...The entire "natural growth" issue is a concoction. Is the peace process moribund because a teacher in the Jewish Quarter of Jerusalem is making an addition to her house to accommodate new grandchildren? It is perverse to make this the center point of the peace process at a time when Gaza is run by Hamas terrorists dedicated to permanent war with Israel and when Mahmoud Abbas, having turned down every one of Ehud Olmert's peace offers, brazenly declares that he is in a waiting mode -- waiting for Hamas to become moderate and for Israel to cave -- before he'll do anything to advance peace.

In his much-heralded "Muslim world" address in Cairo yesterday, Obama declared that the Palestinian people's "situation" is "intolerable." Indeed it is, the result of 60 years of Palestinian leadership that gave its people corruption, tyranny, religious intolerance and forced militarization; leadership that for three generations rejected every offer of independence and dignity, choosing destitution and despair rather than accept any settlement not accompanied by the extinction of Israel.

That's why Haj Amin al-Husseini chose war rather than a two-state solution in 1947. Why Yasser Arafat turned down a Palestinian state in 2000. And why Abbas rejected Olmert's even more generous December 2008 offer.

In the 16 years since the Oslo accords turned the West Bank and Gaza over to the Palestinians, their leaders built no roads, no courthouses, no hospitals, none of the fundamental state institutions that would relieve their people's suffering. Instead they poured everything into an infrastructure of war and terror, all the while depositing billions (from gullible Western donors) into their Swiss bank accounts.

Obama says he came to Cairo to tell the truth. But he uttered not a word of that. Instead, among all the bromides and lofty sentiments, he issued but one concrete declaration of new American policy: "The United States does not accept the legitimacy of continued Israeli settlements," thus reinforcing the myth that Palestinian misery and statelessness are the fault of Israel and the settlements.

Blaming Israel and picking a fight over "natural growth" may curry favor with the Muslim "street." But it will only induce the Arab states to do like Abbas: sit and wait for America to deliver Israel on a platter. Which makes the Obama strategy not just dishonorable but self-defeating.