Whether the administration was genuinely insulted is questionable. I suspect that it simply wishes to present itself as an injured party in order to push Israel for concessions."Emboldens the administration to become more aggressive." Mirengoff has no problems using the kind of language usually reserved for rogue terrorist regimes to warn Israel of emboldening the President of the United States.
After all, this administration isn't easily offended. The governments of Iran, China, and Russia (among other regimes) have all, in various ways, insulted the U.S.and its president with no reaction, at least not a public one. Moreover, Israel has apologized for the timing of its announcement of plans for the new housing units. I don't recall our enemies apologizing for their various derisive comments about President Obama.
Frankly, I'm not sure Israel should have apologized either. Doing so emboldens the administration to become more aggressive. On the other hand, Netanyahu understandably feels the need to come across as reasonable and conciliatory. That way, if the White House continues to overreact, Israel will be seen by its citizens and its supporters in the U.S. as more sinned against than sinning in this matter.
Which country does he consider to be more important, us or Israel? Isn't that a bit of a problem? Israel has the right to exist of course, and it is a sovereign nation. But why are we responsible for its welfare? Don't we have 300 million of our own to worry about here in this recession? Isn't that the "fiscally responsible" thing to do?
Or is that a sham too?
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