The war between the Iranians and Iraqis is a touchy issue. To be quite honest, they each other's guts. It was not responsible to let one of our ships be put into a war zone like that.

The Iranians know that if they develop nuclear weapons, they will be in tremendous jeopardy from military capabilities of their neighbors and of the United States. I am not predicting what will happen in 2013, but I do think it is a crucial year. I hope we can make it clear to the Iranians that we do not object to them having peaceful use of nuclear power. But when they enrich Uranium to a 20 percent level, people think they are going for the bomb. Their uranium enrichment program is a real danger.

If you think you're a leader, and you look over your shoulder and there ain't nobody following you, man, you're just takin' a walk.

We need a dialogue with the Iranians, and it is going to take both carrots and sticks. We employed very tough economic sanctions, and they are having an effect. But we also have to give the Iranians an idea of what the economic and cooperative possibilities would be if they did give up their quest for a nuclear weapon.

You have to pay the price. You will find that everything in life exacts a price, and you will have to decide whether the price is worth the prize.

Some people think we will see a nuclear explosion in Europe or the United States within the next 10 years. Will it happen? Sure, it's possible. But I think we can greatly diminish that risk. The only way you can do that is through cooperation, and it has to be global.

There is a pervasive mistrust that grew out of the Cold War and still continues today - even though there are a lot more mutual interests between Europe, Russia and the United States than ever before. But the way we organize things today, it takes years to negotiate. By the time you get a result, the technology has far outrun the policy. So we have to start a dynamic, sustainable type of policy deliberations that can catch up with technology.