President Obama's special peace envoy, former Sen. George Mitchell, is just wrapping up his latest visit to the Middle East. It's his third trip since being appointed and this time in addition to Israel, the West Bank, and Egypt, included Saudi Arabia and North Africa (Morocco, Tunisia, and Algeria), with an emphasis on a comprehensive regional peace, building on the Arab Peace Initiative of 2002. (Mitchell has yet to visit Damascus or Beirut, something unlikely to take place until after June's parliamentary elections in Lebanon.)

In meetings with Israeli and Palestinian leaders, Mitchell continued to reiterate U.S. support for a two-state solution, although the emphasis of the visit, perhaps understandably, still seems to be the listening tour aspect, including the first meetings since Israel's new government took office.

Some reports on these latest meetings portray PLO chairman Mahmoud Abbas as carrying a message of hope and peace in the face of a rejectionist Israeli premier. Others depict Israeli Prime Minister Benjamin Netanyahu as being seized by the more urgent calling of the Iranian threat, and showing a willingness to make progress on practical issues with the Palestinians, such as the economy, while avoiding a possibly dangerous and premature effort to address the political differences -- especially given the enfeebled nature of the Palestinian counterpart.

Both views are wrong.

The sad truth is that neither leader has a meaningful strategy for creating a new equilibrium for resolving this conflict. Despite all their differences (and there are many), Netanyahu and Abbas are similar in two major respects: Both stand atop deeply dysfunctional political systems that eschew bold decision-making. And both are focused on short-term political survival, an understandable instinct and one certainly not unique to the Levant, but also woefully inadequate given the challenges faced by their respective peoples.

So, due to both circumstance and a generous dose of intentional design, Senator Mitchell's Palestinian and Israeli interlocutors are busy preparing sugar-coated traps and distractions. The Mitchell team should be well prepared to recognize the pitch of a snake- oil salesman when they hear one.

On the Israel interlocutor side, here are the main traps Mitchell should look out for:

1) The ‘Say the Magic Words' Game. Thus far, Netanyahu is refusing to explicitly endorse the two-state formula. This is being nicely set up to become a rather large red herring, whereby diplomatic attention becomes focused on teasing out a linguistic formula to claim that Israel's premier is indeed a "two-stater." Last Friday's headline in the Israeli daily Ma'ariv even suggests that Netanyahu is planning for a dramatic climb- down gesture during his first visit with U.S. President Barack Obama (now postponed from early May to possibly later in the month), during which he would declare acceptance of the two states position. What a colossal distraction and waste of time.

To paraphrase what always used to be said of former PLO Chairman Yasser Arafat --what matters are his actions, not his words. Saying the magic words is of minor import. Ending the occupation and actually delivering on a two-state solution is what should matter to the Mitchell team. The latest ruse to apparently come out of the Netanyahu-Mitchell meeting was an Israeli demand that the Palestinians first recognize Israel as a Jewish state (something that neither Egypt, nor Jordan, did in their respective peace treaties with Israel) -- a meaningless diversionary tactic.

2) It's not the economy, stupid. Netanyahu advocates focusing first on what he calls "economic peace" -- developing the Palestinian economy as a prerequisite for two states. Indeed, economic improvement would be welcome, and no one should oppose moves such as ending the closures, removing the 600-plus obstacles to freedom of Palestinian movement in the West Bank (that dovetail with the map of settlements and settler road use arrangements), lifting the siege on Gaza, etc. However, by now the secret may be out that developing the Palestinian economy in order to make the Palestinians a peace-loving people, while maintaining the Israeli occupation and the settlements, is precisely what's been tried for the last 15 years -- with dismal results. The Palestinians won't be bought off; this is a political conflict requiring political solutions. Economic improvements are important as a support ballast, not as a central plank.

3) "You go first; no you go first." If Netanyahu is smart (as I consider him to be), then he is likely to spot a tantalizing diversionary opportunity in the Arab Peace Initiative. That plan, initiated by the Saudis and adopted by the Arab League in 2002, and reissued in 2007, calls for recognition, security, and normal relations between all the Arab states and Israel in exchange for a comprehensive agreement between Israel and its immediate neighbors, based on land-for-peace, two-states, and U.N. resolutions. It's a potential game-changer, and the Obama administration (unlike its predecessor, which ignored the initiative) is apparently keen on using the initiative as a framing principle for its peace efforts. Its beauty is in its simplicity and in its comprehensive nature: everything for everything.