the war in Iraq and transition to Afghan responsibility, we must rebuild our strength here at home. Our prosperity provides a foundation for our power. It pays for our military. It underwrites our diplomacy. It taps the potential of our people, and allows investment in new industry. And it will allow us to compete in this century as successfully as we did in the last. That's why our troop commitment in Afghanistan cannot be open-ended -- because the nation that I'm most interested in building is our own.

Now, let me be clear: None of this will be easy. The struggle against violent extremism will not be finished quickly, and it extends well beyond Afghanistan and Pakistan. It will be an enduring test of our free society, and our leadership in the world. And unlike the great power conflicts and clear lines of division that defined the 20th century, our effort will involve disorderly regions, failed states, diffuse enemies.

So as a result, America will have to show our strength in the way that we end wars and prevent conflict -- not just how we wage wars. We'll have to be nimble and precise in our use of military power. Where al Qaeda and its allies attempt to establish a foothold -- whether in Somalia or Yemen or elsewhere -- they must be confronted by growing pressure and strong partnerships.

And we can't count on military might alone. We have to invest in our homeland security, because we can't capture or kill every violent extremist abroad. We have to improve and better coordinate our intelligence, so that we stay one step ahead of shadowy networks.

We will have to take away the tools of mass destruction. And that's why I've made it a central pillar of my foreign policy to secure loose nuclear materials from terrorists, to stop the spread of nuclear weapons, and to pursue the goal of a world without them -- because every nation must understand that true security will never come from an endless race for ever more destructive weapons; true security will come for those who reject them.

We'll have to use diplomacy, because no one nation can meet the challenges of an interconnected world acting alone. I've spent this year renewing our alliances and forging new partnerships. And we have forged a new beginning between America and the Muslim world -- one that recognizes our mutual interest in breaking a cycle of conflict, and that promises a future in which those who kill innocents are isolated by those who stand up for peace and prosperity and human dignity.

And finally, we must draw on the strength of our values -- for the challenges that we face may have changed, but the things that we believe in must not. That's why we must promote our values by living them at home -- which is why I have prohibited torture and will close the prison at Guantanamo Bay. And we must make it clear to every man, woman and child around the world who lives under the dark cloud of tyranny that America will speak out on behalf of their human rights, and tend to the light of freedom and justice and opportunity and respect for the dignity of all peoples. That is who we are. That is the source, the moral source, of America's authority.

Since the days of Franklin Roosevelt, and the service and sacrifice of our grandparents and great-grandparents, our country has borne a special burden in global affairs. We have spilled American blood in many countries on multiple continents. We have spent our revenue to help others rebuild from rubble and develop their own economies. We have joined with others to develop an architecture of institutions -- from the United Nations to NATO to the World Bank -- that provide for the common security and prosperity of human beings.

We have not always been thanked for these efforts, and we have at times made mistakes. But more than any other nation, the United States of America has underwritten global security for over six decades -- a time that, for all its problems, has seen walls come down, and markets open, and billions lifted from poverty, unparalleled scientific progress and advancing frontiers of human liberty.

For unlike the great powers of old, we have not sought world domination. Our union was founded in resistance to oppression. We do not seek to occupy other nations. We will not claim another nation's resources or target other peoples because their faith or ethnicity is different from ours. What we have fought for -- what we continue to fight for -- is a better future for our children and grandchildren. And we believe that their lives will be better if other peoples' children and grandchildren can live in freedom and access opportunity. (Applause.)

As a country, we're not as young -- and perhaps not as innocent -- as we were when Roosevelt was President. Yet we are still heirs to a noble struggle for freedom. And now we must summon all of our might and moral suasion to meet the challenges of a new age.

In the end, our security and leadership does not come solely from the strength of our arms. It derives from our people -- from the workers and businesses who will rebuild our economy; from the entrepreneurs and researchers who will pioneer new industries; from the teachers that will educate our children, and the service of those who work in our communities at home; from the diplomats and Peace Corps volunteers who spread hope abroad; and from the men and women in uniform who are part of an unbroken line of sacrifice that has made government of the people, by the people, and for the people a reality on this Earth. (Applause.)
This vast and diverse citizenry will not always agree on every issue -- nor should we. But I also know that we, as a country, cannot sustain our leadership, nor navigate the momentous challenges of our time, if we allow ourselves to be split asunder by the same rancor and cynicism and partisanship that has in recent times poisoned our national discourse.

It's easy to forget that when this war began, we were united -- bound together by the fresh memory of a horrific attack, and by the determination to defend our homeland and the values we hold dear. I refuse to accept the notion that we cannot summon that unity again. (Applause.) I believe with every fiber of my being that we -- as Americans -- can still come together behind a common purpose. For our values are not simply words written into parchment -- they are a creed that calls us together, and that has carried us through the darkest of storms as one nation, as one people.

America -- we are passing through a time of great trial. And the message that we send in the midst of these storms must be clear: that our cause is just, our resolve unwavering. We will go forward with the confidence that right makes might, and with the commitment to forge an America that is safer, a world that is more secure, and a future that represents not the deepest of fears but the highest of hopes. (Applause.)

Thank you. God bless you. May God bless the United States of America. (Applause.) Thank you very much. Thank you. (Applause.)