NEWS: PM Fayyad says the PA will cut spending and raise taxes to try to address a financial crisis. Israeli authorities charge 5 settlers in connection with an attack on a military base in the occupied territories. FM Lieberman repeats that he would like to remove some Arab villages from Israel in any peace deal. Jordan reportedly seizes the assets of Muhammad Dahlan and his brother. Palestinian reconciliation talks appear to be faltering as Fatah and Hamas exchange bitter accusations. The Palestinian version of "Sesame Street" loses funding for its next season due to a cut off in US aid. Israeli experts say they expect a large cyber attack sometime in the future. Palestinians are skeptical about prospects for renewed negotiations with Israel. Israel arrests four Palestinian men allegedly carrying weapons. COMMENTARY: Dennis Ross says the only way forward is for Israel to change realities on the ground to strengthen Palestinian leaders like Pres. Abbas and Fayyad who believe in peace and nonviolence. Phyllis Bennis says Pres. Obama's real problem with Israel is its policies towards the Palestinians. Carlo Strenger says secular Israelis and Palestinians should find enclaves from religious fanatics. Jeff Barak says Israel is probably headed for an early election. Susan Hattis Rolef looks at four possible scenarios between Israel and the Palestinians. Harriet Sherwood says splits in Hamas are becoming more obvious. Uri Avnery says Hamas' recent moves are making another war in Gaza less likely. Yossi Alpher says Israelis and Palestinians are too far apart for meaningful negotiations. Shaul Arieli says Israel desperately needs new leadership that believes in a two-state solution. The Chicago Tribune looks at the effects of the Arab uprisings on Hamas' policies and prospects.

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