a new reality is dawning on world leaders

Reuters:

It may be time for Palestinian President Mahmoud Abbas to "tell his people the truth, that with the continuation of settlement activities, the two-state solution is no longer an option," [Palestinian negotiator Saeb] Erekat told a news conference.

He raised the possibility of Palestinians instead being absorbed into the Israeli polity — something that would spell the end of the Jewish majority. Israel rejects that option.

Clinton–who inadvertently landed the blow that broke the peace process’s jaw in the 15th round– is scrambling. From tomorrow’s Times:

Winding up a Middle East tour, Secretary of State Hillary Rodham Clinton repeated on Wednesday that while the Obama administration rejects the legitimacy of Israeli settlement expansion, it nonetheless believes that Israeli-Palestinian negotiations should precede a permanent freeze on such construction.

Her arguments conflicted with Arab and Palestinian demands that all settlement activity be frozen as a precondition for resuming talks with Israel.

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