Israel will continue to do whatever the hell it wants in Palestine -- and anywhere else in the world for that matter -- because it can. Because it is the only country in the world that can give America the finger; because America is Israel's bitch. It's simple as that.
Israel can continue to use foreign cover to launch assassinations; it can even spy on America; steal from America; and blow up American navy ships; and get away with it, because Israel know it can. It knows it can because it has control over American politicians -- and the American public opinion. It is the only nation that has such a large lobby effort in the US, and the Americans can seem to do nothing about it.
The fact that Netanyahu wants no solution to the Palestinian problem that involves returning what it seized from the war -- or for that matter a Palestinian state -- is not news. Israel of course, will pay for this shortsightedness. You only need to look at the demographic changes in Israel/Palestine to know that the Palestinians will outnumber the Israelis eventually. Immigration is not going to help Israel. Change will come. It's inevitable -- only when it does, it will be more painful for the Israelis.
"Mr Netanyahu however believes he can call Mr Obama's bluff and ride out the storm. The plan to build 1,600 settlements, he says, will go ahead, whatever Washington's demands to the contrary. And on all counts, he's probably right."
- Rupert Cornwell: Obama won't restrain Israel - he can't - Rupert Cornwell, Commentators - The Independent (view on Google Sidewiki)