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At the same time, we must continue to engage the world with confidence and clear purpose. In the face of threats from abroad, it can be tempting to seek comfort by turning inward. But we must reject isolationism and its companion, protectionism. Retreating behind our borders would only invite danger. In the 21st century, security and prosperity at home depend on the expansion of liberty abroad. If America does not lead the cause of freedom, that cause will not be led.

As we address these challenges - and others we cannot foresee tonight - America must maintain our moral clarity. I have often spoken to you about good and evil. This has made some uncomfortable. But good and evil are present in this world, and between the two there can be no compromise. Murdering the innocent to advance an ideology is wrong every time, everywhere. Freeing people from oppression and despair is eternally right. This Nation must continue to speak out for justice and truth. We must always be willing to act in their defense and to advance the cause of peace.

President Thomas Jefferson once wrote, "I like the dreams of the future better than the history of the past." As I leave the house he occupied two centuries ago, I share that optimism. America is a young country, full of vitality, constantly growing and renewing itself. And even in the toughest times, we lift our eyes to the broad horizon ahead.

I have confidence in the promise of America because I know the character of our people. This is a Nation that inspires immigrants to risk everything for the dream of freedom. This is a Nation where citizens show calm in times of danger and compassion in the face of suffering. We see examples of America's character all around us. And Laura and I have invited some of them to join us in the White House this evening.

We see America's character in Dr. Tony Recasner, a principal who opened a new charter school from the ruins of Hurricane Katrina. We see it in Julio Medina, a former inmate who leads a faith-based program to help prisoners returning to society. We see it in Staff Sergeant Aubrey McDade, who charged into an ambush in Iraq and rescued three of his fellow Marines.

We see America's character in Bill Krissoff, a surgeon from California. His son Nathan, a Marine, gave his life in Iraq. When I met Dr. Krissoff and his family, he delivered some surprising news: He told me he wanted to join the Navy Medical Corps in honor of his son. This good man was 60 years old - 18 years above the age limit. But his petition for a waiver was granted, and for the past year he has trained in battlefield medicine. Lieutenant Commander Krissoff could not be here tonight, because he will soon deploy to Iraq, where he will help save America's wounded warriors and uphold the legacy of his fallen son.

In citizens like these, we see the best of our country - resilient and hopeful, caring and strong. These virtues give me an unshakable faith in America. We have faced danger and trial, and there is more ahead. But with the courage of our people and confidence in our ideals, this great Nation will never tire ... never falter ... and never fail.

It has been the privilege of a lifetime to serve as your President. There have been good days and tough days. But every day I have been inspired by the greatness of our country and uplifted by the goodness of our people. I have been blessed to represent this Nation we love. And I will always be honored to carry a title that means more to me than any other: citizen of the United States of America.

And so, my fellow Americans, for the final time: Good night. May God bless this house and our next President. And may God bless you and our wonderful country.