There are multiple news stories coming out of Middle East. On the one hand there are stories that the US has tacitly approved the construction of 1600 housing units in disputed East Jerusalem; on the other hand there is bluster from Hillary Clinton which threatens Israel with dire consequences if it doesn’t do this that or the other. There is news from Israel that the Prime Minister did not know about the 1600 units, and that it was announced by lower level underlings, who were off on the times. In other words, the PM did not oppose the construction of the units in the occupied territory, he was chagrined that the construction was announced.

Vice President Joseph Biden was insulted in Israel by the announcement–and all he did was smile.

Glenn Kessler has written an excellent article in the Washington Post about how angry Secretary of State Hillary Clinton is–however this bluster is an exercise in futility–the only language Tel Aviv understands is the language of witheld aid and diminished economic support

Secretary of State Hillary Rodham Clinton warned Israeli Prime Minister Binyamin Netanyahu on Friday that the U.S.-Israeli relationship is at risk unless Israel took immediate steps to demonstrate it was interested in renewing efforts at a Middle East peace agreement.

Clinton’s phone call, made in the wake of the embarrassment suffered by Vice President Biden this week when Israel announced it would build 1,600 housing units in a disputed area of Jerusalem, was an unusually tough message for the longtime U.S. ally. It came two days after Biden condemned the action while in Israel, and demonstrated that Netanyahu’s efforts to mollify the administration have fallen short. He has claimed that he did not know the announcement was coming but has not canceled the project.

Relations with Israel have been strained during the Obama administration, and Biden’s trip was intended as a fence-mending mission. Now it has led to the biggest crisis between the two countries in years.

Clinton called the prime minister “to make clear the United States considered the announcement a deeply negative signal about Israel’s approach to the bilateral relationship and counter to the spirit of the vice president’s trip,” State Department spokesman P.J. Crowley told reporters at his regular news briefing. Clinton, he said, reinforced “this action had undermined trust and confidence in the peace process and in America’s interests.”

Crowley added: “The secretary said she could not understand how this happened, particularly in light of the United States’ strong commitment to Israel’s security, and she made clear that the Israeli government needed to demonstrate not just through words but through specific actions that they are committed to this relationship and to the peace process.”

Special Envoy George Mitchell has struggled to relaunch peace talks between the Israelis and Palestinians. Last week, he succeeded in getting the two sides to agree to indirect talks, with Mitchell shuttling between them, but that has been put at risk after the Israeli announcement. Clinton warns Netanyahu that U.S.-Israeli relationship is at risk By Glenn Kessler, Washington Post Staff Writer, Friday, March 12, 2010; 3:14 PM

Will Israel change its behavior? Probably not. Its struggle for survival has become an occupation of lands that do not legally belong to it. This is not about reigning in a naughty Prime Minister. The bigger issue is about the long term harm to peace. Prime Minister and Netanyahu his party are hurtling Israel toward a point of no return–when the two state solution  will no longer be viable. At that point all Palestinians in Israel will be caught in a precarious position–the would be in a majority in Israel.

How will Israel deal with this situation? It could deport the Palestinians or make life so difficult for them that they voluntarily  leave. This sort of exodus happened in 1947, but the world community may not allow it now. It will surely leave to wars in the area.

It is in Israel’s interest to not build the 1600 units in Jerusalem, and it is in American interests to stop this construction.