I'm the first secretary of defense that's had to deal with sequestration. I've prepared two budgets that deal with sequestration. And you bring the chiefs together, the leadership of this enterprise together, to work through, how do we then take these cuts? Where do we apply those cuts? Readiness is the first thing that suffers.

Foreign policy will require a strategic agility that, whenever possible, gets ahead of problems, strengthens U.S. security and alliances, and promotes American interests and credibility.

Well, let's go back to the original intent of Social Security. It is an insurance contract.

We must prepare for everything.

There are always consequences to actions that you take. There are consequences to inaction. And thinking through, asking the questions, "Well, then what happens? What comes next?" is critically important.

Nations, great nations have limitations. All nations have limitations. Even great powers have limitations.

There's always a balance, I think, any administration has to find in not just the military but in any agency of government.