NEWS: Palestinian officials say they won't yield to Israeli “extortion” regarding Palestinian tax revenues. Four men accused of a sensational “honor killing” that has scandalized the West Bank deny the charges. Palestinians accuse Israeli settlers of abducting a shepherd. Palestinian officials say Israel must abide by its commitments to a settlement freeze before talks can resume. Israeli artists say it's ridiculous for the government to offer a prize for “Zionism” in the arts. In the next phase of the prisoner swap, Israel may seek to boost Fatah instead of Hamas. The International Organization of Parliaments says the PA is a welcome member, but Hamas cannot join. Israel is planning to forcibly evict thousands of Bedouins from their homes to near a rubbish dump to make way for settlers. A hard-line Israeli MK heaps praise on the late Sen. Joseph McCarthy. Israeli occupation forces demolish two Palestinian homes in occupied East Jerusalem. COMMENTARY: Roger Cohen says there's a lot more for Jewish Americans to be outraged at in Israeli policy than ads warning against life in the United States. Ha'aretz says human rights are in danger in Israel. Khaled Diab says PM Netanyahu and Pres. Ahmadinejad are "gifts to each other but curses on their nations.” Caroline Glick says "under Obama, the US is no longer Israel’s ally." Elliot Jager reviews a new book about the “Stern Gang” Jewish terrorist organization during the British mandate. Gal Beckerman looks at a new book by Pres. Peres about David Ben-Gurion. Linda Heard says US criticism is good for Israel. Yossi Alpher says Palestinian financial vulnerability does not compromise their claims for independence. Ghassan Khatib says Palestinians have faced worse financial crises in the past, but the political impasse and stagnation is crippling. David Brodet says the recent financial crisis has shown how vulnerable the PA is economically to Israel and donor nations.

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