There is method to this madness. The hope is that the US will blink first. The backup position is: we can always back down in exchange for some money.
The fatal flaw in the process is that the brainwashing of the public and the narrative that is being established is not fully reversible. The accumulated residue will become unmanageable at some point.
The cynical calculation by some likely includes: we will be outta here by then.
An old post for background: http://www.3quarksdaily.com/3quarksd...omar-ali-.html

It could have been different. But all the mistakes were not made in Pakistan. Uncle Sam made his share.
Anyway, here is an optimistic take from 2011: http://www.3quarksdaily.com/3quarksd...-omar-ali.html

and the 100 onions and 100 slaps strategy is explained here: http://www.3quarksdaily.com/3quarksd...-omar-ali.html