[The following, by Barry Rubin, is crossposted from The Rubin Report.]

According to the first media report by Hisham Bourar of al-Hurra television, President Barack Obama has announced an additional $400 million in aid for housing, school construction and business development in Gaza and West Bank. Calling the status quo in Gaza unsustainable, Obama said he was talking with Europeans, Egypt, Israel, and the PA on how to have a better approach that takes into account the security concerns of Israel and the needs of people in Gaza.

He did not add anything regarding an investigation but said everyone should know the facts and make sure something like this didn't happen again. Thus, he left the door open to either an Israeli or an international investigation.

Abbas called for lifting the blockade completely.

Analysis:

Obama's statements on the Gaza flotilla issue have been careful. He didn't support Israel but he also has not openly supported an international investigation or a drastic change in the embargo. His line so far implies a serious Israeli investigation would be acceptable. He also has called for small changes in the embargo (acceptable to Israel) while hinting there might be big changes (not acceptable)

I would call Obama's line "carefully neutralist with a tiny tilt toward Israel" so far. It is very bad because he is carefully avoiding supporting an ally against a radical Islamist regime in order not to offend the demands of Turkey or Arab states and populations but it is not hostile to Israel and avoids bashing that country.

Aside from the lack of courage or leadership, however, Obama shows no strategic sense. He should make clear that the United States does not want an Iranian client, a revolutionary jihadists Taliban-like regime on the Mediterranean Sea. It should be the goal of U.S. policy to avoid this. Instead he deals with this as a "humanitarian" issue and makes no effort to get across what should be the main point.

He may honestly believe that pumping money into specific projects in Gaza like houses, schools, and businesses is not a subsidy for Hamas. But of course that is what it will be. Anyone should be able to understand this:

--Schools. That means classrooms where Hamas can indoctrinate children into thinking that they should grow up to be terrorists, Israel must be wiped off the map, peace with Israel is unacceptable, the Jews must be murdered, America is evil and its influence should be driven out of the region, and all existing Arab states except for Syria should be overthrown.

If I was a cartoonist I'd draw a picture of a classroom. On the wall is a plaque saying: Paid for by the American people. The teacher is telling the kiddies: "And so you must all grow up to be holy warriors and wipe out the Zionist pigs and imperialist dogs."

----Construction. Yes it would be nice if Gazans had jobs and nicer places to live. But nobody in a Palestinian refugee camp (except perhaps if they bribe someone) will get a new apartment since they must continue to suffer until they can presumably return in triumph to take over housing recently vacated by murdered Israelis. Apartments will be given first by the Hamas government to its supporters and thus used to recruit people and bind them to the movement. Some of the concrete and other equipment will be siphoned off for building bunkers or rockets to fire at Israel.

If I were a cartoonist I'd draw a picture of an apartment building with a sign saying, "Gift of the American people" in front of it and with a Hamas official saying to a man: "And if you become a suicide bomber you not only get to go to heaven but your family will receive a two-bedroom apartment with a nice view of the beach."

Remember the United States has no one on the ground in the Gaza Strip to supervise and neither does the PA, which is noted for its own corruption. But I'd rather all the money would be given for aid to the West Bank than have any funds go to the Gaza Strip.

And what happens when Hamas attacks Israel again? I can see the media coverage now, complaining that Israel is damaging all those beautiful U.S.-financed buildings, which are being used as rocket-launching sites and bunkers by Hamas.

Can't the U.S. government figure this stuff out for itself? The president is not the head of a foundation providing grants to community organizers. So the money will be taken as "blood money" to pay compensation for the blockade or as tribute from a frightened America. It will win no friends and do no good strategically or politically. The president of the United States has just offered--in practice, not intention--to subsidize a would-be genocidal regime.