From the Israeli Ministry of Foreign Affairs:
The Prime Minister [Netanyahu] and the Secretary [Clinton] agreed on the importance of continuing direct negotiations to achieve our goals. The Secretary reiterated that "the United States believes that through good-faith negotiations, the parties can mutually agree on an outcome which ends the conflict and reconciles the Palestinian goal of an independent and viable state, based on the 1967 lines, with agreed swaps, and the Israeli goal of a Jewish state with secure and recognized borders that reflect subsequent developments and meet Israeli security requirements." Those requirements will be fully taken into account in any future peace agreement. -- November 11, 2010
So the allegedly outrageous statement made by the president comes straight from a public agreement made with Netanyahu just 5 months ago. The words in the joint statement--based on the 1967 lines, with agreed swaps--are virtually identical to the language used by Obama. The statement is still posted on the Israeli Ministry of Foreign Affairs site. (I've copied it just in case they scrub it.)
So why did Netanyahu make that insane statement after Obama's recent Middle East speech?
First, going into his meeting with Obama, the Israeli PM had to play tough for the Israeli right. They despise Obama for criticizing the ongoing expansion of the West Bank settlements, so Netanyahu attacked Obama for domestic political reasons. And since Obama said nothing controversial in his speech, Netanyahu had to pretend he did. Netanyahu's public tantrum was nothing but a disingenuous political performance piece.
Second, Netanyahu wanted to gain leverage going into his talks with Obama. He believes that it's easy to play Americans, and maybe he's right. To attack Obama in the extreme is just the sort of thing that the American right uncritically gobbles up.
As for Netanyahu's attitude toward Americans, don't take my word for it. Listen to the prime minister:
"I know what America is," Netanyahu told a group of terror victims, apparently not knowing his words were being recorded. "America is a thing you can move very easily, move it in the right direction. They won't get in their way." Netanyahu also bragged how he undercut the peace process when he was prime minister during the Clinton administration. "They asked me before the election if I'd honor [the Oslo accords]," he said. "I said I would, but ... I'm going to interpret the accords in such a way that would allow me to put an end to this galloping forward to the '67 borders. How did we do it? Nobody said what defined military zones were. Defined military zones are security zones; as far as I'm concerned, the entire Jordan Valley is a defined military zone. Go argue."
I'm surprised he didn't call us "useful idiots."
Also see Liar ctd