The New York Times blog investigates how Israel is attempting to use YouTube for propaganda purposes. A commentary in the Christian Science Monitor says Pres. Obama 's Nobel Prize does not sit well with Arabs or Palestinians because of the impasse in peace talks. Extremist West Bank settlers allegedly set fire to a mosque. Palestinian Christians call the occupation a "sin." An Israeli Cabinet minister predicts a settler population could grow by as much as 10,000 in the coming year. Israeli negotiations with the Vatican fail to change church policies. The EU calls the Palestinian police the cornerstone of a future state. The Jerusalem Post argues the US is scaling back Middle East diplomacy because of disappointment on peace talks. In the context of statehood, the PA is reportedly planning to resurrect the Palestinian pound. Reports continue that Egypt is building a wall along and underneath its border with Gaza, but the Egyptian government strongly denies this, and an editorial in the National says Israel and not Egypt is responsible for the humanitarian crisis in Gaza. Israel's ambassador to the US calls J Street a "unique problem."

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