Bibi is acting in a bad way on the international political theatre. Wondering what the US wants from him is just like "pretending to be stupid". The absolute challenging policies in Jerusalem has caused an outrage against Israel by the international community. While being stuck between the rightists and world's demands he's either fooling himself or himself. There are clear demands to stop construction in E. Jerusalem but he's just going on against that. I think its some straightforward: Once Israel "accepts" the fact the Palestinians HAVE THE RIGHT to build their state with all what it takes, problems will disappear and peace will be achieved. Its Israel's stubborn policies and the practice of power logic and imposing facts on the grounds which always complicates the situation. Apparently, Bibi is far away from this recognition and thats something he should be taught just like any other one who deny the right of Palestinians to live the same way they're living.
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from the article: Netanyahu: I'm not building in Jerusalem for Lieberman and Yishai