Why is Ahmadinejad speaking out against Israel/USA?

[Melchior]

Here's why:

Iran's President Likely To Lose Favor

In the nuclear confrontation with the West, Ahmadi-Nejad has carefully cultivated his image as the champion of Iran's "inalienable right" to enrichment technology, which the United States and the West are seeking to deny.

His declaration in October that Israel should be "wiped off the map" was aimed not only at bolstering his support among conservatives in Tehran, but also assuaging Arab fears of rising Iranian power:

--By portraying Iran as the champion of the Muslim world against Israel, he sought to address anxiety among Iran's Arab Sunni neighbors about growing Iranian/Shia power by rallying them behind Iran against Israel.

If the nuclear confrontation with the West does not escalate, Ahmadi-Nejad's ability to project himself as Iran's national champion will diminish. His populist economic policies are unlikely to reduce inflation and unemployment, and they could make life more difficult for the working-class Iranians he claims to represent. He may increasingly be seen as a liability by Khamenei, who may move to sideline him.

[Sever]

That old trick, eh? Certainly nothing new. Politicians have been using the "common enemy" approach to unite a people and turn their attentions away from real issues for thousands of years.