Regarding telling the Israelis what to do, we have three levers, our $2.4B, intelligence sharing/military cooperation, and sanctions. I’d start with dialing down the aid money to test the ‘mike hypothesis’ above. If we dial it to $0 and they don’t flinch, then I’d consider some basic sanctions. Finally we could stop doing business with them on the intelligence front. I bet they’d blink at the $.

I’m neither Jewish, Muslim nor Fundee Christian, and don’t really give a damn who rules the cis-Jordan, but as an American I sure as hell don’t want to bankroll the occupation of the West Bank. If Israel won’t play ball and treat seriously with the Palestinians, let them do it on their own dime and with their own damn weapons and intelligence.

In fact I agree with you to some extent regarding subsidizing the arms industry (although I differ with you as to that being the ‘sole’ reason the aid exists – a ‘little’ lobby called AIPAC certainly helps keep it there). Just for the record, if you haven’t read any of my ancient posts from ’03 & ’04, I would be very delighted to cut off aid to the various Arab dictatorships as well, I have no love for the Gulf Oil Despots nor the Egyptian cleptocracy.

As far as the settlements go, the Obama wasn’t elected president of Israel. He has absolutely no right to make demands of the Israelis, or of any other people. It is rude and arrogant, and it’s only to be expected that the Israelis would tell him to bug off. If the Palestinians want anything from the Israelis they need to end the war and recognize Israel. At the moment, both the PLO and Hamas’ charters state specifically that their goal is to steal all of Israel’s land and wipe out all of the Jews. Until that changes Israel is going to do what it wants. And rightfully so. They’d be insane to do otherwise.