American young people have got to understand from an early age that the world pays off on results, not on effort. Not everyone should win a prize no matter where he or she finishes.

I am being very humble about the Arab Spring. There's kind of a competition out there, you might have noticed, of who can be the first to say the Arab Spring is going to fail. Everyone says, "I told you so, I told you so about the Muslim Brotherhood." I have no desire to tell anyone anything. I don't know. I'm just listening, watching. It may turn out all these people are right, they may be wrong. They may be right this year and wrong next year, by the way. I'm just trying to listen day to day, figure it out.

To me the smart thing that governments in the Middle East would be doing right now is taking their oil and gas fountain - and the smartest ones are to some degree - and making sure they're investing in their people to unlock their potential - men and women.

We have to fight the terrorists as if there were no rules and preserve our open society as if there were no terrorists.

If you are self-motivated, wow, this world is tailored for you. The boundaries are all gone. But if you're not self-motivated, this world will be a challenge because the walls, ceilings and floors that protected people are also disappearing. That is what I mean when I say "it is a 401(k) world." Government will do less for you. Companies will do less for you. Unions can do less for you. There will be fewer limits, but also fewer guarantees. Your specific contribution will define your specific benefits much more. Just showing up will not cut it.

I firmly believe that the next great breakthrough in bioscience could come from a 15-year-old who downloads the human genome in Egypt.

I am always a little skeptical on the water thing because I have been hearing that for 30 years, but one year it's going to be true. With the rising populations, Yemen could be the first country in the world, or Sana'a the first major city in the world, to run out of water, that's from Yemeni hydrological engineers and the United Nations. Sooner or later, all of these people, from 7 to 9 billion, all of them want to live like America, will be consuming so much more water that some of the societies will hit a wall without more sustainable environmental practices.