NEWS: FM Lieberman threatens a tough response to a Palestinian UN initiative. Greece cooperation is the key to Israel thwarting the new Gaza flotilla. The PA cabinet vows to resolve a fiscal crisis. Extremist rabbis are increasingly in conflict with the Israeli state. PM Netanyahu orders the disruption of a pro-Palestinian "fly-in." The UN Security Council will discuss Palestinian UN membership at its July 26 meeting. The UN says Israel used unnecessary force against Nakba Day protesters. The Palestinian prisoner issue sparks heated debate. A new poll shows continuing Jewish American support for Pres. Obama. A new study details the plight of nonregistered Palestinian refugees in Lebanon. COMMENTARY: Shaul Arieli says Israel must not let itself become a theocracy. Eitan Haber says Israeli decision-making is in deep trouble. Nahum Barnea says military rabbis are bringing Soviet-style indoctrination to the Israeli army. Adam Shapiro says Gaza flotillas have had an impact. Osama Al Sharif says the "Arab Spring" will transform the Israeli-Palestinian conflict. Reuters says the flotilla dispute foreshadows coming diplomatic tensions. Christopher Hitchens poses pointed questions to flotilla activists. Richard Falk says the flotilla is about the occupation. Bitterlemons interviews PLO official Hanna Amireh about a possible UN initiative.

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