The Palestinians have refused to hold direct talks so long as Israel does not renew a moratorium on settlements which expired in late September. Since then the US and Israel have been working on a deal which would give Israel incentives for a 90-day extension, but that deal fall apart earlier in the week. Still, Clinton warned the sides against thinking that the relative lull in violence and prosperity means a political solution isn’t necessary.“I know that improvements in security and growing prosperity have convinced some that this conflict can be waited out or largely ignored,” she said. “This view is wrong and it is dangerous.”She spoke of the “unacceptable” and “unsustainable” status quo which has continued “to deprive the Palestinian people of dignity and self-determination.”Clinton declared that “a Palestinian state, achieved through negotiations, is inevitable” and the US would continue pushing for its creation.However, she disparaged efforts on the part of Palestinians to have statehood declared at the UN.“Unilateral efforts at the United Nations are not helpful and undermine trust. Provocative announcements on East Jerusalem are counterproductive,” she said. “And the United States will not shy away from saying so.”“She’s recommitted the administration to [achieving] a comprehensive peace agreement in a very short timeframe,” said Robert Danin, a former deputy envoy to the Quartet deputy now with the Council on Foreign Relations, who attended the Saban dinner.He warned, “It’s dangerous if expectations are maintained at a high level if these goals aren’t realized.”Clinton met with Barak, opposition leader Tzipi Livni, Palestinian Authority Prime Minister Salam Fayyad and chief Palestinian negotiator Saeb Erekat as part of her diplomatic outreach to rejigger the talks. US Mideast envoy George Mitchell is headed to the region next week to continue the effort.